# personal debt dilemma



## Marinchik (17 Feb 2011)

Hi All,

I need some advise on my personal debt.

Originally I have taken out a loan with GE Money for €11,000 I have about €7,000 left there and also during couple of year I have got into debt with my Credit Card and the balance at a moment is €3,000. I would pay €500 per month into my credit card by then I’ll be short and would bit by bit take that €500 out again. My net income is €2,000 per month. 

My monthly repayment with GE is €265per month and €500 per month VISA.

The other outgoings would be as follows:
Rent €450 per month 
Support my family in Latvia €300 per month (no way I can reduce or cancel)
Bills €100 per month
Groceries €200 per month

Total outgoings: €1815 per month, whatever left I try to put away for a holiday to go to Latvia to visit my family.

I was thinking to consolidate the above into one manageable loan say take out €10,000 over 3 year. Would there be any bank that would give the loan these times?

Thank you,


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## niceoneted (17 Feb 2011)

Not sure who would offer a loan, but you could try to write down everything you spend so you know where it is being wasted. 
Try also to move to a credit card that offers 0% balance transfer and if you can get one that is for 8/10/12 months all the better as you can lower the monthly repayments. 
I think the problem is that you are leaving yourself too short every month by putting the 500 by to visa. Start thinking it will be clear before the end of the year and I'll have more money to save/play with then.


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## alaskaonline (17 Feb 2011)

You obviously don't state all your outgoings....you are left with 185 per months, 46 Euro per week after rent, bills, CCs, loans, food and even your family in Latvia is paid. Why are you short?


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## Marinchik (17 Feb 2011)

Yes I haven't mentioned all other small out goings like bus fare, personal care stuff, clothes/shoes for work now and then, and then there is always someones birthday, some work related outgoings, but bear in mind that I also put away for my holiday to go to Latvia once a year, so I try to put away €100 per month. So there be nothing left and i will use my VISA


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## alaskaonline (17 Feb 2011)

no offense but if you're short with money you can't save up for a holiday. besides you state that you owe the CC bank 3000 Euro while paying off 500 Euro a month. Without the interest rates that's paid off within 6 months. I don't know what interest rates you're paying but as previous poster suggested move to one with 0% balance transfer. If you focus on paying off your CC, this situation is only temp. After that you have 500 Euro a month extra which will then help you to save for your trip but for now, if you want to improve financially, re-prioritize!


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## Marinchik (17 Feb 2011)

Thanks for your reply,

Its not much of a holiday when I go home per ce, I've been living in Ireland for the past 9 and half years, and I only see my family once a year, if I to pay off VISA this year then i wont see ym family for another year. I'll re-prioritaze, thanks for understanding!


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## Graftgirl (17 Feb 2011)

€500 per month to your credit card seem like a good payment with the balance on your CC being only €3000.
If I were you I would pay maybe €300 pm off the credit card(which more than covers the minimum monthly payment)
Then the €200 surplus plus the €100 you save per month. Totalling €300 per month savings, with this €300 I would open a credit union account and save this €300 with them monthly to begin a rapor with them, they are much friendly than the banks and you would in time have enough money saved with them to borrow from them to wipe out the GE Loan and what ever balance would be left on your credit card.


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## Bronte (17 Feb 2011)

Cut up the visa card, don't pay the 500 to it.  Live on what you have only and put whatever you can to the visa bill and save for your annual holiday.  

Small things really matter.  Writing them down focuses the mind and gives you ideas on where to make cuts.   We understand that you need your trip home, which I don't consider a holiday and the 300 to your family.  To get out of debt you need to also reduce the small things.  That means cancelling work related things and birthday presents.  

Can you redo your figures as what I get is 265 +450+300+100+200=1315.  You cannot add on the 500 Visa figure to this figures as you are spending it again.


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## Khublei (17 Feb 2011)

This might be a silly suggestion - but did you buy anything with that €11k that you could sell?


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## Marinchik (17 Feb 2011)

Thank you so much for all your replies I will pay off €500 this months then will cut down on few things and maybe wont put away for a holiday this month so then next month I'l pay onyl 200 tovard VISa, I was also thinking to ask my bank (Permanent TSB) may be to set up a direct debit of €200 or even better transfer the balance as a personal loan so I won't have to pay massive interest.

I haven't bought anything, that money went for first my granmothers stomack operation and then my mums knee operation, one purchase was my laptop I needed for college which doesn't really work properly now so I won't be able to sell it, then it was a top up when I needed money for my holiday one year. 

Ofcourse, sometime I've been reckless with my spending, I guess when you younger you go over board thinking it'll get sorted later but its only is piling up. I wasn't thinking that there ever be bloody crisis and my salary be cut down significantly.

Thanks again!


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## iscritto (17 Feb 2011)

Did you try to get a loan to clear the debt with GE Money

http://www.askaboutmoney.com/showthread.php?t=129611

If you pay 265e every month that just over 3k a year - as per your post last year the loan was 8500k - now its 7k ... that's 1500k a year in interest.


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## shinners (17 Feb 2011)

Marinchik said:


> I haven't bought anything, that money went for first my granmothers stomack operation and then my mums knee operation,
> 
> 
> 
> ...


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## Khublei (18 Feb 2011)

shinners said:


> As some of the debt was used to pay for medical expenses have you looked into claimed tax relief on these costs?



But I'm guessing the people are in Latvia so I don't think he can claim. 

Wish I could offer more advice. Just be sure you're getting the lowest interest loan you can. €1500/year is nuts.


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## horusd (18 Feb 2011)

> But I'm guessing the people are in Latvia so I don't think he can claim.


 
From looking at Revenue website there doesn't appear 2 be a requirement that the expenses are incurred in Ireland. IT's worth a try.

I had a loan from GE money many years ago. The interest rate was shocking. Do you know what the APR  % is?  How does this compare to your credit card APR % ?  

Can you switch to a 0% Credit card and focus your payments on the GE loan?


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## Evelina (19 Feb 2011)

He could claim expenses incurred abroad.

But I don't think he would be eligible for any expenses incurred abroad for relatives' treatments, but worth checking with Revenue.


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## oscar41 (21 Feb 2011)

hi mbna do a credit card for 10months intrest free the offer is up for me in april, so i will then hop to another 0% credit card...it really helps when trying to get other loans down...4 3,000 ur payme will be about e35 pr month...best of luck


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## Laura322 (3 Mar 2011)

It is definitely worth looking into the Revenue Med 1 form.  As far as I know you can claim on expenses incurred abroad and also expenses paid on behalf of others.  It could add up to a lot.


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