Debts can very easily get out of control. In Ireland, any form of credit is a debt, so unless you pay cash for everything then you have debts. It is only when you are unable to keep up with the payments that it becomes a problem.

As a student it can be difficult to avoid some level of debt, however it is important to look at your limitations and when you are likely to be in a position repay a loan. As Roy would say: 'Fail to Prepare, Prepare to Fail'!

It is important not to panic about debt problems but also you shouldn't ignore them, they won't go away. There is help and free professional advice out there. So go get it.

Here are a few general tips to help you manage debt:

• Work out a budget. List all the income and expenses for your household. Be honest and make sure that the amounts are realistic.
• Don't skip debt payments. Your debt increases, and with credit card rates averaging 18%, you are digging yourself into a hole.
• Make sure you know what interest rates you are paying on all of your credit cards and loans, and shop around for the best rate.

Before you can tackle a debt problem, you need to collect together information about your money affairs. Make a list of all the people and companies you owe money to (your creditors). Once you've made a list of all your creditors, you need to work out which ones to deal with first.

See if you can negotiate a better deal with your creditors. Inform your creditors that you are in difficulty. Show them your budget. Reputable lenders will have a reasonable view if they know the circumstances.
As a general rule, do not borrow more money to pay off existing debts. It increases your outgoings and just delays dealing with the problem.

For Further Information

Money Advice and Budgeting Service (Ireland)
www.mabs.ie
Citizens Information
www.citizensinformation.ie
Your Local Students? Union