# Very Concerned over my debt



## JP1974 (21 Sep 2009)

*For starters - thank you in advance for your thoughts on my situation - which I am disgusted to be in - unfortunately some people mess up once in life - this is my time - and I have no clue what to do.*

*Age:*35 Single Female.

*Annual gross income from employment:*

Gross Pay

38186.30​Notional Pay / BIK

674.61​Deductions from Gross

836.00​Taxable Pay

38024.91​26600.00 @ Std Rate (a)

5320.00​11424.91 @ High Rate (b)

4684.21​Tax Credit (c)

2829.10​ 


*Actual gross income After Including Bonus's & Overtime Last P60 /2008: *Euro54670.10. Total Net Tax Deducted E11,120.26.

*Weekly Take Home Pay Now *: E591.00 Basic - Averaging E700 when I include Overtime weekly & Bonus's. Pension [38 ]& VHI [17] supplement paid out before take home.

*Type of employment:* Private Sector Multi-National Corp. Promotion due within 2 months, resulting in raise/increment - factual, not pie in sky - figure not decided yet.

*Rough estimate of value of home: *4 Bed Semi Detached. Last Valuation 3 Yrs Ago; 2 valuations @ E365,000.00, 1 @ E380,00.00. Since then I have built on garage & further upgraded fully landscaped decked garden etc..

*Mortgage on home: *Euro301,000 - 100% Mortgage - Paying 4 yrs now - Over 20 Years - Fixed at 4.99% until April 2010 - I have tried to buy out of this - spoke in length with bank - it would cost me most to do this - advised to hold out until April.

*Mortgage provider:* Bank of Ireland.
*Monthly Mortgage Payment *- E1667.00. Tax Relief of E163 received. 
No Car Loan - own outright. No Cell Phone /BB Bill - paid by company.

*Other Incomings; *Normally 2 Tenants - 350@head per month. Right now awaiting new tenants - so no 700 extra a month - expect to have tenants within a month.

*Savings and investments:* Stocks - Right now I can exercise an amount of shares that will give me approximately Euro3000.00.

*Do you own any investment or other property?* No.

*Ages of children:*None. *Life insurance:*Yes.

*What specific question do you have or what issues are of concern to you?Other Borrowings - Here is the Issue;*
I Took out a Loan of 11000.00 to pay off Credit card bill 1.5 yrs ago - balance of 9000 on this now - paying 273.00 a month.
Current Credit Card Bill of Euro11,000 also - I have cut up card. Unfortunately I helped out a friend out of work and now am paying the price literally, my own stupid fault.
I need to clear off this 11,00 primarily - How Do I do it - Spoke to Bank - I asked for Loan to pay off this new 11,000, as I can manage the 273.00 for the 1st credit card loan [9000 now] - They will not give it to me. They can see I pay my credit card bill every month on time and up to 3 months ago I always paid off an extra 400 a month also - good history with them - Mortgage payments always on time and in full but no go on a 2nd credit card loan. Maybe I should have asked for a Personal Loan……….I really don’t know - I actually am an intelligent young lady but obviously not in this inst……at all.

Right now I can pay my mortgage, I can live, I'm not a shopper thank god, but this 11,000 specifically is hanging over my head with a big knot in my stomach and I have to do something about it - What do I do ? I have obviously tightened down on everything and taking in 2 tenants will help but…………………………?

*Thank you for your thoughts - I do appreciate your time.* JP


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## goingforgold (21 Sep 2009)

Ok, firstly let's look at the positives. You have a very good salary, especially in these times and are due a significant increase so from a job/income/pension perspective you are doing well. You have a 300K mortgage on a property that's probably valued at 240K now so in negative equity but not disastrously so and you can pay the mortgage(even without tenants). So the problem is the 20K personal debt. First thing you need to do is knock 3K from share options off the 11k credit card debt. This will do wonders for the interest you are paying on card. Then you need to talk to credit union/bank (possibly with a rep like someone from MABS) and get them to consolidate the remaining 6K onto the existing 9k loan. You will then manage pretty ok, especially if you rent out rooms. 

