# House Hopeless??



## Floating (20 Sep 2007)

Age: 25 
Spouse’s/Partner's age: 25

Annual gross income from employment or profession: 33000 + Over-time & partime Job €9000 appox
Annual gross income spouse:29000 + part-time work 11000appox

Type of employment: e.g. full time  

Expenditure pattern: In general are you spending more than you earn or are you saving? Yes

Rough estimate of value of home
Mortgage on home N/a - rent 800
Mortgage provider:N/a
Type of mortgage: Tracker, interest only, fixed rate
Interest rate

Other borrowings – car loans/personal loans etc
Personal Loans €6500
Partners Loans €15000

Do you pay off your full credit card balance each month?  No
If not, what is the balance on your credit card?  Both us about €11000

Savings and investments:None

Do you have a pension scheme? No

Do you own any investment or other property? No

Ages of children: N/a

Life insurance: n/a


*What specific question do you have or what issues are of concern to you? *

As you can see we are in major debt and at the moment there seem to be no way out, have approached a number of 0% credit card companies to transfer the balance but are been rejected(which is very frustrating and annoying), our own bank is also refusing to refinance the lot. So that we can't get out of the circle of credits cards, paying an average of €150 a month interest so every time we pay our CC it feels pointless by the time I open the next bill. We would love to buy a house but it seems pointless to even consider going to talk to a bank about a 100% mortgage considering our current position. We are both taken on part-time jobs to try and clear the debt but don't really seem to be going anywhere. How can we fix this? Are plan was to have our House by next March But I can't see this happening. Our debt is from a long travelling session and return to major family issues so not working on return for 5 month's. Our combined living cost a month is very low, cooking, socialing at home, shopping at lidi etc. so, not sure if I can cut our expenses in any other way than reducing the loans. Any suggests as to where to start


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## Sue Ellen (20 Sep 2007)

Hi,

Obviously as is mentioned constantly on AAM you need to concentrate on getting the credit card debt down asap. With a combined income of €82,000 you should be able to make some sort of inroad on your debts. 

In light of your refusal from credit card companies and bank you should seek advice from www.mabs.ie to see what help they can give.


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## efm (21 Sep 2007)

I think you need to give more detail on your monthly outgoings - a gross income of eur82,000 per annum and paying rent of only 800 you should be able to handle it - your figures don't add up.  Have you sat down and done a monthly budget / analysis to see exactly where the money goes?  What is the repayment schedule on your loans


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## Floating (21 Sep 2007)

here are been a number of large expenses since we returned to work and Ireland this year, i.e. We bought on old banner of a car so that we could pay out right for it. I have had to have an unplanned operation costing 4k and my partner's college fees also cost just under 4k. Oh we got engaged and I’m presuming the ring took a couple months of his wages too. There has been to large expenses every month since we returned to work but hopefully that is the end of the surprises (fingers crossed). I have looked at mabs website and there is some good spreadsheets which I’m going o fill in over the weekend to get a clear picture of what’s going on and where to go forward. If we do get our finances in order, Will the banks remember the fact we had a bad year this year and refuses us for a mortgage. Would there need to be a period of good credit balances. I’m currently paying about €500 per week into CC and bills.


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## Nige (21 Sep 2007)

Send a Med1 form with details of your health expenses and details of your partner's college fees to your tax office to see if they can code them into your current year tax credits. If they won't, just get a tax return in for 2007 once the year is over. 

You will get relief at your marginal rate for your operation and 20% on the college fees (presuming it's a qualifying course).


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## SuilAmhain (21 Sep 2007)

I'd suggest bringing the ring back if possible and using the cash to clear down debt. Plenty of time for diamonds when you've cash in the bank


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## SarahMc (21 Sep 2007)

Your partner has a full time job, a part time job and is studying.  How has he time to spend money??



> I’m currently paying about €500 per week into CC and bills.


 
When you say bills do you mean repayments on the loan, or general spending?


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## z109 (21 Sep 2007)

Cut up your credit cards. Don't use them for anything. It won't fix the bill, but it will stop you adding to it.

Pay for everything by cash. It's a lot harder to spend the money you are working so hard (two jobs) to earn when you see the five euros going on the paper and a couple of bars of chocolate. 

If you smoke, try and give up, or at least smoke rollies.

Best of luck.

PS. don't be too hung up about buying. Assuming a 250,000 mortgage @ 5% over 30 years, the monthly interest is 1040, with the capital repayment 300. At the standard level of repayment, it will be 2019 before the interest on the mortgage is less than your current rent! You will make life much more comfortable for yourself in the future if you can clear your debts, carry on saving until you have 10-15% deposit and money for fees etc. and then comfortably afford to buy in the knowledge that you can relax into the future.


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