Debt can come in many forms, from credit card repayments to car loans and mortgages.

With research showing that over-50s are the most likely to face insolvency due to being over-indebted, how can you manage your debt?

Financial advisor and founder of askpaul.ie Paul Merriman said the rate of debt experienced by those over 50 is unsurprising.

“I think this is the Celtic Tiger still coming back to haunt us,” he told The Pat Kenny Show.

“I think it’s those mortgages that were sold off and mortgages that were put into the distant future when interest rates were manageable, especially for tracker holders.

“That’s probably been the main reason over the last couple of years, to be honest with you, that people are really struggling with interest rate rises.”

Stressed couple arguing over debt. Image: samuel wordley / Alamy Stock Photo

When it comes to dealing with debts, Mr Merriman said the first step for many is to face the music and properly examine their financial situation.

“When it comes to burying the head in the sand, you’d say to them, ‘Just ring the lenders that you know you have’,” he said.

“So, it’s typically the mortgage, it might be a Credit Union loan, a credit card, a personal loan.

“Ring them and the four questions to find out is, how much do I still owe you? What’s the term remaining on the loan, the interest rate, and then, what am I repaying?

“Once you have those four figures, it’s starting planning; you take your head out facing it full on.”

Achievable goals

According to Mr Merriman, when looking to repay debts, people should focus on hitting achievable goals first.

“Most people think you pay down the one with the biggest interest straight away because that’s cautious – it's not always the case,” he said.

“What you’re trying to do here is, you’re trying to make sure that you can clear the lowest loan as quickly as possible.

“To keep your momentum and give yourself a sense of success.”

Main image: Man with many bills or invoices and no money. Alamy 2024