Mortgage arrears

P

Peter1

Guest
We are having major headaces with our mortgage.


Both my wife and I are working with two children under three.

We cant seem to meet our mortgage apart from paying a bit off it every once and a while. We are behind in bills in general as well.

We have cut things back in general. I dont have health insurance while my wife and kids have through her work. We have cut back to basic tv package, have both of our personal loans restructured. On my second bin provider trying to find cheapest option and have switched to our third electricity supplier. Yet we just cant meet the mortgage when everything goes out!
Going out every month:
€644 on loans.
€100 Life insurance.
€25 tv.
€60 on two mobile phones and broadband.
€59 on car insurance. (need two cars cause of work locations).
€530 on child care.
€30 on bins.
€65 a week on a restructured electricity bill that went in to arrears for the next 10 weeks or so.
All that before we tax both cars and put petrol in them, oil for the winter ahead, food and meet any bit of the mortgage.

Income:
wifes wages 1300 pm
mine are 450 weekly

I have had 3 moratoriums put in place for the mortgage so they are not keen to put another in place for us.

Any help and advice greatly appreciated.
 
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It appears to me that you really have a problem with huge personal loans.Do you have details of amount outstanding and monthly repayment for your personal loans.
Also,is the 100 a month life policy tied to the mortgage or is it something else.
 
Mine is 115 a month with €2,300 left. My wifes is €179 a month with about 6k left. then there is another 350 a month going to the mother in law for another loan with a year left. The life insurance was got at the same time as the mortgage, its threw the same bank and we were told we had to have it before getting mortgage but its seperate payment to mortgage.
 
Have you applied for a medical card?
Depending on the distance you travel to work,you might be below the income limits.Bear in mind that you can deduct travel expenses(30c per mile +50 euro),childcare costs and mortgage costs from your net wages .

In relation to your bigger problem,your income is 1900(you)+1300(spouse)+280(child benefit)=3480
Your expenses as above are 2549.This leaves 931 per month.
Only you know if this is do-able or not for your family,but do you have a budget for this money?
Can your mother in law take reduced payments for a longer time to ease your cashflow(does she know your money problems)?
Would you have a family member who could look after your kids for a smaller price(or free!)
Anyway,in 10 weeks,your budget will be better off by the 280 a month you are currently paying on the ESB arrears.
In a year you will be 350 a month better off.
In 2 years,your childcare costs will be greatly reduced,and one loan will be paid off.
So,if you can strictly budget and live within what money is coming in,it will get much easier in the next 1-2 years as you get over the cashflow hump caused by high loan repayments on loans near completion.
Also,if you get the medical card,you only pay a top rate of 4% USC so be sure to let your employers know.
 
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Can you list again all your outgoings, with each loan seperately with the term, interest rate, type of loan (credit card/overdraft) and amount.

Also please add food and anything else you've forgotton.

Also what do you and your wife eat for lunch each day, what are your petrol costs. Think about a typical week and go from there.

Have you started a spending diary?

Also on which date of the month does your salaries come in, is it to a joint account, how do you withdraw money, when is your mortgage date, do you save for annual bills etc.
 
I had to do a spending diary for a while not too long ago and used this online site/service to consolidate the data once collated. Takes a bit of discipline but even doing it on paper or via receipts will too anyway...

https://www.spendingprofile.com
 
look for new life insurance
there are great deals going at the moment
i was paying 97 a month for 2 people, critical illness included
i have reduced it to just 19 a month without critical illness
the only difference is the critical illness.

so check irish life or a broker for a new quote

you could save 50 to 70 euro a month

could you go to free view for your tv for a year, this will save the 25 a month
 
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