Anyone know about debt management?

V

VWorried

Guest
Hi all,

I'm in a lot of bother. I'm on a good salary, but due to family circumstances etc I am in a lot of debt. Its at the stage now where my repayments are almost equal to my salary, meaning I j=have to use credit card for the weekly shop, so effectively I'm getting further and further into debt.

I have contacted a debt management company(similar to MABS) who can negociate smaller repayments with my creditors.

I am up to date on all repayments at the moment but know its just a matter of time before I can no longer make payments and so end up with a bad credit rating - its inevitable.

I have requested my records from the ICB and surprisingly only 3 loans/credit cards show up (all up to date).

So what I'm thinking then is if I negociate smaller repayments with creditors NOT on the ICB (and keep to the agreed repayments with those on it) will my credit rating remain intact?? Its odd because my mortgage isn't on it, and 2 credit cards not on it. I'm confused - I know I need to do something to stop the cycle of debt but if I didn't end up with a bad rating it would be a bonus!
Thanks
 
VWorried said:
I have contacted a debt management company(similar to MABS) who can negociate smaller repayments with my creditors.
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MABS are not a "debt management company". They are a state funded agency who offer advice and assistance and charge nothing. If you are already in debt then you might be better off starting with the free options rather than spending more money on the services of commercial debt management companies!
 
I would much rather deal with MABS however, as I work in financial services myself in a small town I know the people in MABS and would rather my current circumstances not be common knowledge. So I didn't see any other way out.

If my employer were to know my situation I fear I may lose my job and in this case noone would get any money. I have 2 children and am doing the best I can but things have just got out of hand and I want it to stop. I need to be realistic and put myself back in a situation where I can buy groceries without using the credit card. My son is sick a lot of the time and I would never not take him to the GP because of money. If he needs to be seen, then its cash from credit card.

I just want to sort things out, I've been very down lately because of all of this.
 
Could you be more specific as to the nature of your debt, it's all a bit vague at the minute. How much do you owe, to who and why? The more information you give, the more help and advice you may get
 
VWorried said:
I would much rather deal with MABS however, as I work in financial services myself in a small town I know the people in MABS and would rather my current circumstances not be common knowledge. So I didn't see any other way out.
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You do realise that...
MABS is a national, free, confidential and independent service for people in debt or in danger of getting into debt.
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If my employer were to know my situation I fear I may lose my job
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I can't see how your employer could legitimately fire you for this.

Try to put your energy into doing something practical about your situation rather than just worrying about it. Your sound like you're on the right track in putting suitable plans in place to deal with the situation. Good luck.
 
I owe 51k unsecured to 8 creditors. Repayments are 1500p/m. And then there's my mortgage too, which I pay jointly with my husband. Its 1000p/m. Childcare is 900p/m. I earn 2200p/m. Shopping ,bills petrol etc all put on credit card.

I basically got into a cycle of restructuring but still there's a deficit each month and so have to borrow more etc etc.... An ongoing family law matter is making things worse - legal bills etc. I feel very bad about the whole thing. Only reason I'm still here is for my kids.
 
You should set out the precise details of your debts, income and outgoings so that people can comment. As much detail as possible will help people to comment meaningfully. As far as I can see many people post rounded figures which may or may not be accurate and tend to overlook relevant expenditure or income which lilitates against getting a realistic picture of the situation. MABs will basically get you to do the same thing anyway so at worst it's preparation for dealing with them and at best AAM contributors will give you some useful advice.
 
Credit Card 1 3700 - 111p/m
Credit Card 2 1000 - 32p/m
Credit Card 3 4800 - 146p/m
Credit Card 4 4200 - 240p/m
Credit Card 5 1000 - 24p/m
Credit Union Loan 15000 - 350p/m
Bank Loan 12000 - 275p/m
Jt Bank Loan 9500 - 325p/m

Total 1503p/m

The joint bank loan figures shown are 50% as husband pays half. All figures shown are up to date balances and the current months repayments.

Husbands earns 600p/w. 350 goes towards joint loan and mortgage. 100p/w to his credit union loan. The rest on diesel and lunches.

Mortgage is 250k left, value - ? who knows maybe 300-310k. Not enouhj equity for us to get a top up which would be the best solution
 
From a practical perspective
Are you sure your tax affairs are as efficient as possible with all allowances being claimed for?
Have you any medical expenses in the past that you have not included in your TFA?
Have you got or have you checked to see if you are entitled to a medical card

In terms of your employers, some companies(eg banks) do require staff to keep their finances in a prudent manner and if they fail to do so, can take action against the staff member concerned, this is more to do with removing the temptation to defraud the bank as much as anything else. You should check your terms of employment to see if any such clause exists. If it doesn't, then unless your debt position actually impacts your employer, it is questionable as to what they can do

Only other thing I would suggest is that you are not in this alone. You have a husband and if he is not aware of the position you are in, then you need to tell him. Your posts seem to indicate(and forgive me if I have picked this up wrong) that you are sharing the burden alone
 
You should also post details of each debt - original amount, outstanding amount, term, rate, repayments etc.
 
