# Advice needed with financial mess.



## nomoneylady (14 Sep 2008)

Hi every1,
Im new to this
i need advice please. So here goes...
Ive an overflow of loans 
30K credit union
10k car loan
10k term loan
4k family
2k family
Ive 5yrs on the credit union and 3yrs on the car and term loan. The family loans i need to clear asap for my own sanity.
I dont have a mortgage my rent is 650 a month and between my partner & i, we've an annual income of aprox 60k we've also 1 child together & my partner has another child. 
Its just a big mess.
What i was going to do was ask the credit union to take on all the loans over the longest period of time but im afraid to go near them.
Im truely foolish can some1 please advise


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## mercman (14 Sep 2008)

*Re: help ive really messed up*

Hi Nomoney. Tell me is the 60 K earning Gross or Net. Basically is that what the two of you are bringing home or before Tax ?? The 5 years and 3 years for the loans -- is that what you have left to go or the period of time you are into them ??


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## Complainer (14 Sep 2008)

Go to your local MABS office tomorrow and get their advice.


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## nomoneylady (14 Sep 2008)

60 k is before tax and all the rest, and the 3 and 5 yrs is whats left on the loans.


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## Celtwytch (15 Sep 2008)

Please don't be afraid to talk to your credit union - the staff aren't monsters!  If you go and explain your predicament, they might be able to help.  I notice that you have 5 years left on your credit union loan, though - as far as I'm aware, 5 years is the max for one of their loans.  Does this mean that you have only just started that loan?  Regardless; if this is not your first loan with them, they can look back over your history and see how you have handled any loans in the past.  If all is in order, they may be able to extend your existing loan to pay off at least some of your other debts.  It doesn't hurt to ask, anyways.  Also, MABS can give excellent advice, and maybe even contact some of your loan providers on your behalf.  Best of luck.


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## so-crates (19 Sep 2008)

Nomoneylady

Your total debt exceeds your annual net income (after tax). 

I'd concur with Complainer - talk to MABS first. You already have a 30K loan with the Credit Union and for them to take on the whole lot you would need them to loan you another 26k. So you are talking about almost doubling your loan with them.

Not to be harsh but you are foolish, you won't be able to start tackling the debt until you own up to it to someone face to face I am afraid, so that means talking to someone in MABS or in your Credit Union. Just remember - you aren't the first and you won't be the last person to find yourself in this situation. They will have seen it before and probably know several people in your vicinity that are in similar difficulty. It will be a relief to unburden your difficulty to someone who can perhaps direct and guide you in the best approach. It won't be an easy or a quick solution but at least once you have a way to progress it will be less stressful on you.

I am going to guess that at the moment you aren't in default on any of your loans and are keeping all repayments up? 

For your "sanity" you may prefer to pay back family but unless they are in need of the money themselves, I would suggest talking to them and asking them for a years break in order to allow you start managing your debt and bringing it's level down. I am going to presume that they have given you the money as a no interest loan so it would be by far the cheapest loan to extend in that regard. Even if it is the most uncomfortable loan to have to ask that favour on. This is something of an accusation but were you entirely honest with the family members you borrowed from? Did you explain to them your level of debt before accepting their generosity? No bank would be willing to lend to you without establishing that first but family do not have the same processes and procedures in place to protect against bad debt.

Fundamentally though, there is something awry in your lifestyle. You don't need to answer but how have you managed to get yourself so far into debt? The only loan that you have listed as being secured on an asset (and that on a depreciating one) is the car loan. So you need to ask yourself why you are living so far beyond your means that you have taken out €46,000 in unsecured debt? You need to seriously address your lifestyle overspend. You appear to have a chronic problem with spending money that you don't have and you would seem to have very little to show for it. If you consolidate these loans and then continue with the same grotesque overspend you will be 2 years down the line and in an even worse position. With larger loans to repay and more difficulty in paying them. Start with the basics. Draw up a budget and stick to it. Use a spending diary to keep track of everything you spend and you and your partner need to justify to each other and yourselves each cent that you do spend. You are in this together. You need to address it together.


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## NorthDrum (20 Sep 2008)

Whatever you do, dont be afraid to discuss your situation with MABS or your local credit union. 

I myself owe money to family members, but they always knew it was long term loans (its actually money my wife got from her parents). I suppose it depends on how much they will need the money back. Look at it this way, if they had invested what they gave you, it would already be worth less then what you would owe them (considering financial markets). 

Not sure what relationship you have with them, but you werent embarressed to take the loan off them, surely you wouldnt be upset to just ask them to bear with you while you try to get your finances in order.


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## BoscoTalking (22 Sep 2008)

nomoneylady said:


> What i was going to do was ask the credit union to take on all the loans over the longest period of time but im afraid to go near them.
> Im truely foolish can some1 please advise


first of all its easy to agree when you say you are foolish but i don't. You have had a dizzy spell where you spent way more than you should but you are being very sane and proactive now and like it or not you will have to be very head strong and ruthless with yourself now in order to ensure you climb out of this situation and back into the black. 
Call to Mabs and speak to them - we all think we are the worlds worse but you know they will have seen worse situations and helped where they could and i don't think they will be as scary as you have made them out to be in your head. it will take the cutting back on everything, groceries, utilities, petrol, kids-stuff (probably the hardest) but you are in good company these days - because like it or not we all are doing this in this uncertain time.


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