# Help. Can't make it through the month on only one income



## Lostlady (18 Oct 2010)

*Age:  52
Spouse’s/Partner's age: N/A

Annual gross income from employment or profession:  48,000*
*
Annual gross income of spouse: N/A

Type of employment: e.g. Civil Servant, self-employed – private sector

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

*Rough estimate of value of home: *difficult in current market – house on same road newly renovated and a little larger asking 215,000 so guessing under 200,000
*
Amount outstanding on your mortgage:  *240,000 approx*
What interest rate are you paying?  **5% (I think) fixed for 2 more years**

Other borrowings – car loans/personal loans etc:  personal loan -  *Ulster bank5,500 approx taken out last year – repayments of 215 per month
*
Do you pay off your full credit card balance each month?  *No – only pay min and sometimes try to cover a little over that but not getting on top of it


*If not, what is the balance on your credit card? *Approx 4,000*

Savings and investments: *none 
*Do you have a pension scheme? *Yes through work* 

Do you own any investment or other property?  *Yes *- *small rural property in bad repair left in relative’s to self and brother  – now at probate stage (not in our names as we wanted to sell asap) Hoping to put on market shortly proceeds from sale – if sold – to be split between us – unlikely to get more than 100,000 in total so max I would get likely to be 50k or less.
*
Ages of children:  * 20 he’s in college* 

Life insurance: yes – *basic as required by mortgage 48 per month

*Net monthly salary* 3,000 

*Monthly Outgoings|:*
Mortgage (currently on interest only until next Feb normally 1,500 approx after TRS)
€905.00​ Loan repayment
​​€215.00​ 
​​​​credit card bill approx
​​€250.00​ins Mortgage protection
​€136.00​Life insurance (Irish life)
​€58.00​Home insurance
​​€35.00​ESB
​​​€80.00​Gas
​​​€80.00​Eircom
​​​€60.00​Vodafone
​​​€70.00​Phonewatch
​​€24.00​Groceries/food
​​                                     400​Son’s expenses
​​                                     200​

*What specific question do you have or what issues are of concern to you?*
Where to start – bought the house approx 3 years ago (2007 very bad timing I know) at the time was in long term relationship and partner moved in with me (mortgage and deeds in my name only as he had his own property which was rented out). He made contribution to my mortgage and we shared other household bills between us. Relationship broke down last year. Partner moved back to his own property and I am no left covering all bills, mortgage etc from one income.  At the time it all looked like a good plan as we had both planned to sell up our individual properties and buy a place together but never got to that stage.
I also took a pay cut last year so things have got increasingly tight since then. Took the loan to clear overdraft and part of credit card balance but card has crept up to max again in a year as I find myself eating into it every month to 
Buy groceries etc. Son had part time job in the summer but now he’s back in college so he needs a few bob for travel, lunches etc. Each month more bills get missed and direct debits are not being covered resulting in further debts the following month with bank charges on top of that!  Job is about as secure as it’s possible to be outside of public service but there were redundancies last year and is possible there could be more in the future. Impossible to get anything better paid in my sector as jobs are thin on the ground. I negotiated going interest only on mortgage as i missed a payment earlier in year – could not stretch to basically paying half my monthly income on that one outgoing, but this is due to finish early next year  My only small hope is if we could sell the small rural property (building in bad repair, on small plot of land and don’t have funds to do necessary improvements to make it more saleable.) it might give me some additional money. I guess my queries are, (a) how do I generally cut back, make savings and make my monthly income cover everything (especially if/when I go back to the full monthly mortgage repayment amount which is basically half of my salary)? Every month seems to get more difficult with arrears building up and missed payments etc.(b) If/when we manage to sell the rural property and assuming after split I receive 40,000 to 50k what is the best way of utilising this “windfall” e.g pay as much off current mortgage (after clearing CC debt – obviously that’s top priority) or put into savings acc and use to pay off mortgage monthly for a year or so? (c) any suggestions on helping me clear CC in the meantime – last month I paid 350 off it and yet still only a small amount left in balance (approx 30 euros!) is it possible to “switch” these days to a 0% interest card? Is this difficult?
Thanks in advance. Sorry there are so many questions.  Needless to say I am already shopping in Lidl/Aldi, have negotiated cheaper packages with Eircom and Vodafone, minimise my use of Gas (is for heating so am worried about the forthcoming cold snap when bills might shoot up as they did last winter) and Electricity (shower/cooker/lighting) as much as possible.


