# Money Advice - restructure finances



## cazmayo (10 Nov 2008)

This is our state of affairs:

240000  Mortgage                 1200 per month
55000    Business Loan            697 per month
7000      Credit Card
35000    Creditors from husbands business

            Van Leasing             385 per month
            (6000 outstanding and husband under instructions to SELL!!!)
            My dad has an old van and is willing to give it to us for FREE.

12900     Car Loan (50:50 deal) 2 years interest free, payments will start in Jan, however I dont know how much yet, have tel and they say they will be in touch.   (So I have decided to sell the car, and hopefully there would be a few grands to buy an old banger.

INCOME
My husband was self employed, but was struggling to get paid, cheques bounching, so he had no option but get a job.
Presently getting 800 euros per week NET

I have been seriously ill for past year (husband left with newborn and 4 year old) while I was in hospital for a month and then recovering for a year.

Ive applied for part time work (net pay 150 per week).

Do we remortgage?
It has not been overspending personally, but having to take on the finances of a failing business that Im stressed about.

We plan to move to Oz end of next year, so interest only would be an option.  However on present mortgage (offset First Active) they wont allow interest only.

Im going around in circles!  Any advice would be much appreciated.

Getting angry calls from creditors, but he just doesnt have the money in the bank.  Also bank reduced his overdraft by 5000 as if we werent struggling enough.

Kind Regards
Caz


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## cazmayo (10 Nov 2008)

House worth 380,000-400,000.


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## Raskolnikov (10 Nov 2008)

cazmayo said:


> House worth 380,000-400,000.


Sell, sell, sell! You just said that you're going to be moving anyway, so you have no excuse to sell the house, clear the debts and have a little left over for your move! Even if you wanted to stay in the house, you simply cannot afford it with all the supplementary debt that you've built up.


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## cazmayo (10 Nov 2008)

Thankyou for your advice.  It stark reality when you hear it from someone else.

My husbands way of dealing with it is not to open the letters, ignore letters from the revenue, turn his phone off (then they start ringing me).

Im fedup taking the flack for him.  I have written to creditors and have explained how I was critically ill, that he is owed alot of money and that the work has dried up and now he has a job.  I have explained he has some private work and once he gets paid, I will forward payment, the smaller ones I have started paying off a small amount per month.

Money is owed to him, but he just wont go and chase people!!!!  .... and now his family are suffering.

We plan to tidy up the house and put in on the market in April.

Have got a mortgage holiday from bank - that will elevate some pressure.

Thank God for the recession, as it has stopped him staying in business continuing to make a loss, which builds up over a few years.  He refused to take advice and now it has been forced upon us.

I even had to confiscate the chequebook to stop him bouncing cheques.
God give me patience.
Kind Regards
C


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## PaddyW (10 Nov 2008)

Hope it all works out well for you and that you get a sale. You're in control now, make sure all financial decisions are yours in future.


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## Romulan (10 Nov 2008)

Caz,

If your husband deals with finances this way, will he be any different in Australia?

Do you have family out there who could provide backup?
You will be a long way from home.

I don't mean to be harsh but have you factored this into your decision to go?

Paul.


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## Raskolnikov (10 Nov 2008)

You definitely have the right idea selling the new car and going for the banger. 

By the way, have you looked at what houses similar to yours are going for in your area? You might get a nasty surprise in that you may only get offers of say €300,000 for your property.

Personally, I would actually get the house on the market now. This talk of a Spring selling season is rubbish. If you list your house at a competitive price, it will get sold, no matter what season it is. Discussion of property prices is banned on this forum, however, so let me put it to you like this. 

Come April, do you see the value of your property going up, staying the same or going down? If you're answer is the latter, then you should redouble your efforts at getting a sale.

Like my father said, no one ever lost money by taking a profit.


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## cancan (10 Nov 2008)

Two things to take note of - Houses are not selling at the minute, no matter what price is put on them.
People are just not buying.

Also, Australia is looking a bit shaky at the min, and are considering shutting their doors - things may not be much better out there, even if you get in.

You are going to have to figure out how to get the money that is owed to you, as I don't see an easy way out of this in the short term.
You can try selling the car and house, but at the minute, everyone else is trying to do the same, and not having much luck.


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## Raskolnikov (10 Nov 2008)

cancan said:


> Houses are not selling at the minute, no matter what price is put on them. People are just not buying.


Blatantly untrue. If you cut the price, the buyers will come. Here's but one example.



The OP seems to have the equity to slash the price, pay the mortgage and bills and walk away with a little extra.


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## cancan (10 Nov 2008)

Hmmm
A "500 - Internal server error" is not really demonstrating that houses are selling...


