# Bad Debt...young and foolish



## Orls81 (7 Jan 2009)

Hi
This is my first time here. I have been very silly with my money, and i am also in alot of debt (i know i have been very stupid and careless)

I owe credit union 8500K - 230 p/m repayment
MBNA CC - 2800K 
AIB CC - 2800K

My monthy take home pay is 1973 ( i know, a good wage for a single person,its such a pathetic story)

So approx 14000k in debt and i am only 27. I cant believe how stupid i have been.

I am now trying to sort everything out. I could handle the credit union loan on its own, but its the credit cards that are getting to me.

So i am going to continue paying CU the agreed amount.

I am moving to UK in April, so want to try and reduce the credit cards.

I intend to pay appox 1500 by end of March.

Will any bad credits i have here show up on a UK credit check?

Please advise the best way to deal with this. i need 600 p/m for personal expenditure (i travel to UK approx 2-3 p/m so flights and spends are needed)

Can anyone come up with a suitable budget until April?

Please help. I cant belive that i have let this happen.


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## bogartsqueen (7 Jan 2009)

If it makes you feel any better I owe 40,000 and I'm only 28. I had numerous loans and credit cards. Last October I went down to that credit union and discussed my bad sitution and I managed to get a 40 grand loan off them. I pay back 210 a week for 5 years. I have one year done  I only earn 1800 a month so it is hard going.
You should try your local credit union and combine your loans and get rid of the credit cards.


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## Sandals (7 Jan 2009)

Hey funny thing four years ago took out 40k as well out of credit union and pay 214 a week for 5 years. Im only 29 now. Gas, Feel now though interest terribly high as in total paying €53000 back. Hey orls81, Id talk to the credit union. In all my dealings with them I never had a bad word to say about them. Good luck.....


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## gillarosa (7 Jan 2009)

Hi Orls,
Don't beat yourself up about it, there are a lot of people who have availed of cheap and easy credit. Have you applied for any of the 0% transfer of balance credit cards such as those on offer from the likes of Halifax or Ulster Bank. If you had 6 - 9 months interest free it may help you manage your repayments better. Both can be applied for on-line and if you are sucessful you could have the balances or part of them transferred within a few weeks. But the trick is to immediately cancel the existing cards and stop puchasing on credit.
I imagine you have very valid reasons for April being your deadline for moving to the UK, but is it putting a lot of strain on you to sort your finances in a matter of only a few short months.
Best of luck


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## dave2k (7 Jan 2009)

Orls81, you're doing well to realize that you're in debt. I think you're probably not past the point of "deep" just yet. 

What I would do is as follows.

1) Start cutting down on living expenses. You'd be surprised how easy this is if you just cut meaningless indulgences. Set a simple goal like cutting €25 a week from your drinking/going out budget. That can mean having ONE less pint a week or making SURE you get a taxi home with others rather than alone.

2) Focus on your CC debt. Get rid of it and fast. Contact the CU and explain what you are doing. Ask them for a break or tell them you are taking a break. What I did when I was in the same situation was let my CU payments go into arrears for a few weeks then transfer my shares to pay off the arrears. They were not happy but I just did it twice. (This is terrible advice I know, but it's just to illustrate).

3) Take on odd jobs if you need to and get that CC debt paid off. Make sure you only pay off one at a time (highest interest one). The psychological impact of having one less debt to pay off is surprisingly strong.

4) Reschedule your CU loan.


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## Thoie (7 Jan 2009)

Talk to [broken link removed].  Try to consolidate all three debts at the lowest interest rate you can find.  Cut up credit cards/cancel them/whatever.

Bring copies of all your bills into MABs when you go - including things like phone bills, rent, heating etc - they'll help you work out a proper budget.  Get a 3V card which you prepay to book flights etc to the UK.  See if you can cut back some of the flights to the UK - if you're going to visit a boy/girlfriend they'll understand that sorting out your financial difficulties is important.


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## allthedoyles (7 Jan 2009)

http://www.itsyourmoney.ie/personalloancomparison

As far as I know...Credit Union interest in at least 10 % APR

According to the attached link........the best rate is from Tesco Personal Finance  = 6.9 % fixed (22,000 over 5 years )


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## aetius (8 Jan 2009)

This may sound silly, but if you live out of town - on nights out, leave before midnight (no-one can fault you for leaving early and you've already had the best part of the night and will have a good head in the morning - plus:- it will save you loads on club admissions, late-night food etc), catch a Luas or bus home and save on taxis (i live southside and catch a Luas to Dundrum and get a taxi from there home - saving a tenner on taxi fare each time! I see people doing this most weekend nights).

Alternatively, entertain at home - much cheaper - treat your loved one to a cooked steak and a bottle of wine, simple, effective and very impressive. 

