# Need help with overall financial situation



## Daisyduck (20 Jan 2009)

Age: 30 
Spouse’s/Partner's age: 33

Annual gross income from employment or profession: €32,500 - Fulltime/private sector
Annual gross income of spouse:€35,000 approximately, however, he is self employed so this varies massively

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

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

Rough estimate of value of home: €210,000
Amount outstanding on your mortgage: €210,00 (only 6 months into mortgage, property has decreased by approz €20,000k)
*What interest rate are you paying? 5.99% fixed*

Other borrowings – car loans/personal loans etc
Car loan - 560 per month - €20,000 balance
Credit union loan 1 - 100 per week - €12,000 balance
Credit union loan 2 - 100 per week- €12,000 balance
Loan to family - 100.00 per month - €8,000 balance
Childcare - 155.00 per week
Life assurance - 180 per month
Health Insurance - 58.00 per month
Sky - 22.00 per month
Credit card - €50.00 per month - €2,100 balance
Heat/Electricity - €170.00 per month (average)



Do you pay off your full credit card balance each month? No
If not, what is the balance on your credit card? €2100.00

Savings and investments:Approximately €4000 in credit union but not accessible because of the loans

Do you have a pension scheme? No 

Do you own any investment or other property? No

Ages of children: 3 years

Life insurance: Yes, €180.00 per month 


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

My spouse's income has decreased dramatically over the past few month's, it is unreliable and irratic and there are no signs of it improving at all.  
I posted a thread on the mortgage website in relation to getting out of the 5.99& fixed rate, but at the moment the penalty is too high (€17,000k) to get out of, so it doesn't look like we can save money there.

I have cut the basic's back as low as I can, quit smoking, taking lunches to work, no socialising, our only luxury is the €22.00 per month basic sky and since we're not going out it's really the only thing keeping us sane!  

For the last few weeks our income is much lower than our outgoings and we have missed last month's car loan.

I really don't know what to do, any advise would be much appreciated


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## PaddyW (20 Jan 2009)

170 a month for electricity is extremely high? Are you leaving stuff plugged in contstantly? I would definitely look to cut that back, way, way too high. Life insurance quite high also, is this against your mortgage only? If it is, way too high also, so look into that.Downgrade your car, that outstanding loan is high against it, you can get an older car that will work just as good. Could you ask your family if they will allow you to take a break from paying them back for a while? If they do you can use this to pay off against your credit card, which is more than likely very high interest. Have you looked into switching to a CC provider with a 0% balance transfer which should help you eat into the amount outstanding?


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## Daisyduck (20 Jan 2009)

Hi Paddy,

Sorry for €170 a month is heating & electricity, oil and esb average per month, I'm not sure but I think that's average enough?  ESB €140.00 bi-monthly and oil about €100 per month, but because we're only in 6 months this is only a rough estimate until it runs out really.

No chance of us taking a break from family loan unfortunately.

Car loan is my spouse's, he's self employed a needs the car, because he uses it for work it has high mileage so to downgrade we wouldn't get as much as we would need and because it's on the road so much if we were to downgrade I'd be afraid that we'd be buying a headache.  If anything went wrong with the car even as is we'd be goosed when it came for paying for it so it may be risky to go for an older car.  

I hadn't changed the credit card but I definitely will.  I was going to wait for a month or two, maybe try get on top of things a little so for the six months I could pay extra off.  Is it as easy to jump from one 0% balance to another as it used to be?


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## Bronte (20 Jan 2009)

Daisyduck said:


> I hadn't changed the credit card but I definitely will. I was going to wait for a month or two


  ??? Don't wait, switch to a new 0% credit card and cut up the new card the minute you receive it so you don't use it.  Your life insurance seems very high and do you need health insurance? I advise you to keep a spending diary.


