# Seeing no end in sight!



## Dublander (23 Jan 2009)

Age: 30
Spouse’s/Partner's age: N/A

Annual gross income from employment or profession: 28,000
Annual gross income of spouse: N/A

Type of employment: e.g. Civil Servant, self-employed 
PAYE

In general are you:
(a) spending more than you earn, or
(b) saving? 
now saving trying to get back on track

Rough estimate of value of home  250,000
Amount outstanding on your mortgage: 190,000
*What interest rate are you paying? Not sure, but on fixed interest only at the mo over 40 years*

Other borrowings – car loans/personal loans etc   6,5000 from parents

Do you pay off your full credit card balance each month? No
If not, what is the balance on your credit card? 3,000 interest rate is 1.75%, affinity card

Savings and investments: None

Do you have a pension scheme? No

Do you own any investment or other property? No

Ages of children: N/A

Life insurance: 25/month


*What specific question do you have or what issues are of concern to you? *

Feel in a bit of a spiral at the moment, changed career a few years ago but it hasn't gone right. Trying to get back into the industry I was in but using the new skills I have. ****ed off because seem to be sinking further and further into debt, hopefully for the first time in a long time at the end of this month my salary won't be gone to pay off my overdraft. Might be  getting 25,000 from a deal I did a while back which would sort out all my problems but cant rely on that. Basically need advice on how to get out of all this bc can't enjoy life at the moment!!


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## Thoie (23 Jan 2009)

How much are your mortgage payments?

At the moment you take home about €2,000 a month.  You owe 9,500.

If you're paying approx 800 a month mortgage, that leaves you 1200 a month to live on, pay bills and pay your debts.  By the sounds of it you have an overdraft as well, which is another debt.

I think people would need to know more about your average monthly outgoings in order to help you spot areas that you can change/cut back.  Something like this will help you list all your expenditures so that you have them straight.

Without any further details, the obvious areas to look at are things like your food expenditure - do you spend a lot of money buying lunches every day?  Do you eat out/dial out a lot?


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## Dublander (23 Jan 2009)

I hear you ok:incomings salary and rent from one room - 2,450outgoings health ins - 30house ins  - 30life ass    -  25motor ins  - 36tv          -  13mortgage-   620 (interest only)food -        140 (shopping at Aldi)petrol     -  200 (needed for work only phone is expensed)smoking   - 120socialising - 200then there is car tax 550 per year, refuse 130 a year


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## Thoie (23 Jan 2009)

Electricity, broadband, car repairs, NCT, house repairs, doctors bills/medication, holidays, clothes, toilet paper... ?

You mightn't have all of those expenses, but you probably have some of them.  I'm not trying to be mean, but step one is listing where the money is actually going before you can see where to cut back


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## PaddyBloggit (23 Jan 2009)

and listing vertically rather than horizontally! (Easier to read)


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## Dublander (23 Jan 2009)

sorry about that had it formatted vertically but it came up horizontally:

Gas -   50
ESB-   50

Clothes can get away with 50 a month
For my own sanity I feel a weeks holiday is needed so looking at 800 or so for that

Car repairs looking at 400 a year

And my last reply in vertical!

incomings salary and rent from one room - 2,450

outgoings 
health ins - 30
house ins - 30
life ass - 25
motor ins - 36
tv - 13
mortgage- 620 (interest only)
food - 140 (shopping at Aldi)
petrol - 200 (needed for work only phone is expensed)
smoking - 120
socialising - 200

then there is car tax 550 per year, refuse 130 a year


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## Dublander (23 Jan 2009)

I think I have cut down spending a lot, ie making my own lunch, shopping in aldi, always checking pumps.ie for lowest petrol prices, shopping around for all insurances when they are due, not spending as much going out and cancelling gym membership. Just seems like such a slow process bc of the money I am on and on interest only on my mortgage at 30....seriously ****ing off!!

I suppose what is really getting to me is I do not like my work now, loved it at the start but I seem to be back on the bottom rung bc of the way the economy has gone! Had an interview this week but if i get it it would not come up until April. Would increase my salary by 5,000 and a lot of benefits....health ins, life ass, canteen etc but again can't  be counting on that actually coming to pass.

I know I can do a few more things like giving up smoking.....hard I can tell you!


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## Thoie (23 Jan 2009)

OK, so let's say you have 700 a month left over after your listed outgoings.  At that rate it will take you approx 14 months to get out of debt.  If your outgoings are accurate, you can set up standing orders so those debts get paid off earlier.  If your parents are willing to postpone their payments, then you can clear your credit card in a few months.  

Many people will say give up the cigs - as a smoker myself I'll leave that up to you, but one option might be to change to rolling your own.