For me, socialising was my biggest outgoing until i copped on. Debt management is critically important but changes in how you live are also required so that once you're out of this mess, you stay out but still enjoy life.


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## Orls81 (8 Jan 2009)

Hi, thanks for all your replies.
I will be reducing my CU repayments in April when i go to UK, to 200 p/m. Also i realise that this is going to be a long term loan, but i dont want to top it up to pay off my CC, as i eventually want to have it cleared.
I did up a new budget for myself lastnight, im going to try and pay off 1000 p/m on my credit cards so by end of march i will have them halved, leaving me with 3000 to pay.
I have also applied for a 3V card, which i will use for booking my flights.  I will cut my visits down to once a month.  Its hard for my boyfriend to travel over, as he is out of work at the min, and trying to pay his mortgage, so i would rather him keep up with them payments (im not totally silly)

I know there is light at the end of the tunnel, and hopefully by next year i will be on the road to recovery.  I would love to speak to other young people (20-25) and warn them off the horrors of debt. All these talks about drugs and alcohol, and nothing about debt.  It really can ruin peoples life, and i wish it was highlighted more among young people.


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## bogartsqueen (8 Jan 2009)

I blame the banks for throwing money at people. Okay I was foolish enough to spend it all but most of my debt started when I was 17-25 when I was none the wiser and had banks ringing me offering me endless loans. 

Now I work 3 jobs


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## BoscoTalking (8 Jan 2009)

bogartsqueen said:


> *I blame the banks for throwing money at people. *Okay I was foolish enough to spend it all but most of my debt started when I was 17-25 when I was none the wiser and had banks ringing me offering me endless loans.
> 
> Now I work 3 jobs


while you are at it blame whoever brought you up for not teaching you the difference between cash in and cash out and yourself (God forbid) for not paying more attention in maths class.


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## bogartsqueen (8 Jan 2009)

Totally fancied my teacher...spent my days dreamin instead of learning


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## BoscoTalking (8 Jan 2009)

bet ya fancy his bank balance now even more than his designer stubble!


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## bogartsqueen (8 Jan 2009)

I fancy anyones bank balance but my own.


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## Orls81 (8 Jan 2009)

"whoever brought you up for not teaching you the difference between cash in and cash out"

we didnt have much money in our house, and my mother was very good at handling it. But being poor, made me want to spend as i got older.  If that makes sense to anyone. But i have learned my lesson a hard way.


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## truthseeker (8 Jan 2009)

Orls81 said:


> I would love to speak to other young people (20-25) and warn them off the horrors of debt. All these talks about drugs and alcohol, and nothing about debt. It really can ruin peoples life, and i wish it was highlighted more among young people.


 
Look on the bright side, you'll never get into this situation again, youve now had the life well and truly frightened out of you and youre young - better to happen now than in your late 50s eh?

Once you get the current situation sorted you will be fine.

Im always amazed by people who dont mind getting into debt, I dont think its an upbringing thing - I know different members of the same family where 2 of them are brilliant with money, and 1 is just terrible.

Just out of interest - did you have a part time job as a teenager, and how easy was it for you to get your hands on money? (would your parents stump up any amount?).


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## Orls81 (8 Jan 2009)

Nooo, my mother never give me money.  I started parttime job when i was 15 (in a chippy, cash in hand), to help out with things.Stayed working there part time, until i left school, then got part time job elsewhere while at college. 
So from about 17 there was steady money going into my bank. I started to use the credit union to go on hols, and also used it to futher my education as i left college early.

The credit cards have only come into the story the last couple of years, and they just got out of control.

I have always worked to support myself, and have never had to ask my family for money.  i finally told my mam about all my debt a few months back, and she has cut down the housekeeping money which i give her. She is in no way in a position to help, and i wouldnt want her to, as it has all been my fault.

I have 2000 saved in credit union, so when i get my loan down to that amount, im just going to write off the loan with it.


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## truthseeker (8 Jan 2009)

Very interesting response Orls. So you 'knew' the value of money (you worked for your own money, money was not handed over easily at home etc...).

What do you think happened that caused you to fall into debt? 
Was it that it was so easy to get money?
Was it that no one seemed to be chasing you to pay back money?
Did you have a 'Ill think about it tomorrow' attitude?
Were you living beyond your means to keep up with your peer group?
Or were you just enjoying it?

What would your number 1 piece of advice to a young person be regarding debt?


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## Orls81 (8 Jan 2009)

Money was way to easy to get hold of, never ever thought i could pay it back, felt i could control my CC spending. Over enjoyed myself for the last 2 years, now paying big time for it. When i applied for my first CC, i had a limit of 3000...and i just thought wow, let the good times begin, now its more boo hoo, what will i do.

