Help Debt trouble!!!

J

joanne

Guest
Hi all,

I've got myself into a bit of a position now that I'm struggling to get out of and wonder if anyone can help me...

salary 2600 euro approx per month

And I have the following outgoings:

Mortgage 1080 euro per month
Visa - 5800 euro
Personal loan - 16000 (364 euro per month until Oct 2008 )
Car loan - 260 per month (4 more years)
SSIA 100 per month

And to top it off I spent last year working for myself and will owe the revenue 8000 euro approx this October

First step is I'm going to take some drastic options and sell my car and clear that loan.

I have looked into Topping Up my mortgage and think that might be a way to consolidate the borrowings and allow me to save to pay off this Octobers revenue bill. I hate to have to do that.

Does it all look as bleak as I think?
 
Have you read post below. It generally is the same situation and would advise on the CC loan at least.
Concentrate on ridding the car loan and the Visa first.
 
Hi Joanne,

1. If you don't have the money you need for Revenue then when the time comes contact them and ask them to give your a repayment schedule, basically you'll pay them in installments over an 18 months to 2 year period. You should expect to repay them somewhere in the region of €400 p/m which will seriously eat into your disposable cash.

2. Getting rid of the car is probably a good idea, if you can afford to be without it.

3. Stop contributing to your SSIA, or cut right back, you can't afford savings right now.

4. If you have equity in your house it might be worth considering a consolodation loan in this situation. I wouldn't normally consider it, but if there's no other way to meet the repayments and still have enough each month to live on then you should look at it.

-Rd
 
If you go the mortgage consolidation route then you really need to consider it a once off solution to restructuring your debts and not something that you can do again at least in the short-medium term. If you are ever behind in payments then approach the lender sooner rather than later as ignoring the problem will not help at all.

Also - stop using the credit card if you haven't done so already. Consider cutting it up in fact. Transferring to a 0% or low interest rate introductory offer may give some respite but it's only a stop gap measure in my view: www.askaboutmoney.com/clu...EDIT_CARDS
 
And along with these other emergency measures, you need to identify how you got into this difficult situation in the first place and what kind of lifestyle changes will be required in order to stop it happening again in the future.
 
Thanks!

Thanks everyone for your advice. I hadn't realised the revenue could offer a repayment schedule.

I've done a lot of navel gazing with regard to my spending habits. Was living well beyong my means for a good few years now. Once I sort out my Credit card I plan to reduce the credit limit drastically and keep it to a very low mangeable amount. Going forward I do plan to change.

Thanks again everyone for the advice.
 
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