Debt

Take control of your debt and plan for a stress-free future.

Benefits of being mindful about debt management

When practicing mindful debt, keep these aspects in mind:


Financial health

Managing your debt properly helps maintain a good credit report. Discover your borrowing options and learn more about credit reports here.

Interest costs

Always read and understand the terms of your loan, including interest rates, fees, and when you are expected to pay it back. Doing this means you’re fully aware of the cost of borrowing.

Reduce stress

Managing debt can help reduce financial stress and anxiety, which can lead to better mental and emotional wellbeing.

Avoid missed payments

Proper debt management helps you to not miss payments. Missed repayments can lead to charges, higher interest rates, and damage to your credit report.

Financial freedom

Reducing and eventually ending debt gives you more financial freedom. This means you’ll be able to put funds towards savings, investments, and other financial goals.

Financial emergencies

Managing debt means that you have the financial flexibility to handle unexpected expenses or emergencies.


Debt management strategies


Create a plan

List debts by amount, interest rate, and minimum payment. Choose which debt to pay back first by either interest rates or balances.

Choose a repayment method

Use the snowball method, where you pay off your smallest debt first, or avalanche method, where you pay off the debt with the highest interest rate first.

Bring your debt together

Combine debts into one loan with a lower interest rate to save money on interest and manage your debt easier.

Boost your income

Increase earnings through side jobs or selling items and use the extra cash for to pay off your debt quicker.

Taking on new debt

Do not take on new debt until you are managing your existing debt.

Prioritise high-interest debt

Cut spending on things you do not need and direct the savings towards paying off your debt.

Automate payments

Set automatic payments to avoid late fees and protect your credit report.

Use windfalls

Apply bonuses or tax refunds to debt. Treat them as money you never had to help reduce the overall balance.

Seek help if you need it

Talk to your lender for guidance or a debt management plan. If your debt is with Bank of Ireland check out our Money worries hub for more guidance.



Money Worries Hub

Find yourself under financial strain? We’re here to listen, support, and help find a way to relieve the pressure.

Learn more about money worries


The information prepared above by Bank of Ireland “BOI” is for information purposes only and does not constitute financial or tax advice. You should seek assistance from a professional if you require financial or tax advice. No liability is accepted by BOI for any errors or for any loss to any person in reliance on this information. BOI believes any information to be correct at 26/06/2025 the time of publishing and the information is subject to change without notice. BOI does not make any representations or warranties in respect of the accuracy of this information and is not responsible for the content of external sites. Please refer to our Terms & Conditions for the use of the Bank of Ireland Group Website for further details. Bank of Ireland is regulated by the Central Bank of Ireland.