# Need to get on top of my loans, can anyone offer advice please?



## Cailin23 (23 Oct 2009)

Age: 23

Annual gross income from employment or profession: 25k
Annual gross income of spouse:

Type of employment: Account Manager

In general are you:
(a) spending more than you earn

Rent: 260 every 2 weeks
Dentist: 300 a month for the next 3 months
Loan: 370
Gym: 54
Food: 300
Bills: 50
Travel: 30



Other borrowings – car loans/personal loans etc

Student Loan 8k: Have been paying 370 a month on this since August, I paid interest only on it for a year prior to this.
MBNA CC: 3400k+ , I'm over my limit and in arrears so not sure of the exact amount now. I was on a payment plan but thats finished now and I can't keep up minimum repayments.
AIB CC: 2100k, also in arrears, limit is 2k



Do you pay off your full credit card balance each month? No
If not, what is the balance on your credit card? 3400k on mbna, 2100 on AIB

Savings and investments: None

Do you have a pension scheme? No

Do you own any investment or other property? No 

Ages of children: None

Life insurance: None


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

After I pay everything off I'm finding it very hard to manage my money, I have very little spare and I'm a bit worried about this ocming up to xmas, I need to get in control of it but I'm not sure how.  I've contacted MABS but I'm on a 3 week waiting list.  I'd appreciate any advice

Thanks a milion


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## Joanne1 (23 Oct 2009)

First of all 300 on food sounds high to me for a single person. Do you eat out alot? Consider bringing lunch to work, shopping in a cheaper supermarket......

260 on rent per forthnight.  You should be able to find somewhere cheaper or perhaps negoiate a rent reduction with landlord.  

I would make contact with the credit card companies and explain your situation. 

Could you stop paying off the student loan until you have cleared the credit cards.

I would advise you to get out of the habit of using credit cards as its easy to run up debts and later struggle to pay them off. 

You could have your debts paid off within 2 - 3 years I think.

I would advise you not to spend much on xmas pressies this year. People should understand if you explain your situation to them.

Also I advise you to do up a weekly budget and stick to it.


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## so-crates (23 Oct 2009)

You have an annual income of €25000 and current total debts of €13500. Granted a good proportion of that is your student loan but nonetheless you don't seem able to afford your lifestyle. Two credit cards both with outstanding balances attests to this.

By a rough calculation your monthly take home is just over €1800? Your outgoings (by your listed amounts which I note excludes repayments on your credit cards) is €1624. By that calculation you have perhaps €200 to put towards paying off your credit card debt. Is this right?

To get on top of this you are going to have to swallow some hard medicine. Firstly, forget about Christmas - you can't afford to spend money on it and it is too late in the year to build up a budget for it.

Secondly if you can (and I appreciate you may not be able to do this due to contractual obligations) give up your gym membership. Running is free, you don't need to do it on a machine. 

Thirdly you need to cut down on every expense because you have to free up some income to put towards clearing your debt. Start a spending diary. Record every cent that you spend. This will start showing you where you are frittering away money and provide you with some clear idea of what you can cull. Start a budget. Work out how much income you have after servicing your debts, split this into a weekly budget and see if you can live within it.

Fourthly, cut up those credit cards. You can't afford to use them any more so take the temptation away.

There is no easy way to do this. There is only the right way and that is to rein in your spend and pay off your debts, it will take time, effort, perserverance and sacrifice on your part. Anything else (getting loans etc) is just deluding yourself.


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## Cailin23 (23 Oct 2009)

I haven't used those credit cards in a year.  The credit cards are from when I was in college and couldn't get an increase on my loan, I haven't used them since and at the time I did need the money to be honest, and they were my only option.  I supported myself through college so I just did what I could to get through it, unfortunately I didn't think about the consequences in the future.

Quitting the gym isn't an option as I train competitively and I need the weights equip in the gym to do this.  I don't go out drinking alot so I'd like to think the gym is an ok expense to have in comparison.

I know I spend a fair bit on food so I'm going to try to cut this down, you're right, I'm a veggie and I eat healthily so alot of my money goes on good food.

I've asked the landlord about lowering the rent, it's not happening.  I'm happ here and I've lived here 2 years, it's home to me and to be honest moving would be a last option.


