Dire financial situation??? PLEASE advise, brutal honesty 2!

B

ballylinan

Guest
I have debts of c7,000 euro (2 credit cards 2,000, credit union 1,500, bank loan 3,500). I do have a clean credit record however. I have savings of c.1,000 euro.
I am nearly 34. I rent (260 per month) (only been living there 6 months). I am single. Can't get help (financial) from family. I earn c.27,000 per year (only been in this job 6 months).
Other than emigrating!
Q. How do I go about buying a house? What kind of deposit would I need?? Would ANY financial inistuition take me on?! any advice re what i should do??
ANY advice greaty appreciated (including brutally honesty!)
Thanks
 
prioritise

you cannot afford a house so forget that . a quiet year would get you on track otherwise, wine at home and no pub .

try to park one of the credit cards with a 6 month interest free option such as ulster and clatter cash into the other until it is gone and chop it up then. you should not have 2 cc's ....probably not even one.

keep the min payments up to the others. pay off the most expeensive (has to be a cc) first.

try www.mabs.ie for more advise but start yourself with the cc payment holiday issue while you are not in arrears and impaired. MBNA are one option , maybe Tesco. As soon as you get the new card burn it, it is simply an interest free option to help manage the debt.

my 2c
 
prioritise

See this topic for more advice on how to tackle debt.
 
Re: prioritise

Thanks for reply/info.
much appreciated
 
Re: spend less

You might be reluctant to tap into your nestegg, but consider using that 1,000 to pay down one of the credit cards. Thing about it -- your 1k is earning little or no interest while the cc debt is probably costing you about 18%. Paying the 1,000 against your cc is an effective return of 18% on your savings!

Spend less. If you want to buy a house do what everyone used to do in the "old days" -- stay at home and save up! These days everyone seems to feel they are entitled to an expensive lifestyle. But on 27k a year you are not entitled to this kind of living (hence the substantial debts you have built up).

Look on the bright side -- your debt is only 25% or so of your annual salary. You should be able to pay it down with a bit of discipline.
 
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