# Help please??



## zoe25 (19 Dec 2008)

Im hoping people can help me..am struggling to manage at the moment.

Age: 26
Spouse’s/Partner's age: n/a

Annual gross income from employment or profession: €27,000
Annual gross income of spouse:n/a

Type of employment: Permanent PAYE Worker

In general are you spending more than you earn or are you saving? Yes

Rent: 650 monthly

Other borrowings – car loans/personal loans etc: 
AIB Personal loan: approx €13,000 (pay 350 monthly)
Halifax Credit card: €2,500 (paying minimum every month)

Do you pay off your full credit card balance each month? No
If not, what is the balance on your credit card? €2,500

Savings and investments:None

Do you have a pension scheme? Yes

Do you own any investment or other property? no

Ages of children: none

Life insurance: none

Problem:
I am finding it hard to manage monthly day to day expenses not to mention tackling my debt.
I know i need to tackle my credit card debt first. I only used my credit card as I was due a bonus from work in January to cover it, now all bonuses have been cancelled! 
The bank wont lend me anymore money to pay off my debts so I am stuck, they also wont reduce my monthly repayments on my loan

I come out with approx €1,800 a month after tax and my pension.

Other expenses include
ESB : approx €60 bi monthly
O2 Phone Bill: Approx €60 per month
VHI: €55 per month
NTL : €20 per month
Food: Approx €250 per month
Travel: Approx €60 per month

I live on less than €200 a week so its not enough to save or pay off my debts

Any advice on how i can tackle my debt? Im thinking a second job is my only option!

Any help would be greatly appreciated.


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## dereko1969 (19 Dec 2008)

if the personal loan was for a car, i'd sell it and buy a much cheaper one. get either a better deal on your mobile phone or go pay as you go, you're spending way too much money on that.
keep a spending diary, you may find things there that you're not really aware that you've spending on (coffee/sandwiches) that add up to significant amounts.


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## zoe25 (19 Dec 2008)

Thanks for the reply, i will do that. The personal loan was for returning to college and for a car loan, unfortunately the car has since been written off so ive no car at all now.


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## Welfarite (19 Dec 2008)

1. Cancel the VHI
2. curtail phone use
3. Get a second job, if you can.


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## zoe25 (19 Dec 2008)

Welfarite said:


> 1. Cancel the VHI
> 2. curtail phone use
> 3. Get a second job, if you can.



Thanks for the reply, I cant cancel VHI because I have an operation in Feb, also I should mention I cant cancel NTL  becuse i share with 3 other people.


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## Welfarite (19 Dec 2008)

zoe25 said:


> Thanks for the reply, I cant cancel VHI because I have an operation in Feb, also I should mention I cant cancel NTL becuse i share with 3 other people.


 

Seems you've done all you can. What about a family memeber helping pay off the CC debt, then pay them back? Or even some of the AIB debt that would let them reschedule lower repayments?


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## gipimann (19 Dec 2008)

As Dereko suggested, I'd take a closer look at the €250 per month you spend on food - does it include shop-bought lunches, take-away coffees, Chinese take-aways..?   Some or all of these could be cut out even for a few months.   May sound like an insignificant change to make but it's amazing how it would help.

Are you on the cheapest O2 rate for your usage?   Check www.callcosts.ie to see if there's another package that might save you money, or (unless you're tied to a contract) another mobile phone provider who might be cheaper.


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## z103 (19 Dec 2008)

You are sharing with three other people and your rent is still €650? Is there cheaper accommodation available? 
If you're near the end of your lease, try to find somewhere cheaper, and used money saved to pay off credit card. Consider haggling with your existing landlord.


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## Susanna (19 Dec 2008)

Do not cancel VHI even after your operation, I would cancel the phone and tv before I had to do this.


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## PaddyW (19 Dec 2008)

650 rent is outrageous. Get out of there asap. I'm paying 500 at the moment and I'll be leaving that shortly to find some place cheaper.


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## truthseeker (19 Dec 2008)

650 rent a month, sharing with 3 other people is crazy, way too expensive, there has to be a cheaper option available.

You need to curtail phone usage, 60 a month is high.

250 a month does sound a lot on food for 1 person - you could easily eat more cheaply than that buying in places like Aldi and Lidl and cooking batches of stuff and freezing dinners, bringing lunch to work etc...

Could you get a hold of a second hand bike and use it instead of travel expenses some of the time?


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## NorthDrum (19 Dec 2008)

Possibly an unpopular idea, but have you considered moving back home until you can get your finances in order (if thats an option of course!).


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## zoe25 (19 Dec 2008)

Thanks for all the suggestions.. I am definitely going to look into the food spend(there is a lot of eating out there) and the phone( i am tied into a contract but will investigate and try to cut down on costs)
Have just signed new years lease but I am going to look into other options as i know 650 is a lot of money!
Im beginning to think moving home is possible the best option!