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## niceoneted (23 Oct 2009)

I respect what you say about the gym and where you live but you either want to get out of debt or you don't. On your income and with the level of debt you have you have to quit the gym and look for somewhere cheaper to live. 
You could see if you could transfer some of your current credit card debt to a 0% interest one for 6 months or so or even to consolidate them with the loan now that you are working. 
don't forget that you will be able to claim tax relief on the dentists bills at the end of the year and any other medical expenses.Is what you are getting done at the dentist an essential? 
Shopping bill is big for one person. Could easily cut this by at least 100. I eat healthy and spend no where near that.
One other thing is that there are some shops taking on extra staff for the xmas period so you could get an extra part time job for the next few months to bring in some extra money.


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## Cailin23 (24 Oct 2009)

niceoneted said:


> I respect what you say about the gym and where you live but you either want to get out of debt or you don't. On your income and with the level of debt you have you have to quit the gym and look for somewhere cheaper to live.
> You could see if you could transfer some of your current credit card debt to a 0% interest one for 6 months or so or even to consolidate them with the loan now that you are working.
> don't forget that you will be able to claim tax relief on the dentists bills at the end of the year and any other medical expenses.Is what you are getting done at the dentist an essential?
> Shopping bill is big for one person. Could easily cut this by at least 100. I eat healthy and spend no where near that.
> One other thing is that there are some shops taking on extra staff for the xmas period so you could get an extra part time job for the next few months to bring in some extra money.


 
Hi 

Thanks for your reply, I do appreciate it.  However quitting the gym just isn't an option, as I said I train daily and I need the gym to do this, otherwise I couldn't compete any more.

Moving isn't an option either to be honest so I need to work within those realms.  

I'll definitely cut the shopping bill, definitely.

I had a part time job in college at weekends and I was going to keep that up with this job, but after the extra tax it just wasn't worth my while to be honest 

The dentist work is essential worse luck  I didn't go for years due to a phobia, I recently overcame it (well, I'm trying) and found out just how much I need done.  At least once it's done it's done though.

How do I go about claiming back the expenses?

Please don't think I don't appreciate the advice, it's just those things you mentioned just aren't options and there's no point in me agreeing for the sake of it, you know?


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## Cailin23 (24 Oct 2009)

Consolidating the credit cards might be an idea, I called the bank today and someones calling back to speak with me on Tues so I'll ask about it then.

I was thinking if I spread the loan over 4 years instead of 2 I'd be in a better positon?


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## WaterSprite (24 Oct 2009)

Cailin23 said:


> I had a part time job in college at weekends and I was going to keep that up with this job, but after the extra tax it just wasn't worth my while to be honest



If quitting the gym or moving to a cheaper place are not options you want to take, then look again at that part time job.  It is worth your while to get out of debt, or else you wouldn't have posted here.  You are limiting yourself by your other choices, which is fine, but then you need to go down another avenue.  Just because you will pay tax on money earned at an extra job is not a good enough reason not to do it if you are really serious about reducing your debt.  The maths involved on your current wage just don't allow for much wiggle room, even if you reduced your food bill (which you also should do).  No one on this forum can create money out of thin air for you so you need to either cut back (and food is the only area where you are prepared to do that) or earn more (the part-time job).

p.s. just saw your post about consolidation - don't assume that the bank will be ok with you doing that.  If they do let you, that's great, but banks are currently notoriously reluctant to allow consolidation of loans.


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## Cailin23 (24 Oct 2009)

WaterSprite said:


> If quitting the gym or moving to a cheaper place are not options you want to take, then look again at that part time job. It is worth your while to get out of debt, or else you wouldn't have posted here. You are limiting yourself by your other choices, which is fine, but then you need to go down another avenue. Just because you will pay tax on money earned at an extra job is not a good enough reason not to do it if you are really serious about reducing your debt. The maths involved on your current wage just don't allow for much wiggle room, even if you reduced your food bill (which you also should do). No one on this forum can create money out of thin air for you so you need to either cut back (and food is the only area where you are prepared to do that) or earn more (the part-time job).
> 
> p.s. just saw your post about consolidation - don't assume that the bank will be ok with you doing that. If they do let you, that's great, but banks are currently notoriously reluctant to allow consolidation of loans.


 
Thanks a million for listening to me, it's just I o want to pay my debts but I also want to have some quality of life, you know?

I'd definitely go for a part time job if i gave me extra money,the prob with the one I had was I finished work at 6am and it cost me 20 Euro to get home in a taxi, that was 40Euro a week,when I worked it out with the tax I'd have been earning feck all, you get me?

