Cash poor...looking for advice

Brendan Burgess said:

You need to go to MABS and they will help you to budget and live within your means.

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I think thats an irritant to the people who really need the services of Mabs. It shouldn't be for everyone.

If this person earning €70k combined, and they cant manage, then they should pay for financial advise.

Mabs should be giving their time to the couple earning €30k combined who are finding it difficult to manage.

In fairness you'd be waiting a long time in most MABS offices for an appointment if it was just a budgeting advice case similar to what is outlined.

People with debt and difficulties are obviously prioritised, people just looking for budgeting advice are far and few between and bottom of the list for appointments, they would be offered an information pack which would be posted out to them which contains the spending/budget diary and lots of info. They would have to do the spending diary thing first before they would even get an appointment and that alone would give someone a good idea of where they were at.

You say you’re spending more than you earn. Does this mean your overdrafts are continuing to get bigger? You seem to think that you’re doing ok because the loan and mortgage continue to be paid, but your debts are increasing. You have no savings you can use for unexpected large expenses. I know your mortgage and loan will be paid off in a few years and you seem to think that everything will be ok then. But this will coincide with your eldest kids going to college. If they can live at home while at college, it mightn’t be too hard to get your finances back under control but if they are going to need accommodation (and you could have 2 or 3 in college at the same time), then you’re likely to continue to struggle.
You’ve already been given good advice about budgeting in other replies.
There is plenty of information you haven’t provided here (and you mightn’t want to). I’m wondering do you have any childcare costs at the moment? Do you go on holidays? Gaeltacht and school trips for the kids? You provided a cost for 2 mobile phones - does that mean the kids have Prepay phones? Do the kids get pocket money or have jobs (some kids can fund their phones and social life through babysitting or referreeing)? Do the kids bring packed lunches to school? You seem to think your lifestyle spending is low but maybe it’s higher than you realize. You don’t need to answer these questions here - just things to think about.

Hi Upstart, it is clear that you are considering your spending and ability to raise/spend further money on home improvements etc which is a great start. It is also clear that you do not want to live beyond your means and are proud of your ability to keep your family life going and your children happy and healthy.

You have your mortgage and credit union loan covered, so I think before you take any further spending decisions you need to get rid of the overdraft. It is costing you money you could be spending or saving to service this overdraft. So I think if you work to pay off this overdraft you will be in a much better place. Can you pay it off st a rate of €300-€500 pm? That would be 15-25 months. Would this be possible? Can you get the two adults and the two oldest around the table and get agreement on this, that daily spending will be curtailed until this is paid off? You may need to take payment holidays for Aug (back to school) and Christmas, but agree to this up front. And then as a family agree where you can find this few hundred every month. Lunches, coffee out, discretionary clothes, pub nights, gifts to others, parties, driving less (can you car share, get others to drive the kids around, get them bikes?). Can anyone get side gigs, (summer jobs, overtime, sat work, dog walking, bbsitting?) to reduce the overdraft to zero. Think of the sense of achievement when this is reached. I would say by then you will be ready for college for the oldest, you will have all your loans paid off and you can use the spare income to fund college, do the house improvements, build up an emergency fund. Best of luck!

You're paying mostly capital on the mortgage
Which will be paid off at young age eg 50

Is there an option for a 3 month mortgage break from your lender?

If so take the resulting 3k plus your 3k credit union savings and pay off the overdraft.

Upstart said:

Amount outstanding on your mortgage: 31k
What interest rate are you paying? ECB +1.15

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moneymakeover said:

You're paying mostly capital on the mortgage

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This is a very good point.

Talk to your lender and ask for a payment break. They will probably refuse as it's a tracker.

Then ask them to reschedule it by 10 years, which they might also refuse.

Then offer to switch it to a non-tracker rate in exchange for an extension. Unfortunately, while this would make sense for both of you, they probably wouldn't do it in case they get accused later of stealing people's trackers from them.

Brendan

moneymakeover said:

You're paying mostly capital on the mortgage
Which will be paid off at young age eg 50

Is there an option for a 3 month mortgage break from your lender?

If so take the resulting 3k plus your 3k credit union savings and pay off the overdraft.

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If the original poster goes that route, and assuming that the CU will release those savings (that they are not pledged as security for the CU loan) they need to cancel their overdraft in full at the same time - otherwise, there's a risk that they'll just run it back up again.

mtk said:

not sure I agree with the boss that its excessive for 2A plus 4 kids

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I'd be thinking the same.

I don't understand the advice about getting out of the CU loan or the overdraft. I don't see any funds available to do this.
or even to change the car. You'll lose money switching and possibly end up with a less reliable car.

As Mr Earl, says the immediate task is to reduce the living expenses.
But a family is expensive, and time consuming. Not a lot of options there.
I think you'd have to have some short term objectives and see what can be achieved.