# Change of financial circumstances - Could do with advice



## Danielle24 (10 Jan 2012)

Hey,

Basically, i'll be due to clear some loans in the next couple of months and i'll be getting a lump of sum of around 6k this month/next month. Was considering putting most of it away for a rainy day and just chipping away at my debts as i'll have extra funds available from clearing my loans anyways. Just wondering what peoples advice would be, what would they do??? I also want to look for a new job shortly so think I should have a safety net behind me


Income: €2,185 pm

Here's a look at my expenses:

Ulster Bank OD 0% € 642.00

Credit Union Loan 9.43%  €956.87 €200pm Savings: €470


R&S Alliance 0% €50pm € 1,620.00 

BOS Car 8.6% €180pm € 360.00 

AIB Loan 9.4 % €134pm € 3,293.07

Littlewoods €15pm €323 (Only this high due to Christmas)



Expenses:

Rent €380pm
VHI €10pm
ESB €20pm approx
Tax €27pm approx
Bins/Sky €18.50 pm 
Lotto €20pm (syndicate)
Phone €20pm
Food €175pm approx
Petrol €200pm approx
Insurance €66 pm


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## niceoneted (10 Jan 2012)

If it was me I would clear the OD and all loans except the larger one with AIB, this will leave approx 2,500 euro from the 6k you will be getting. I would put that in a high interest account - check the thread CiaranT has on that. I would add about 400 of the 445 money you would ordinarily be using to pay these loans to the account each month. 

I would stop paying into the lotto syndicate and instead if you want to be in some sort of money prize draw would buy 4 prize bonds every month, you'll be in your prize draw and you can get your money back at any time.

Just realised that the R&S loan is at 0% thought it was 10% on first reading, so I wouldn't pay that off and pay off the AIB one instead. That leaves you with a bit less left from your 6K .


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## elcato (10 Jan 2012)

I would pay the AIB, Credit union and Littlewoods loan immediately once you get the 6k. This frees up about 400 a month you can save seperately and in ten months you have got roughly the money paid into the loans back but less interest paid out on them. This also simplfies all your loan structures.


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## Danielle24 (10 Jan 2012)

Thanks for the replies guys, forgot to mention I owe college fees of just over 2k but I can chip away at this.


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## Macstuff (11 Jan 2012)

I would also use the money to get rid of the high interest loans ie AIB, Credit Union, Littlewoods and BOS. That will leave you with approx. €1,000 and two debts to Ulster Bank and Royal and Sun. 
Use the money you save on loans to build up a nest egg in a high interest account.

What happens to the O% credit overtime? Does it revert to a higher interest rate? 
Make sure that you can access the money you put in the high interest deposit account in time to pay down these debts, once the move from the 0% interest rate.


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## Danielle24 (11 Jan 2012)

Thanks MacStuff.

Just to clarify there will be no interest to pay on the 0% bill.


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## ClubMan (11 Jan 2012)

Danielle24 said:


> Ulster Bank OD 0% € 642.00


Is €642 the balance or the monthly repayment? 


> Credit Union Loan 9.43%  €956.87 €200pm Savings: €470


Is €956.87 the balance? And you are making €200 p.m. repayments? What is the €470? Bear in mind that once the requirement to keep money in shares while borrowing is taken into account this is probably your most expensive loan (with the possible exception of the _Littlewoods _one) and thus perhaps worth tackling first. Read this thread:

How to set your Credit Union shares against your loan


> R&S Alliance 0% €50pm € 1,620.00
> BOS Car 8.6% €180pm € 360.00
> AIB Loan 9.4 % €134pm € 3,293.07
> Littlewoods €15pm €323 (Only this high due to Christmas)


Monthly repayment and balance in each case?


> Expenses:
> 
> Rent €380pm
> VHI €10pm


Do you really need _VHI_?

http://www.askaboutmoney.com/showthread.php?t=151554


> ESB €20pm approx


Seems very low.


> Tax €27pm approx


Why list this separately? Is your monthly income figure above gross or something?


> Lotto €20pm (syndicate)


Ditch this if money is tight.


> Insurance €66 pm


Car? House? Both? Can you get a better deal? You don't have to wait until renewal time to shop around/switch.

Hope this helps/is some food for thought.


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## Danielle24 (11 Jan 2012)

QUOTE=ClubMan;1233500]Is €642 the balance or the monthly repayment? 
Is €956.87 the balance? And you are making €200 p.m. repayments? What is the €470? Bear in mind that once the requirement to keep money in shares while borrowing is taken into account this is probably your most expensive loan (with the possible exception of the _Littlewoods _one) and thus perhaps worth tackling first. Read this thread:

The 956.87 is the balance, repayment €200 pm and savings  €470. I'll be paying my payment this month and next month and gonna use my savings + extra balance remaining to clear this.


How to set your Credit Union shares against your loan
Monthly repayment and balance in each case?
Do you really need _VHI_?

I guess I don't but it's for dental insurance and has actually saved me a good few bob, and I feel happier having it.

http://www.askaboutmoney.com/showthread.php?t=151554
Seems very low.

ESB is about that, heating etc is gas. I houseshare.

Why list this separately? Is your monthly income figure above gross or something? Car Tax.

Ditch this if money is tight. Lotto is a thing in work between 6 of us would feel pretty mean backing out of it.

Car? House? Both? Can you get a better deal? You don't have to wait until renewal time to shop around/switch. This is car and is the best deal that I could get anywhere, fully comp with full NCB protection.

Hope this helps/is some food for thought.[/QUOTE]


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## ClubMan (11 Jan 2012)

> The 956.87 is the balance, repayment €200 pm and savings  €470.


Is the €470 the savings balance or what you are contributing each month? Remember that it often makes little sense to be saving while carrying debts.


> ESB is about that, heating etc is gas. I houseshare.


You don't have any figure for gas.


> Lotto is a thing in work between 6 of us would feel pretty mean backing out of it.


Your debts are more important than the _Lotto _(aka innumeracy tax) or letting your mates down in my opinion.


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## Danielle24 (11 Jan 2012)

ClubMan said:


> Is the €470 the savings balance or what you are contributing each month? Remember that it often makes little sense to be saving while carrying debts.
> 
> You don't have any figure for gas.
> 
> Your debts are more important than the _Lotto _(aka innumeracy tax) or letting your mates down in my opinion.


 
€470 is my savings. Payment €200pm.

Only recently moved in so don't have an accurate figure for gas yet.


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## sbrett (18 Jan 2012)

Hi all,

I'm a reporter with the Sunday Business Post. Looking to speak to somebody in relation to a financial overhaul -- the type of savings made day-to-day, and where, especially in situations where income changed quickly, etc.

If you feel like you fit the bill, please email sbrett@sbpost.ie.

Thanks

Siobhán


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