# Messy debt.. help please!



## mrs kermit (3 Apr 2009)

Hi Guys! I am in a bit of a mess at the moment as I was made unemployed about 3 months ago and my partner and I are in a lot of debt. Any advice would be greatly appreciated!!

Monthly income:
Mine: 680 social welfare payments (have not come through as of yet)
Partner: 1700

Monthly outgoings:
Car: 266 (cannot sell as I cannot afford the NCT and the car is in need of     expensive repairs, but it will be fully paid off in July)
Rent: 950
Loan 1: 100
Loan 2: 400
Credit Card 1: 150 (minimum payments)
Credit Card 2: 60 (minimum payments)
Esb: 100
Internet: 40
T.V: 30
Train travel to work:150

This leaves us with about 140 per month for food and everything else and we just keep coming up short.

I have tried to get the rent down with no luck and I can't find any other accomadation where we live thats cheaper.

I have already lowered my loan payments with the bank and they can't stretch the term any longer for me.

I am getting very stressed and worried about this........


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## Bronte (3 Apr 2009)

You'll have to try and give more details. For example how much do you owe on your credit card debt and loans.  Can you try and fill out the money makeover section.


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## Guest110 (3 Apr 2009)

Hello, 

If you are that broke, you need drastic action regardless of what people say and how they take my views below.  I would 1st keep only the necessities - what do I need to have compared to what is a luxury or a small luxury.

40 - I would cancel the internet, it is a luxury
30 - I would cancel the TV and just use an aerial for rte 1,2 and tv3, it is a small luxury
Depending on the distance to travel, I would go out and buy a bike off the street for 50 euro and save the 150 and just cycle to work every day. At the moment we have great weather and it would be a nice time to cycle.

The total you would save is 220

Also - to note, you can sell your car for scrap and could get 2-3 k for it depending on its condition.

Another thing to mention - the rent is 950 - I assume that you are both living together in the same place with no other tennants ? If so, you could move out and the two of you`s share a room in a house which would work out about 800 a month saving you another 150. Also, if you did not want to cycle to work, then I would move right beside where the job is as only 1 person is working. 

I would do the above until I was on the straight and narrow with the bills gone !


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## so-crates (5 Apr 2009)

Okay, first things first alexandra if the train is a monthly ticket as I am guessing then it is unlikely that the distance is cyclable? Mrs Kermit, I am assuming that the ticket is a monthly commuter ticket four your partner? If so, is your partner availing of the Tax Saver scheme for public transport? Or more importantly is his company availing of it.

Next thing - and this is very important - when does your Jobseekers benefit come through? Given the numbers that you have provided you cannot afford to service your debt and live on €1700 pm.

One thing I note form the list you have provided - you haven't included the basic costs of living (ie food!) which leads me to the next question ... do you have a budget written down?  If not, I think you need to draw up a budget and stick to it! In order to draw a suitable budget, I would start with just monitoring your spending via a diary - record everything you spend money on - you will soon see where the fat can be trimmed!

According to the list provded you have 2380 (net or gross?)coming in between the two of you (assuming the SW payment is coming to you!) and are spending 2246 on. This leaves little wiggle room! You really do need to draw up a proper budget and perhaps discuss your payment options with your credit providers - you may get a better deal and you may not!

One last one - is your electricity bill really that high? It seems excessive for one month!


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## callaghanj (5 Apr 2009)

You should get in contact with your credit card comapnies and tell them you need a debt management plan. Ask them to reuce the monthly payments and to freeze the interest. The bank will do the same with the car loan if you push them hard enough....tell them you cant give them what you haven't got. Also keep the internet as I'm sure you'll need it for job hunting. Good Luck


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