My advice for young people...simple, just spend what you have, never ever take advantage of Credit Cards, 3V is the way to go. It will all come back and haunt us.  I never knew about the ICB until i started working for a finance company.  i will have to wait 5 years before a mortgage company will entertain me.

thats why i want to start a new life over in UK, just to get away from everything. I will have organised all DD for my loan and CC repayments.  I will just live as cheaply as i can over there.  My boyfriend is a great help, as he helps me know with my spending (not in a controling way), just makes me feel guilty when i go to buy something that i dont need.


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## Orls81 (8 Jan 2009)

I meant i never thought about paying it back ****


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## truthseeker (8 Jan 2009)

Yeah, the CC is a nightmare if it starts getting out of control.

I never knew about ICB until I was nearly 30. And another thing I didnt know about was that I could claim money back (MED1 for example) - I have wasted years of GP bills and prescriptions all because I just didnt know you could claim back. I only found out by accident just over 2 years ago (Im mid 30s now).

Dont feel that youve done something terrible though - it happens to loads of people. I have a number of friends who went through something similiar to you at one point or another and some who still have not realised that the money has to be paid back someday.

I think youve done very well to stand up and address it. 

Is there any way you could earn a few extra quid doing part time work?


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## Orls81 (8 Jan 2009)

When i move to UK i will take on both a full time job and part time.

But the salaries over in UK are alot lower then over here, so really i will be just breaking even.

Im hoping the Stg gets stronger, as this will be better for me.  I will be a happier person when i have the CC cleared, or even under 2000 each.

I think the move to England will do me good, everyone over there is penny pinching, as the recession is much worse (funny way to look at things) over there, so maybe that is the environment that i need to be in at the min.

I also have something coming up at the end of this month, and im hoping to get some compensation out of it.  Hopefully about 1500-2000, so that would help a little bit.  I know i shouldnt be relying on that sort of thing, but it would be a big help.


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## PaddyW (8 Jan 2009)

Are you guaranteed a job over there Orls?


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## finty (11 Jan 2009)

well the first thing you need to do is use the CU savings to pay down your highest interest rate CC. 

Having CU savings at the same time as credit card debt is madness!!


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## dave2k (11 Jan 2009)

finty said:


> well the first thing you need to do is use the CU savings to pay down your highest interest rate CC.
> 
> Having CU savings at the same time as credit card debt is madness!!



The CU does not work that way. Your loan is secured against your savings. You cannot withdraw savings from the CU if they are secured against an existing loan.


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## Complainer (12 Jan 2009)

dave2k said:


> The CU does not work that way. Your loan is secured against your savings. You cannot withdraw savings from the CU if they are secured against an existing loan.


Not all CU loans work this way. Some CUs did away with this requirement, which isn't really in the best interest of the customer. The OP will need to check the conditions of his own CU.


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## dave2k (12 Jan 2009)

Ahhh, I thought they all operated under the same rules. Apologies.


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## Orls81 (21 Jan 2009)

My Credit Union savings and loan are tied up with each other, therefore have to keep the money where it is.
I have no job waiting for me in England, but i will take any job until i get on my feet, maybe temping or something. I know i wont be spending as much money when i get over there, plus i wont have to be paying for flights every month.
I dont know much about interest rates, but i dont think i get charged that much, maybe €12 p/m
its just a crappy situtation i got myself in. But im working at making it better.


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## Pope John 11 (21 Jan 2009)

Orls81 said:


> I dont know much about interest rates, but i dont think i get charged that much, maybe €12 p/m


 
I would advise to try & get out of this way of thinking. You are better off knowing everything about everthing...it just involves a bit of reading up or making some inquries.

Its amazing how many people have mortgages but when you casually ask them about what interest rate that they are on?

They open with the line....._'I think I am on 5.1%....' _& having pondered on it for a minute they end the sentance with '_.....I don't know, I'll check it up'_

In other words, your opening post title - *'Bad Debt...young & foolish'* should eventually translate to *'No Debt...older & wiser'*


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## Orls81 (21 Jan 2009)

Ok, i did check, but still a bit unsure.
AIB - 5.4%
MBNA - 5%

Does this sound right?


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## Celtwytch (21 Jan 2009)

For credit card interest rates?  They sound extremely low!  Take a look at your statement - it should say something along the lines of _interest charged on purchases at x.xx% per month.  _Multiply this figure by 12 to get the APR on your credit card.


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## Eblanoid (21 Jan 2009)

Orls81 said:


> AIB - 5.4%
> MBNA - 5%
> 
> Does this sound right?



No.

http://www.itsyourmoney.ie/creditcardcomparison


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