# 35 and worrying over debt



## Firesign (2 Jun 2010)

Thank you for all your help and advice


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## niceoneted (2 Jun 2010)

Perhaps this might have been better in the money make over section which is here 
http://www.askaboutmoney.com/showthread.php?t=61289

apart from that can you indicate what are the payments on the loans as is and what are the minimum payments on the cc's as is?

Have you applied to switch any of the credit cards to one where they provide a 0% balance transfer? 
Would you be able to look into bringing in extra income by renting out a room or two - this will come down to location and how many rooms you have. 
Keep a spending diary - this will allow you to see where more money can be saved. 
Try to look to go interest only but look for 12 months as you'll need it also if they say no to 12 months you can look for a lower number 10/8/6 for instance.
Also consider getting in touch with MABS. 
Good luck.


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## Firesign (2 Jun 2010)

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## niceoneted (2 Jun 2010)

If that is 70 per month for electricity it is very high, I pay about that for 2 months in a 3 bed semi 2 of us - one on shift. Gas should be very little for the next few months. 

From what you have written you are paying out 2718 per month which is more than you are taking in. what about food? 
Are the credit cards with the one bank?


You could try writing to the credit card company's and explain your situation. Ask if they can freeze the cards as is and commit to making a certain payment each month without leaving yourself short for anything else. Try this esp on the one for 15k. Do try again to switch the cards to a 0% transfer. cut them up. keep the number of one for emergencies or to get stuff cheaper on line. 

Is there any equity in your home? how much is it worth approx - I know we cannot tell now and what is the outstanding balance. 
You have 46,746 in cc/loan debt so you really have to consider all options. perhaps even selling. 
Is there a family member that could perhaps you could get a dig out from. 
The loans are manageable enough I would say but it is the cc's that are crucifying you. 
I know it is an awful situation to be in but it will get better. you need to tackle it head on.


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## Firesign (2 Jun 2010)

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## niceoneted (2 Jun 2010)

It is understandable that you bury your head initially and I feel from reading your posts that you are not one to just say to hell with it and you have pride, this will help a lot. 
I suggest once you contact the backs follow up with written communication and get the full names of everyone you talk to and take your own notes on what is said. 
There are lots of people who have gotten themselves into this situation so your not alone and the banks are getting used to dealing with it. 
Best of luck and keep us posted or come back for support if you need to.

one other thing is the ex partner responsible for any of this debt and if so what can you do about that? perhaps it might not be worth the hassle - been there done that.


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## Firesign (2 Jun 2010)

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## niceoneted (2 Jun 2010)

Best of luck and come back with any responses so as all the others on the site along with myself can advise. 
Once you get this bit sorted there is more advice I can give you going forward in terms of preparing for up coming bills but you should deal with this bit first.


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## rameire (2 Jun 2010)

do you heat your water with the electricity or the gas.
if with the electricity through emersion, change it to gas heating the water.
dont be heating it up when you dont need it.
as for heat, its hot out so turn your heating off, put a jumper on, save the expense for when you need it in the winter.
have the gas come on to heat the water for half an hour in the morning, you can do without for the rest of the day.
close curtains earlier in the day, even if its still bright out to keep heat in.
turn off the lights after you leave the room.
unplug all electronics when you go out or go to bed.
as for the loans there are more experienced people her who can advise.
just one thing, would it be possible to go to your bank to get the credit cards changed to a personal loan and then destroy the credit cards.

good luck with the banks, it will all turn out well in the end.


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## Dirac (2 Jun 2010)

I would bite the bullet and get in touch with MABS. They are non judgemental and offer excellent practical help even if you do it yourself and work from their debt pack they send you out free. 
I found them extremely helpful and got my finances sorted out with lenders etc very quickly with their help.


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## D8Lady (2 Jun 2010)

Hi Firesign,

AIB [broken link removed] for people who are similar circumstances, it includes a detailed budget planner. All banks will have similar guides in place. 

I had to approach my mortgage provider during a bout of unemployment and they could not have been nicer about it. I had never missed a payment and I talked to them before it become a problem. I got myself sorted out with 6 month interest only payments.    

Get your budget together with payslips etc and approach each provider to negotiate.
Stay in touch here & ask any questions that arise. 

Best of luck!


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## Firesign (3 Jun 2010)

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## redbhoy (3 Jun 2010)

http://getoutofdebtfree.org/forum/

Dont stress yourself over debt. You'll find some info on here. Its a UK site but Banks are the same everywhere.


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## UptheDeise (3 Jun 2010)

Firesign, would you not think about selling you house if it's not in negative equity? You could rent in a location nearer to work so cutting back on fuel expenditure, aslo maybe even getting rid of the car altogether unless it is an absolutely must. Are you on a tracker rate mortgage? This rate is not going to stay low for the foreseeable future. 

Could you also switch over your CC debts to new credit cards that offer a smaller introductory rate for a few months? I know you tried with AIB but try somewhere else.

Also tell you're family, they maybe able to help because of the fact they are financial savy.


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## Scotsgirl (4 Jun 2010)

Don't go near debtcare.ie as just checked their website and they require a €500 set up fee that doesn't go to clearing off debts. 

Just go to MABS if you need help, as they are the only FREE advice service.


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## Scotsgirl (4 Jun 2010)

debtcare also say 'Each month we will charge you 15% of the agreed payment amount or a minimum of €50.  All fees charges are VAT exclusive'

A great way of getting into even more debt!!!*
*


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## Firesign (8 Jun 2010)

ok so progress to date.... I've spoken with the C.C. company for the biggest balance, 15k and we have come to an agreement that if I can pay a set payment each month which is more realistic. Have to say they were very helpful when I talked to them. They said once I keep up with  payment it will not effect my ICB credit rating and we can revisit in 3-4 months time and providing I'm meeting the payments they will then discuss switching to a lower interest rate. 

