MABS, the State’s money advice service, is there to help all kinds of people with all kinds of debt and financial worries. It is the only locally accessible, face-to-face debt and money advice service in the country which is completely free to all.

MABS is in every local community and it helps people without judging. Its service is completely confidential. MABS supports people to manage their money, through agreeing sustainable ways to pay debt, whilst also maintaining a reasonable standard of living.

For farming families, doing this can be particularly challenging. The income arising from farming can be unpredictable and irregular – this can make it difficult to budget your household for a year, making provision for the regular expenses, as well as the bigger events you may know are around the corner, and yet also putting something away for a rainy day.

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Many farming families will also have an off-farm income now. If that is the case, then it can provide some predictability in preparing your family budget. MABS has a strong record in supporting farm families in preparing a household budget that is realistic and which will allow a farm family to gain some oversight and control of the household money. The MABS website (www.mabs.ie) is a useful resource for this. Once there is a budget in place, it is possible to get a clear picture as to what funds are available to pay off the debt.

Of course, debt needs to be paid off, and anyone taking out any kind of borrowing knows this at the outset. People generally take out credit in good faith, fully intending to repay in line with their credit agreement. Unfortunately, sometimes that is just not possible – the unexpected can always happen, leaving a borrower in a position where the choice is to feed the family or pay the loan. Farm families are particularly susceptible to unanticipated changes in income – a wet summer or changes in international markets are beyond the control of any farmer and can have a very serious impact on the household income. What do you do?

Many families – whether farming or not – find themselves facing this question every day. Our advice is always to stop, and think. If creditors are calling you or writing to you, please do not ignore them – you need to speak with them. What you do not need to do, however, is to agree to payment plans under pressure. Take the time to draft your budget and see what you can afford – this amount should be one that you can afford for the foreseeable future, and which you can pay without creating undue hardship for your family. Finding this balance – which starts with drafting your household budget – can be a little tricky at first. You need to take time, which is why, although it may be tempting to agree to any figure over the phone in order to end the call, you may only make things worse.

Many creditors are happy to negotiate. They will want to see your budget, they will want to know they are being made a reasonable offer, they will want to know you can keep to this new arrangement.

For some families, the figures will just not add up, and a more formal arrangement with a creditor may be required. MABS is an expert in supporting families to reach voluntary arrangements with their creditors – these are agreements which you and your creditor jointly come to, through which you can pay a significant portion of the debt, and, in many cases, where the creditor may agree to some writedown. Laws in the area of insolvency can offer a legal solution, and, again, MABS has expertise in guiding and advising on these, as well as in the processing.

Remember you are not alone

If you think you could benefit from a chat with a MABS adviser, then please get in touch. If you need to draft a budget, in order to help you speak with a creditor, check out the www.mabs.ie or call the helpline on 0761 07 2000.