In arrears and struggling

F

FTB1975

Registered User
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175
[FONT=&quot]Income details
Net monthly: [/FONT][FONT=&quot]840.00[/FONT][FONT=&quot]
Income history: [/FONT][FONT=&quot][FONT=&quot]Working part-time while studying, due to finish May 2014[/FONT]
Net monthly income partner/spouse: N/A

Personal circumstances so we can calculate your reasonable living expenses
Single person, no dependents
Have a banger of a car....only used for short runs[/FONT]
[FONT=&quot]Having just completed my SFS for my lender I can tell you my monthly living expenses as follows:[/FONT]
[FONT=&quot]Utilities: 180.00[/FONT]
[FONT=&quot]Life Assurance: 62.
[/FONT][FONT=&quot]Phone/Broadband: 66.00[/FONT]
[FONT=&quot]Mobile phone: 80.00[/FONT]
[FONT=&quot]Food: 160.00[/FONT]
[FONT=&quot]Petrol: 30.00[/FONT]
[FONT=&quot]Car insurance/NCT: 62.21[/FONT]
[FONT=&quot]Home Insurance: 10.00[/FONT]
[FONT=&quot]Mgmt fees: currently being managed by Debt Mgmt Co: paying €50 per month with arreas approx. 2,500[/FONT]
[FONT=&quot]

Home loan
Lender: Haven
Amount outstanding: 220,000 plus 9, 312 arrears
Value of home: 160,000 if I’m lucky
Interest rate: SVR
Monthly repayment: Payment due is 921.43 but only paying €300
Amount in arrears: 9,312

[/FONT]
[FONT=&quot]Have been on interest only but period expired in April 2013, haven’t been offered it since and have been paying €300 per month since June 2013.


Other loans and creditors [/FONT]
[FONT=&quot]Overdraft – €2,506 outstanding:
Credit Card - €6113 outstanding
Credit Card – €100/mth payment agreement
Term loan €4357 outstanding
Term loan term: 2 years left
Term loan - €100/month payment agreement


Other savings and investments
Do you expect any lump sums in the medium term future?
No


How important is retaining the family home to you?
I really want to keep the family home even if it means having a large mortgage and negative equity for years to come.

Any other relevant information
I’m due to finish my degree (B.Ed – I know I must’ve been mad!) in May/June 2014. The job situation has improved ever so slightly in the last 12 months but realistically I am looking at going to the UK or elsewhere to secure a temporary contract for the academic year. [/FONT]
[FONT=&quot]
What is your preferred realistic outcome?
[/FONT][FONT=&quot]I don’t want to walk away from my home or debts but voluntary surrender and other options have already been mentioned by Haven. I am expecting a call once they receive my SFS and I need to be better prepared. In my view arrears of approx. €10K isn’t the worst they’ve seen but their approach is getting more pushy every time I speak to them.[/FONT]
 
Your life assurance seems expensive. I would shop around. You might save at least €30.00.

Is your mobile phone ready to go or bill paying? If bill paying, change to ready to go and top up with no more than €20.00 per month. There are lot's of deals, whereby you get free calls and texts to your contacts who are also using the same network.

Phone/Broadband deal also seems expensive. Go for a regular internet package minus the phone. Try 3 or one of those companies. Again no more than €30.00

Utilities also seem high for a monthly repayment.
 
Can you rent out a room or 2 in the property you own. Extra income and splits the bills in half.
 
Cancel your life assurance, you have no dependents and are in financial difficulties, what use is it to you?
 
Life assurance likely relates to the mortgage and is generally a condition of approval. having said that I agree that while haven might want it retained, cancellation is probably a good option, while funds are so tight. You can always take out a new policy when finances improve!
 
Also retention of mortgage is totally unrealistic on current level of net income. Unless you can considerably incease your income in the short term you need to accept the fact that you need to hand back this property.
 
OP, I do not know how you are financially surviving.

I am guessing your mortgage provider arranged the life assurance policy for you and that is why it's premium is so excessive.

Email around some insurance companies, get a cheaper quote and assign the policy to your lender and immediately cancel this overly excessive policy that you currently have running.

It seems if you were in receipt of social welfare rather than being employed you would be far better off. Less travel, fuel etc, rent allowance . . .

I agree, hand back the keys, live your life and continue your studies. It's just not worth the hassle.

PS Before you make any drastic moves, have you considered entering a PIA? Again I am not too sure whether this will effect your job opportunities when you graduate (Civil Service).
 
Bronte said:
None of the figures make sense and they actually want to keep the house.
Click to expand...
.................
VANDRIVER; What Bronte says is sadly factual.
I see no way that you can, or indeed no way that you should keep the house.
On the figures supplied you are financially sunk, I see no option other than Insolvency for you.
Please accept that I am not trying to (hurt) you, but in your situation suggest you go and listen and take the advice of an insolvency practitioner, and do it now.

At least in that way you will get a plan to move on with your life.

Good Luck.
 
180 on utilities seems very high to me - what's covered in that?
Nearly 150 on phones and broadband is also really high - as others have said, switch to PAYG, get basic internet.
If you really wanted to you could also probably get 160 on food down a bit, too - there might not be a lot of wiggle room but there's usually some to be found.

To keep treading water (which isn't really what you're doing but just for the sake of argument) you need to reduce your 1,200 of outgoings to 840, which means cutting 360 from what you spend somehow. If it seems overwhelming, try and think of it as ten chunks of thirty-six that you need to find somehow. (But, bear in mind that even if you had no mortgage or other debt, based on the figures you have given, you still wouldn't have enough money every month at your current income)

You'll be finished studying in four months so you have lots of decisions to make. Will you get a job immediately? Presumably not if you need to wait until the academic year begins again. Can you increase your hours at your part-time job? Can you get a second job (can you do that now without impacting too much on your studies)? If you have to move to the UK for work, what do you plan to do with your house/apartment? Will you rent it out? Can you rent it out for enough to cover the full mortgage? If so, why aren't you already doing that and living in a poky little boxroom in a house-share somewhere? If not, how do you expect to be able to pay the mortgage and upkeep as well as living costs in a different country?
 
Hi,
I have already cancelled my TV subscription, reduced my life assurance by half (it was €120 due to my family history unfortunately). I am already renting a room in my apartment so to be honest everything that posters have suggested I am already doing. My utilities are high as I'm in an apt with heating....not the most economical for heating a ground floor apartment given the recent cold spell!!!!

Maybe I'm sticking my head in the sand but I am pretty hopeful that I will be working full-time come June/July...either back in my old industry while I try to secure a temp contact in teaching in order to get my Dip done. The other option is to go abroad and teach with a view of clearing some of my debts.

I've managed to get through 2 and a half years of college without my lender breathing down my neck, for which I'm grateful, but I am concerned that now that there is light at the end of the tunnel their approach will become more heavy-handed.

Anyway I've sent off my SFS to them and I'll just have to wait and see what comes of it.

Thanks for the input,
FTB1975
 
I make it your gross salary is about £10,700, yet you have a mortgage that is over 20x that. That is your problem right there - you are overborrowed.

Did you elect, or have, to work part-time, after previously earning more full-time?
 
FTB1975 said:
Anyway I've sent off my SFS to them and I'll just have to wait and see what comes of it.
Click to expand...

Does your SFS equal the figures you posted above? You realise that you outgoings are more than your income and you have no clarified this.
 
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