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## PaddyW (18 Oct 2010)

Just having a quick look through your outgoings. 

Mortgage protection looks terribly high. Would you not just go to basic mortgage protection? 

70 euro for Vodafone and 60 for Eircom? You must be constantly on the phone!

80 euro gas and 80 esb for two people, per month? That is obscenely high to me. I live with two others and our last esb bill was 77 for two months and gas was 12 euro for two months!!

There's just a few things there you could look into to start off with. 

Also, even though your son is in college, he could surely find a part time job for the weekend to bring in some extra cash.


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## dereko1969 (18 Oct 2010)

your son needs to try and get a job or at least reduce the amount you give him.

your mortgage protection is huge, have you shopped around for this or were you loaded on health/age grounds?

as PaddyW has said your phone bills are way too big.


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## Lostlady (18 Oct 2010)

Thanks both for the feedback. I was trying to average out eh Gas and Electricity between winter and summer but I'll check and see if I've overestimated those. Eircom is package for broadband and landline (needed for phonewatch also) and was the lowest deal i could get - I barely use the landline for calls except to recieve calls. Vodafone I'm looking to switching but most friends and family are on Vodafone so gte free calls and texts. Anyone got ideas as to what is a realistic monthly amount for mobile (i'm bill pay)? I do text quite a bit and call but also use webtext when I can. The mortgage protection is at farirly high level - is to cover total payments for a year if I lost my job - I'm a bit of a pessemist and was nervous I'd be left with no way of paying mortgage if I lost my job. Is this mad? Maybe I should cancel or reduce it? I already moved from one provider when it got very high but now this one is almost as bad. Thanks again. Anyone any thoughts on how I should use the possible "windfall" money or am I counting my chickens too soon?


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## niceoneted (18 Oct 2010)

Agree with the other posters so far in relation to bills. 

Yes there are credit cards out there that offer a switch to 0% balance transfer for up to 6 months. You should apply and I would think you would be successful given your salary and relative small balance. 

You don't mention a car - do you have expenses in relation to one ins, tax, petrol. 

Try starting a spending diary where you write all your expenses down. 

I think you could lose the phone watch. The fact you have an alarm should be enough. 

Depending on what your son is studying he should look into getting a part time job. or even seasonal work now coming up for christmas. 
You should also look at potentially bringing in additional cash. I don't know where you are located but if near a college could you take in a student mon - fri or some of the English teaching schools look for host families for there short courses of for the first few weeks of a course so someone can get settled - money is good too.

Just seeing your reference in your second post re vodafone. I am with them and had a bill phone paying about 60 -70 a month. I switched to their simple plan 20 which gives me free calls and texts to vodafone and I get 100 mins and 100 texts to other networks after this. I also use the 300 free on line texts. You will also get a better deal with them for home phone and broadband - 38 is what I pay.

Also in relation to windfall I would clear both credit card and loan for a start. Then depending on what you get 30/40/50k or more I would prob put at least 10k away for rainy day and then split half between short term savings and lump sum of mortgage to counteract some of the negative equity.


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## elcato (18 Oct 2010)

1) Switch to pay as you go with your mobile. You still get free texts and calls as long as you top up by 20 a month. 
2) Cancel phonewatch and get rid of eircom. 3 are doing BB for under €20 a month
3) Move CC to 0% rate.

Three changes to get you started. Pay all the savings you make on the CC over the six months to try and clear it.


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## Papercut (18 Oct 2010)

You could also consider renting out a room, if possible, even for a few months. Maybe your son might know someone in college looking for somewhere.


