# Credit Card Debt / Loan Consolidation



## Auds (6 May 2011)

I need some advice and help regarding my financial situation.  My ex left in September 2009 and stopped paying his share of the mortgage.  The property is in negative equity and cannot be sold.  I have continued to pay the full mortgage payments and insurance totaling app €1,450 per month.

My salary is 57,000 per annum.

My loans / debts are as follows (excluding mortgage) TOTAL €23,962:

Bank of Scotland €7,332 (€611 PM (12 months remaining) 
AIB Loans €2,830  (€130 PM (24 months remaining)
MBNA Credit card €9,100
AIB Credit Card €4,700


I would like if at all possible to protect my credit rating.  Although, I am finding it extremely difficult to survive at the moment.  I have no social life and have no idea of how to get out of this mess. 

I have never missed a loan repayment or a mortgage repayment.

I have an appointment with MABS in two weeks but would like some advice before I go. 

I am technically not in arrears with any of my loan payments or my mortgage.  However, in order to make payments on the credit cards.  I bounce payments from one card to the other (therefore, effectively not making any payments).

My bills are pretty much up to date.  I have cut back on absolutely everything to the point that I cannot treat myself to anything. 

My ex has not contributed anything towards the property since 2009.  I was out of work for a number of months but continued to pay the mortgage (from savings).  I now have no savings and see no way out of this mess.  I am now in a permanent job.

I am worried that I cannot continue to go on like this (esp. with mortgage interest rates rising). If at all possible, I would like not to have to reduce my mortgage payments (as the bank won't negotiate me and I don't want to have to approach my ex to reduce the payments).

Any help and advice would be sincerely appreciated.


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## Elphaba (8 May 2011)

Mabs can help you get the interest frozen on your c.card accounts, so bring all your financial info, i.e. incomings, outgoings. They prepare a financial statement which they submit to the c.card companies on your behalf. Mabs make an offer of how much you can afford to pay. In my case it is 25 euro per month on a debt of 5000. I'll be forever paying it off until my situation improves. My debt was passed from the c.card company to a debt collector, (after everything was agreed and they see you dont have a lot left to live on.) I know this is probably everybodys worst fear, but they are very polite to deal with once everything is clarified and you make your payment every month. It doesn't bother me that my credit rating is impaired, as I am in the same boat as very many people. When you get into financial trouble you go through all sorts of emotions, because your pride takes a knock. Bring someone with you to Mabs for support and go for a nice cup of coffee after...or you might need a drink. Please try and keep strong and dont be afraid to seek help from friends and family. Good luck


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## ali (9 May 2011)

Hi Auds,

First of all well done. You are dealing with a large amount of debt on your own and making headway even if it doesn't feel like that now.

1. Transfer all credit card debt to a 0% credit card for the longest offer available if possible. If not then try the bank of Ireland platinum card. I think it offers 3.9% for 12 months. That should buy you time with only one minimum payment a month and low interest rates.

2. You have only twelve months left on an extremely expensive loan. This will fly by if you can keep on top of it and in a short year you will be able to breath a little easier or continue paying this amount but off your credit card debt.

3. In relation to your mortgage: 

Can you fix? This would give you peace of mind in terms of interest rates? 

You will need to sort out the joint ownership issue though first, though you should do this whether you intend to sell or not.

Can you rent a room to supplement your income in the medium term?


Regardless make an appointment with MABS.


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## Auds (9 May 2011)

Thank you for your replies.  Some very helpful advice.  

I really if at all possible would like to protect my credit rating so I will be putting that to MABS when I go to see them.  It's shocking how quickly one can get into such a mess.  

I am doing my best though and have sacrificed so much to get where I am today.  Although as you say Ali it doesn't feel like that.

I am on a tracker so I won't be fixing my mortgage anytime soon.  I will try the 0% credit card option or the BOI platinium card and see how far I get with the banks.  

As far as the joint ownership issue goes, I don't see a way out of that one.  The bank won't allow me to take over the mortgage in my own name at the moment, so it looks as though I have to keep paying for the moment.  I may as well be writing my ex a great big cheque each month.


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