# 30 year old - single houseowner may face arrears soon



## cailindeas1 (1 Jul 2011)

I am facing the real possibility of having difficulty in paying my mortgage in full in the coming months and i am looking for advice. I have filled out some details below and here is some background. Bought my house at top of the market was on triple the wage i am on now. Lost my dream job and ended up working 2 jobs for 2 years until i had to give up the other job due to health reasons. The small amount of savings I had from the second job are about to run out and i am living beyond my means now. I rent out a room in my house and bills are shared. 


Age: 30


Annual gross income from employment or profession: 20,400k
rent a room €2,400



Type of employment: Employed Admin Staff

In general are you:
(a) spending more than you earn, or
(b) saving?

Spending more than I earn 

Rough estimate of value of home: €130k
Amount outstanding on your mortgage: 205k
What interest rate are you paying? 4.95%

Other borrowings – Car Loan €1,000 (will be repaid end of Nov 2011)

Do you pay off your full credit card balance each month? No
If not, what is the balance on your credit card? €1,500

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: yes

Out Goings:
Mortgage 835, Health Insurance 62.50, Car Loan €51 pw, House Insurance 21pm, petrol 20pw, Phone 20pm, BB 20pm Utilities 50pm, Sky 30, Life Insurance 50, Food 25pw, bins 17pm. 


What specific question do you have or what issues are of concern to you?
I am concerned that i have no savings for those unexpected days. If I were to fall ill and had to take time off work I will fall into arrears immediately. I am concerned i have no pension. Really looking to see how i can reduce my costs more. I need BB for work and i am in a contract with SKY so cant get out of it.


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## elcato (1 Jul 2011)

Life insurance is high at 50pm. Are you a smoker ? Do you require your phone for work ? Change to a payg and use the webtexts to cut that down. You don't have 
car insurance/tax down also. Maybe try and do without ?


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## alexandra123 (1 Jul 2011)

You could temporarily cancel the
health insurance
house insurance
life insurance 
for a couple of months until you get back on your feet ?

If you cancelled Sky - what is the get out clause - how much would you have to pay them ? if you did cancel them - would the other tenant be happy not to have Sky ?

Their is really no other way to reduce your bills. You have them already cut down to as low as once can expect.  
25pw on food is extremley low. I dont know how you can survive on that amount. If your only spending 20 euro per week on petrol - that would assume that you dont drive very car - could you get on the bike and leave the car at home while the summer is here ?

I think the main problem here is your wages. The only long term solution is to rent out another room if you have 1 room free and or look for another job on higher wages. Neither of these are easy to come by, but it is what you need to get ahead.


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## cailindeas1 (1 Jul 2011)

elcato said:


> Life insurance is high at 50pm. Are you a smoker ? Do you require your phone for work ? Change to a payg and use the webtexts to cut that down. You don't have
> car insurance/tax down also. Maybe try and do without ?




thanks Elcato I will look into the life insurance policy over the weekend to see if this could be reduced. Already on payg and use webtexts. Due to health issues walking at the minute is a no go so i do need the car to get around. But i appreciate your advise. Thank You


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## cailindeas1 (1 Jul 2011)

Hi Alexandra

Many thanks for your comments. You make some interesting points and you are completely right in saying i need a job with a better wage.... 

Thanks


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## Eeyore (1 Jul 2011)

Given that your outstanding mortgage is 205k with monthly payments of only 835 it would seem that you are on an interest only mortgage. How long is the interest only period? You will need to plan for the extra capital repayments at some point.


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## callybags (1 Jul 2011)

> You could temporarily cancel the
> health insurance
> *house insurance
> *life insurance


 
Do NOT, whatever you do, cancel your house insurance.

This could land you in a whole heap more trouble than you are in now.


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## elcato (1 Jul 2011)

> Do NOT, whatever you do, cancel your house insurance.
> 
> This could land you in a whole heap more trouble than you are in now.


Good advice. Your bank has a clause in your mortgage that states that you must have this.


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## Mpsox (1 Jul 2011)

Have you reviewed your tax? Have you old medical bills etc that you haven't claimed for in the past and can do so now. ?


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