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## Lostlady (18 Oct 2010)

*thanks*

Thanks to everyone who posted - all very helpful suggestions and some food for thought. Son is looking for Christmas/PT work but nothing so far - fingers crossed something will come up for him. We only have 2 bedrooms so can't rent a room unfortunately. Thanks for the feedback on Vodafone. I will check into that Simple tarrif and also look into possibly switching to ready to go. Does anyone know if Eircom new mobile has any good offer deals? Will look into other providers for landline also. Re Phonewatch - I'd don't really understand how I'd have "an alarm" if I didn't continue to subscribe to phonewatch as the system is provided/maintained by them as well as monitored. In terms of my outgoings it isn't the worst bill i have and as we're both out all day and the area isn't the best I'd hate to loose it. If someone knows of a way I can "keep" the alarm - let me know. I have considered switching ESB to Bord Gas (gas is with them) but have always found their customer service to be terrible. Had big issues getting supply reconnected when I bought the place so was a bit wary of having both utilities with them. Great advice on the "windfall" - I'll bear all that in mind!I really hope we can sell the place by the end of the year but that could be optimistic and we may not get what we're hoping for it. Anyone any thought on the mortgage protection insurance? I'm very nervous to get rid of it but at the same time it's costing a fortune.


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## Lostlady (18 Oct 2010)

Forgot to respond re car Niceoneted. No car at present and couldn't afford to run one any more. Had an old banger which clapped out a couple of years ago and decided I could manage without as don't have long commute to work - there's public transport and I wanted to save on tax/insurance/petrol etc. At least one expence I don't have.


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## pudds (18 Oct 2010)

Consider changing to Tesco Mobile....whatever you top up by....you get the same amount in free credit. You must use the free credit within 30 days or loose it. 

Tesco Mobile Free Credit


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## Diziet (18 Oct 2010)

Regarding mortgage protection insurance: We were paying a fortune for ours (arranged by the bank) and switched to a basic cover which is only costing us 300 or so a year. It is a huge difference in cost!

I went through labrokers.com who arranged everything and were very responsive, no hard sell. I have no association except as a satisfied customer. We also did life insurance through them, again saving a fortune.

Check out 3 for mobiles - they have good offers but essentially you cannot afford 70 a month and will have to earn to talk and text less. Use skype more as well as free webtexts.

You can certainly improve on the eircom offering. And consider - how insecure is your house? Would better locks and security enable you to lose the alarm?


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## Lostlady (18 Oct 2010)

*Thanks.. can I get more details re your cover?*

Thanks Diziet. Can you clarify on the Mortgage Protection insurance - what exactly do you get for the amount you are paying? It sounds far better than my 130+ per month but I know that  is for the max protection one can get, against job loss, illness, insolvency etc. and will pay off the full monthly amount for a year. What's the cover for the one you're on? I'm pretty keen to reduce the outlay on this but not sure what sort of cover I should be looking for re mortgage. Thanks. Will look into the other recommendations also. Still a bit nervous to give up phonewatch despite having good locks etc.


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## PaddyBloggit (18 Oct 2010)

Re. Eircom Phonewatch.

I have one .... I cancelled monitoring and it works as a stand alone alarm now.

Alarm rings like mad if interefered with ... it still works as a deterent but without the monitoring which I found expensive.

I also had problems with a faulty smoke alarm (Eircom Phonewatch problem), it went off while I was away. Key holder called and he told them it was a false alarm. They called Fire Brigade anyway. Brigade cancelled before they left station but a bill for €600 still came in the door. 

After a battle, Eircom agreed to pay it as it was their system that was at fault ... it was enough to convice me to cancel monitoring.


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## niceoneted (18 Oct 2010)

Lostlady, just in relation to the mobile, I do think it is great to get insight from others as to how to use it best or which network to go with but in deciding you must look at who you contact most frequently and what network they are on. Also look at those on alternate networks that you use frequently and see how best to make contact with these people - off peak land line perhaps or can you see them in person more. This is what I did and it's kinda changed the way I communicate with some of my friends/family but it suits them too as it eases their bills.


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## fizzelina (19 Oct 2010)

Hi lostlady, €400 a month for food for only 2 people seems really high aswell. Is this just grocery shopping or does it include buying lunches when at work / college? Could you bring lunch into work / college if so? I do that and it's huge how much money you save in a month not buying lunch out.


