Single Parent - GET ME OUT OF DEBT!

Re: Single Mum replies

Well done Frances! You have got the ball rolling ...and everything you do from now on is going to improve your situation.

re: Tonka's comments about the thread started by me: - long and rambling it may be, but, if it has helped at least one person then I'm happy.

And for the information of all of you - I am continuing to save. As well a the €300 in prize bonds, I now have €300 in regular bonds and have increased the SSIA again, from €80 to €154. (It was €20 initially) By a happy coincidence, my net monthly salary (from work, not including letting the room) has increased to €2,450

Re: Single Mum replies

And for the information of all of you - I am continuing to save. As well a the €300 in prize bonds, I now have €300 in regular bonds and have increased the SSIA again, from €80 to €154. (It was €20 initially)

You would be better off maximising your SSIA contributions even if this means cashing in the Prize Bonds and possibly other savings/investments.

By a happy coincidence, my net monthly salary (from work, not including letting the room) has increased to €2,450

So you're on c. Eur38K gross p.a. from work or Eur3025 once your tax free parential mortgage subsidy and rent a room income are included which is the equivalent of c. Eur51K p.a. Nice.

Re: actually

Made another mistake...my income, including the rent a room is €2,450 a month!!! I was getting excited there for a minute I found out that my gross work salary is €31,500.

My SSIA is actually maxed now ...but €100 a month of it belongs to someone else! So €154 is mine.

Re: actually

but €100 a month of it belongs to someone else! So €154 is mine.

What do you mean? You know that it's in breach of the SSIA regulations for anybody other than the account holder to fund the account? When you open and close the account you complete a declaration stating that you are the sole funder and beneficiary and to make a false declaration is a serious offence. At best you will put your SSIA in jeopardy and at worst there could be other penalties or implications.

Re: actually

Don't get excited Clubman,

I AM funding the other €100 a month, but I am not keeping it. I am going to use that €100 * 60 contributions to start a college fund for my brother... it will come to a total of approximately €7,250. He will be doing his leaving cert in 2007

And before you suggest that I should be giving this to my parents - I mentioned to them that I would like to start reducing the €250 a month they put towards my mortgage...and they said they wouldn't hear of it for the next 2 years

Re: actually

Don't get excited Clubman,

I AM funding the other €100 a month,

Not getting excited - just pointing out that if the funds are not yours in the first place (as suggested by your original post) then you are in breach of the SSIA rules. Having clarified that the funds are yours right now that does not apply after all.

And before you suggest that I should be giving this to my parents - I mentioned to them that I would like to start reducing the €250 a month they put towards my mortgage...and they said they wouldn't hear of it for

Why assume that I would suggest this? It's your business. I just know that if I personally did not need the money (and possibly even if I did) I would not tap my parents or family for it even if they were willing to subsidise me.

Re: actually

Clubman,

It is very clear that you seem to think that I am some sort of sponge or something. I NEVER "tap" for money ... I'm not even sure what exactly you mean by that. Money is not an issue in my family, and we love helping each other out - whether this be financially or in any other way. Five years ago my Grandmother left me IR£15,000. I gave it to my parents, because, although she also left them £15,000, I couldn't think of anything I would rather do with the money than give it to my parents. They used it to do a kitchen conversion in what was their then home. I love my parents to bits, and I am grateful to them for all the times they have helped me, fiscally and emotionally.

Anyway, this thread belongs to Frances - and Frances, please let us know how you get on with the remortgaging. Good luck!!!

Re: actually

Don't get so excited about my [broken link removed] especially when I applied it hypothetically to myself and not anybody else.

frances: Firstly if you are using you real name you should probably consider adopting a username when posting personal details. If you are new to AAM you should have a good read of the different forums to determine for yourself who's posts tend to be reliable and informed (e.g. Clubman) and who are the financial basket cases too eager to give advice.

Your income and debt levels look fine, you're just a bit disorganised financially. According to your supplied figures you only owe 18K above your mortgage and if you are struggling to meet the various payments it should be easy to refinance. An 18K loan at mortgage rates (3.5%) should cost around €330/€530 per month over 5/3 years respectively. An 18K loan at normal rates (say 9%) should cost around €375/€575 per month over 5/3 years respectively.

You could also consider the route of complete re-mortgage (if this is open to you, depending on your private personal circumstances), as suggested by moneyhoney, over a maximum of 15 years - a 100K 15 year tracker with NIB (2.8%) should work out at around €680/month. (€960/month over 10 years).

There are numerous permutations available to you to sort this out. I'd tend to agree with Tonka here that you could probably park your CC debt at 0% for 6/12 months and budget your way out of this.

Whatever you do please DO NOT get a 20 year re-mortgage as suggested by some here as this is plainly insane.