# cut to 3 day week, review needed



## dmos87 (29 Mar 2010)

Age: 22 
Salary: just dropped to a 3 day week, so I am approxing at €240 per week (€1040 per month)

Living with my partner, also 22, working a 3 day week also. All bills and rent etc. split down the middle. We also have a third tenant in the house which helps. 

Savings: €700 in CU, €600 current account


Outgoings:

Rent (monthly) €225
Car Tax (3 monthly - €48 euros)
Car Insurance: renewal date is 6th April, €371 euros. Will pay in 1 go.
Sky TV (split in 3) €18.00 per month
ESB, Bord Gais: approx €40 a month each
Food, petrol: approx €200 per month, might be less now with not having to travel to work 2 days a week but will have to wait and see.

CC Debt: €1800 (meeting all min repayments with little extra each month)
Overdraft: €750
Car Loan: €239.80 P/m (fixed - 9 monthly payments remaining)


Heres the deal - Work cut me to 3 days on Friday, starting immediately. Meaning this weeks pay cheque will be my last big one for a long time. I am estimating to come home with approx 240 per week. They provided me with a letter for the Social Welfare Office in case I need to go and claim for my lost days. They have also stressed to me that I will be working Sundays as a given day (apparently this will help with the Social??) and any 2 other days in the week. 

Despite being heartbroken, I'm even more crushed that my little part time work on the side have no hours for me AT ALL for a few weeks (then its in to holiday cover). So at present there is no chance of extra income to avoid the Social Welfare Offices.

I'm in a heap over my debt. I was making good progress since christmas when I posted last and had gotten everything down a little plus finally got some savings into the CU which I hadnt before. I set up a standing order for 100 a week to the CU and it was working. Now thats not going to be possible. 

Question 1: What will I be entitled to? Is my partner entitled to anything now that we are both on 3 day weeks? How much approx per week can the Social Welfare provide to us? And what did work mean by Sundays being better for me? Will I be entitled to a Medical card? Really frightened to cancel my health insurance but its 55 a month, I have to.

Question 2: Any advice on the debt pile now that circumstances have changed? I am cancelling my health insurance, cancelling our Pet insurance (20 per month). Got a great renewal quote for my car insurance as per above (last year was 800 euros) which is up for renewal on the 6th April so that will come from the savings in my current account next week. This morning I changed the Standing order to the CU amount to €50 per week. Hopefully I can manage that for a while.

HELP!


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## dmos87 (29 Mar 2010)

*Re: Need advice asap *

Sorry - forgot to mention I make cakes from home too and might get 2-3 per month - this helps my earnings a little but not much. Mostly covers material and maybe payment for 2 - 4 hours work total.


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## Allen (29 Mar 2010)

*Re: Need advice asap *

Regarding your health insurance, I recall reading on another post that you should ask for this to be suspended, rather than cancelled.


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## dmos87 (29 Mar 2010)

*Re: Need advice asap *

I didnt realize you could do that! How will it affect me? Does it mean I can pick back up on payments once I get myself sorted?


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## Mouldy (29 Mar 2010)

*Re: Need advice asap *

I’m sure other posters will elaborate on my advice with greater expertise but to start you off:
Go to the SW office today and sign on for the days you are not working. Only they will be able to tell you for sure what you’re entitled to. There will be a delay in processing your application and payment so make sure you do this immediately. 

You’re drop in income will also mean a drop in taxable income so you will be paying a lot less (if any at all) tax on your current income.

Stop your SO to the credit Union. You have debts to pay which are being charged at a higher rate than the rate of your savings e.g. If your CC debt is at 12% pa and you CU savings are at 2% pa then you have no business putting money into the CU while barely covering your CC payments.

Your monthly outgoings, not counting the insurance, worked out at roughly 740 a month. You will be taking home upwards of 1060 per month and you will get some UB payments on top of that. If your debts are causing you worry, then put all your disposable income against your Overdraft and CC until they are cleared. Then cancel your overdraft, you cannot possibly need one. Keep your CC for emergencies only. 

Unless there is something you aren’t telling us or I have misread your post, your situation isn’t bad at all. You are in a position to clear all of your debts including your car loan over the next year or so if you watch your spending. Hopefully before then you will be back to full time employment or will have found a better position for yourself. 

You’re young and it’s not the end of the world even if it feels like it now (you should have seen my finances at 22!)
M


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## dmos87 (29 Mar 2010)

*Re: Need advice asap *

Hi Mouldy,

I posted just before christmas and it helped me cut back hugely, so this was to do that as well. Up until now, I tended to supplement my partner on bills, etc. if he was a little short. He has been on 3 day weeks for 2 years now whereas I have had a full time wage. While we do split the incoming bills in half, on most occasions I would pay for the weeks shopping etc. and not seek the money from him. I am worried about both of us getting by really. 

My big fear is letting go of the health insurance because I was in a car accident a year and a half ago - I had no insurance and most of the CC and overdraft debt is from physio bills, doctors visits, painkillers, etc. If it happened again I would be ruined. As long as I am entitled to a Medical card or some help I would be ok.


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## niceoneted (29 Mar 2010)

How can you have 600e in Current account and have 750 overdraft? Is this not an overdraft of 150 or are they two different accounts? 
Once you have car insurance paid for use Cu money to clear OD and put remainder towards cc debt.
Do you really need the top package for sky? moving to basic package a small reduction I know but one all the same. 
Gas and EBS should start to come down now with longer days and warmer temps. To me it seems they could be reduced anyway, turning off all lights, use cfl's etc
A positive is that they car loan will be clear by the end of the year. 
Good luck


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## dmos87 (30 Mar 2010)

niceoneted said:


> How can you have 600e in Current account and have 750 overdraft? Is this not an overdraft of 150 or are they two different accounts?
> Once you have car insurance paid for use Cu money to clear OD and put remainder towards cc debt.
> Do you really need the top package for sky? moving to basic package a small reduction I know but one all the same.
> Gas and EBS should start to come down now with longer days and warmer temps. To me it seems they could be reduced anyway, turning off all lights, use cfl's etc
> ...


 
I have two current accounts, one was set up when I was 15 and the other from college. One has a bank card, and the other doesnt. Generally I transfer most of my wages into the account with no bank card Ithe one with all the money in it) so it is harder to access it and I dont spend it frivolously. 

We dont have the full sky package at all - no kids, no sports, no lifestyle, etc. We we're careful when selecting them as the amounts were a lot for some. It is between people so 18 a month is not bad - cheaper than a trip to the cinema and it keeps me at home not spending money.

Yes, I fully expect the ESB and Bord Gais bills to come down for us, they were ridiculous over xmas.

Would it not be best to clear the CC first instead of the Overdraft because of the interest level?


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