Your situation isn't fantastic but is far from disastrous. Stay positive.


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## goingforgold (21 Sep 2009)

Also from looking at your figures you have a net income (after pension/vhi) of 3033 (700 x 52 /12) monthly. Mortgage of 1500 after tax relief. Loan of 273 leaving 1260. Allow 200 euro per week to live including petrol bills etc means you should be saving nearly 400 euro a month. Add 700 euro rent from tenants and you have 1100 euro a month savings!. This should be used each month to clear loans. BTW it's imperative that you do everything you can right now to get those rooms rented!


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## niceoneted (21 Sep 2009)

Agree with going for gold on their second post. 
I would firstly try to transfer the balance of the credit card or part balance onto a 0% interest card for 6 -12 months. If you do not have a credit union account open one and start putting a few bob in a week (hoping you will get a 0% balance transfer credit card) and within a few months you could borrow from the credit union to clear it. 
Have you a separate account for annual expenses eg tv license; car tax/ service /insurance/ tyres; house insurace; weddings/ birthdays / hair /beauty expenses. If not start thinking about putting even 50 euro weekly in to an account for this. (I take it you are getting paid weekly from what you have written). 
I think 1500 a month on mortgage (after tax relief) is very manageable especially if you get the 2 lodgers at 700. 
Good luck. Also look at what got the balance on the credit card where it is? You say you are not a shopper  so where did all the spending come from? Do you like meals and nights out at concerts and gigs -as that is where I seem to spend it instead of the shops.


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## JP1974 (21 Sep 2009)

Thank you GrG - very _very_ much.  That makes sense, throws a bit of light on it & lessened the anxiety a wee bit I must say, thank you - I just logged onto MABS and dropped them a line asking them for their advice & I will see what they suggest/ if they would possibly accompany me to the bank as you suggest.  Yes to exercising the shares right now and chop what I can get, off the credit card of 11000, makes sense for an immediate action plan.  I just exercised the shares now that are open to me to, as the price is good at the moment also and am waiting on the final figure back.  I have advertised 'everywhere' for tenants and will keep pushing that and I'll get them. I guess i'm just terrified of loosing my house after fighting so hard for it - I never have been in debt and its a scary feeling....  But yes onwards and upwards.  Thank you.


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## goingforgold (21 Sep 2009)

Glad to be of assistance. Just one other thing. If you're finding it difficult to find tenants it's probably because the rent is too high. Rental income has fallen dramatically recently. Better to let the rooms out for a lesser amount now than a greater amount in 2-3 months time. You'll make more money in the long run letting the rooms more cheaply now than holding out for more rent in the long term. Advertise intensely on places like daft.ie and refresh your ad each day so that it goes up the priority list and is therefore more visible to potential tenants.


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## JP1974 (21 Sep 2009)

Thank you Ted…………….. You mean some company would actually give me an interest free credit card - why would they - with the place I'm in?? 
I was thinking about the credit union account yes - even to start off by throwing a small amount in weekly now - yes thanks.
No I don’t have a separate account at all - yes paid weekly. Things like car insurance, tax, refuse, even holidays [up to last year] - I used my credit card - obviously - 'used' it being the past operative word - I went a period without tenants and being down the 700 a month I used my credit card much more to pay everything - mortgage & bills on my own - throw in 900 for a clutch and those kind of rainy days - yes I should have stopped it. Then I stupidly- I don’t mean stupidly towards the person - but I helped a friend out in a very bad place - without thinking ahead to my own possible tight situation. Learning curve - dont be a fool - I know.
Thank you for your advice - really - I do appreciate it.


