# New here and need advice desperately



## amy1plus2 (16 Nov 2007)

Hi all, Brand new to this site, have to say its been very interesting.  Im looking for some much needed advice.  Myself and my partner bought a new home last year but now find ourselves in a huge financially difficult situation.  Let me explain.  Our current outstanding mortgage is 425k, monthly repayments on that are 2,300 over 30 years, (the longest term we could get).  We also have some loans, credit union for 21,000, monthly repayments on that are currently 300euro for approx the next 8 years.  We have a smaller credit union loan of approx 3000 euro with weekly repayments of 70 euro for approx the next 10 months.  We have a personal loan that we just got out to start up our own taxi, thats 13,000 with fortnightly repayments of 220 euro for the next 3 years.  On top of all of that we have the usual standard monthly direct debit outgoings, ie, life assurance policy of 90 euro p/m, phone bills, approx 150euro p/m, television, 60euro p/m.  And then there are living expenses, bills, electricity, gas etc, petrol, food shopping.  We have a 1 year old and another baby due on New years day.  I am on sick leave at the moment and am due to start maternity leave in approx 4 weeks.  My take home pay per fortnight is approx 860euro.  My partner's weekly take home pay is approx 900-1000euro.  We find ourselves struggling to make our mortgage payments and even took a 3 month moratorium the last 3 months.  My partner believes that our only option is to sell our house and move further away to a cheaper house.  I do not believe this is an option.  I know I would be miserable and crack up as he works quite long hours as it isand cannot imagine being in a house on my own with no family around.  Downsizing in our area is not an option either as our house is only a standard 3 bed semi and as it is we don't have an awful lot of room.  Any advice is greatly appreciated and badly needed, thanks in advance


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## Stifster (16 Nov 2007)

Sell, rent. I have no idea where you are but you will get a 3 bed in say Sandyford for less than €2,000 a month. Buying for the sake of it and having a crazy commute is just not worth it.


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## SNOWBALL (16 Nov 2007)

HI Amy

Could you rent out a room for a year or so, €400 a month that would help with bills.I know you may not want that but its a way of getting extra cash.You do have a lot of outgoings  it must be very hard.Maybe think of moving to another area it could ease the pressure.Can i ask where your house is?


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## amy1plus2 (16 Nov 2007)

House is in Greystones.  As we're a 3 bed with soon to be 3 children, renting a room out is not really an option.  I know Im kind of asking for a lot but Im looking for suggestions apart from the obvious one of sell and move.


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## Stifster (16 Nov 2007)

Mind you I've just done a quick tot on the figures. Outgoings €3600 Income €5700 (excluding childrens allowance).

That leaves €2k for living expenses. I have the same sized family and I don't think we spend that much on food, utilities etc. In fact I know we don't cos i fund the joint account!

3 beds in Greystones for rent.

[broken link removed]


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## Bronte (16 Nov 2007)

I understand your need to be near family with young kids.  You need to look more closely at your weekly spending.  Can you get rid of the phone which is costing 150 per month.  Do you have a mobile as well which you could use instead a pay & go one.  Do you need the cable costs of 60 Euro per month.  Also where does the 3rd child come into it?  By any chance do you have a garage at the side of the house that you could turn into a flat to generate some extra income?  You didn't mention credit cards, do you have debt on these?


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## Sunny (16 Nov 2007)

Have you done up a detailed budget to see exactly where you are spending the money. Have you examined your loans and mortgage to make sure you are getting the bast offers? Credit Union loans can be more expensive than banks. Taking a break from the mortgage won't really solve anything. If you need advice or help with the budget i would suggest you contact Mabs (www.mabs.ie). You shouldn't have to do anything drastic. Sounds like you may just need to tighten up a few things.


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## amy1plus2 (16 Nov 2007)

Sorry, hit the 3 button instead of 2!!!  2 children, soon to be 2 children..  We don't have any credit cards, about the only debt we haven't got.  No we don't have a garage or anything that could be rented out.


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## annR (16 Nov 2007)

Hi Amy

I think I would feel the same if I was you in terms of not wanting to move or downsize.

Is your monthly take home pay at least Euro 5320?  Thats decent.  I've calculated your loans are 1020 pm plus mortgage is 3320.  That leaves you 2000 pm minus the life assurance,phone,TV is 1700.

I would have a look at what you are spending the 1700 on.  



