# In a lot of debt, something has to give



## VWorried (6 Jan 2009)

Previously posted in another forum, was advised to come here.

Age: 34
Spouse’s/Partner's age: 35

Annual gross income from employment or profession: 35000
Annual gross income of spouse: 38000

Type of employment: e.g. Civil Servant, self-employed 
Financial Services - the irony isn't lost on me!

In general are you:
(a) spending more than you earn, YES
(b) saving?

Rough estimate of value of home 300k
Amount outstanding on your mortgage: 255k
*What interest rate are you paying? 3% on 80k, balance fixed at 4.65% until Aug 2009*

Other borrowings – car loans/personal loans etc


Credit Card 1 3700 - 111p/m
Credit Card 2 1000 - 32p/m
Credit Card 3 4800 - 146p/m
Credit Card 4 4200 - 240p/m
Credit Card 5 1000 - 24p/m
Credit Union Loan 15000 - 350p/m
Bank Loan 12000 - 275p/m
Jt Bank Loan 9500 - 325p/m

Total 1503p/m

The joint bank loan figures shown are 50% as husband pays half. All figures shown are up to date balances and the current months repayments.


Do you pay off your full credit card balance each month? No
If not, what is the balance on your credit card? Total of cards is 14.7k

Savings and investments: None. Bank shares which were worth 4-5k a year ago, now worth around 500.

Do you have a pension scheme? Yes, defined benefit
Do you own any investment or other property? No

Ages of children: 1 and 9

Life insurance: For the mortgage and a small life policy. Job provides death in service for spouse and dependents. 


*What specific question do you have or what issues are of concern to you? *
I'm in a lot of bother. I'm on a good salary, but due to family circumstances etc I am in a lot of debtas you can see. Around 51k unsecured. Its at the stage now where my repayments are almost equal to my salary, meaning I jhave to use credit card for the weekly shop, so effectively I'm getting further and further into debt.

I am up to date on all repayments at the moment but know its just a matter of time before I can no longer make payments and so end up with a bad credit rating - its inevitable.

I have requested my records from the ICB and surprisingly only 3 loans/credit cards show up (all up to date).

On top of the repayments each month of 1503 there's my mortgage too, which I pay jointly with my husband. Its 1000p/m. Childcare is 900p/m. I earn 2200p/m. Shopping ,bills petrol etc all put on credit card.

I basically got into a cycle of restructuring but still there's a deficit each month and so have to borrow more etc etc.... An ongoing family law matter is making things worse - legal bills etc. I feel very bad about the whole thing. Only reason I'm still here is for my kids. 
My husband doesn't want to do debt management through MABs, so I have no other option. A solution would be to put the whole lot in a loan of 51k over 10 years. This would save me the 1000p/m which I am currently short, but who's going to do that at the moment?
A top up on mortgage isn't an option as I wouldn't have enough equity. A payment break isn't an option as the mortgage is fixed, and there'd be penalties.
Please help, husband takes home 600p/w. 330 to cover mortgage and joint loan. 100 to cover his credit union loan, and then he has a credit card too. But he says he's happy with his situation. I just don't know where to turn


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## ClubMan (6 Jan 2009)

VWorried said:


> My husband doesn't want to do debt management through MABs, so I have no other option.



That's not what you said on the other thread about this. And even if he does not want to approach them what's to stop you?


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## VWorried (6 Jan 2009)

We had a discussion this evening and he says he's happy with his side of things. I am certainly going to go to MABS. Just trying to sort out all the info I need. 

However the joint loan costs us 650p/m, and if I try to negociate a smaller payment his rating will be affected. I've told him that even if I leave that as it is his rating will be affected anyway if mine is, as we have joint borrowings, but he just won't listen. Its all the harder trying to sort it out alone.


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## allthedoyles (7 Jan 2009)

I went to MABS once , when going through a difficult time and they were unable to help me..

As I was paid monthly and all direct debits were honoured , they could not suggest a plan to help me ..

In my opinion , MABS are mainly for low income families , who are unable to pay bills like .....phone - ESB - Gas etc .

They will also rely on you having some personal loans , which they will suggest you combine into one big loan to reduce monthly repayment.
However , if all loans are still due for period of more than 4 years , this plan will not work.

Also , they would suggest you get loan from Local Credit Union, whom you may find have higher interest rates than other loan suppliers .

Above is only my opinion from my own personal experience


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## Bronte (7 Jan 2009)

Hi vworried, you have to put all debt including your husband's credit union loan up in the money makeover and his credit card bill and any other bill. I know it's hard to get to grips with but you are both in this together and if you get into trouble he will be paying as the credit card companies etc will start to go down the judgement mortgage/repossession route against the house. As you are in financial services you know this. Does your husband actually realise this. Also please state whether the mortgage is 1K a month paid by you or 2K a month between you. Ditto for the childcare. Is your husband saving any money. Have you any assets (expensive car) you could sell. Can you switch your cards to interest free for a period of time. List all debts and bills, total repayments and what you contribute and what your husband contributes. If you get good advice you can go to your husband with it to decide on a future plan.


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## Bronte (7 Jan 2009)

allthedoyles said:


> As I was paid monthly and all direct debits were honoured , they could not suggest a plan to help me ..


  I do believe MABS can help negotiate with your loan suppliers to reduce interest rates, stop penalties etc to help people get out of the viscious circle of debt.  The banks etc must be seen to be working with MABS and having a 3rd party who are well versed in this can only be helpful.  In any case it's always worth hearing advice from someone else even if it doesn't work for you, they can give you ideas.