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## JP1974 (21 Sep 2009)

Thanks GrG - I did - lower the rent the last time in recessionary times etc -  but I checked the market/ area in the last few weeks and I see I can raise it back to the 350 again when I compare the rooms/ set up  - past tenants told me that they'd pay it again - they were happy with it so,,,,,, they dont have to pay phone, broadband etc I pay that, so....... I can but try


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## JP1974 (21 Sep 2009)

Thanks GrG - Ad renewed daily - yes daft is the best, 1 of 3 I am on - and I have my ad in every friends work location etc etc aswell so hopefully.


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## niceoneted (21 Sep 2009)

Good on you JP1974. You will be fine. I understand about helping the friend out as I did that and am still owed 6K - I have had some payed back. You could try to get your friend to pay back a little at a time even if it's 50 euro a week. I did that and while it is not the way I want to be paid back I will take what ever they can pay. 
Only way to know if you can get a transfer onto a 0% cc is by applying to the companys that offer them. You have a permanent job so you may get it. You might only be able to transfer say 5k but it will be a help. 
It is hard being stuck with the fixed rate but at least there is light at the end of the tunnel with that time ending in April 2010, not long away now and interest rates - even if they go up slightly - they will be lower than you are on now.


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## JP1974 (21 Sep 2009)

I know GrG  - if asked would I do it again I would hope I'd say no, but circumstances were bad and I couldn't just stand by.  Yes I say I would do it differently.  As soon as she can she will start paying me exactly that I said was fine even 100 a month.  I'd love to say you money can't buy you happiness/health but when your in the debt yourself each persons problems are their own and their biggest.  I guess if thats my biggest problem in life I'll be a lucky girl - esp reading some of the other stories - I feel bad asking advice - but everyones problems 'are' their own and I just have to fix that.  I'll research that 0% card and ask Mabs about it in the morning.  Just got a potential tenant enquiry - have you a shamrock on your cap?  thank you.


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## niceoneted (21 Sep 2009)

The tenants will come. Also it might be worth waiting a month or two for the right tenant - it can be worth more to have the right tenant for the right price than no tenant or the wrong tenant!!
Not to be too negative and I don't want to put you off but be aware that Mabs will put you down the pecking order of help as there may be a lot more people  at that office that are in more need than you - but you can take that as a positive knowing there are some worse off than you - although that's not a nice thought too.


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## JP1974 (21 Sep 2009)

Believe me Ted I know ! Overall i've being lucky - but then I guess I did interview 19 people ;-) - I'd prefer not to have them at all - but silly to be in a 4 bed hse on my own with that mortgage - thats life right now. I hear you re Mabs - and know what your saying  - and of course ppl that are worse off than me, I step aside for.  At least now I have an action plan from you both thank ye, as opposed to just despair this evening - cut the 3000 plus off the 11000, check out the interest free card, and/or try to get the bank again to add the balance of this card, after I knock off all I can plus the 3000,  onto the 273 loan/ into one. Thanks again.


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## JP1974 (21 Sep 2009)

found some options anyway - i'll ring for the catches ! thanks ;
*0% Interest -  Introductory Offers on Credit cards in Ireland *:
Updated September 20th 2009

*MBNA* have 0% on balance transfers for 10 months (Platinum Card)
*Tesco *offer 6 months interest free credit on balance transfers and 6 months on Tesco purchases only.
*PTSB* give 0% on balance transfers for 6 months.*
Ulster Bank *offer 0% for 3 months on purchases and 4.9% on balance transfers*.
*


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## mercman (22 Sep 2009)

JP Relax and give yourself some space. Overall you're not doing that bad compared to thousands of others. You will sort this out but it will take time and patience.


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## JP1974 (22 Sep 2009)

Thanks Mercman - I realise I am not in as much trouble as others - but right now this is my huge concern and If I dont get on top of it fix it - I am only going down the road of being in danger of loosing my home/ not getting on top of the debt. Thanks though.


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## minion (24 Sep 2009)

OP i think you are in a very good place. Dont stress.

