Advice needed re finances please.

Do more research onto the business idea, there are pleny of threads on AAM to read through that should help. Best of luck, its great you are so determined to work through it. We need more people like you.
 
Aristotle, thanks, will have a look at business forums and do our figures once again to see if we can cut down on our start-up costs. He is now thinking of getting half the funds from his family (approx 10k) and my family has agreed to give us 5K. All this will have to be returned, but not in a rush, and with added bonus of NO INTEREST charged. So, if we get help from his family, it will leave us with more manageble 10K loan.
 
Is the money coming from family to be used to start the new business, or to reduce the outstanding debts?
I think you'd be crazy to be borrowing more money to start the new business while carrying this huge debt. You won't borrow your way out of this problem.

He needs to get a job asap.
 
I say go for it, be sure what you are doing and be sure he can do it! be sure you are willing to spend 16 hours a day 7 days a week for no pay for the first 6 months to 2 years to get it going. Your already in so much dept whats a bit extra? do not involve the family though do this yourself. He who dares win's, we need people looking to the future in this country not expecting the state to pay we need more employers and SME to pay tax to get the country out of this.. GO for it.. and good luck it will be very hard whatever the business.
 
bluemac... thanks. Finally someone with more positive attitude! As it is, he is not getting anything from soc. welfare - we are earning too much according to them. So, even if dont get any money in our hand.... it wont make much difference to our current loans. You'd think there will be support available for someone trying to get back at their feet. We tried finding out - NOTHING... no help. So, we'll have to go all alone. Yes, I know its going to be tough - working 7 days a week not sure if it will "renew" our relationship or make it worse, but I do know, him sitting at home is not good.... Money is something that can be earned... sooner or later... more or less. Relationships are hard to bring back to normality once broken. :((
 
Do the family members who are willing to lend you money know the extend of your current debts? If not you must disclose this to them before taking the money.

I think if they were to still lend you the money you should use it to clear CC's 2 and as much of 3.

I think the best thing is for your husband to go to the UK for work for a while to get some cash in.
Also look at insurance for the car they seem high at 900 each.
Utilities could take a trim too.
 
I'm reading this with my jaw on the floor. How can you think about borrowing more money off your family when you are already so far underwater? Setting up in business is always a risk, particularly in a recession, and with your previous financial record. You should be trying to pay down your debt, you are hugely over exposed to property too, rather than throwing more money on another gamble.
 
I would reconsider borrowing more money from your family to start up a business given your current circumstances. It is too much of a gamble. And it's not a small amount of further borrowing, especially given the debt there already.
 
emma09 said:
Relationships are hard to bring back to normality once broken. :((
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I would keep this point in mind when thinking of borrowing money from both your families.

Whilst it is great to have the get up and go to start a new business, doing so whilst in a lot of debt and getting into more debt (whatever the source) is not sensible.

Your husband really needs to try and get work in the UK and whilst searching, continue to work on refining the business plan. Have you been to the County Development Boards, there is assistance out there for people trying to start up their own companies.
 
emma09 said:
I wish I had a business mind - would have planned better!
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I just re-read the whole thread and this is the most important bit I reckon! And I can't believe you are being given advice saying' Ah sure, you're up to your neck in it, you might as well borrow more!'. Utter madness!
 
glasto said:
I just re-read the whole thread and this is the most important bit I reckon! And I can't believe you are being given advice saying' Ah sure, you're up to your neck in it, you might as well borrow more!'. Utter madness!
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+1

Complete insanity

also didn't OP mention at some point that they had been stung with borrowing on behalf of a fmaily member who now can't repay? this business idea is putting other members of the family in the same situation.

madness
 
I know nobody likes to be told they're wrong but seriously Emma09 you and your husband have your heads buried in the sand. Money problems but a huge strain on relationships (as im sure you know). Getting into more debt is not the answer. Most new businesses fail in the first year plus with the resession alot of established companies have closed down.

Also if your working and your husband is running a business, what happens to the children?? Creche fees/child care are very high. Your already spending more that you earn. No business makes a profit in the first few months/year. Assuming its successful.

If you keep going the way you are you'll go bankrupt and lose everything.
 
