# Financial Advice needed on current predicament



## thespecialon (5 Jan 2009)

Ages 

Me - : 29
Fianace - : 27


Employment

Emyplyment Me - : Civil Service 
Employment Fianace - : Retail

Salary


Salary Me - : 40,000
Salary Fianace - : 25,000

Mortatage

Mortatage - Ulster Bank Tracker ECB + .95
Mortatage Amount - 135,000
Mortatage Term - 25 Years, 24 Years left
Monthly Payment - Circa - 600 per month after TRS
Value of House - 500K was valued at 600K before Bust
so 500K is a guess but properties in the area seem to be holding a lot of their value

Other Borrowings 

Me - Credit Card balance of 5K , Interest free for around 3 more months , Ulster Bank Zinc Card ,
currently just paying minimum of around 150 per month. 5k was built up furnishing house last year

Fianace - Car Loan of 12K with Credit Union, paying 300 per month, around 4 years left

Other regular Outgoings -

Sky - 25 p/m
Broadband 35 p/m
Fianace Car Insurance 60 p/m
Gorta 10 p/m
UFirst Account 10 p/m
ESB 75 p/m
Car Insurance me - 450 per year
Health Insurance - 1000 per year
Mortatage Protection Insurance - 150 per year
Food,Travel,heat,Going out etc - Not really sure but wouldnt be extravagent in this area



Savings -

None - Mainly due to just having moved into house and furnishing it etc.

Pension -

Me - Civil Service Pension
Fianance - None


Prediciment -

We are to be married in November of this year. Basically estimating this will cost in the region of 25K including honeymoon.
Looking for advice on how best way to pay for this,obviously we intend saving as much as possible between now and november but first priority will be 
to clear credit card of 5K,so at best will probably only be able to save 3-4 K more.
Would re-mortataging all our debt be the best option as out mortatage is still relatively low, however I assume will lose my good tracker deal?
Or just get a personal loan closer to the day and use whatever gifts we receive to pay as much as this off as possible?
Or any other options?

Any any other opinions on our general financial prediciment that might help us?

Thanks,

T.


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## Mpsox (8 Jan 2009)

*Re: Financial Advice needed on current prediciment*

in terms of the wedding, be prepared to negotiate hard with all of your suppliers. Heard on the radio this morning of a number of hotels in Dublin putting staff on a 3 day week and are struggling. Therefore don't accept the first price they put on there

Secondly, break down the cost of the wedding into it's various components and ask yourself, is it worth having. We got married in 05, kept it small and simple with no over the top frills, one bridesmade etc. That, + a honeymoon of a week in MAderia + a big summer holiday in Canada and Alaska, cost us less then €12k

You're actually in a fantastic position in comparison with a lot of other people. Only other suggestion I'd make in terms of saving is to shop around on car insurance, you fiances seems high unless he has lost his NCB. 



Thirdly, and this may sound a bit of a contradiction to the above point but have you considered asking more people and asking for money presents only. Sounds a bit mercenary I know, but if the house is firnished, do you really need vases and ornaments and stuff. I know we still have presents in the attic that will probably never see the light of day


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## colm5 (8 Jan 2009)

*Re: Financial Advice needed on current prediciment*

Would agree with last poster. You don't need to spend 25K on a wedding.
I have been at a few where 10-15K was spent on everything. A weddng is a wedding.

don't get yourself into more long term debt for one day out, and there is nothing wrong with asking for cash presents IMO.


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## BoscoTalking (8 Jan 2009)

*Re: Financial Advice needed on current prediciment*



colm5 said:


> Would agree with last poster. You don't need to spend 25K on a wedding.
> I have been at a few where 10-15K was spent on everything. A weddng is a wedding.
> 
> don't get yourself into more long term debt for one day out, and there is nothing wrong with asking for cash presents IMO.


we had 130ish people and all in it was 12k start to finish. bargain and become value savy - don't bother asking for cash gifts because as you have your own home decked out by now and people go for the easy option it's most likely guests who want to give you a gift will give it in an envelope anyway. Don't worry about that - concentrate on getting the debt down!