Its unfortunate that you had to borrow to help you friend out but you live and learn.  I assume they wont be paying the interest on what you borrowed for them?  Always the way isnt it.  People think because you can borrow it or them that they only owe you the amount borrowed.


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## legallady (24 Sep 2009)

Would you think of doing babysitting at the weekends to get some extra spending money? Also, have you any gold or silver jewellery that you dont want anymore? Loads of places are offering cash for gold and silver these days. Google it. Also, have you claimed all your tax back? I just sent in forms to get money back on the bin charges, medical insurance premium and medical expenses. I should get about 240 quid back. Are you renting out 3 bedrooms in your house or 2? If its just 2, rent the 3rd! Also, have a car boot sale. You could make some money and declutter your house at the same time. 

Best of luck with it all!


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## Steve D (28 Sep 2009)

It seems that your friend at work had a problem and took advantage of your good nature buy borrowing from you and by doing this she transfered her problem on to you. First, I think you should sit down with you friend and explain to her the difficulty that she has caused you and ask her to try to get the money from somewhere else to pay you back - she may be able to borrow from a relative or something. Try this first, and if this does not work, then you may need think about escalating it by taking tougher action.


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## cartman1 (28 Sep 2009)

Hi JP1974

I have to say that compared to a lot of people, your problems aren't that bad at all so keep things in perspective. I agree with the advice that you should pay off part of the balance by selling your shares and you should be able to get a personal loan to pay off the remainder from your own bank or the credit union (although you need to be saving for at least 6 months or probably 12 before they will consider a loan application).

Two other things I would add. Firstly, be careful about the MABS route because I think it would impact on your credit rating (someone else might confirm this). Secondly, I would disagree with everyone about your friend. You did the Christian thing (I'm not religious) and helped a friend out and put yourself before them in your actions. Good for you. Everyone needs help from someone at some stage in theri life, be it financial or otherwise. Don't become hard over this and I'm sure your friend is very grateful.


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## JP1974 (1 Oct 2009)

Update from Me - following GoingforGold & Teds good advice - Thank ye.......I applied for interest free credit card, got same, transferred 8000 over to that of the 11000.  received cheque from shares for 2500, knocked that off the 3000 left on credit card, and I will chop away at the other 1000.00 to clear it by end of Oct.. No Tenants yet but some enquiries.  I stayed away from MABs.  Opened up that credit union account.  So on the right track now - thanks everyone for dragging me out of the blur and putting me on the right track


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## niceoneted (1 Oct 2009)

I know I was the one to give you some advice but I have to say I love to see people actually take the advice they are given seriously and take action, that in itself shows you are determined. 
Well done on getting yourself organised, and good luck for the future. come back if you need more advice or to give an update.


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## Bronte (2 Oct 2009)

Well done JP you'll soon be sorted, and I agree with Niceoneted that's it's great when people take advice and that it works.


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## goingforgold (2 Oct 2009)

Congrats JP, glad things are working out.


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## JP1974 (5 Oct 2009)

Thank 'Ye' very much


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## Silver2 (18 Oct 2009)

Just a quick question which credit card company: Give ya a new card with a limit of 8 Grand?


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## JP1974 (2 Dec 2009)

MBNA  - 10 months interest free - he wanted to give me more - I said no thank you!!


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## STEINER (2 Dec 2009)

I have an MBNA CC, havn't used it in over a year.  They are constantly bombarding me with offers. I think it has a limit of 12k.  I have it in credit by 1 cent to irritate them mildy!


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## mercman (2 Dec 2009)

STEINER said:


> I have an MBNA CC, havn't used it in over a year.



An expensive way of irritating some outfit. That will cost you €30 (annual fee for card) for the privilege.


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## STEINER (3 Dec 2009)

mercman said:


> An expensive way of irritating some outfit. That will cost you €30 (annual fee for card) for the privilege.


 
I know, its a waste of €30.  I was just happy to pay off a 6k balance.  I will use it at some stage, but prudently.


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