Advice needed re finances please.

Emma
you must action a plan that allows you to live, call mabs and arrange a meeting as a matter of urgency.

Keep your chin up, getting a plan started will feel like you have won the lotto.
 
Just wondering are you all "keepin up appearances" in public??

I mean, when I come and read all these stories about people being in so much debt, I feel much better ( Sorry.. I know its sad!), but when I go back to my "real" life.. it seems.. everyone is doing what they used to do.

I mean, everyone is still planning for summer holidays next year... weekends away, christmas shopping etc.. nothing seems to have changed apart from people talking about how they have had to change their shopping habits.. . going to Lidl or Aldi instead of Superquinn.. but it seems everyone is doing everything what they used to do... apart from me, who has had to cut down on holidays.. weekend nights out etc..
!! :((
 
I would imagine you probably have a standard "bell curve" here. 10-20% of people are seriously under pressure, 60-80% are affected but still have purchasing power, and the remaining 10% are "well off".

Remember unemployment is 14% which means the vast majority are still earning. Yes salaries have come down but so too have costs and a lot of silly spending.

Most have cut back on spending but not to the point where they don't spend anything.
 
There is a lot of denial out there. You stick to your plan, dont be ashamed to tell anyone you are cutting back, it is the sensible thing to do in this environment.
 
More advice needed, please.

My husband has 2 options at this stage...he has almost given up on the 3rd Option - A job. He is out of work for nearly 2 years now. So, its either he goes to UK and look for work there (doesnt know anyone there!) or the other is to be self employed. The business idea may/may not work. But sitting at home is doing no good to him / to our relationship.

We need to borrow.. yet more more money. around 25K. What would you say - should we? Take a chance? I know we are already under considerable debt .. approx 70K personal debt (not including 3 mortgages).

The way he is looking at it is.. if we don't take a chance now... it may be never. We are already minus 70K.. - we will be minus 95K/ 100K -
But if the business kicks off..... we could be back to positive numbers in the next 1-2 years?

He really wants to go ahead with it. I am not so sure.
 
I am afraid there is probably no decision to be made regarding whether to borrow more or not, highly unlikely any lender would consider giving you more in present economy.
 
We dont have much hope on getting money from the banks.

We are trying to approach Credit Unions?

Also, I have heard of Local Partnerships (support offered by Dept of Social Welfare for long term unemployed?) - maybe they can give small loans. Anyone heard of them?
 
You are into a whole new ballgame now. Starting a business can be a big undertaking. You should read through other posts about starting businesses.

If you view starting a business and borrowing to do so as a "taking a chance" then its likely to end up with you owing a whole lot more money. You need to research your idea etc etc. There is no point starting a business just to get someone off the couch. There are consequences to failed businesses.
 
With "taking a chance" - I mean, you cannot gurantee it will work. My husband has done a lot of research. He is getting the premises on "rent only" basis. But we still have "start-up" costs of approx 25K. It is not a lot of money in business terms. But for our situation, it is quite a lot of money.

Sitting at home and doing the research and thinking will it / won't it... is not a good idea either, in my opinion.

I have to laugh at MrsMuppett's idea of selling all the houses that are in Negative Equity and let the State pay the rent for me!!! Very original. I dont want to start up the discussion on depending on State Help. I prefer to help myself as much as I can. I am not the first who has "over" spent and I am sure, I wont be the last. I am looking for ideas to help me get out of this situation... not asking State to pay my Rent.
 
I know he is probably desperate to do something.... but I know somebody who set up a business a while back... in my opinion without thinking too much about it... and now less than 2 years later is 50k in debt. Debt collectors were hasssling, partners not facing up to obligations etc. Various family member have stumped up the 50k to get the debt collectors to back off.

In the absence of knowing what the business is it's hard to comment. Maybe I'm conservative but if I was in so much debt then I would not consider starting up a company.
 
I agree with fraggle. Can you tell us anything about the nature of the business your partner proposes to start? It would be a very difficult undertaking with the level of debt involved and the fact you need start up costs of €25,000 plus rent plus standard outgoings involved in running a business etc.
 
Startup cost of 25K includes 3months deposit and back-up for first few weeks e.g (staff pay / Stock etc...)
 
I reckon if he can get work in the Uk he should go there. Use the money he earns to get some of your CC debts cleared. So what if he doesn't know anyone there. Lots of people go there and work or to other countries for that matter.
Get him to get his CV together and send it out to as many agencies and apply for jobs there.
I don't think you will get the 25k from any lender and I think you would be foolish. It would want to be 100% guaranteed to make a profit from day one before you should consider it.
 
Emma, just to clarify a situation. and I do accept that you want the best for your kids. The three Life Assurance Policies are not required -- just one for your own place of Residence. Your broker is not doing you any great favours - he is raking in the commission. Maybe consider stopping the two in relation to the rental props and take out another for a smaller amount -- and do yourself a favour -- find a different broker.
 
Emma this is madness

does your husband have any experience of running a business other than the rental properties? has he any idea of what would be involved in actually running the business? any knowledge of accounting or even basic budgeting? I'm guessing not from the mess that is your personal finances

you need to stop panicng and clutching at straws. try to follow some of the advise here, but don't just rely on this annonymous website, spend some of your time reading educational sites like itsyourmoney and get to grips with basic concepts like insurance and you cna help yourself out of this mess rather than just flitting about from one crazy idea to the next
 
What does "rent only" mean.

If you mean there is no key money, then I would respectfully suggest you stay away from business, no one is paying key money for vacant properties in this climate. The country is flooded with unoccupied retail premises, any landlord fortunate enough to get a tenant is busy giving rent free periods and reduced rent periods.
 
So, no one thinks its a good idea?

Anyone??

i do understand where all the replies coming from. I agree with most of them. But you see, its very hard not to give it a "try"!!

number7 - we are getting the premises Rent Free for 3 months, and low rent plus No key money. It seems good enough deal? Our family is in business for several years - different business but the basics of most business are the same. They are going to help with the accounting etc..
They dont have enough funds to support otherwise we wouldnt have to borrow money from banks / cr unions etc.
They agree ... its a lot to take on but also appreciate that we are still young family and sitting at home is not good for both body and mind!
 
You are asking "will this new business idea we have succeed"? No one can answer that without seeing a business plan and having the expertise and experience to give that opinion. It really doesnt matter than you are getting 3 months rent free.
 
Mrs. Muppett, I wish I had the pleasure of sitting at home! I would then have the pleasure of getting rent from the state along with other benefits.

I leave home @7am and dont see my kids all day as I am working full time!
 
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