I'm not sure what kind of job to go for, I've no exp in bar work , I did post in a few places about child minding (I've exp in this), in the past few months but got no replies.

I can potentially earn more in the job I'm in, but thats dependent on a pretty high target, I got that target last month - but then they doubled it, so I didn't get it this month.  I have to sit down with my boss to go through my bonus structure as my position is new within the company and since no-one has done it before they haven't it set in stone.  Also, there's alot of room for my position to expand in the next 2 months so I could be earning more by this time next year.

Another problem I've run into is expenses at work such as taking clients out (have to do this alot)and travel to our other office which is 3 hours away.  I don't get the expenses back for 3 -4 weeks.  If I had the cc under control it would help alot wth this.

My main concern about xmas is I wanted to get my brother and sister a laptop, they really need one now they're in seconday school and my sisters doig her Junior, even if for about 300, do you think that's possible?  It's just really important to me.


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## coin (24 Oct 2009)

Cailin23 said:


> Annual gross income from employment or profession: 25k
> Rent: 260 every 2 weeks



Thats a ridiculous amount of rent your paying for the income your on. You need to bite the bullet and find a cheaper place if you want to clear your loans.

To make up for the 300 a month loss on the dentist, try claiming back rent relief for the previous few years of rent, also get your previous tax years reviewed, that might give you a handy sum to put against your debt.

After the 300 a month is paid for the next 3 months put the extra 300 again the loans from then on. 

I'll be honest, your not spending an awful lot outside of the dentist and rent. If you dont mind me asking where are you living that the rent is so high?


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## yram (24 Oct 2009)

Cailin,

Oh gosh - what are you saying? A junior cert student? A laptop? For christmas? And you can barely keep your head above water?

Is swimming in debt by previous spending habits not a lesson to you? Is it going to take possible legal action against you to realise your situation? It was my sisters birthday last week and I bought her at least 5 different things for €20 in TOTAL. And she was delighted.

I really really cannot express how concerned I am about you if you think it would be ok to go off and buy a laptop while having a mountain of debt.

Can you think about that one for a minute and ask yourself exactly what advice you are looking for on here. I dont think anyone here would advise you to spend money you dont even have while trying to get out of debt.


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## Cailin23 (24 Oct 2009)

yram said:


> Cailin,
> 
> Oh gosh - what are you saying? A junior cert student? A laptop? For christmas? And you can barely keep your head above water?
> 
> ...


 

.


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## Cailin23 (24 Oct 2009)

yram said:


> Cailin,
> 
> Oh gosh - what are you saying? A junior cert student? A laptop? For christmas? And you can barely keep your head above water?
> 
> ...


 

You dont' understand, their home situation isn't very good, and I've always tried to do my best to make sure they have everything they need. My sister is having to get me to get things for her on the net constantly, and has to go to friends houses to use their comps to do projects, she really does need a computer.  I know I can't afford it, but if there was any way, for that one month that I could manage it...

I live in a shared house.  Ah listen I'm sorry I posted here, I'll sort this out my own way - I hate replying and rejecting advice I know it's hardly grateful.  

Thanks everyone who posted.


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## Cailin23 (24 Oct 2009)

yram said:


> Cailin,
> 
> 
> 
> Is swimming in debt by previous spending habits not a lesson to you? Is it going to take possible legal action against you to realise your situation?


 
I don't appreciate that at all, I wasn't in any debt until college, I've only ever took loans I NEEDED to live on! 

I am NOT a frivolous spender and that was completely uncalled for.


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## so-crates (24 Oct 2009)

Cailin23 you don't want to hear this but there are no easy choices left to you. You only have hard choices to make. Is the ability to compete worth your peace of mind? No-one has been able to give you advice you are ready to take because you have yet to face up to the full implications of the fact that you can't afford to live as you are, hard and all as that realisation is.

Sorry to be so harsh, it isn't an accusation that you are profligate or prone to indulging every whim. It is just a hard truth. 

If you can't give up anything then you need to budget very stringently. That means losing quality of life. Sometimes that is the only option. Cinema, drinks with friends etc are all luxuries and sometimes we have to admit to ourselves we simply can't afford them and believe me I know it isn't a simple thing to do. It is far easier to say than to do.

