# Dire January blues



## maryjhynes (9 Jan 2004)

Hi there - have constantly tried to solve my financial messes - but to no avail so some advice would be great.

3006 per month after pension, vhi, car insurance.

visa BOI - 6682 euro
mbna visa- 1500 euro
personal loan - 9295 (273 per month until July 2007)
Car loan - 277 per month (3 more payments)
SSIA 200 per month
Credit Union 50 per month (1000 saved)
Rent 370 per month

Any hope?


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## Christy (9 Jan 2004)

I personally don't think you are in as big a mess as you do.

You have a very high income at €3,000pm net.

If you were to consolidate your 2 credit cards and your personal loan (ignore your car loan as it will be cleared in 3 months) into one loan of €17,500, repay it over 3 years at 8.5% interest, this would cost around €550pm

You are then left with €1,830 after loans, rent, savings & SSIA.  You could even increase your SSIA to the max of €254 and increase your savings to the Credit Union and have a decent level of disposable income.

I hope this helps.


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## Maryjhynes (9 Jan 2004)

*blues becoming pink*

Thanks for the advice, shall give that a go.
A system makes for less muddle and mess.

Mary


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## rainyday (10 Jan 2004)

*Re: blues becoming pink*

Hi Mary - Loan consolidation is useful as a once-off event to help you get on top of your debts, but you do need to give due consideration to what you need to do to prevent this situation occuring. It would be crazy for you to consolidate your loans now, and  then find yourself with further large high-interest credit card debts in 12 months time. Basically, you need to ensure that your outgoings don't exceed your income.


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## Elcato (10 Jan 2004)

*Re: blues becoming pink*

Hi Mary - You really have to get rid of the plastic. Dont use them anymore and try and pay them off as a priority. I suggest clearing the mbna one nice and quick while at the same time approaching a bank to pay both off. Leave the other loan be for the time being until you get those visa bills straight (keep paying the monthly sums of course). The interest you're paying on these is c22%. But as Rd stated its no good if you slip back into the dreaded habit of using the plastic again.


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## Maryjhynes (13 Jan 2004)

*pink to redfaced*

Ok - sounds like the plastic has to go - burned perhaps.
Sounds like it may be a priority to throw lots of dosh in the next few months into my cards and not get a consolidated loan? Moderation my new motto.

Might I wait until the car loan is paid off 277 per month and then set up a direct debit into visa,even reduce my SSIA's payments to clear my cards in 12 months despite 
the high interest rate of 22% interest?
Thanks,
Mary


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## <A HREF=http://pub145.ezboard.com/baskaboutmoney.s (13 Jan 2004)

*Re: pink to redfaced*

Some useful links:

[broken link removed]
www.fool.co.uk/debt/debt.htm

Good luck.


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## Elcato (13 Jan 2004)

*Re: pink to redfaced*

One last point Mary - Is your BOI visa over the credit limit ? If so are you getting penalised by way of extra money for this ? If so bring it back to within the limit before paying off the mbna one (but make sure you pay at least the min. payment on it). Then pay off the mbna asap. That way you see results and one less loan. I'd recommend paying off car loan over the three months.

Good luck and keep us informed


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## Maryjhynes (13 Jan 2004)

*optimistic*

Thanks for your suggestions.
No I'm not over the limit on either of my visa cards.
I'll let you know how the game plan goes - I'll take all the suggestions and ponder over same after reading the recommended sites.
A lean leap year for me methinks - must propose to an accountant if all else fails.
Slan,
Mary


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## IsleOfMan (15 Jan 2004)

*Stop fooling yourself.*

Rather than save €50 per month in the credit union on which you are earning less than 3% I suggest you use this €50 to reduce your credit card debt on which you are paying 20%?. Unless of course the real reason for saving in the credit union is to get yet another loan?

Why have you an MBNA credit card? Had you reached your limit on the BOI card perhaps?

When your car loan is cleared in a few months transfer the monthly amount directly to your higher interest charging credit card.


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## CuriousLar (15 Jan 2004)

*Reduce Limit on CC*

HI Mary,

As others have advised, its best not to run up such high amounts on your credit card(s) to begin with!  If you are tempted maybe you should talk to your CC company and reduce the limits so that you dont over spend.  

I am with AIB and they increase my limit every 5-6mths without my request and it is tempting to overspend, I rang AIB and asked them to revert my card to its orginal limit last mth (they sneakily increased my limit by 1k just before xmas and I could have gone to town on it!!)

Only have a limit that you know you can comfortable afford to pay off over 1-2 mths, otherwise your only fooling yourself!

Lar


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## Maryjhynes (16 Jan 2004)

*the penny has dropped despite lost euros*

Thanks for the reminders about the credit cards - it's seeping into my unconscious at this stage - CREDIT CARDS BAD - I'm having nightmares with large, frighteneing credit cards chasing me.

But seriously, I save 50 euro in the CU to have the fees for college each year - I'm studying at night, so it's not such a blow each Sept.

