# Civil servants in a lot of debt



## daines (20 Nov 2008)

Ok so I know Im in a lot of debt but really trying to clear it just want someone else opinion as to anywhere I could cut back. Thank

Me: 25 €435.00 net per week
DH: 25 €610.00 net per week
so about 4180 in 4 week month extra week used for baby clothes car tax presents and bimonthly cinema trip.

1 child aged 1.5, both civil servants so not much chance of being made redundant.

Mortgage €1,200 p/m
Childminder €400.00 p/m
Loans €1,800 p/m
Petrol €75 p/m
Insurance home life and car €80 p/m
Shopping €550 p/m and that it no nipping to the shop no coffee in work etc

Leaves €75 a month for emergencies anything that may crop up.

We use child benefit €166 p/m for esb/gas/phone/tv 

I know loans were stupid but a case of masters loans for us both and then problem with home we sold for less than we paid as we needed to move home for jobs and baby two yrs and all loans will be gone. Have no other childminder options as already using a family member.


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## Purple (21 Nov 2008)

daines said:


> Ok so I know Im in a lot of debt but really trying to clear it just want someone else opinion as to anywhere I could cut back. Thank
> 
> Me: 25 €435.00 net per week
> DH: 25 €610.00 net per week
> ...


Have either of you looked for evening or weekend work?


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## Yellow Belly (21 Nov 2008)

daines said:


> Ok so I know Im in a lot of debt but really trying to clear it just want someone else opinion as to anywhere I could cut back. Thank
> 
> Me: 25 €435.00 net per week
> DH: 25 €610.00 net per week
> ...


 

Your loans figure is simply CRAZY! €1800 per month- that would service approx. €85,000 over a 5 year term?! How much do you owe in total short term loans? 

You said that they were to allow you both to complete masters? Two points- they must have been the most expensive masters ever completed & secondly neither of your salaries reflect that level of qualification? Are you quite sure that all money was used on education or is that what you would like to tell yourself?

How much do you owe in short term finance? Is there the possibility to extend the loan term on these loans or alternatively repackage this debt as part of a remortgage? This would dramatically reduce your monthly repayments (albeit at the expense of the long term interest you will pay). For example if you added €85k in loans to a 25 year mortgage the cost of finance would decrease from €1800 to €510 per month.

From your post you seem a "reasonably" prudent person but with a very very tight cashflow situation monthly? Above might be an option for you.


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## Flax (21 Nov 2008)

Do you need your cars? Seriously, could you survive using public transport?

Could you cut back on your TV package and phone use?

Could you reduce how much money you spend on food? Have a look at this website: http://www.lidltreats.com/category/e50-challenge/

Could one of you get a part-time job? Have a look at this website: [broken link removed]

I was once in debt, and I know how strangling it feels, but with slow steady payments you will be debt free. Just be patient!


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## z109 (21 Nov 2008)

Hi daines, to be honest, you are not in that bad a position. 

As you say, you have taken loans for masters and as a loss on your previous house. Make sure you are getting all the tax relief for the cost of the masters. I'm not sure how this works, but I believe it is available for continuing education. With the home loss, if you gotta move, you gotta move.

You say that all loans will be paid off in two years assuming your current budget, that is great that you already have a schedule in mind and have already put the budget in place. You need to make sure you stick to it. For example, and tough as it is to say it, don't get pregnant in the next year and nine months!

Your emergency fund is a bit low at only 75 a month - holidays and Christmas are out, I guess! 

Is your mortgage already interest only? If it is not, consider moving to it until you have the other loans paid off - this will give you a bit of slack to build up a reserve until you have more free cash. Otherwise, make sure that you have your loans paid off before you move back to repayment - you will be in a sticky situation otherwise.

 With deflation looking likely over the next couple of years, you can hope your fixed costs will go down somewhat (petrol, ESB, food). On the other hand, insurance costs will probably rise. For all things you need to shop around mercilessly and take no prisoners.

Yes, it's a lot of debt. Yes, the next two years are going to be tough, but you seem to be on top of your responsibilities. Keep up the hard work!


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