The Minister for Jobs Richard Bruton says struggling homeowners have to reassess their priorities when it comes to making arrangements to pay their debts.

It follows reports that banks are asking people in mortgage difficulties to give up their health insurance, foreign holidays and TV packages among other things when renegotiating their loans.

New minimum income guidelines will be published next week by the Personal Insolvency Service. It means banks can dictate the lifestyle of some homeowners who are looking for debt forgiveness.

Personal Finance Editor with the Irish Independent is Charlie Weston. He has outlined some of the sacrifices people will be expected to make.

"Well if people want a debt deal they're going to have to give up the private health insurance, there's also going to be an emphasis on ditching that foreign holiday and getting rid of a second car" he said. "Plus, private education is out" he added.

Minister Bruton says each case has to be taken individually and guidelines will be needed. But he says there has to be a compromise.