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## NorthDrum (19 Dec 2008)

zoe25 said:


> Thanks for all the suggestions.. I am definitely going to look into the food spend(there is a lot of eating out there) and the phone( i am tied into a contract but will investigate and try to cut down on costs)
> Have just signed new years lease but I am going to look into other options as i know 650 is a lot of money!
> Im beginning to think moving home is possible the best option!


 
My sister did it at 30 when she was struggling with serious debt.

Its not easy, but its usually the most cost efficient way of getting yourself back on your feet. !


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## Flax (22 Dec 2008)

zoe25 said:


> I live on less than €200 a week so its not enough to save or pay off my debts


 
Could you clarify what the above means? I'm guessing it means clothes/booze/restaurants?

If so, by cutting out your socialising for a few months you could be debt free pretty quickly.


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## MeathCommute (22 Dec 2008)

I notice that you have no expense there for internet. Do you use it at all ?


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## HAPPYFEET (22 Dec 2008)

€200 A Week for yourself after exspense's is a huge amount of money...Take €100 weekly and put €50 in bank and €50 off cc,you will have cc cleared in no time,The €50 a week will build up too,but have patients...It's tough,but worth it.Get together with housemates and try a get a better deal of landlord!


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## so-crates (24 Dec 2008)

zoe25, I am having a little difficulty with your numbers. What does your €200 pw include and exclude?

Based on the numbers you have listed above
1800 in (net of taxes and pension)

1475 out (excluding minimum repayment on credit card - you didn't mention but I am going to guess it is less than €100?)

So, aside from your credit card minimum payment what else are you spending the €325 on? 

I think the first thing you need to do is start diarying your expenditure, find the places that you are spending money on that you are not noticing - chances are if you are eating out you are spending more than you list here and more than you reckon on. I assume some money must be going on clothes? Does your "food" bill include other shopping neccessities (toilet paper?). Start recording every cent you spend and see what happens to the money, if you have a laser or debit card also make sure you record all of the tra. Record also each time you use your credit card on a separate sheet (Is your balance reducing? Are you still using your card?). 

You are not in a dreadful position, difficult and all as it seems right now you do have the resources to get yourself back on an even keel. Before you start trying to right yourself though you need to know exactly what is happening to your money. 

Once you know that then you can start to plan. The things you want to include in your plan are the Aims (short term - spending under control, short-medium term - credit card paid, long-medium term - loan paid, long term - savings). The second thing I would include would be a general statement of your approach to achieving your aims - what pleasures you will forgo, what you will do to make savings in each area of your life etc. Thirdly, the Budget. Write down exactly how much to plan to spend in a week - don't forget to average out monthly and annual expenses over the week. Also write into your budget a discretionary amount to cover the unanticipated (toothaches and troubles), set it aside as emergency saving only. 

Then you just need to stick to it.

I would to some extent disagree with Susanna - VHI is an expense to be looked at the same as any other. This is not the US - health insurance is not mandatory as it is possible to be treated in hospital without being ruined financially in the process. However - it wouldn't be the first thing I would drop.

HAPPYFEET - I suspect based on the figures given by the OP that the €200 pw is not after expenses but includes most of them.


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## allthedoyles (25 Dec 2008)

You need to absolutely control your day-to-day spending .
To do this you must cut out all non essential items like newspapers , chocolates , biscuits fizzy drinks etc .

When you go to shop / supermarket , only buy the items you intended to buy ........Do not be tempted to items you see , which you did not intend to buy.
Use O2 website to send text messages ( 250 free monthly ) 
Dont ring your friends - let them ring you.......send them a '' call me message *103*08?1234567hash )


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## Celtwytch (30 Dec 2008)

Try switching your credit card to one that offers 0% on the balance transfer for a number of months (www.itsyourmoney.ie has a good comparison table for most of the cards currently available).  By not paying interest for a while, you should be able to get ahead of the game.  Another trick is to divide the minimum payment by 4, and pay at least that amount each week - more, if you can manage it.  It's a lot less daunting than having to make one big payment each month.

Bring a home-made lunch to work - you will save a fortune on shop-bought sandwiches.  To add a bit of variety, cook extra portions of meals that freeze well (pasta and rice dishes are particularly good) and simply defrost the night before.

And, as already suggested, do keep a spending diary - you will be surprised at how a small purchase here and there can eat into your available funds.


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## angel12 (31 Dec 2008)

hi,

You have decrease your daily expenses,€200 A Week for yourself after expense's is a huge amount of money...Take €100 weekly and put €50 in bank and €50 off cc,you will have cc cleared in no time,The €50 a week will build up too,but have patients...It's tough,but worth it.

Try it , Best luck.....


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## MeathCommute (31 Dec 2008)

Hi, listening to Colm Rapple the financial expert on RTE1 radio this morning. He came up with a good one. Today is the last day for claiming tax relief on 2004 medical expenses. Go to www.revenue.ie and download a MED1 form quick.


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