# mature student struggling with mortgage and CC debt and two jobs



## orchid (5 Mar 2011)

Age: * 27*
   Spouse’s/Partner's age: n/a

   Annual gross income from employment or profession: Net €2000PM
   Annual gross income of spouse:n/a

   Type of employment: Student/part time jobs 

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

   Rough estimate of value of home 175K
   Amount outstanding on your mortgage: 245K
*What interest rate    are you paying? 2.75%

   Other borrowings 
 Credit card 1 - 1900€
 Credit card 2 - 3900€(halifax paying as a 135€ pm loan
 Credit card 3 - 1900€
 Credit card 4 - 490€
 Bank loan - 790€(35€ oer week)
 Credit Union Loan - 4900 (35€ per week)

   Do you pay off your full credit card balance each month? No Min payment on CC1 and 10% per month on CC 2 and 3
   If not, what is the balance on your credit card? 

   Savings and investments: 2500€ in Credit union but cannot access it

   Do you have a pension scheme?  n/a

   Do you own any investment or other property? n/a 

   Ages of children: n/a

   Life insurance: 


What specific question do you have or what issues are of concern to you? 
 I am having a really hard time at the minute trying to make ends meet. I am a full time student in my final year and working 2 jobs(one full time nights) and a weekend job. Its my final year in college and both jobs are becoming a real drain but I cant see what to do in regards my finances(which I know are a mess...) so I can give one of them up. My mortgage is  costing me 590€ per month on a 22 year term but as my mother went on the deeds with me  I can't get the term extended due to her age.
I have missed a payment or two on all the loans/Credit cards but am back up to date with them now.

Any advice greatly welcomed*


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## Brendan Burgess (5 Mar 2011)

> My 245k  mortgage is  costing me 590€ per month on a 22 year term @ 2.75%



245k@2.75% = 6737/12 = €560 per month interest only.

It seems to me that you are only paying the interest on the mortgage. If you were to pay it off over 22 years, it would be around €1,200 per month. 

So extending the term won't make any difference. It's not a 22 year mortgage, it's an interest only or indefinite mortgage.


You could ask for a full payment moratorium for 6 months so that you can give up one of your jobs and concentrate on your studies. You might not get this, but you could ask for it.

Where are you living? Can you rent out the house or take in a tenant to help with the mortgage payments. 

Unfortunately, going to college is an expensive business and it's difficult to pay off a mortgage while at college.


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## orchid (5 Mar 2011)

sorry for not being clearer, I only pay half the mortgage as I have a lodger(friend) who makes up the other half.

I did ask to be put intrest only when I went back to college(3 years ago) and they would not agree.But times have indeed changed. I was managing fine until the middle of last year when I got a huge pay cut in my job and had to look for another.

Would I lose my tracker mortgage if I went interest only?


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## Brendan Burgess (5 Mar 2011)

Hi Orchid

You will not lose your tracker if they reschedule your mortgage. Read the Central Bank's Guide to Mortgage Arrears Code. 

Ask for a moratorium and you might get it. They should settle for interest only which will save you around €500 a month.

Brendan


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## orchid (5 Mar 2011)

Thanks for taking the time to reply. I will get on to the bank on Monday and see what they can do for me. It would be great to go interest only for awhile, would give me a chance to chip away at the CC debt and quit one of my jobs


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