# Urgent debt managment advice



## sarryan1 (3 Oct 2011)

Hi All 
I am looking for advise as is everyone here on trying to deal with my money worries. I am a single parent , dreading another cold winters with no heaing not to mention christmas and all the cost that entails. I am in a serious need of a money makeover as it is got to the point now where there isnt any access to cash in our house hold. All my earning are comsumed by my heavy debt burden. 
I know I am an adult and must take responsbility for this and suck it up so to speak but it would be nice if anyone can offer me any constructive advise as to what option are available.
I have tried in the past to tackle this dedt by reducing my credit union loan from 100 per week to now 50 per week. I have also had reduced mortgage payment in the pass which I have just reverted back to orginal payments and I feel its just keeps coming to bit me in the ass this was on advise from MABS last year but here I am again in the same situation. I would like to try and restructure all this now once and for all so I can live or a least have heat and food basic needs. I will try my best to document my current situation as it stands

Age: 30
   Status: Single Parent 
Annual gross income from employment or profession:36,000 (approx)
   Monthly take-home pay: 2300
    Type of employment: Instructor

In general I am :spending more than you earn
    Rough estimate of value of home: 160,000
   Amount outstanding on your mortgage: 178,000
*What interest rate    are you paying? *
Tracker Mortagage - will have to update on exact rate later as I dont have to hand 

Other borrowings outstanding :
Overdraft 500 limit : Currently stand at 1258 unauthorised 

Car Finance : 4200 ( 1 & 2 months remaining @ 280 per month)

Personal Bank loan: 2543 ( 33.85 per week)

Credit Union:15,000 remaining approx ( 50,00 per week). this was a loan taken out to fit the house orginally at the hight of the boom as it wa a run down house I bought.

    Credit Card balance:610

Borrowing from Parents: 2,000 for day to day living expense ( 20.00 per week)

Do you pay off your full credit card balance each month: No
   If not, what is the balance on your credit card: 610

   Savings and investments:None 

   Do you have a pension scheme: Yes

   Do you own any investment or other property: No

   Ages of children: 1

   Life insurance: Yes ( 17.85 per month)


*What specific question do you have or what issues are of concern to you? * 

Looking at how best I can service / resturcture this debt.

Car finance and personal loan is with AIB

Looking for to reading replies with gratitude.


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## eirefinq (4 Oct 2011)

- have u considered renting a room to ease the mortgage repayment?
- u mention that you have a pension, how much do u pay towards this?
- "Car Finance : 4200 ( 1 & 2 months remaining @ 280 per month)" - can u explain what you mean here? 1& 2 months remaining???????
- have u shopped around for your life assurance? 
- have u tried to move the cc debt to interest free provider?
- would aib allow u to restructure short term debt?


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## 44brendan (4 Oct 2011)

Concur with above response and clarity required. Also address the following:
-Have you prepared a budget for your own living expenses including household bills? Is the car essential? Have you availed of all tax allowances including one parent family? 
You also haven't stated the amount of mortgage payment. I'm assuming from your post that you are paying P&I at present. This is not likely to be sustainable based on your other payments. You will need to approach your lender for an interest only term under the MARP process. Any pension contributions should be put on hold. At age 30 you need to prioritise and pension is not not a priority payment. Are you paying your parents 20 pw? If so you need to defer this payment also. Your priority at the moment is to set aside enough money to meet the food/bills etc for both of you. Remainder of budget is to meet loan repayments. More information would help.


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## PaddyW (4 Oct 2011)

"Car Finance : 4200 ( 1 & 2 months remaining @ 280 per month)"

Perhaps you mean 1 year & 2 months remaining? If so it would actually be 1 year and 3 months (4200/280 = 15 (months))


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## ClubMan (4 Oct 2011)

sarryan1 said:


> Credit Union:15,000 remaining approx ( 50,00 per week). this was a loan taken out to fit the house orginally at the hight of the boom as it wa a run down house I bought.


Any use?

http://www.askaboutmoney.com/showthread.php?t=155464

i.e. maybe consider offsetting your (presumably?) €3,750+ in _CU _shares against your loan balance then asking the _CU _to keep you on the same loan term/number of repayments but at a lower weekly repayment amount in order to ease cashflow a little?

It might also help if you posted the following details for each loan/credit agreement:

start date
original and outstanding amount
original and outstanding term
interest rate/fixed or variable


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## csirl (4 Oct 2011)

Is your child's father paying the going rate of child support? If not, you should seek it.


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## ClubMan (4 Oct 2011)

Difficult to say for sure given the info posted but it may be that you should not be putting money into a pension when the money could be better used towards paying off debts. As ever saving while carrying debt may not make sense in many cases.

The same may apply to life assurance unless it's linked to the mortgage (mortgage protection life insurance) in which case make sure you are getting the best deal on the most basic policy needed.


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## sarryan1 (4 Oct 2011)

iHi All 

Thanks you all for taking the time to reply , I really appricate it I have tried to answer as much as possible below to give a clearer picture.


eirefinq said:


> - have u considered renting a room to ease the mortgage repayment
> 
> *I rented a room out in the past & I found it not to have worked very well on account of having a child*
> 
> ...



I have a household budget and it is clear tht far more is going out then is coming in . I have never missed any payments, until this pass month as I said there is now no access to cash. I need the car as I have a distance of 15 miles to work daily with no public transport to suit hrs. I have tried to seel to downgrade but no such luck to date.

I rang AIB today and they have suggested that perhaps i could take out a new loan to clear the personal loan, overdraft and credit card. I would lose the overdraft & credit facility thereafter. Repayments would be 39 biweekly over five years. I am unsure as of yet is this my best option and dont want to rish into a quick solution to find myself still struggling.

I my current repayment on my mortgage is *782.53 per month*. I have already had a period ( 6 months) of interest only and then another 6 months reduced capitial. I ask for another but they have said they will now persue my mother  if I cant meet repayments as she is named on the loan. I do not want this to happe. My Mortgage is with IIB 

I would be grateful for any further responses.


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## sarryan1 (4 Oct 2011)

ClubMan said:


> Any use?
> 
> http://www.askaboutmoney.com/showthread.php?t=155464
> 
> ...


*I will have to check this in more detail to give a more concrete answer, thanks for taking the time to reply.*


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## sarryan1 (4 Oct 2011)

44brendan said:


> Concur with above response and clarity required. Also address the following:
> -Have you prepared a budget for your own living expenses including household bills?
> *Yes I have with a fine tooth comb, It far out weights what comes in.*
> Is the car essential?
> ...


lk


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