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## cazmayo (10 Nov 2008)

Hi everyone,

Thank you so much for your replies, honest!  I dont mind honest and straight to the point.  

We need a few months to prepare the house for sale, lots of jobs undone!!!  Married to a tradesman and nothing done in his own house.  Also lawn and kerbing need to be done.  This involves money and time.  I am presently doing up a list.  (Big luxury house on big site,

In regards to Australia, yes I have considered, what if he does this in Oz, though he assures me he has learn his lesson.  However, I have control of the finances now, and wont be letting go again.

We have lived in Oz before and have been in contact with his old boss who has work for him if we can get a visa and YES I have heard they are thinking of cutting the amount of visas issued.

We both had great jobs in Oz and I never really settled back in Ireland.  This financial stress on top of getting MRSA in one of our dirty hospitals and nearly dying has made me rethink my life.

I just want my husband to realise that our financial problems are due to his mismanagement of his business.  He keeps saying, when we get to Oz, we will get a smaller house so we can afford to do things.  I keep saying, we have an average mortgage, we are struggling because of your business dear!!  (If he doesnt acknowledge it, Im afraid he wont have learnt).

He is very good at what he does and works all hours, but that is NO good if you are not getting paid for it.  He has worked the last 28 days on the trot, but is now waiting for payment (private work not job).

Fingers crossed that the house will sell, we get the visa and that I get him a job where he gets paid on a friday.  Self employment is no fun.  We had a customer bounce a cheque for 10000 a few months ago, and I was a nervous wreak.

I have been checking similar houses and what the asking price is, but will get a better idea from the estate agent.

Thank you so much for your advice everyone.

Im a saver, Ive worked since I was 15 and at times worked 2 jobs.  Ive had shares in companies and SSIA's and now see it all disappear.  My husband will have to start demonstrating a real change.

Regards
Caz


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## glic83 (10 Nov 2008)

well i hope everything works out for ye at least one ye had sense to realise the business just wasnt working out and to cut the losses now rather than later


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## Mammyto2 (11 Nov 2008)

Hi Caz
Good Luck in getting finances sorted, you've taken the bull by the horns and are very brave.
Hope all works out for you. Been thinking about Oz ourselves, dh has been off most of this year with no work, he's a tradesman also but worked for years for same company which went bust, just a litle worried that we'd have no support. Quality of life must be so much better though.


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## cazmayo (12 Nov 2008)

Thanks glic83 - your right, so many people put their heads in the sand.  Im holding onto the chequebook from now on and pushing him out the door to get money owed (not a nice job but hey were broke).

Mammy2be, thankyou, I love Oz, lived there for 3 years.  I love the people - very optimistic, love the weather, at the time - loads of work, plenty of money, great lifestyle - weekends spent lunch out by the beach, picnics, barbies - I just loved it.

Life here revolves around the pub and football!  Now that I have small ones, I dont get out to the pub, and therefore have no social life.

Im sorry to hear about your husband.  Im just shocked at how everything seems to have stopped so suddenly.  Its crazy for your husband to be out of work so long, but chin up and keep going.  Ive just applied for a weekend job Sat and Sun Fingers crossed.  If I go back working full time the bulk of my wages will be gone in childcare, at least working the weekends I will be able to keep my wages!!

My husband was working the other day and the painter got a phone call, he had just been laid off.  He wasnt too bothered as he had applied to become a prison warden and had been accepted.  So maybe a career change into something else?

Best of luck!
Kind Regards
Caz


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## Mammyto2 (13 Nov 2008)

I know! got caught in a vicious cycle really in that creche fees were cripling us on one salary so Dh took baby and toddler went to montessori half days to make it manageable. The situation hasn't worked out too badly but Im a bit worried that dh gets very little inetraction with adults. I see so many dads during the days now picking up/ dropping off at school and doing shopping etc so there must be a network of SAHD's somewhere for him!
We must look into something else for him the future, dont think construction here will pick up anytime soon!!


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## Rigoletto (18 Nov 2008)

firstly check if your husbands company is limited liability or sole trader, as there are debts i hope its the former. are you a director of his company as if so you are financially responsible and liable. 

you should chase the debtors (those that owe you money!!). you might also think about a bad debt recovery agent. you're creditors may end up using a recovery agent against you, it would look good for you that at least you had taken some steps to keep the company solvent. 

ps oz isnt the panacea to all ills. reminds me of "the streets are paved with gold" rubbish that was spouted about England in the 70's. 

the best of luck with the future. you sound like a brave lady and i hope it all works out for you.


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