BOI refused car finance

Protocol said:
That is unreal. I would not spend that on clothes per year.
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Ah sure I know it’s ridiculous but when you’ve no mortgage rent etc it’s been easy to do it. I’d buy one pair of shoes and they could be 400+ it’s not on lots of different items. I’ve no interest in holidays or going out so it’s my reason to work hard.
 
Teacher24 said:
I had a look at the questions and tbh I don’t know the answer to a lot of them!
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It is free and won't do you any harm. You need to start in due course to sort out your pension and maybe accommodation etc. when you get back on track with the car finance.

Unfortunately for you in your late 30s its time as you have already admitted to forget about all the clothes and financially knuckle down. You could possibly sell off some of the clothes and make a few bob that way because they do sound like high end stuff. You probably don't need to go cold turkey and allow yourself one small treat per pay day.

If it were me I would put maybe €50 of the regular savings into the credit union so that you have something to fall back on in case the bank turn you down at any time in the future.
 

Doing #1 seems like a very good idea. Taking loans for new cars, 100s every month or two on new clothes, and missing payments because cashflow is not managed....your life will change for the better if you take some accountability and responsibility for your finances. If you took the initiative to find this forum you have what it takes to level up on your finances - for permanent benefit, unlike the temporary dopamine hit of a new car.
 
Thanks, yes it’s money management is my problem. I wouldn’t mind having a better handle on it but still have money to spend on myself. I realise I’m in a fortunate position with no mortgage or rent to pay as my partner inherited a house but as a result of limited responsibilities I fell into terrible habits.

I’ve made a fresh start with saving more and you’re right I can learn a lot from advice here also. I just wish I got a thrill from seeing savings build up, I really don’t!
 
No bills apart from phone. Family member cleared credit card for you. Not been smart but sounds like your just spoilt and in the long run those allowing you to freeload are doing you no favours long term. Then again I could be wrong?
 
KOW said:
No bills apart from phone. Family member cleared credit card for you. Not been smart but sounds like you’re just spoilt and in the long run those allowing you to freeload are doing you no favours long term. Then again I could be wrong?
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No you’re 100% correct I have no problem admitting that I’ve been spoilt. I’ve paid the family member back for clearing the credit card and despite being offered a lump sum to help with car deposit I’ve decided to save away and do it myself in an effort to build better habits.
 
Teacher I do not want to sound harsh but I would suggest that it may be hard for you at this stage to change your ways on your own.
I would also suggest that while family members might be very generous their actions might actually be doing more harm than good to you long term.
You do not offer any information around income etc.
I would suggest seeking financial advise and planning outside of your current set up. You need totally independant advise and planning.
I would suspect that down the road you might be in line for a substantial inheritance. With that may come a hefty tax bill that you are unable to pay.
Good luck for the new year.
 
Yes the financial advisor might be useful to help me. I know my monthly wages but after that I’d be clueless around annual income, tbh it’s not something I’d have had an interest in to date or needed to worry about. No chance of hefty inheritance, that’s why I get money offered to me now for bits and pieces.

I only recently logged into the revenue website to see about taxes etc but again it’s lost on me as I’ve no idea what Im looking at. I would love to have someone just do it for me so that I wouldn’t have to think about it myself.

New year I’ll def look into a financial advisor for teachers, my partner has an accountant but I would prefer to stay separate.
 
I write this with respect, I work in education myself, and my parent is a retired teacher.

Given that income tax is on the JC maths curriculum, it worries me that teachers aren't aware of how the income tax system works.

One thing to check - are you getting the correct flat-rate expenses tax allowance?

I beleive it is 518 for teachers. Check your tax credits.



Also, given that the teachers pay scale is widely published, how could any teacher not know what point they are on?

Salary Scales

www.asti.ie
 
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I’ve never done the tax credits thing, I logged into it recently but couldn’t figure it out. I meant to ring them but forgot. I know I’ll frustrate many on here with my cluelessness but it’s not something I’ve ever been bothered to have an interest in.

I’ll be honest I work hard, I get paid and I’m happy. I clearly don’t teach maths and have had no interest (until recently) into looking into it.

