103 months of mortgage remaining but only 40 months of earnings

[huskerdu]

I hope that the information here has helped you see the situation with more clarity and that possibly its not as bad as you thought.
Its good that you are trying to solve this problem now and not waiting any longer.

Two things stand out for me

- You need to try to get rid of the expensive loans as soon as possible.
- Your home is an asset which you need to consider using

You can rent a room or take in students for the next few years. The extra income would help you clear your loans quickly. This will save you a lot of money in interest payment and allow you to pay off more of your mortgage with your retirement lump sum.

 

[Bronte]

Also to bear in mind there are changes to the OAP entitlement supposed to be coming in 2020, I doubt this will effect the wife's entitlement but no harm in double checking.

What is this about?

 

[Bronte]

Thank you all ... I see I have quite a bit of work to do yet to bring some kind of shape to a possible solution. Please bear with me and I will clean up some of the requests for you.
I will update figures, missing and anomalous figures, when the fog lifts ... Thanks a lot

Good Lancealot and please do also double check my figures as it's not easy doing it on a screen and with going back and forward from one screen to another. I'm better on the back of an envelope ! I don't think your situation is as bad as initially feared. When we have all the facts and figures we can see what it is best to tackle first.

 

[Cervelo]

What is this about?

The National pensions framework is proposing changes to the way contributions are calculated from the averaging system to a total contributions system for anybody born after 1/1/54.

From Citizens Information.ie
So if you were born after 1 January 1954, when you reach pension age, you will need a total of 30 years contributions and/or credits to get the maximum State Pension. You will be able to get the minimum State Pension if you have paid 520 full-rate contributions (10 years). The minimum pension will be one third of the maximum rate. You can then get a further 1/30th of the pension for each additional year of contributions that you have. The maximum number of credits that can be used in calculating your entitlement to State Pension will be 520 (or 10 years).

 

[Lancealot]

Good Lancealot and please do also double check my figures as it's not easy doing it on a screen and with going back and forward from one screen to another. I'm better on the back of an envelope ! I don't think your situation is as bad as initially feared. When we have all the facts and figures we can see what it is best to tackle first.

I am going to need to take a break from this for a few days.
Thanks a lot

 

[Donnie16]

Are your pensions defined contribution/PRSA or defined benefit?

There is a court case at present challenging the forced retirement at 65 and it is looking more and more likely that in a few years employers will not be able to force retirement at that age. So don't rule out asking for another year at work and if yourself and wife both have an additional year's earnings it would help your situation.

 

[Lancealot]

Are your pensions defined contribution/PRSA or defined benefit?

There is a court case at present challenging the forced retirement at 65 and it is looking more and more likely that in a few years employers will not be able to force retirement at that age. So don't rule out asking for another year at work and if yourself and wife both have an additional year's earnings it would help your situation.

I'm working on the huge volume of stuff I got from contributors. I'm tired. I'm worn down and worn out.
Thanks to all

 

[moneybox]

I'm working on the huge volume of stuff I got from contributors. I'm tired. I'm worn down and worn out.
Thanks to all

You sound really stressed Lancelot and it's not good for your health. You have three years to sort this problem out so you need to step back a moment and take some deep breaths. Take your time with them figures and first and foremost be kind to yourself.

 

[Bronte]

Lancealot I fully agree with Moneybox, you take your time and have a rest and forget about this issue for a while and when you are ready you can then tackle it again, it's not as bad as you first thought, I'm sure you see this now and I hope this website is helping you to see that. I also think you need to talk to someone, your wife or a brother or your doctor as these kind of burdens left on one person's shoulders can make things seem bleaker than they really are. A lot of men in particular can be under tremendous financial stress because they have taken on that role in life but a burden shared is a burden halved in my experience of life. Financial worries are exceedingly stressful and don't underestimate how they can affect you.

 

[Lancealot]

Lancealot I fully agree with Moneybox, you take your time and have a rest and forget about this issue for a while and when you are ready you can then tackle it again, it's not as bad as you first thought, I'm sure you see this now and I hope this website is helping you to see that. I also think you need to talk to someone, your wife or a brother or your doctor as these kind of burdens left on one person's shoulders can make things seem bleaker than they really are. A lot of men in particular can be under tremendous financial stress because they have taken on that role in life but a burden shared is a burden halved in my experience of life. Financial worries are exceedingly stressful and don't underestimate how they can affect you.

OK. I think I am back on the horse. This evening I have a meeting with a financial guy from my lenders so I will post tomorrow the outcome of that. Obviously this meeting cannot be about asking for funding but just a route to travel to ease the pain of the inevitable impact of 'R' day.
Thanks a lot

 

[Bronte]

That's great Lancealot that you've feeling better about the whole thing and are back on your horse, I'm dying to see how the real financial guru differers in his advice from us mere plebs. (speaking for myself only, of course)

 

[ixus]

Is the large personal loan from the bank for an asset e.g. a car?

If so, I would suggest you downsize to a much smaller car. Even if you take a loss on the cars depreciation.

 

[Lancealot]

Hi Bronte and all
Flashback ... 15th March 2016 .... it’s now 30 April 2020 and the situation is grim. Income = 2458 per month .... mortgage = 2435 (including joint life cover) ... cash in hand = 65k ... 4.75 years left in mortgage totalling 115.5€ k. .... we are down now to the bare numbers .... regardless of what I can cut back on or save on the numbers speak for themselves .. anyone got any suggestions not including selling up that will help me approach the lender to try to avoid the inevitable ... thank you .. Lancelot

 

[dereko1969]

How about setting out clearly in one post (not spread out over a dozen like last time) what you actually did back in 2016 when you never came back to update the people who tried to help you then?
Did anything change in 2016 after your talk with the bank?
Is your wife still planning to retire at the same time as you (which is now presumably)?
List all your outgoings
List the entire household income and potential income over the next 4.5 years.
List any assets you have (car etc) that could be sold to assist in paying mortgage.

 

[Saavy99]

Rent-a-Room relief (€12k pa tax free)?

How many people if any earn €12k tax free from renting a room in their home?

 

[Brendan Burgess]

How about setting out clearly in one post (not spread out over a dozen like last time) what you actually did back in 2016 when you never came back to update the people who tried to help you then?

Good idea and start a new thread.