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## Daisyduck (20 Jan 2009)

Thanks Bronte.  I'm going to start the spending diary this week.  My life assurance doubled when we told them we were both smokers!  Neither of us are anymore but we have another few months before we can contact the insurance company and get it reduced, it went from €80 to €160 a month because we were smokers.  The additional €20 is a policy for my daughter in case I die, which I don't want to cancel as it would be my only way of providing for her.

I could cancel my health insurance, that just covers me and my daughter not partner,  I suppose it's out of fear I haven't, but my daughter is having health problems at the moment so I don't want to cancel hers, nothing major thank God but still surgery may be required and I'd be afraid to cancel hers at least, my own I'd get over.

Would consolidating the loans be crazy?  There's only about 2.5 years left on them all, if we keep going the way we are I don't know if we could make it through but I don't mind struggling for 2 more years once there's light at the end of the tunnel


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## Pope John 11 (20 Jan 2009)

Daisyduck said:


> Amount outstanding on your mortgage: €210,000 (only 6 months into mortgage, property has decreased by approz €20,000k)


 
What bank gave you a mortgage 6 months ago?



Daisyduck said:


> Other borrowings – car loans/personal loans etc
> Car loan - 560 per month - €20,000 balance
> Credit union loan 1 - 100 per week - €12,000 balance
> Credit union loan 2 - 100 per week- €12,000 balance
> Credit card - €50.00 per month - €2,100 balance


 
Based on the above credit history? (Or have you taken out these loans after getting your mortgage?)



Daisyduck said:


> Loan to family - 100.00 per month - €8,000 balance


 
If your mortgage was taken out on top of these additional loans:

& based on the above outstanding other loans, your loan owed to your family & since the housing market & economy have been in decline over the past year do you think it was advisable for you to take out a mortgage during that time?

Was it not wise to pay off 80-100% of all your other loans first?

Can I ask what your partner does for a living?

I don't mean to be annoying...but I hate to see a thread like this if the banks are still forking out mortgages based on the above outstanding loans that you have?


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## gillarosa (20 Jan 2009)

Hi Daisy,
I can't see the figure you pay in mortgage, but it looks like all your outgoings are taking up all your take home plus a huge portion of your partners even on a good month, you don't have a lot of leeway to cut either, my only suggestions are: 
Would it be possible for a family member such as Grandparents to help out with the childcare, even for a year or two until you get out of the worst of your problems. 
Secondly, is the Credit Union you have borrowed from a Community one or one associated with your workplace, I ask because I recall Eddie Hobbs negociating a debt amalgamation loan for one of his Clients who was a Civil Servant with their CU, which was based on an agreed direct debit from their monthly salary, if it were possible it would free up some cash flow and give you some breathing space.
I second Bronte's post about applying for a 0% transfer of CC balances, I did it late last year and it gave me the breathing space to repay the balance.
Best of luck


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## Pope John 11 (20 Jan 2009)

Assuming you are both married:
Income = €4,760/mth
Income = €2,638/mth (Assuming partner unemployed)

Outgoings
Loans = €1,476/mth
Mortgage = €1,257/mth (Based on 30yrs, by the way how long are you fixed for)
Other = €455/mth (as above, taking only €50/mth life assurance)
Food = €200/mth (I do not see it above)
Total = €3,388/mth

Assuming you temporarily pay for majority of the loans & the mortgage, your partner pays the balance which equals €3,388 - €2,638 = €750/mth

Your partner may be unemployed & seek JSB etc which equates to about €197/week or €853/month.

You are ok for now.

However, I would question the need for €20,000 loan on a car, ask your family to hold off until you are in the clear. Try & consolidate credit cards to one loan.


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## Daisyduck (20 Jan 2009)

Hi gillarosa, sorry I didn't realise I hadn't put in our repayment, it is €1193 before TRS, which has been up in the air the past few months but I'm hoping it will be sorted this month and the revenue said it should be about €160 but I won't know this 1st Feb.

No way we can help with childcare, both sets of our parents work too.  It's bad enough but our chreche raised their fees in January from €140 to €155 per week, which nearly made me cry when I found out.

