# How to get my personal debt in order?



## marfsmal (24 Jan 2011)

Hey everyone. I was on here a year ago when I sought advice on how to  handle my finances and well I am back again and would really appreciate  any advice. 

*Monthly outgoings:*

170 credit card aib; 
250 credit union car loan (2.5k outstanding; 1k savings)
130 Halifax loan
50 F.Active Credit card
Rent: c.160
No bills (inclusive in rent)
20 pm Vodafone modem (need internet for work)
Petrol: 80
Food: 40
*Total: 900

Balances on loans:

credit union 2.5k; 1k savings with credit union also to offset against loan later
aib credit card 5k
halifax loan: 3k
f.a credit card: 2k
* 
*Income:*

188x4: *752*
(Work: self employed in part time role which is not coming up with many hours so I get the dole equivalent:188 per week)


The context for why I am here is that I am 2 years into my 3 year  study/career plan. This has been independent study and the study has been full time hours so I haven't been  able to work full-time during this period.

Finances wise, things have got rather messy for me. It's down to being  stuck with old celtic tiger times debt and a car that I bought last year  (when my old one broke down )to mainly keep my father happy (he is ill  and the fact that I have a half decent car is important to him.. sad but  true, cars don't matter to me and a 1k car would have been just as good  to me but it would have bothered him).

So I got a credit union loan of 5k last January to buy a car and I got a  car for 4k and used the other money to pay for insurance and tax,  service, etc. I intend to keep the car for as many years as I can and so  it was a long term investment. I have 2.5k left to pay off this but  have 1k in savings with credit union also.

The main problems now are my part time work situation and credit cards. I  have an old aib credit card debt of 5k, a Halifax loan (formerly credit  card changed to personal loan last july) of 3k and a new First active  cc debt of 2k. I incurred this 2k over the past 2 years of my study to  meet basic expenses and have kept the other payments at bay, but the  only one I have made any headway with is the credit union car loan.

My income has been minimal in the past 2 years due to my study and  career change and I've been studying so much full time that I've only  held 2 short term work contracts in this time. A few months ago I got a  part time job related to my new field but the hours are not what they  promised they would be, and it is self-employed, so I'm living on the  equivalent of the dole- 188 per week as my part time earnings so far  have not even nearly exceeded this.

Rent wise I have partially moved home. Without upsetting my father and  hiding this from him I stay 3 nights at home, the rest of the week I  stay in a hostel. So that way I have no esb bills and rent is about 40  per week. This obviously is causing me serious stress and worry and now  that the part time job is not coming up with the hours they promised I  find myself in a situation I thought I was barely going to survive.

I hardly buy anything other than pay my loans/bills and am extremely thrifty when it comes to all else. 

Please help, what can I do?

I'm applying for other jobs now as the part time job is such a shambles hours wise, but there seems so little out there. 

I don't think anyone would look at me for a consolidation loan but this would give me my life back. I've contacted Mabs to get an appointment as soon as possible but would appreciate your insights also.


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## ajapale (24 Jan 2011)

Hi marfsnarl,

Please take some time to write a title which reflects your question.

Such a title will result in better responses and also will make it easier for others to find your thread if they have similar questions in the future.

Thanks,
aj moderator


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## niceoneted (25 Jan 2011)

Also it would be very helpful to say what the balances on the CC's/loan. 
Can you live at home full time to cut back on the 160 a month for the hostels. 
I'll refrain from commenting further until I know what the Loan/CC balances are.


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## Bronte (25 Jan 2011)

What is your income exactly as it's confusing what you have posted. Would you not be better off on full dole, living in rented accommodation paid for by social welfare?  

You have to list all your expenses, for example you have not put anything down for food.  

Please clarify the exact reason to have a car?  This is costing you a lot.  You seem to have borrowed in order to live and now all your income is going on servicing debt.  With MABS help you should come to a payment arrangement that is manageable for you, it's really important that you meet with MABS.  When is your appointment.


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## truthseeker (25 Jan 2011)

Bronte - the OP is in full time education so full dole would not be a possibility.

OP - the thing that jumps out at me most from your post is your father. In order not to 'upset' him you have a more expensive car than you need, and again in order not to 'upset' him you are hiding your real living arrangements from him. Would he not be more upset if he read your post and saw the mess you are in partially due to you being afraid to upset him? Surely you could come clean with him and move home completely and just make a small contribution to the household until your education is complete? 

Do you 'need' a car? Could you walk/cycle/public transport to work/study?

If you need to keep the car what about applying for pizza delivery type work in the evenings to try to make an extra few bob?


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## marfsmal (25 Jan 2011)

Thanks for the replies. I have edited my post to put the balances of my loan/credit cards together (I had them in the text of the message but they are better like that, sorry).

The car thing was the reason I posted last year and in an ideal world I would sell it.

My father is a worrier and he has an illness related to his nervous system and so I have gone to all lengths to avoid saying/doing anything that upsets him. I am the one who looks after him and he is doing really well despite his condition and I can't worry him with my problems. So sadly I can't budge on this. Also he wouldn't want me living with him full time so the hostel/staying with friends now and again is the only approach I can find for accommodation.

Study wise I have been studying like a maniac but this has been independent study. Since I am self-employed if I earn less than the 188  welfare rate per week then they give you the difference, and so far I have not earned more than 188 so this is my weekly rate.