I'm guessing from your car tax that you're driving a 1.8 litre, and doing quite a bit of driving.  Consider whether you need that big an engine (is most of your driving in the city, for example) and see if it makes financial sense to trade down your car.  Depending on its age it may not be.

If the petrol is for work, why is it not an expense? Is a mileage allowance built in to your pay?

Consider your socialising, and see if you can cut out one night out a month - maybe invite friends around instead.

Your life assurance is wonderfully low for a smoker (can you recommend where you got cover?!)

To be honest, I think you're misjudging your outgoings.  With the figures you've posted here, you would appear to be 700 quid up a month, which doesn't explain your spiralling debt, and being overdrawn at the end of the month.

Keeping a money diary, and/or using software such as MS Money or any of the free alternatives would be a good idea for a few months.  Off the top of my head I can think of a few other expenses that you haven't mentioned, like gifts/presents for people, TV license, internet access to name but a few.  You haven't listed any money for one off things like upgrading your phone or buying the latest gadget or book.  Not everyone buys these sort of things, but look around the house and see how many "things" you bought in the last year - MP3 player?  CDs?  Games?  Magazines?

35euro a week for all your food seems quite cheap - are you counting the times you pick up a pint of milk in a petrol station etc?

You don't have to tell us, but once you get a handle on where the money is going, it will be easier to get a grip on things


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## PaddyBloggit (23 Jan 2009)

Giving up smoking is hard .... I loved every drag.

But I did. I always found that I had no money in my pocket when I was smoking.

I gave up smoking ..... cold turkey .... still off 8 years later. 

And .... had cash in my pocket then.

(Not an easy option ... but worth a try)


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## Dublander (23 Jan 2009)

Cheers lads will do, actually gave up smoking last year for 3 months and paid for my spending money for a holiday, put so much into a seperate account each week......prob not the best idea now when overdrawn and the interest adds up on that but from a mental perspective it is great to see the money going in there.

Must look back on this thread in 3 weeks time....there will no repsonse if I have not given up the dreaded weed!


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## PaddyBloggit (23 Jan 2009)

If you can't go cold turkey ..... aim to cut down.

Set a limit on the number of fags you'll smoke every day .... push yourself to go an hour before the next cig etc.

one step at a time .... and definitely keep a spending diary .... watch every cent!

It will help discipline you and it will also give you courage when you see any little bit extra saved.

Hang in there Dublander!


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## Marion (23 Jan 2009)

Smoking is not easy to give up but when you do you won't regret it.

I had several nightmares for years after giving them up - cold turkey. The nightmare was always the same theme: I smoked a cigarette and then I was consumed with guilt and the knowledge that I was back to square one - counting each day and hour. When I woke I was always delighted that it wasn't a reality.

I would never contemplate smoking now.


Marion


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## Dublander (23 Jan 2009)

Marion said:


> Smoking is not easy to give up but when you do you won't regret it.
> 
> I had several nightmares for years after giving them up - cold turkey. The nightmare was always the same theme: I smoked a cigarette and then I was consumed with guilt and the knowledge that I was back to square one - counting each day and hour. When I woke I was always delighted that it wasn't a reality.
> 
> ...


 
Well that made me laugh......had one in my early twenties about sitting the leaving again and not being prepared at all....great when you wake up though!

Have cut down to on average 7 a day but I think cold turkey is my best bet just need the right frame of mind again.


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## Marion (23 Jan 2009)

Forget about the right frame of mind - Just stop! 

Marion

Still have the leaving cert ones.


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## so-crates (24 Jan 2009)

You say you are seeing no end in sight. Well why not write down a date at which you can reasonably achieve that end. It might not be in the near future but at least then you will know it is there. Stick it on a calendar as a red letter day and in the interim have the projected reduction you want to achieve each month. Turn it around, look at it as a challenge. Measure it and give yourself a pat on the back each time you acheive a milestone (your monthly reduction). It is easier to tackle a challenge than a burden though usually they are just two different facets of the same thing.


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## Dublander (9 Mar 2009)

My red letter has come a lot quicker than I expected or dreamed of. I know from reading through these threads and from my own experience that it is very tough going but on a personal level I have a very good news story.

The deal I mentioned at the start came off to give me 25,000 in my back pocket. Now I can clear all my debts and still be left with a handy sum to start my recovery from. But I can tell you all the lessons I have learnt over the last few months are not going to be lost, everything such as budgeting, Aldi, shopping around for the cheapest prices is still very much on the agenda.

I wish everyone here the best of luck and I have been going through this for nearly 2 years but the lessons you learn are invaluable.

Cheers for all the responses they really helped when I was very low only a month and a half ago.


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## PaddyBloggit (9 Mar 2009)

Good for you Dublander .....


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## pc7 (10 Mar 2009)

Great news delighted it came off, but as you say learn, Money is hard earn and come by, control your spending!


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