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## Bronte (8 Jan 2009)

*Re: Financial Advice needed on current prediciment*

You have no savings and intend to save 9K before November but you currently only pay the minimum on your credit card. How do you propose to save? Also your suggestion is to remortgage your house to pay for a day out that you will spend 24 (or so) years repaying. You have a very low mortgage, I'd be aiming to keep that not increase it.


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## thespecialon (8 Jan 2009)

*Re: Financial Advice needed on current prediciment*



Bronte said:


> You have no savings and intend to save 9K before November but you currently only pay the minimum on your credit card. How do you propose to save? .



Well we have been pumping about 1K a month into the house of our own money for the last few months and just paying min on credit card...at this stage we are happy enough at how the house is finished,so going to aim this 1k a month twoards credit card debt before the interest free period ends and then twoards saving for wedding..assuming we dont have any major unforseen events to pay for between now and november...so thats where i can up with saving 9k figure!


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## Bronte (9 Jan 2009)

*Re: Financial Advice needed on current prediciment*

Ok that makes sense, maybe it would be better to use this extra to pay back the credit card and credit union, both high interest rates and then borrow from the credit union a short term loan for the wedding.


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## Madangan (5 Feb 2009)

*Re: Financial Advice needed on current prediciment*

More than one credit card company offers free interest period e.g Ulster bank about 9 months Halifax 6 months...so when current one ends...transfer balance to next free provider.. and max up the balance to permitted level before you transfer...if you play the credit card companies at their own game you can extend your interest free period which in turn helps you to save the maximum until interest free period  is over...just make sure that you clear the entire cc debt before it ends..even if it means getting a credit union or bank loan to so do.


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## AlastairSC (14 Feb 2009)

*Re: Financial Advice needed on current prediciment*



colm5 said:


> Would agree with last poster. You don't need to spend 25K on a wedding.
> I have been at a few where 10-15K was spent on everything. A weddng is a wedding.



I hesitate to disagree with other posters, and possibly upset the OP, but I wonder if €10,000 on your wedding day ( I accept a holiday is included in that but the wedding is most of the figure all the same) is not still too much given the times and your circumstances?

What will most of the money go on? How long will you need to repay this? Is it really worth it right now? Perhaps a very simple ceremony with fewer guests, simpler clothes etc? Wouldn't you feel better afterwards if you were better off/less in debt?


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## dafmurray (16 Feb 2009)

*Re: Financial Advice needed on current prediciment*

*Hold on to that tracker mortgage at all costs.*  My wife and I are paying Euro 835 per month (after TRS) on an Affordable Housing apartment valued at Euro 250,000 in Oct 2006 and less than 125 square feet.  

We are in similar employment to you and earning approx same joint annual salary.  The difference is that we don't have any debt except the mortgage.

I agree with the advice given by other posters.  *Definitely use a Credit Union loan to repay credit card.*  Credit Union loans calculate interest on the declining balance, not on the original loan amount and there may be a rebate for some of the annual interest with some Credit Unions - especially if you are with Civil Service Credit Union.  Also Credit Unions are a lot more understanding if you were to find yourselves in temporary difficulty in making a loan repayment.

I think everyone involved with your wedding would understand the financial constraints you are facing with a home and wedding and I think it's time to forget any sense of stigma about keeping wedding affordable or asking for money gifts in the current economic climate.
*
The point I would emphasise to you is to get some savings as a priority*.  If you haven't income continuence cover through Civil Service union group scheme that should be a first step.  Your fiance should target savings of 3 months salary as a minimum emergency fund, with 6 months preferable as a rule of thumb.

Despite neither of you being 30 yet, it's time to become savers rather than spenders.  No one knows how long or bad this economic crisis is going to last or going to get.

My wife and I are relatively okay because we've set saving targets for the last 5 years and now have some cushion of savings.

Best of luck.


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