Emma09 I know it is important to be optimistic but there is a difference between optimism and putting your head in the sand. You need to listen to the advice you are asking for, whether or not it's advice you want to hear. The overwhelming advice is not to borrow further.
 
Hey Guys, thanks all for your advice. We get the points you all are making.

Going for business – not so good.
Taking Loan – not so good.

Going to UK – Good.
Take a Job - Good.

Of course, we know that. We understand what you are saying. I suppose, I am to blame myself for “asking for advice”. But you see, I was hoping to get some encouragement. I do understand, don’t ask for advice if you are not going to take it.

Well, we are “half taking” your advice. In that, we are going to think about the business plan a lot more carefully. Cut out as much extra expenses as possible. We still haven’t made up our mind. We have another 2-3 weeks before we decide that. In the meantime, my husband has applied for several jobs in the last couple of days in Ireland– and is going to do more job search for next few days and is keeping an open mind about the Business too. We have discussed, coming into x-mas, people might be taking on more staff and even if its low-paid, it will be some money coming-in rather than going out. If he gets a job… any job offer, he will take it. If he doesn’t, well.. .. then we’ll see what happens.

Just to clarify a point made by several posters. I know we have accumulated a lot of loans. But you see, we had the financial power to pay them back. The problem only occurred when one job was gone. We knew what we were doing because we were making decisions on the basis of the incoming income. The only thing we failed on was to have a “safety net”. We didn’t think either one of us will lose a job. Both of us had a good, reliable job and didn’t think it could happen to us!

We are not INSANE and we are not STUPID. We are optimist who love to spend money, live a good lifestyle. We were little .. or a lot naïve before. I think this economic climate has taught a lot of us the realities of life – life is not a bed of roses – it has thorns in it too!

But like I said above, we do take your point and are considering them very carefully and wont make a decision in a rush. Thank you all for your input.

 
Update... just found today I am expecting another baby :)

Thrilled!!!

Ofcourse, still worried about finances. But those worries will have to wait.

My husband has finally decided to put business plan on hold and is going to look for job only. Its early yet, but I suggested, if he goes to UK for the job for a year or so, before the baby arrives it will help us financially. Ofcourse, I would rather he be with me. But I will survive.

We live far from both families. Its early days yet, but am thinking if my husband goes to UK, will have to find a place to be near the family and move near them to help with child minding and the baby arrival. I know its months ahead, but too excited and too nervous at the same time. Can't tell anyone yet!! Hence the post !!:))

My sister-in-law is in college and is great with kids, maybe she can move in with us? Not sure.. or maybe we can rent out our residential home (as we cant sell it) and rent out a bigger home near his family? or mine... dont mind me today.. I am just too nervous.
O Please God.. I dont know, I hope everything works out for us!
I think I will play the Euromillions today ?? :))
 
congratulations, your health is the main priority, I wish you the best of luck... we can share the euromillions ;)
 
:)).
Another update. Didnt win the euromillions!! :((
still happy though"
 
Borrowing on credit cards to pay mortgages is a disaster. It looks like you may well be at the bottom of a hole with no way out.

Unless your husband gets a job you probably have no hope of paying these debts.

It may be time to consider one or both of you moving to the UK and seeing if you can avail of their personal insolvency laws. At least that way you might have a fresh start in two years rather than in 12 years. It probably depends on your job prospects over there.

Other than that, there may be new personal insolvency laws here in the next year which could help. In the meantime, your husband and your marriage could well break-down under the stress. If I were you my first priority would be to get my husband some work even if it involves uprooting children and losing face. I would not look for €25K to sink into a business idea though. €25K is a lot of money even if you are a millionaire.
 
glasto said:
I just re-read the whole thread and this is the most important bit I reckon! And I can't believe you are being given advice saying' Ah sure, you're up to your neck in it, you might as well borrow more!'. Utter madness!
Click to expand...

+1

Currently businesses are failing at an alarming rates; the odds are that any business founded now will fail. Getting into more debt by founding a business when you're already hundreds of thousands in debt is up there with hoping one wins the lotto, as you simply won't have the capital to go for the long term.
 
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