I contacted the loans section but they won't deal over the phone at all, it must be in writing so in the middle of doing this now. 

I rang my mortgage co. and asked for a payment break, they told me interest only option wasn't a possibility as I had a tracker. They said they cdn't do anything over the phone and I had to make an appointment with my local branch to go through finances. Feel awkward about this as I know a girl working in the local branch and really don't want her knowing my business, but I think I just have to do it and grin and bear it. 

Immersion is now banned from my house, so just heating water on strict timer with the gas. 

I've done out my montly budget and now must stick to it. 

I want to try to get a second job in the evenings/ weekends to speed up sorting this debt out, ideally that I could do from home? Can anybody give me any suggestions?

Thanks again for all your help guys


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## Scotsgirl (8 Jun 2010)

Could you rent a spare room out?  I did this when times were tough.  Not ideal, but needs must.


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## dmos87 (8 Jun 2010)

Hi Firesign,

I know how you feel but taking control of your finances is the best step and you've taken it. Everything gets easier from here  

You have two loans which come to over 600 euros per month. Are they with the same provider? I would explore the possibility of combining these two together and maybe extend the repayment term by 1 year or so - it might free up more funds to throw at the CC debt. Do what you can but be wise. 

Renting the room - its a good decision, well done. To advertise on Daft.ie I believe its only about 2 euros (once off) and can be paid through your phone credit - this is what I did. Daft really does get the room out there and a few pictures will help. 

Along with the usual tips to avoid frivolous spending, shop in Aldi's or Lidl, keep a spending diary, analyze all bills to see where you can cut back, etc. 

Another tip for the stress - get out for a walk some evenings. I was hugely stressed out before and the fresh air and exercise helps take your mind off it. Not to mention its free


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## Firesign (8 Jun 2010)

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## dmos87 (8 Jun 2010)

Not mad at all, I know 2 people who do this although they dont make much as everyone is tightening the reigns. 

Try everything - dog walking, local shops, etc. Every little helps.


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## Scotsgirl (8 Jun 2010)

Could you do any babysitting?  Or take on a weekend cleaning job?


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## Firesign (8 Jun 2010)

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## Scotsgirl (8 Jun 2010)

Hi Firesign,

I also did a bit of babysitting myself and the fact that I was mature and I had my own car worked in my favour. They didn't have to worry about getting me home at the end of the night.  I figured I might as well earn a few quid sitting in someone else's house rather than earning nothing sitting in my own!  If you got a regular weekly job it would help a bit.  Even if it's just petrol money.

Once they know you're reliable, you will find their friends want to borrow you too.


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## Mar123 (8 Jun 2010)

If there is any  hotels in your locality, give them your details for babysitting.


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## boaber (8 Jun 2010)

Firesign said:


> I rang my mortgage co. and asked for a payment break, they told me interest only option wasn't a possibility as I had a tracker. They said they cdn't do anything over the phone and I had to make an appointment with my local branch to go through finances.



Do the Ts & Cs of your mortgage policy allow for a payment holiday/moratorium?  I have a tracker and am allowed a 6 month break if needed.


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## Firesign (8 Jun 2010)

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## SCT (9 Jun 2010)

You are for want of a better term insolvent.

There is no way to service all your debts....not from the figures I see. I don't know how you've managed so far....your monthly loan/cc repayments are €2,436....your income is €2,500 - leaving you €16 euros a week.

Theres nothing left to do but take the bulls by the horns and start pee'ing the lenders off.

Get AIB to agree to interest only for as long as they're willing. Start a debt snowball - throw everything you have a your smallest lender - 2.5 months and this first one should be taken out. You will receive nasty letters from the four you still owe money to...call them up and tell them they'll get paid...might buy you some time if not, well there's not much you can do for them. Once first one is paid start the same with the next smallest and keep going from there. They'll take you to court and get a judgement against you. Who cares - you suck with credit so you shouldn't get any for your own good. It will take over a year before any really nasty stuff happens like the sheriff coming to your door but by that time you will be better equipped to handle whatever remains and strike a deal with other lenders. Once your back in the black in 5 years or so your credit will be repaired eventually.

Whatever you do keep paying your mortgage ahead of any other creditor. 

You can swith to interest free credit cards, make extra cash here and there but unless you get some magical windfall you'll be struggling with these for years to come. I think your sanity is more important than your credit score.

Do a budget out and stick to it. Life is gonna be boring for awhile but there is light at the end of the tunnel.


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## Nationaldude (9 Jun 2010)

Obviously I don't know where you live but have you ever considered taking in a student for the summer months? There's good money to be made over a few months.


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## Scotsgirl (9 Jun 2010)

What you should do is any spare money you make, fire it into paying off the credit card payment of 3,700 as quickly as possible. At least that will be one debt less and you will feel you are getting somewhere.  Then the minimum payment you were paying on that one plus any spare money goes into the next card and so on.  I think that is easier than spreading it through all the debts at one time as you wouldn't feel you were getting anywhere very quickly.

Another idea for making some extra money is deliveries for a chinese restaurant.  I know a guy who does this and he can make €50 - €80 a night.


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## michaelm (9 Jun 2010)

You might be able to boost your cash flow by a one off €820 (one mortgage payment) by changing the day of the month your mortgage is paid - depending when you get paid and when the mortgage comes out.

In my case I was getting paid on the 28th of each month and had to hold the mortgage amount which was coming out in the middle of the following month (maybe 14th).  Anyway I changed my mortgage payment date to 28th meaning that I had one pay-cheque from which I didn't have to pay the mortgage.


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