I'll definitely get the 0% credit card, can I ask which card you got?  I'm just not sure where offers the 0%.

I'll see about the credit union, probably a good idea, if they go for it, one of the loans is my and one is my partners so I don't know if they'll agree for me to take on his.

It is so depressing, I would take on a second job no problem if I could get one, but can't seem to find any at the minute either.


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## Daisyduck (20 Jan 2009)

Hi popejohn11,

Your not being annoying, any help/advise is appreciated.  To answer your questions, IIB gave us the mortgage 6 months ago (August 08), my partner is self employed and at the time we were financially in a position to pay all our expenses, but since October/November his income has dropped dramatically and their is no sign of it improving.  But since he is self employed he is not entitled to government help.  Our mortgage is €1193 before TRS, and is fixed for 5 years at 5.99%. One of loans were existing, and a portion of the other was.  I din't declare the family one, the €100 per month, at the time it wasn't an issue as repayments weren't a problem (no excuse I guess), we had the deposit, it was a 92% mortgage so we had a fairly big portion of the deposit saved


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## Pope John 11 (20 Jan 2009)

Daisyduck said:


> It is so depressing, I would take on a second job no problem if I could get one, but can't seem to find any at the minute either.


 
No, you have a steady income. 

Can I ask what is your partners\husbands view on this & what sector of work is he in?

What is he doing about getting a partime job....anything for now to take the pressure off you both


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## Daisyduck (20 Jan 2009)

He's a driver/courier.  He's busiest time are weekends when most part-time jobs seem to be available, but he is applying.  He has an interview this week for a f/time job too, which would give us a second steady income on more or less what he is earning now but he could still drive/delivery then part-time so we would be up in income if he got it.  He knows someone working with the company already though and he said there's alot lined up for interview, but he has experience so fingers crossed.  Because at the moment his busiest time is weekends i'm tied 2nd job wise too.


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## gillarosa (20 Jan 2009)

Hi Daisy,
Mine was Halifax, I applied on-line and the entire process took no more than about 2 weeks, I know Ulster Bank have a 0% transfer balance card too and also some other banks. Your one month payment default may impact on your application, but if its an isolated incident you may be ok.
Best of luck


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## PaddyW (20 Jan 2009)

Daisy :

*Halifax/Bank of Scotland Plastic Card*

6 months interest free (APR thereafter is 9.5%) on balance transfers and purchases.

[broken link removed]

*Ulster Bank Zinc Card*

9 months interest free (APR thereafter is 13.4% on purchases) on balance transfers and purchases.

[broken link removed]

*First Active*

9 months interest free (APR thereafter is 12.9% on purchases and 20.1% on cash advances) on balance transfers and purchases

[broken link removed]

*Tesco (provided by RBS)*

6 months interest free (APR thereafter is 14.9%) on balance transfers.

Further information

*National Irish Bank VISA (doesn't require a NIB Package)*

5 months interest free (APR thereafter is 14.9%) on balance transfers and purchases


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## brazen_dude (20 Jan 2009)

First Active credit card is at 4.9% on balance transfers and they are not interest free... only advantage is u pay interest at the end of 12months...


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## PaddyW (20 Jan 2009)

Must have changed since that best buys was posted. Sorry


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## yamr6 (20 Jan 2009)

Hi, you should talk to your bank about the fixed rate mortgage and find out what the penalty is to come out of fixed rate and on to variable. I have just done this having fixed a mortgage back in september 08 and it can be a worthwhile thing to do depending on circumstances.


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## chrisboy (20 Jan 2009)

yamr6 said:


> Hi, you should talk to your bank about the fixed rate mortgage and find out what the penalty is to come out of fixed rate and on to variable. I have just done this having fixed a mortgage back in september 08 and it can be a worthwhile thing to do depending on circumstances.




She did, its written above, 17k.