On the positive - your bill with the dentist is a temporary thing, in three months time you will be able to turn that money to different account. I would suggest saying to your sister that you are planning to buy a laptop for her in the new year (by which stage your dentist bills will have dropped away). Just call it a belated present. If you like give her a present of a mouse and tell her the rest is to follow. I'd not be inclined to encourage you in it as you cannot afford it right now but you are right, your sister does need access to a computer nowadays. In the interim, track down every cheap computer you can. See if they are getting rid of any in work, they will generally sell them off very cheaply. You'll have to get the software but as a student it should be possible for your sister to source that more cheaply. Put out the word among your friends that you are looking for a laptop and to let you know if one comes available second hand. You might even get one before christmas.

Investigate the option of consolidation. The banks may be leery of lending for such purposes now but unless you ask for it you will never know if you can get it. It will mean that the rate of interest will be lower on the credit card debt which will be a positive. Even if you could just get a loan to clear those it would be beneficial. 

Be prepared for a long haul, it is going to take you possibly five years (hopefully not but) to clear your debt, it will not be easy but it is achievable. The basics are record what you spend and budget every penny. Justify every cent you spend.


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## yram (24 Oct 2009)

Im sorry Cailin, but that is not going to wash with me.

I am simply asking you what advice are you looking for on here? From the title of your thread, you are looking for advice on your debts, but everything everyone suggests you knock down!

I fear you want us to say "ah it will be ok, shur spend the 300 on a laptop" which doesnt help you at all.

Most secondary school students have access to PCs. God knows I am in my late 20s and I only got a laptop last year after saving for it for 6 months and I have a full-time job and I am a part-time college student. So, please do not manipulate people into telling you that what you are doing is ok.

Im really am sorry if that upsets you. Is there anything that you can come up with that you can cut? For example, food bills and rent? What do you think you could do to change the situation?


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## Cailin23 (24 Oct 2009)

I posted on here for advice, and I got it.

Thank you for your time Yram but to be honest I feel even worse now.

I'd appreciate this thread be locked as I won't be checking it anymore.

Thanks again to those who posted.


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## coin (24 Oct 2009)

Cailin23 said:


> I posted on here for advice, and I got it.
> 
> Thank you for your time Yram but to be honest I feel even worse now.
> 
> ...


 

How long have you been renting for? Make sure you claim back previous years of rent relief and get tax reviewed. You get back roughly a months rent per year


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## yram (25 Oct 2009)

Well, for what its worth, I am genuinely sorry you are upset.

Part of the advice was not to buy the laptop - I was annoyed reading what you wrote as initially it sounded like you were flippant about clearing the debt and taking advice from others. I was just trying to get you to see that there is more to life than buying a €300 laptop thus contributing to you being in debt.

There are so many people who come on here and are desperate to change their debt problems.

Ive been in debt myself. I know what it feels like. I met a guy who was outstanding €9000 in college fees. He was so determined to clear the debt that each month he bought a few kilos of rice and that is what he would live on for the month (as a treat he used to joke that he added a few sauces and veg/meat). By the end he was sick of eating the rice, but had cleared the fee. Im not saying by a long shot that you eat rice for a year, but it goes to show what people do/need to/have to do to clear debt and the determination and motivation.

The best of luck to you.


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## Cailin23 (25 Oct 2009)

coin said:


> How long have you been renting for? Make sure you claim back previous years of rent relief and get tax reviewed. You get back roughly a months rent per year


 
Thanks, I really appreciate this, I wasn't aware of it at all. I've been renting over over 6 years now; I don't have contact details for my first 2 landlords but I do for the past 4 years, if I could get something back that would be great.

I rented with my ex for 2 of those years, should I put down the total amount we paid monthly or the amount I paid? We split it down the middle. We paid 825 monthly in the first tenancy and 1100 in the second.

I then moved in to my current residence, which as I said is 520, I've been renting here for 2 years.

Could I claim for each of those years? This would be a really big help, thank you so much for mentioning it.

And to Yram - I understand you were just trying to help, every situation is different and sometimes can be hard to get across in a post. I'll take what you've said on board, things had just got on top of me when I posted last night.


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## coin (25 Oct 2009)

I would put down on the form for what you paid. As far as I know it's the last 4 years you can apply for.