> phone bills, approx 150euro p/m, television, 60euro p/m.


 
That seems like a lot to be spending on phone and TV.  Is there any way you could cut back?

I did the figures very quickly apologies if I've made a mistake, not my forte.


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## pc7 (16 Nov 2007)

Had a look too outgoings just pulling them out so they are easier to see: - 
Mortgage - 2300
Credit Union 1 - 300
Credit Union 2 - 70
Personal loan - 440
Life assurance - 90
Mobiles - 150
TV -60
Total (exluding bills/food) = 3410

Incomings
You - 1720
Partner - 3600
Total = 5320
Balance - 1910 a month as mentioned above excluding child benefit and the 1000 a year lump sum for kids under 6. 
Mobiles - cut these down straight away 150 is too much a month, get rid of the sky package and start putting these savings off the highest interest loan you have.  Realistically you need to budget shop in aldi and pull back 1900 plus a month is plenty to live on. I think if you track your spending you'll notice other wastage. Good luck


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## pc7 (16 Nov 2007)

sorry post crossed with AnnR (great minds and all that AnnR!)


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## amy1plus2 (16 Nov 2007)

yeah think we will have to get rid of the phones, they're mobiles, contract, so ill just have to forfeit the contracts.  I know it looks so do-able (sp?) on paper but every month we just seem to be in over our heads.  I think your all right about doing our best to watch what we spend, we should be well able to live off our incomes.  But its just the unforseen things that constantly seem to catch us, like say a night out or our bills for hospital, with having the baby, approx 2000euro total.  I have heard of people getting work -from- home jobs and I'd be interested to see if I could get one of these.  Not knocking on people's doors trying to sell things but I've heard of a girl who does typing by dictafone at home and earns a set amount per 1000 words or so.  So think ill definitely try to get something like that because obviously with a new baby Im not in a position to go and get any other kind second job.  And also, as it is, my partner is working alot of hours to get the money he is getting.


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## pc7 (16 Nov 2007)

If you keep a diary of what you spend it's amazing how much you waste.  Move to pay as you go phones say if you both go 087 you get free texts to 087 if you top up by 20 a month, I think the other operators offer competitive offers like this.  As for going out, stay in! your broke. If your going to be a stay at home mum for a bit would you take on minding someone elses child? or school pick up there are ways to make a few bob? Not sure if you need qualification or that for such a thing.  Just be firm with your cash no splurges.  Best of luck you can do it. Any extra money you notice you are saving start knocking it off the big interest loans.


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## efm (16 Nov 2007)

Amy,

Make sure you are claiming all your relevant tax back ie Med1, refuse collections fees etc.

What everyone else has said is true - budget, budget, budget - you'd be amazed at how much we all spend on "nothing".  Also, Lidl is just down the road and is jammed everyday with people from Greystones stocking up cheaply.

But you need to stick at it - realistically it'll take 2 years to get into a better position, but once you get through you'll realise it was worth it.


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## amy1plus2 (16 Nov 2007)

Well Im not in a position to take on minding a child now cos I have only 6 weeks left to go on this pregnancy so I'd have to stop in 4 weeks or so.  Plus I am planning to return to work after my maternity leave finishes, on a part time basis so should roughly be on the same money.  Really appreciate all the avice, am going to start my cash diary today!!  I will keep you all updated on the situation, ta


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## MrMan (16 Nov 2007)

> Incomings
> You - 1720
> Partner - 3600
> Total = 5320



You could possibly have an extra €600 spending money per month

Husband 900-1000 = say on average 950 per week*52 / 12 = €4116 per month
You 860 per forthnight * 26 / 12 = €1863 per month
Total €5979 per month spending money

Deduct 





> Total (exluding bills/food) = 3410



Leaves you with €2569 for bills food and sundry which doesn't sound bad at all.

I think we have all been in the position where all of a sudden debt feels like its consuming you and it is helpful to write things down and see exactly what position your in. You should be able to half your mobile bill and save some cash to put towards a holiday christmas etc, something to treat yourself with so that you feel that you are getting something for all your work. This is probably the hardest time of the year debt wise so hopefully things should be looking up soon.


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## annR (16 Nov 2007)

> But its just the unforseen things that constantly seem to catch us,


 
I've heard this before a few times, seems to be a stumbling block a lot of people have and obviously difficult to foresee.