I did an enormous amount of travelling last year and have booked 3 more for this year since last year - hence the large credit card bills.

I figure I'm going to consolidate my personal loan, and 2 credit card loans and pay back in 3 years. I'll have my car loan finished in April and my car is in good nick (98) .
I'm then going to cancel my MBMA and hold on to BOI with a limit of 1000 tops. I've taken some tips from MABS and shall endeavour not to purchase this year other than essentials.

Thanks for the interest guys.
I shall remember -EVIL CREDIT CARDS (if you don't pay them back on time).

Mary


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## Aphrodite (16 Jan 2004)

*Chill out  4 jaysus sake*

Mary

Don't take it  too seriously - These  money gurus can scare  you  to death with  their sickening  common sense.

If you're young, take your trips now and  worry about your credit cards later (when you get to 40.)

and to all  you other guys,  - Money is just  a tool,  a means  to an ends  -  Don't let  it rule your lives for god  sake. Get out there and live a little.

upyaboya, who's  gettin the pints lads


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## <A HREF=http://pub145.ezboard.com/baskaboutmoney.s (16 Jan 2004)

*Re: Chill out  4 jaysus sake*

Who let the trolls out? :|


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## daltonr (16 Jan 2004)

*Re: Chill out  4 jaysus sake*



> with their sickening common sense.



I'd have expected more from the Goddess of Love!

 

-Rd


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## Maryjhynes (17 Jan 2004)

*Spitting ice cubes*

Perchance the reason I am plagued with this January affliction is that I am extremely chilled out when it comes to dosh.
Methinks a dash of common sense can lend to future freedom to travel/party/fun without such monetary restrictions.
I am a hippy at heart (man).
Happy weekend.
slainte.
Mary.


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## netsalez (17 Jan 2004)

*Re: Spitting ice cubes*

Mary,

One suggestion would be to take out a new card with 0% on balance transfer while you concentrate on clearing your other card.

This way you will at least save on 6 months interest .......

Brian


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## <A HREF=http://pub145.ezboard.com/baskaboutmoney.s (18 Jan 2004)

*Re: Spitting ice cubes*



> This way you will at least save on 6 months interest .......



Assuming you don't make any further purchases on the new card since most of these offers will credit payments off the outstanding balance first thereby causing you to incur penal interest on any new purchases as long as there is any balance outstanding.


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## machalla (21 Jan 2004)

*Re: Spitting ice cubes*

Ulster bank Zinc card or AIB might be an option to do this. Ulster bank will pay the €40 stamp duty on the card if there is €5,000 used on it in a year.  Also have lower rates than most Irish CC providers. 

Transfer the balance from the the biggest card and clear the debt on the other one then get rid of any other cards except the new one you've transferred the balance to.  Also it might be an idea to setup the new card to automatically pay off something like 20-40% of the balance on the card each month  so that it comes out of your account without any intervention from you.  Do not use the new card for any purchases as these will be charged at normal rates, not the 0% interest for 6 months.  

I think I also saw something about one of the banks doing a 12 month balance transfer at a low interest rate (2-3%) in one of the threads here.

I transferred a balance from one card onto a new AIB one and am paying it off in this manner for 6 months at the end of which I will clear the remaining balance and get rid of the first credit card.

Not to be a spoil sport but is it necessary to be heading off 4 times in the one year when you've got a few financial issues to sort out?  Anyway I hope you get a handle on it.  Best of luck.


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## <A HREF=http://pub145.ezboard.com/baskaboutmoney.s (21 Jan 2004)

*Re: Spitting ice cubes*



> Not to be a spoil sport but is it necessary to be heading off 4 times in the one year when you've got a few financial issues to sort out?





> I did an enormous amount of travelling last year and have booked 3 more for this year since last year - hence the large credit card bills.



I missed that one. Good point!


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## annie (23 Jan 2004)

*credit cards*

I would definitely consider transferring your CC balances onto a CC card which charges 0% interest on balance transfers, if you can find one.

I came back from a year's travelling this time last year with no money and got a CC with 0% interest on new purchases for 6 months.  It saved my ass I can tell you - and by the end of 6 months I had gotten it together and was able to pay off the balance.  But I was very careful with money.

I don't mean to criticise but I don't understand how people who are obviously in responsible jobs and earning these really good salaries don't seem to be able to manage their own credit card.  Do they just ignore it?


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## <A HREF=http://pub145.ezboard.com/baskaboutmoney.s (23 Jan 2004)

*Re: credit cards*



> got a CC with 0% interest on new purchases for 6 months



Are such offers still available? I thought that most or all low/no interest offers applied only to transferred balances only and not to new purchases. As I've said before with many of these cards repayments are credited against the outstanding balance first so, in effect, any new purchases are incurring the normal rate of interest as long as there is any outstanding balance. 

(Update: my mistake - I see from the best buys list that some of these offers apply low or no interest to balance transfes AND new purchases for a limited period of time).

www.askaboutmoney.com/clu...EDIT_CARDS


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