You need the landlords PPP number and address. Heres the application form. Also get your P60 done for tax recheck on the last few years. 

http://www.citizensinformation.ie/categories/housing/renting-a-home/tax_relief_for_tenants


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## Bronte (26 Oct 2009)

You cannot afford a laptop.  There are computers available at libraries for a nominal amount that your sister can use for now.  Your sister should not be putting you under any pressure on this.  

There is no easy way to say this but if you want a long term quality of life than you should suffer the pain now.


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## plant43 (26 Oct 2009)

coin said:


> You need the landlords PPP number and address. Heres the application form. Also get your P60 done for tax recheck on the last few years.



You don't need a landlords PPS number to claim tax back - you only need their name and address.


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## Joanne1 (27 Oct 2009)

I advise you to order a P21 off Revenue for each year you have been working.  You may be entitled to a refund.  Just call your local Revenue Section, quote your PPS number and ask for a P21 for each year. (you can also do this online)

If you're not prepared to make the changes proposed it is going to take you longer to pay off your debts.  So its your choice.

Even if you don't want to move, I suggest you keep pressure on landlord to reduce rent.  They won't want to lose a good tenant.  And 260 per forthnight is high for any part of Dublin.


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## Cailin23 (29 Oct 2009)

Just an update guys, things are looking a wee bit better.

I've spoken to my boss at work about my bonus structure and I'm getting 600Euro this month and 500Euro next month.  I should be coming out with an average bonus of 300 per month after Christmas too (that's just for 90% of target), as I'm being giving extra key accounts to handle.  I wasn't sure about my bonus structure before as my position is still changing quite alot and is more client relations than sales based, but I know where I'm at now thank god.  

I rang AIB and they're cancelling my credit card and adding it on to my loan, I told them I could pay 400Euro a month if it covered my card too so they're working it out on that basis and going to ring me back with the term.

Now I just have MBNA to deal with, I don't want to ring them from work so going to call from my mobile later, I figure if I can pay the arrears with my bonus next month then I can get on some kind of payment plan with them after that.  

I've also sent off the forms for rent relief for the past 4 years.  I checked my P21 last year but I owed 200Euro, so I think I'm best not checking again!

My sister isn't putting any pressure on me, her and my brother live in a rural area and have no access to a library, they do need the computer and I am going to get it for them.  I appreciate that it's hard for ye to understand and that you're just trying to be logical about my debt, but I play a big part in their upbringing and if I don't get them the things they need then they won't be got, end of story, so I have to do my best. I don't want them in the same situation I was in at their age or indeed the situation I'm in now. Their parents aren't worth talking about.

Anyway things are looking a bit better now at least.
So, fingers crossed.  Thanks everyone for your posts


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## pinkyBear (29 Oct 2009)

There is one thing Cailin that hasn't been touched - you are still very young and the fact that most of the debt has come about from the student years, as previous posters have stated go easy on the expences for a few years and you will have all your debt paid off... 

My sister is 30 and still paying off a student loan.. You are dealing with you debt and thats the important thing....


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## Bronte (29 Oct 2009)

Don't ring MBNA from your mobile.  Ring them only from a number that absolutely can not be traced such as a phone box.


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## Cailin23 (29 Oct 2009)

Thanks Pinkybear, I'm feeling much more optimistic now, things just got on top of me before.

Bronte, they already have my mobile, god knows they ring it 10 times a day - that's why I'm going to wait and ring them off that later.


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## Danniboo7 (29 Oct 2009)

Hey Cailin, 

I have younger siblings aswell and also participate a lot in their lives. You should not feel guilty or put yourself under this extreme pressure to buy them a laptop. I know you feel like you have to, but you have to have a life aswell and you can't help anyone until you can help yourself. I'm sure they love you just for caring so much about them. : )


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## spursman (29 Oct 2009)

you have dug yourself into a debt hole but its not too big.

1. you have to cut way down on food expenses. i eat very well on about 50 a week
2. your rent is way too high, you have to move


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## Cailin23 (29 Oct 2009)

spursman said:


> you have dug yourself into a debt hole but its not too big.
> 
> 1. you have to cut way down on food expenses. i eat very well on about 50 a week
> 2. your rent is way too high, you have to move



As I said, I'm not moving, it's not an option.  I'm not in as bad a situation as I was previously and I really feel that I can get out of debt in the next 5 years while still having some kind of a life, which is all I wanted.

Thanks for all of the advice guys. I'm ok now!


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