I have some tips which might help

some expenses are foreseeable and you can budget for them for instance tax, insurance.  You can also budget a certain amount for "unforeseeables but essential".  Sit down and have a good think about what you know might be coming up and how much you want to set aside for unforeseeable stuff judging from what unforeseeables have cropped up in the past.  Put the necessary amount aside per month and then you will know what you have to budget with.
Just don't spend any money.   (on non essentials) Don't go out.  Don't buy clothes. Cut the phone and TV. Shop in Lidl or Aldi (I find the Asian supermarkets very cheap as well if you cook Asian).  Cook large stews and freeze them in portions. See if you can cut your energy bills by turning off rads in bathrooms and unused rooms.Try it for a few months until you feel you are in control of things.
Spend the *bare minimum* on Xmas presents and explain to friends and family that you won't be forking out, they'll understand.  A small box of chocolates is cheap but a nice present (I wish more of my family went back to basics and just bought me chocolates).
 Have a look at your receipts and see where your money is going and cut back.  Ask your husband to keep his receipts too and have a look at them together.  Get your husband to agree to the previous point as well.
If you are buying baby clothes try the charity shops (I admit I have no experience there)
Hope this helps.  you have plenty of money, you just need to manage it better.
Ann


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## terrysgirl33 (16 Nov 2007)

If you work while on maternity benefit, you forfiet the benefit, so it may not be worth your while working.  

If you have only two children you can rent out a room.  We did it, the baby shared our room for a few months and then moved in with her sister.  They have been very happy together and it has worked out well.

Are you sure your DH will earn enough driving a taxi?  I don't know much about it, but it seems like the return isn't great (from a few posts here, I think).

I realise you are not able to cope with much now (at least I'm 30 weeks and finding it hard), but try to keep a spending diary and see where the money is going.  You need a place to live, food and some clothes, everything else is negotiable.  

Good luck!


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## terrysgirl33 (16 Nov 2007)

Meant to add, we were in a similarish situation when DHs contract finished and we suddenly had only one income, when we sat down and worked out where the money was going, we were amazed at how much we wasted.  If we had those two incomes back again, we would be rich!!  But as it is we frittered it away...


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## Stifster (16 Nov 2007)

terrysgirl33 said:


> DHs


 
You may need to explain this magicmum term to those whose wives/partners don't post on it ;-)


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## Satanta (16 Nov 2007)

MrMan said:


> Leaves you with €2569 for bills food and sundry which doesn't sound bad at all.


As part of the spending diary, you need to accuratly account for the costs associated with the taxi work.

Additional insurance, petrol, cleaning etc. etc. etc. 

You say €900 to €1000 a week income, when the costs are taken away the take home pay (or profit) might/would be a lot less (unless this is already built into the figure).

The mobile phone bills are very high. Obviously how you deal with this will depend on how tied in you are to the contract. Switching to PAYG (as previously suggested) would reduce this. If you can both stay on one network (Meteor, Vodafone etc.) you might get additional savings for calls to each other (check where the majority of calls are being made... specific networks, landline calls etc. and pick a network to provide the greatest savings for these calls). 

Agree with most of the advice above. Your situation isn't really bad (it's one you can get out of given some time and discipline), just hard to see light at the end of the tunnel when you're in the situation.


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## terrysgirl33 (16 Nov 2007)

Ah, DH = Dear Husband, though to be honest I've seen it all over the internet, for years before Magicmum was set up!!


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## CharlieC (16 Nov 2007)

Hi 
Who is minding the 1year old
Who will mind the 2 children when you return to work?

Have 2 under 2 myself and childcare ain't cheap


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## swordshead (16 Nov 2007)

terrysgirl33 said:


> Ah, DH = Dear Husband, though to be honest I've seen it all over the internet, for years before Magicmum was set up!!


Haha i thought it was Da Husband..spot the northsider


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## KathScan (16 Nov 2007)

Pay as you go phones from O2. If you got say the "Friends Early Bird" package and your partner got the "Friends Night Owl",  list each other as one the numbers that you wish to call for 1 cent a minute.  That way you make the phone calls to him during the day at 1 cent a minute and he makes the calls to you at 1cent a minute in the evenings.  (If he has to ring you during the day disconnect his call and ring him back so it only costs 1 cent a minute and vice versa). Ye've just got to top up by €20 a month.