Thanks Mpsox. I claim any med exps I can back from VHI and the MED 1. My GP said I should apply for med card. But on a joint income of 4800p/m I don't see how we would get one, but he said its based on the child's income! If thats true sure every child in the country would have one!
Husband is aware but is taking the ostrich approach which isn't very helpful.
 
did you think of going to talk to your local credit union. Some of them can be very good in this sort of situation but would probably want your husband to buy into the process. Others will just refer you to Mabs. Just a thought !!

Take care
 
I don't know if the credit union would help TBH. What we need is a 50k loan over 10 years, but noones going to do that for debt consolidation. So its looking like bad credit here we come. As long as I hold onto the house anf my job I suppose it may not be the worst of things.....compared to the mess I'm in now!
 

Are you saying you pay 3400 (1500 + 100 + 900) without groceries etc on 2200 a month income. This will never add up. Can you go to MABS in a different town for advice and as Clubman asked can you put all your details in order to get proper advice as getting it in dribs and drabs makes it more difficult to understand. How about doing the money makeover section. It might help you to think more clearly and might give you ideas on how to get out of this situation. You also need to sit down and talk to your husband, he needs to share this with you.
 
On the positive side interest rates are dropping fast this will decrees the cost of your loan repayments.
Try not to be to negative about the whole thing the important part is you can now see the problem the solution will follow.

It’s very hard to tell with the info that’s given but this is a ruff guess as to what’s going on


Your income is 2200p/m
Credit Card 1 3700 - 111p/m
Credit Card 2 1000 - 32p/m
Credit Card 3 4800 - 146p/m
Credit Card 4 4200 - 240p/m
Credit Card 5 1000 - 24p/m
Credit Union Loan 15000 - 350p/m
Bank Loan 12000 - 275p/m
Joint Bank Loan(your half) 4750 - 162.5p/m
Mortgage (your half) -500p/m
Total loan payments -1840.5p/m
------------------------------
So balance for you 359.5p/m
So 90 p/w for lunches and others



Your husband
Income is 2400p/m
Joint Bank Loan (his half) 4750 - 162.5p/m
Mortgage (his half) - 500p/m
his credit union loan -400pm
It look like you husband pays the childcare 900p/m
Total loan payments+ childcare -1962.5
------------------------------
So balance for him is 437.5p/m
So 109 p/w for diesel and lunches

That leaves you with no money for bills and food and all things nice.


I would recommend you look for interest-only on your mortgage for 2 to 3 years it will probable give you about 400p/m extra to play with. Its better than putting that 400 or so on a credit card (higher interest rate)


Can you or your husband or both take up part time jobs at the weekends? Any extra money would really help you.

Do you have 2 cars if so can you sell one? (But I’m guessing you don’t)

About the 10 year loan, it’s a good idea in theory but it’s probable that kind of thinking that has lead to this situation. (You build up a bit of money on a credit card and you consolidate it into a loan and you start all over. Then you start transferring money from one credit card to an other to take advantage of the 0% on balance transfers and you consolidate some more and then you have a problem. )
I’m sorry to say this but put simple you have been living beyond you means for a very long time and it’s going to be extremely hard to clear all of this debt off.

Keep your chin up though as you will get it sorted in the end.
 
Guys I know a little about debt management get to MABS its free!!!Your man always on Afternoon Show. At least most of the financial insititutions will recognise them and negiotate on your behalf. As for those credits cards time for the scissors with them or get them to lower the limit if anything else. The best way forward I would imagine is consolidaton your debts and add to your mortgage at least you might get a better deal with rates. The very best of luck
 
I'm sorry that you are in such trouble and the previous poster is right - this has been going on for a long long time and it's going to take a long time to sort it out.
Is there any family who could provide the childcare for you? That would free up 900 a month and so you could start to make inroads on your debts. Also cut out the lunches - brown bag it as the American's would say, that will free up some more for repayments. Do a complete and accurate account of your spending and look for ways to reduce it in any way you can. Phone/broadband supplier, cut down on ESB, buy non branded stuff - every cent you can repay will reduce your interest and get you a little closer to getting solvent again.
You not only need to get your husband's head out of the sand but you probably need to confide in other family if that is possible, towards the end of getting free childcare - even short term that would be a big help to you.
I wish you all the best with it.
 
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