I have emailed mabs for an appointment to speak with them and am going mad looking for another job, full-time. I can step back from the study now somewhat as the bulk is done.

I'm just finding this stressful and hard going.


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## marfsmal (25 Jan 2011)

Mabs emailed me back saying there is a 4 week wait but that they will call me during the week to assess where I'm at so to speak.

I can ask them then what my prospects are for a consolidation loan and also if there is any way I can do it without affecting my credit rating.

Have applied for some jobs today and will do same tomorrow and hoping something goes my way.


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## wbbs (25 Jan 2011)

Don't get your hopes up on a consolidation loan, they don't really exist anymore as no bank wants to take on other bank debt.  If all your loans were with the same bank there might be some possibility but unlikely otherwise and especially given your work situation.

Sorry, but better to be prepared.


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## Bronte (26 Jan 2011)

I don't think a consolidation loan will sort you out.  In any case not to stress you further there is no way a bank will loan you more money.  You need to get all your creditors to stop charging you interest and to maybe row back on some of the interest/arrears you have incurred.  There are two ways to do this, write to them explaining your circumstances, the worse the better and the second way is with Mabs helping you.  Mabs know how the credit institutions work and have arrangements in place with them, Mabs will come up with a payment plan for you that will be manageable.  I really think you should contact Mabs and explain how stressed you are.  

Not wanting to further add to your stress but you need to tackle the 'falsehoods' you are living in relation to your father.  I don't think this is in either your interest or his.  The stress of this alone, even without the debt can make life unbearable.  In fact your father can probably sense there is something up with you and even though you don't mean to he is probably worried about you.  Have you someone you can talk to, would you not in any case prefer to speak to your father about your situtation, after all even though he is ill he is at the end of the day your father and really he will understand and would prefer you were honest with him.


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## marfsmal (26 Jan 2011)

Bronte said:


> I don't think a consolidation loan will sort you out.  In any case not to stress you further there is no way a bank will loan you more money.  You need to get all your creditors to stop charging you interest and to maybe row back on some of the interest/arrears you have incurred.  There are two ways to do this, write to them explaining your circumstances, the worse the better and the second way is with Mabs helping you.  Mabs know how the credit institutions work and have arrangements in place with them, Mabs will come up with a payment plan for you that will be manageable.  I really think you should contact Mabs and explain how stressed you are.
> 
> Not wanting to further add to your stress but you need to tackle the 'falsehoods' you are living in relation to your father.  I don't think this is in either your interest or his.  The stress of this alone, even without the debt can make life unbearable.  In fact your father can probably sense there is something up with you and even though you don't mean to he is probably worried about you.  Have you someone you can talk to, would you not in any case prefer to speak to your father about your situtation, after all even though he is ill he is at the end of the day your father and really he will understand and would prefer you were honest with him.




No you aren't stressing me further. I had just hoped it was possible to get a consolidation loan but of course it's not definitely, even unlikely. I am prepared to heard that. On the positive side Mabs said they would phone me to go through my situation so I'm waiting on that call. Secondly I'm not in arrears at all and have no black mark on my credit rating as of yet; I have gotten away with that by using the F.active credit card to deal with emergencies/and or gaps in cash when making payments to my loans.

I am going crazy looking for work as that is all that can be done. I forgot to mention I got some mystery shopping work with a company just before christmas and so far have earned an extra few bob this month,  in December I had made 150 from them and it is that which saved me from going into arrears and got me through the christmas period.

So yes gladly I'm not in arrears at all, I'm just now stretched as far as can be.

I've spent 2 days job hunting and please god by Friday I'll have something got. Going door to door with my CV tomorrow as well.


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## Thirsty (27 Jan 2011)

Do you qualify for any grants in relation to your study?


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## Bronte (27 Jan 2011)

marfsmal said:


> . On the positive side Mabs said they would phone me to go through my situation so I'm waiting on that call.
> 
> I have gotten away with that by using the F.active credit card to deal with emergencies/and or gaps in cash when making payments to my loans.
> 
> .


 
You can be more proactive by phoning MABS if you don't get a reply when they said they would call. 

Don't understand the logic of thinking you are not in arrears or in trouble if you use your credit cards to pay loans.


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## marfsmal (27 Jan 2011)

By my saying I am not in arrears what I mean is that I have been making minimum payments every month and so I am not building up arrears. I pay the minimum on my credit cards and pay the amount due on loan. 

The 2k on my F.Active card has been all that I have used over 2 years to bridge the gap, so I have been 1k short both years. Yes of course it's not great but at the same time I'm not going to make this out to be the end of the world either, as serious as it is. I'm at a point now where I need to have income meeting expenditure at the very least and where the F.active emergency funds are now gone. No more credit cards for cash advances.

Mabs said they have a waiting list of 4 weeks and I am getting a call from them. I don't want to go down the route of blackening my credit report as I have just 6 months of independent study left; then I am going to be in a position to apply for jobs I have been studying towards. 

Have contacted my job to ask about the amount of hours available and they have said they are looking into it now and will get back to me asap.

Bronte I realise I am in trouble if I use my credit cards to pay loans. I'm just saying that I have had it somewhat under control up to this point (given my study circumstances I could have done no more over the past 2 years).


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