On the pay scales again I’ve never even thought to check them or check I get paid correctly, I assumed I do but in new year I’ll check it. Once I see money going in fortnightly I haven’t a clue what to check on my wage slip they send out. I’ll be very honest I used to bin them unopened.

I can only get better from here on and check things more now.
 
Guys, there is no need to be harsh, Teacher24 is here looking for help and we can give a bit of advice and steer him in the right direction easily enough.

So you are giving bits of info already which is great.

Age 37
Income, take home €1700 per fortnight.
Rent €0
Mortgage €0
Living rent free with partner who owns their house debt free.
Groceries €300-€400 per fortnight?
Phone €? - not paid in time every month
Clothes/personal spending €500 per month.
Car Insurance €?
Car tax €?
Subscriptions, Netflix, Disney plus €?
Petrol/Diesel €?
Hairdresser €?
Nails/beauty €?
Nights out €0 Not a going out type
Gym €?
Gifts/birthdays €?
Holidays €0 - not a holiday person
Car service €?
Household bills, insurance, repair, upkeep, bins, heating, electricity, cleaning, decorating, TV licence, gas, wi-fi, TV subscription etc? €0 - partner pays.
Pension €?
Doctor/ prescriptions €?
Dentist
Charity
Games/books/kindle/podcasts etc.,
Union subscriptions?
Health Insurance?

Saving potential €500 per month.

So can you copy this and correct, fill in blanks, add in anything else you spend money on regularly, even with a guess of how much it is.

Your Question - what can I do to get a car loan with a poor credit score and a poor history of saving?


Advice to date,
Don’t buy a car - is your current car still suitable for your needs for the next 12/18 months?

Start regularly saving with bank and credit union
Take the €500 and open a saving account with BOI - call it car saving fund or something fun and put €450 in every month
Reactivate your credit union account and add €50 per month.
Then don’t take any money out of either account for 12/18 months and watch the money grow. You say it does not bring you any pleasure, but perhaps focus on the car you want and how much of it you might be “buying” each month.

What do you spend your money on?
I am guessing you tap/spend electronically rather than cash each fortnight? This is great because you will have a record of all your spending. So print out your last few monthly statements, (you will find the on the BOI app somewhere).
Start from September - the start of the school year, or else work backwards from the most recent one.
The sit down with notebook and pen and try to sort the outgoings into categories. Put all the groceries together, try and separate food/alcohol/cleaning from each other if you can, coffee, petrol, clothes (again try to separate them out, into work, shoes, coats, leisure wear, etc if you can), gifts, household items (lightbulbs, cushions, etc,). This will take some time but it is really useful as it tells you to the penny where all your money is going. And for Jan, every time you spend money just write it down in a notebook.

Then at the end of January fill out the list above again and you will have a lot more accurate picture of what you spend your money on. It may be very eye opening to you that you are spending money you really don’t want to spend in a particular area and you can stop that and save the money. If you come back and tell us all about what you find it would be very helpful.

Are your taxes and allowances correct.
The great thing about being a teacher is that there is someone in the staff room who can help you understand your payslip and figure out from your my revenue information if you are on the correct wages, getting the right allowances and not leaving money behind you. They can show you how to claim the special tax allowance for teachers. Another job for you in January.

Get Married
I know it sounds boring, but being married to your partner offers you a lot of protection with regards to housing, inheritance etc. if you are in a long term committed relationship then pop down to the registry office, fill out the paperwork, you have to give 3 months notice, and it costs around €200 in total. You don’t need the big wedding ceremony you can do that any time, this is just a formal marriage for peace of mind, etc. Then make wills to cover what happens on death.


Long term financial planning
Again boring stuff but worth thinking about. Are you in a pension scheme through work? Will it be sufficient for when you retire, You have 25 years to go to retirement so figure out where you are, & where you want to be at retirement. I know nothing about teachers pensions so can’t help you there.

All-in-all you are at a good starting point - you have a good salary & you have no debt and you have a medium term goal of buying. a cae.
 
That's brilliant Clamball.!
Also in Teacher's defence, I hate the thought of doing paperwork myself, but when I eventually get started at it, I find that I quite enjoy it.
Even if some of the stuff is hard to read for myself.
 
Indeed some contributions are quite teachery. ! Scolding a pupil. Well done Clamball.
 
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