'Debtrapreneur' determined to find way out of mess
Financial adviser Ray Langan has a tracker mortgage on his home and two buy-to-let properties. Mark Condren
THE rise in mortgage rates leaves Ray Langan resigned to having to go back to his bank to again restructure his mortgage debt.
But he is refusing to let it get him down and is determined to kick back against the relentless pressure being heaped on homeowners.
A native of Rush, in north county Dublin, his home is on a tracker mortgage with Permanent TSB. But complicating matters is the fact he has two buy-to-let investments, both of which are also tracker mortgages.
The pressure of meeting repayments means he has already got a deal to pay the interest only, and not the capital, on the three mortgages.
An accountant and financial adviser, he has been fighting hard in the past two years to get his debts under control.
Like many people during the boom, he ended up with huge loans -- his personal debts (excluding mortgage debts) were as high as €150,000 at one stage.
The property market crashed and he got chewed up in the chaos like so many others. He was also hit by the collapse in stock markets.
Mr Langan has since made huge efforts to cut his personal debt, with the amount owed down to €80,000.
Now working in sales, he has poured any spare cash he gets into paying down the loans and has also managed to get some of his credit card debt written off.
The ECB rate hike will not help his situation, but he remains philosophical.
"It is inevitable that a lot of people will go into arrears, but people should not ignore it and should take responsibility for their own financial situation."
Mr Langan admits he will have to go back to Permanent TSB to renegotiate his mortgage debt, but actually plans to use his heavily indebted situation to his advantage.
"I see myself as a 'debtrapreneur' -- someone who wants to work their way out of the challenges of debt by setting up a business to create income.
"I have set up a company called 'Full Finances' as a financial coaching company to give people the tools and mindset to turn around their finances."
He does not charge fees to renegotiate on behalf of someone who is heavily indebted.
"My system is called 'The Financial Regeneration Plan' and it is available for free at www.raylangan. com."
The point is that there is always a solution and that is what people should focus on, Mr Langan says.