# How to manage your money during the Corona Virus



## cremeegg (17 Mar 2020)

There are lots of posts here about pensions, but what about day to day money management.

I am not expecting my employer to pay my wages in full (they will pay the basic but not the additional hours I have been working). I am not expecting my tenants to pay rent at the end of the month.

How should I cut my outgoings.

My mortgages are the only outgoing that is comparable in size to my expected drop in income.

Should I use my savings to pay my home mortgage or my investment mortgage, or should I leave them unpaid this month.

Should I cancel the DD for the electricity bill.

My instinct is to pay in March and consider again in April, but perhaps that is just reluctance to take a decision.

Any opinions


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## Fidgety (17 Mar 2020)

cremeegg said:


> My instinct is to pay in March and consider again in April, but perhaps that is just reluctance to take a decision.



Your reluctance is entirely understandable but I think pay in March and see what happens because extraordinary circumstances will demand an extraordinary response to this crisis as we've seen in France, Spain, and others by the day.


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## Brendan Burgess (17 Mar 2020)

cremeegg said:


> Should I use my savings to pay my home mortgage or my investment mortgage, or should I leave them unpaid this month.



You don't save anything by not paying them?    The interest will continue to accumulate. 

Your credit record will be damaged. 

You could give the lender a call and ask to reschedule, but you should not unilaterally withhold payment. 

Brendan


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## cremeegg (18 Mar 2020)

Brendan Burgess said:


> You don't save anything by not paying them?    The interest will continue to accumulate.



I understand that, but if my cash income is reduced by say €3,000 a month, I will soon run out of money to buy groceries.

To be honest I dont understand why this is not a major topic of national conversation. The papers say 140,000 people have lost their jobs already. Leaving aside the public question of how government should respond, how should the individual respond.

People will run out of cash soon.


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## Fidgety (18 Mar 2020)

Preserve your ability to buy essentials, keep warm and mentally strong. I wouldn’t worry about anything else at the moment. 

You are not alone and have a proven track record of integrity when it comes to paying bills. Self-imposed or otherwise, moratoriums will have to occur to help our society survive. Moreover, those who can use savings to pay the bills or whose income is not adversely impacted, must continue as normal to the best of our ability. 

A French colleague this morning mentioned that the government has made it a criminal offence to abuse the new emergency support put in place at the weekend.


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## Brendan Burgess (18 Mar 2020)

cremeegg said:


> I will soon run out of money to buy groceries.



OK, but if you call your bank you should be able to get a payment holiday. 

My main point is that just stopping is not the right thing to do.

If the bank refuses, and you have to make a choice between groceries and your mortgage, then buy your groceries.

Brendan


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## WolfeTone (18 Mar 2020)

I think the banks are meeting with government today to discuss these issues. Id expect a payment holiday, similar to UK, for next few months.
Rent freezes, cuts in utility bills, limitations on grocery baskets.
All of this will facilitate people to engage the primary objective - reduced social interaction. In turn, combating the virus that is destabilizing the world economy.


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## Purple (18 Mar 2020)

WolfeTone said:


> All of this will facilitate people to engage the primary objective - reduced social interaction. In turn, combating the virus that is destabilizing the world economy.


The primary objective is to save lives. Don't make money your god.


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## RedOnion (18 Mar 2020)

WolfeTone said:


> I think the banks are meeting with government today to discuss these issues. Id expect a payment holiday, similar to UK, for next few months.


Your expectations weren't far off.
"A three-month payment holiday for mortgage holders impacted by the Covid-19 is to be put in place by all banks.

And the maximum that can be spent on contactless cards is to be raised to €50."


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## cremeegg (18 Mar 2020)

Brendan Burgess said:


> OK, but if you call your bank you should be able to get a payment holiday.
> 
> My main point is that just stopping is not the right thing to do.
> 
> ...



It may be too late for many if they have already spent their money paying the mortgage.

It is good to see the developments today from the banks.


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## fayf (19 Mar 2020)

The mortgage payment holiday,  has always been an option for many mortgage holders, allthough maybe not for 3 months, the measure that really makes an impact, is the business loans- thats crucial.


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## ATC110 (19 Mar 2020)

Brendan Burgess said:


> OK, but if you call your bank you should be able to get a payment *holiday*.
> 
> Brendan



I think you mean a payment break rather than holiday Brendan; Brian Hayes made specific reference to this on RTE's Primetime last night.


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## RedOnion (19 Mar 2020)

ATC110 said:


> I think you mean a payment break rather than holiday Brendan


Could you explain the difference between the terms?


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## Ceist Beag (19 Mar 2020)

The way he explained it is that the interest continues to accumulate during a break (so presumably if it was a holiday it would mean the loan freezes during this time). That is how I understood it anyway.


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## Brendan Burgess (19 Mar 2020)

I don't think that there is any question but that interest will continue to accumulate on loans during the next three months. 

I would not have thought that there was any difference between a payment holiday and a payment break.

Brendan


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## Ceist Beag (19 Mar 2020)

If that is the case why was Brian Hayes so keen to stress that this was a payment break *not* a payment holiday?


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## RedOnion (19 Mar 2020)

Ceist Beag said:


> If that is the case why was Brian Hayes so keen to stress that this was a payment break *not* a payment holiday?


Hmm, to my view it was strange to say "not a holiday".

In my experience the terms Payment Break, Payment Holiday and moratorium are generally used inter changeably.





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						Mortgage payment breaks - CCPC Consumers
					

Some lenders may agree to a payment break in your mortgage at times when you need extra cash. Find out what to consider about payment breaks.




					www.ccpc.ie
				



_"A payment break is also called a temporary deferral of payment, payment holiday or moratorium."_


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## Brendan Burgess (19 Mar 2020)

Ceist Beag said:


> this was a payment break *not* a payment holiday?



It's funny. I was pleased to hear them use this term as the expression "moratorium" might be misunderstood. 

Anyway, when this is all over I am going to take a break.  Or should that be I am going to take a holiday? 

Brendan


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## DeeKie (19 Mar 2020)

Consider what is essential. There may be “nice to haves’ such as streaming services which you could suspend to make what you have go further.


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## ATC110 (22 Mar 2020)

Brendan Burgess said:


> It's funny. I was pleased to hear them use this term as the expression "moratorium" might be misunderstood.
> 
> Anyway, when this is all over I am going to take a break.  Or should that be I am going to take a holiday?
> 
> Brendan



Brian Hayes explained this on Primetime. A holiday means no additional interest will be accrued during the non-payment period. A break means interest will be accrued during the non-payment period.


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## Brendan Burgess (22 Mar 2020)

I heard something similar discussed in the UK.

1) a payment holiday or break is where you do not have to make a payment but the interest continues to accrue.

2) An interest holiday or break is where the interest is not charged. 

I don't think the Brian Hayes needs to introduce any new definitions.

Brendan


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