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## blanc (19 Nov 2007)

mY ADVISE WOULD BE TO REMORTGAGE AND GET RID OF ALL LOANS ON THE MORTAGEG YOU WILL SAVE MONEY


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## ClubMan (19 Nov 2007)

blanc said:


> mY ADVISE WOULD BE TO REMORTGAGE AND GET RID OF ALL LOANS ON THE MORTAGEG YOU WILL SAVE MONEY




Remortgaging could acutally cost more if an person ends up paying what would normally be shorter term debts at a higher rate over a couple of decades albeit at a lower rate. You need to keep an eye on the total cost of credit and not just the ongoing repayment amounts.


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## amy1plus2 (19 Nov 2007)

We did try and go down the re-mortgaging route but because our mortgage is so high its not an option, we've borrowed to our limit already, even with some of the not so popular lenders.  We would have liked this option as it would help us in the short term and then long term when we have our loans finished we could renegotiate our mortgage terms again to suit us.  Does anyone know anywhere that may be an option to us?  Plus we have to bear in mind that my partner has only recently gone out on his own as a taxi driver, so doesn't have payslips etc.???


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## teachai (21 Nov 2007)

Ive never had a pay as you go phone, and thats mainly because of the price per call. Before you decide to switch, work out exactly how much its costing you.  Your contract phone may work out cheaper.  Pay as you go are great if you are disciplined and only use them to receive calls or only make calls that are strictly necessary and keep calls as short as possible.  Also, if you have the Internet, use Skype (www.skype.com) for phonecalls. I deposited €10 in june 2006 and still haven't used it all up. I had a 3 hour call to the UK which cost under €4.  Also, see if you can interest free loan from your parents


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## Glenbhoy (23 Nov 2007)

A quick question Amy, what does your partner/husband do? Does he have a full time job in addition to the taxi work? Where does his 900-1000 pw come from?
Also for mobiles, the likes of 3 mobile offer extremely good contract deals.


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## amy1plus2 (23 Nov 2007)

Glenbhoy, my partner just drives a taxi and that is his pay (usually) per week.  However, he does have to subtract petrol money etc from that, why do you ask?


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## Glenbhoy (23 Nov 2007)

amy1plus2 said:


> Glenbhoy, my partner just drives a taxi and that is his pay (usually) per week. However, he does have to subtract petrol money etc from that, why do you ask?


Okay, what I'm interested in is whether or not you've included the tax that he'll have to pay when you say is take home pay is 900-1000 p.w.  I'm presuming that he's self-employed from the information you've given us, if you've already deducted a percentage for tax that's fine, if not, yous had better start budgeting for it.
I'm also assuming from the info you've given that he only started recently started.  If you can just clear up what he's been doing pre-taxi driving (if applicable) and what his tax situation currently, we can probably be more helpful (not trying to be too intrusive here, but it helps with to have full picture).


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## RainyDay (4 Dec 2007)

amy1plus2 said:


> But its just the unforseen things that constantly seem to catch us, like say a night out or our bills for hospital, with having the baby, approx 2000euro total.


THis suggestion may be too late, but perhaps you should consider going public with the baby. I know one extremely comfortable couple who swear by the benefits of the free public midwife-led service in Greystones.


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## moneygrower (5 Dec 2007)

second that, domino midwives are excellent.


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## apple1 (5 Dec 2007)

Folks, not wanting to hijack the OP's thread, but what are domino midwives and what is the free public midwife-led service?  Thanks in advance, apple1


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## DrMoriarty (5 Dec 2007)

'Domiciliary In and Out' midwives.
See .


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## nesbitt (7 Dec 2007)

I have read this post and replies with interest.  I agree that you need to down size your outgoings.  We did this last year and were able to free up enough cash to send twins to preschool for next two years.  (im not kidding).  start, with utilities and be ruthless, then look at the GROCERY outgoing, maybe you need to 'spend a little and live alot' and change food retailer (cant mention names, must abide by the site rules) you will save alot by doing just this.  Re think your priorities,  down size cars perhaps?  Look at clothes spend (maybe embargo yourself and hubby on clothes shopping) kids stuff in penneys is fab and most fashionistas (ejitts!) dont know where you got the stuff anyway.  Take the Eddy Hobbs route and get a notebook and write down your spend....  This worked for our family.


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