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## Daisyduck (21 Jan 2009)

Hi all, thanks for the advise.  I am going to change my credit card, I had a look into it today and Halifax are 0% for 6 moths and 10.9% thereafter.  MBNA are 0% on balance transfers and 14.9% on purchases. Ulster bank are 4.9% on balance transfers for 12 months.  So I'm going to apply to MBNA and hopefully transfer, and then to another 0% just before my 10 months is up.  Hopefully I'll end up with 14 months interest free and if I work really hard I can try pay most of it off in that time.

Thanks again


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## Mommah (21 Jan 2009)

Hi Daisy

Any way your bank would consider an interest only period....or extending the term of your mortgage???

Could you take on a language student for the summer etc.

Just a few ideas.

Hope things improve soon.


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## Pope John 11 (21 Jan 2009)

Just a thought & going back to thread No. 8, is getting rid of the car not an option....& get one for €2,500 max....

Your €20,000 car loan = 8 months of your take home pay, alot of hard work, from you. It would greatly benefit you, I would think.


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## Daisyduck (22 Jan 2009)

I had a chat to my partner last night about it.  He is putting it up on a few of the car websites today and I've done a sign for the window of the car.  So your right I think Pope John 11.  We may not get any offers, or any reasonable offers but we'll give it a shot and fingers crossed.  He's been called for a second interview too for that job, salary isn't the best but because he could do that full-time and his current job part-time we would be ok again.  That's fingers crossed he gets it of course, say a pray for us - you might have some sway lol


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## PaddyW (22 Jan 2009)

Best of luck Daisy.


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## Daisyduck (22 Jan 2009)

Thank you Paddy


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## peaceboi (8 Feb 2009)

Yep, tat mbna, i too got 1 few days ago, is 0% for 10 months on bal. transfers.


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## Pope John 11 (9 Feb 2009)

Just another thought Daisyduck....Should your partner become unemployed...is there an option of taking your child temporarily out of childcare for 1 year & your partner could look after him/her, include teaching etc...especially if they are only 3yrs old.

I will revise your figures based on:

This would allow your partner to collect his social welfare - €788

This would save you both on child care costs - €620

Your salary equates, as previously calculated - €2,638

As I previously suggested, sell the car, I will assume you get - €13,000

I have included food at - €200 per month, as I have not seen it included

By the way Daisyduck...excuse my ignorance when I say take your child out of childcare..unfortunately i do not have any kids at present...


_Other borrowings – car loans/personal loans etc_
_Car loan - 560 per month - €20,000 balance ..................._*Car sold - Loan reduced from €560/month to - €200/month*
_Credit union loan 1 - 100 per week - €12,000 balance....... _*€433/month*
_Credit union loan 2 - 100 per week- €12,000 balance ........_*€433/month*
_Loan to family - 100.00 per month - €8,000 balance ........_*Hold*
_Childcare - 155.00 per week ........................................_*Eliminated*
_Life assurance - 180 per month ..................................._*Too high, say - €50/month*
_Health Insurance - 58.00 per month............................._ *€58/month*
_Sky - 22.00 per month ..............................................._*€22/month*
_Credit card - €50.00 per month - €2,100 balance ............_*€50/month*
_Heat/Electricity - €170.00 per month (average) .............._*€170/month*
*Food.......................................................................€200/month*

*Total Outgoings excluding mortgage ..........................€1,616/month*
*Mortgage excluding TRS.............................................€1,193/month*
*Total Outgoings.........................................................€2,809/month*

*Income (assuming partner on Social Welfare)..............€3,426/month*

*Surplus.....................................................................€617/month*

*Either pay off your family with this loan for the year (€7,404), or pay half to the family & half on a 2nd hand car saved ove the year (€3,702 each)*

*There is also the option of leaving your child in child care.....if your family can hold off for the loan.*

*Hope things work out for you*


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## Pope John 11 (9 Feb 2009)

Sorry, I couldn't add the simle....here it is ...hope things work out for you...


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## jwestave (3 Mar 2009)

good post & good advice


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