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## davidoco (7 Jan 2009)

I ve heard of his and her bathrooms but his and your loans - what's marriage coming to. If you won the lotto would it be your money.

You really need his support in all this and why does all the shopping go on your cards?


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## BoscoTalking (7 Jan 2009)

davidoco said:


> I ve heard of his and her bathrooms but his and your loans - what's marriage coming to.


I agree - its both your debts and so what if it embarrasses him (i assume thats it) that you racked up the debt - its still shared.


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## Flax (7 Jan 2009)

I'm going to give some odd advice. Feel free to dismiss.

For the next month or two, make no loan or credit card payments. This will allow you to get some money as a cushion in your bank account. 

Then revert to your normal payment schedule. You should be able to stay in the black as you should now have an extra €3k in your bank account.

This will damage your credit rating, HOWEVER, your credit rating only lasts for 7 years or thereabouts, so assuming you plan on staying in your current home for that length of time, it will mean nothing in the long run.

I also think you are on fairly poor salaries for your age - could you try to get promoted or a raise?


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## Caveat (7 Jan 2009)

Flax said:


> I also think you are on fairly poor salaries for your age


 
Depends a lot on sector and location.


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## shootingstar (7 Jan 2009)

Can you not talk to your lenders/bank manager etc and get the terms of your loans revised? Have you contacted any of the lenders?


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## poohbear (7 Jan 2009)

VWorried, 

Have you talked to the Employee Assistance Officer in your Department He/She is there to help through these type of situations. If you talk to them they will be able to help you through. More often that not they will talk to the CS Credit Union - you do not have to be a member to get a loan. Basically they will combine all your loans together and agree a weekly/fortnightly sum and its taken via Salaries Dept so its already gone before you get your wage into the bank.

Please go to the EAO thats what they are there for, they are lovely and will o anything to help you through. They can talk to others on your behalf, also i think the Public Service Friendly Society?, the EAO may also put in touch with them also 

Good Luck if you've any queries just ask away


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## poohbear (7 Jan 2009)

Flax said:


> I'm going to give some odd advice. Feel free to dismiss.
> 
> For the next month or two, make no loan or credit card payments. This will allow you to get some money as a cushion in your bank account.
> 
> ...



Flax 

The CS doesn't work like this, you must be one of the few not giving us a hard time over our wages!!   The pay scales are set in stone and if and when you reach a max of your scale you sit there for evermore unless you get promotion. Promotion doesn't come that easy in the Civil Service as others will have you believe ,you will start at the bottom of the scale or just the next level up from where you are on your current payscale.


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## Celtwytch (8 Jan 2009)

Poohbear, where did you get the impression that the OP works in the Civil Service? She states in her original post that she works in _financial services._ Your advice, while excellent, is not relevant in this case, unfortunately.


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## poohbear (8 Jan 2009)

Celtwytch said:


> Poohbear, where did you get the impression that the OP works in the Civil Service? She states in her original post that she works in _financial services._ Your advice, while excellent, is not relevant in this case, unfortunately.




Yeah your right  I glanced at the job spec and it said eg Civil Servant, half asleep last night posting so didn't cop the line of Financial Services duh!!! - i'm not really that thick honestly  

Even leaving out the EAO which obviously is not applicable here, a local credit union is there to help. You don't actually need to be a member because they will assist you and then take a minimal savings deduction into account when setting up the account. Like I said half asleep last night

VWorried, 

Apologies for my error last night but I would still advise that you contact your local credit union


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## Celtwytch (9 Jan 2009)

poohbear said:


> i'm not really that thick honestly


 
Never thought you were


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## tink (10 Jan 2009)

What I'd be most worried about here is the lack of support from your husband. Marriage is a partnership in all respects including money. I really don't think this seperation of finances is healthy and this will affect you emotionally as well as financially at the end of it. I think you need to sit down and discuss with your husband seriously about how you feel alone in this. It seems like you will be left to struggle on your own otherwise which is not good for the family. Otherwise I would agree with other posts consolidating loans and going to CU. Would not agree with Flax's post as you can assume you are staying in the same house but often circumstances arise which you have to react to which may include applying for a loan or mortgage. Best of luck!


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## woodbine (10 Jan 2009)

poohbear said:


> Even leaving out the EAO which obviously is not applicable here, a local credit union is there to help. You don't actually need to be a member because they will assist you and then take a minimal savings deduction into account when setting up the account.


 
I heard of a CU member who gets a loan every year to tax and insure her car and when she went to arrange same recently she was told she couldn't get the loan, she'd have to save it in future.
So it's not as easy to get a loan from credit unions as it used to be.

But good luck to the OP. You need to get your husband on board.a problem shared...


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## Fester1 (15 Jan 2009)

woodbine said:


> I heard of a CU member who gets a loan every year to tax and insure her car and when she went to arrange same recently she was told she couldn't get the loan, she'd have to save it in future.
> So it's not as easy to get a loan from credit unions as it used to be.
> 
> But good luck to the OP. You need to get your husband on board.a problem shared...


 
This is something that I have been wondering about.
I have seen some posts here where people are saying to go to CU to consolidate loans(some of these have been 70/80k). Even a friend said it to me yesterday to try them(whole other thread on my issues!)
I would find it difficult to believe that bar you had a long track record with them of paying back a large loan or two that they would even consider you. Let alone a new member.


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