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## Lostlady (19 Oct 2010)

Thanks Niceoneted, you make a good point re the mobile. That's why I've stuck with Vodafone thus far. Most family and friends I call/text are on it, only one other friend who I contact by mobile that on another network so is a hard call. Perhaps switching to that "simple" tariff is the best way. Paddybloggit, thanks for clarifying that re the Phonewatch. I did not know that! I suppose the main thing is that potential burgulars won't know it's not monitored and the noise is probably big factor in deterring anyway. Will definitely consider dropping phonewatch now. Very reassuring.


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## PaddyW (19 Oct 2010)

Check out the new eircom mobile 7 ten offer


Seven 10 is a unique prepay offer - you won't enjoy these benefits with any other mobile provider, you get:
- All the calls and texts you need to any network, any time
- No more thinking about what network you're calling or how much credit you've got!
- All you have to do is top up by €10 every seven days or maintain a balance of at least €10 to cover the weekly cost.

No connection with eircom, just looks interesting!

Edit : Just noticed this at the bottom

A Fair usage policy of 200 minutes and 200 texts weekly applies to these offers. According to ComReg's Q1 2010 quarterly report (published June 2010), the average Irish user only uses 227 minutes and 192 texts per month, we're offering 200 minutes and 200 texts per week.

Still, 200 minutes and texts per week should get you through!


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## cpoh (19 Oct 2010)

Hi All, long time reader, decided to take the posting plunge..

Lostlady, just a few perspectives i thought you might find useful; Your free texts and calls with Vodafone aren't free - You're paying €70 a month, which is definitely at the high end of the scale, I appreciate you want to keep your Vodafone texts and calls, but surely theres a lower priced plan available? personally I've always found Vodafone a bit too expensive when compared to meteor or even 3. Not too sure about e-mobile - €40 per month still seems too much.(for me anyways!) I think most of their bill pay offers give discounts to existing Eircom landline users, so maybe theres something to consider there..

As regards Bord Gais, I was with them for electricity in my last apartment and found them absolutely fine (I had similar issues with the gas connection, maybe thats just a problem area for them). In any event, if you're not happy switching to them, why not consider Airtricity - they're doing both Gas and electricity and offering good discounts on both - afaik -20% on Gas and circa -10% on electricity if you switch both.


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## Lostlady (19 Oct 2010)

Thanks for that on Eircom mobile PaddyW - I am considering switching to them as I've checked and have contract with Eircom for landline/broadband until next year so can't switch the home phone etc until then. cpoh, I'm going to call Airtricity about switching both though I take on board about Bord Gas and reconnecting - might have just had a bad experience there. Anyone know if there's info on comparisons of the savings on switching both utilities to Bord Gas vs switching both to Airtricity. I have heard a cople of negatives about Airtricity regarding billing (people getting very high bills that were not linked to their actual usage) but not sure if that's just anecdotal. Thank you everyone again. I feel a little less desperate now. Had been very worried about having to move back to paying full mortgage in Feb and being able to survive on less than 1,500 a nonth for everything when I cant even seem to manage currently on more.


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## PaddyW (19 Oct 2010)

Good luck with it Lostlady. It can seem tough, but just relax and look at it more positively and it won't seem half as bad. That's what I did and I'm all good now!


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## maureen (19 Oct 2010)

hi, for what it is worth . I was in Dundrum shopping centre today and a sports shop was advertising for Xmas staff, weekends and late nights etc. This might be of interest to your son. I think it was on the first floor, sorry cannot remember the name of shop.


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## Lostlady (20 Oct 2010)

Thanks Maureen, I'll let him know . Fizzelina - the 400 would cover everything including making my packed lunches etc - I never buy lunch out at work always make my own and bring it in - also included stuff like loo rolls, cleaning materials, washing powder etc. Still I could probably do better. Plan is this month to take out the 400, restrict myself to 60 per week for all grocery shopping and see how I get on. Without car it's more difficult to do a big shop can be a bit of a problem.


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## niceoneted (20 Oct 2010)

If Dundrum as a location for a job for your son I know that you can get a list of all jobs within the centre (My niece got this as she  works there). I think you can get it at the information desk or at least they will point him in the right direction.


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## Lostlady (20 Oct 2010)

Thanks Niceoneted. Will pass that on. Dundrum is quite far away but with Luas it could be manageable. Thanks for the tips.


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