# Tight income advice welcomed



## Stargirl (7 Sep 2007)

Age: 38
   Spouse’s/Partner's age: Separated

   Annual gross income from employment or profession: 16,000 also 1,000 per month maintenance for children...total monthly income after tax approx 2,300

Childrens Allowance:320 per month

Type of employment: Administration

Expenditure pattern: In general are you spending more than you earn or are you saving? Not saving, spending as fast as its coming in and more

   Rough estimate of value of home: 530K
   Mortgage on home: 198 remaining
   Mortgage provider: EBS
   Type of mortgage: Standard Variable
   Interest rate: repayment is 1100 per month

Quinn healthcare: 67 euro per month

   Other borrowings – 7,500 credit union loan 370 per month repayment

   Do you pay off your full credit card balance each month? No 
   If not, what is the balance on your credit card? 2,500

Arrears to pay off to Dublin Council 485 remaining

    Savings and investments: 940 Euro c u shares (cant be wthdrawn till loan is cleared) 750 Euro in EBS 

   Do you have a pension scheme? No

   Do you own any investment or other property? No

   Ages of children: 11+9

   Life insurance: for mortgage only

Mortgage repayments are 1100 per month and pay 67 euro per month for Quinn Healthcare

Hi I would appreciate any advice as things are tight.  I was working full time but this was not cost effective as childminding cost more than the difference in pay.  Working part time have no childminding fees due to family helping out.  Thanks everyone


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## ClubMan (7 Sep 2007)

Stargirl said:


> Rough estimate of value of home: 530K
> Mortgage on home: 198 remaining
> Mortgage provider: EBS
> Type of mortgage: Standard Variable
> Interest rate:


What rate? I would imagine that there are cheaper lenders out there that you could switch to especially on a _Loan To Value/LTV _ratio of c. 37%.

Have you considered doing an equity release or trading down to pay off your loans? There are pros and cons to this (e.g. ideally you should consolidate loans but pay them off over something similar to the original term) but in this case you own c. €330K equity in your property but have debts of €10K so it might make sense to use the former to clear the latter especially if you can avoid running up the debts again. If you find that you cannot do the latter then you may need to budget more tightly to live within your means.


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## Stargirl (7 Sep 2007)

Thanks Clubman, but I cant switch to another lender as I wont qualify on my income.  The current lender only upped the loan to the present level to buy partners share out as I had been with them for 15 years and otherwise the house would have had to be sold. 

They told me that if it was a new application I wouldnt qualfy for 198 or anywhere near it. Apparently most lenders wont take maintenance into consideraton even if its agreed legally.


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## ClubMan (7 Sep 2007)

Are you chipping away at the debts or are they increasing as fast as (or faster than?) you make repayments? Have you spoken to MABS? Is trading down an option?


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## hlm (7 Sep 2007)

Are you sure you've applied for all available allowances? FIS, medical card, appropriate tax reliefs? Also, is there any way you could rent a room in your house? You could make up to an extra 500 per month tax free. Is there any way of increasing your income? Ask for a pay rise maybe or possibly changing jobs?


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## Kendr (7 Sep 2007)

Tight on your own with kids that age who want every new thing.

Well done for just surviving.

Can current lender extend terms of loan?  Worth a chat with them on that.  Will take longer to pay off but could cut you some slack in the short term.

Ditto with Credit Union - they're quite undestanding about changing repayment terms.  Could free up a couple of hundred a month.

Is the healthcare for you?  

Not a great choice, but don't forget Irish healthcare system is free.  We may not trust it - but could you risk no healthcare for a couple of years?

Not much wriggle room in your budget, but even trying to cut spending by €20 a week can make a difference.

I'm an innocent on this - but if your struggling - can maintenance payment be increased or are they set in stone?


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## irishlinks (7 Sep 2007)

If you are working over 19 hours a week - definitely apply for Family Income Supplement - (Maintenance for the children is disregarded in the FIS calculation.) You could get around 400 a month.


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## Stargirl (8 Sep 2007)

Im making my loan repayments to CU and paying min payment off ccard so eventually they will be paid off. 

Thanks for all the advice I will look into the FIS as didnt know I might be able to get it.


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## SarahMc (8 Sep 2007)

On your wage you might also get a top up of one parent family payment ( you can claim both this and FIS) .  

Do you really need private healthcare when you have a medical card?


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## irishlinks (8 Sep 2007)

I don't think she ever said she had a  medical card - but maybe she should try?


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## Stargirl (9 Sep 2007)

No I dont have a medical card,  am going to look into this.

I have always worked for everything and never claimed anything off the state but I am now going to check out what I am entitled to.

Thanks again.


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