Struggling to make ends meet!

SMR123 said:
Also, following on from the advice about insurances being included with mortgage repayment. I rang ES, and will be saving almost E100.00 on my annual premium for building and contents when the policy renews next month compared with last year.
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You should shop around as widely as possible for the best deal on mortgage protection life assurance and home insurance (make sure to insure for the appropriate reinstatement cost). You could make significant savings. Don't just stick with the existing provider. If you have mortgage repayment protection insurance then review this as often these policies are poor value for money.
 
Thanks Clubman, actually I rang a number of insurance providers and checked on the internet as well. Eagle Star were coming out with the best policy for the price. 123.ie came in E10 cheaper but with a higher excess and did not include unspecified outside the home.

Just rang my mortgage provider and found out the following:

Home Insurance: E29.60 pm
Mortgage Protection: E17.99 pm covering E400 pm payout
Life Assurance for mortgage: E68.10 (increased due to childhood illness, which will never prove fatal - not even any problems now!).

Does the mortgage protection seem high? Do all insurance providers do mortgage protection?
 
SMR123 said:
but with a higher excess and did not include unspecified outside the home.
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Make sure that you really need the lower excess and unspecified/all risks items cover. Personally I prefer to "self insure" for these.
Mortgage Protection: E17.99 pm covering E400 pm payout
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You mean mortgage repayment protection insurance? Many people use "mortgage protection" to refer to mortgage protection life assurance cover.
Does the mortgage protection seem high? Do all insurance providers do mortgage protection?
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Repayment protection policies are often poor value for money especially when the premiums are bloated with high charges/commissions and the policy only pays out in very restricted circumstances and for limited periods of time. If I was you I would read the policy documentation and decide whether or not this policy was worth paying for. If not then cancel it.
 
Hi Clubman,

What do you mean by 'self-insure'?

Mortgage protection referred to is repayment protection. E4.50 per E100.00 insured. Will have a look at the documentation this evening. Don't know how much benefit E400 would be to me, in the event of redundancy etc.

Have never take out payment protection on personal loans etc, but felt differently with the mortgage...and gave into the bank's hard sell!
 
SMR123 said:
Hi Clubman,

What do you mean by 'self-insure'?
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In the (probably unlikely) event that I need to cover such losses I will pay for them myself rather than falling back on insurance. The savings made on the premium can go towards this. If I don't suffer such losses then I have saved. Obviously I would depend on insurance for much more significant losses - e.g. the house burning down etc.
and gave into the bank's hard sell!
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Probably a bad idea so.
 
Thank you for your response.

I will enquire with ES again to see if this would reduce premium. I would never have anything really valuable outside the home anyway.

Am feeling much more positive and will continue with my budgeting!
 
If I were in your position I'd probably (concurrently) . .
1. stop spending money (review all outgoings with a view to reducing same)
2. stop paying the pension, freeing up €60/month
3. seeing as you're friendless with the banks, see if the CU will step up with 10k to clear the credit cards. If not use the first €800 from the rent-a-room or wherever to bring the CU loan down to the level of CU saving and clear the CU loan freeing up €132/month
4. maybe the bank will allow you to pay interest only on the mortgage for a while, don't know if they're happy to do this and you wouldn't free up much cash, maybe €100+/month, still, adds up.
5. ask for a pay rise and more hours (also I'd consider getting a Saturday job).
6. ask a close relative for a temporary 'dig-out'.
 
Thanks Michael M.

1. Have started using spending diary, and have noticed a difference in the last week. Know I can definitely cut back in certain areas - refuse collection - reckon savings will be approx E170pa, and also saving E115pa on home ins. Shopping has also been cut in half, by going to Aldi and Lidl and only using the more expensive supermarkets for a couple of bits.
2. Not sure about stopping pension...
3. Have already thought about CU, and am going to put all money in from room rental plus a little extra, to obtain loan to clear credit cards by end of summer. Any idea how much credit union will lend...is it two or three times your savings? Also, will they look at other outstanding debts - do they check with ICB for amounts?
4. Don't want to go interest only on mortgage.
5. Won't get a payrise...no chance of extra hours either. Am currently doing part time study as well, which is taking up weekends.
6. Asking a relative is not an option.
 
SMR123 said:
2. Not sure about stopping pension...
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Saving while carrying significant unsecured and high cost debt makes little sense. The only argument might be to contribute to the extent necessary to benefit from matched employer contributions. Otherwise you should probably stop contributing for now and deal with your debt/cashflow issues first. Once you have your finances under control and can realistically afford to you can start (pension) saving again.

Why are you dismissing the possibility of going interest only on the mortgage seemingly out of hand.

What did MABS recommend?
 
SMR123 said:
2. Not sure about stopping pension...
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IMHO those on the lower rate of tax would be as well to save rather than pay a pension, unless their contribution is matched by their employer. Tell them you need to refinance, ask for six times your savings; don't hide anything from them.
SMR123 said:
4. Don't want to go interest only on mortgage.
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Might make sense to do so for a short time i.e. 12 - 18 months.
SMR123 said:
5. Won't get a payrise...
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Well, if you don't ask you probably won't.

Good luck with it anyway. If you pay off debt the hard way you're probably less likely to get into a similar situation in the future.
 
Hi Clubman & Michael M,

Haven't been in with Mabs yet. Work and study taking priority this week - that's not just an excuse. Have some time off coming up shortly, so will be doing it then.

Don't know about interest only. That seems to be mostly what I'm paying anyway. Will be going to bank next month, for a review on mortgage as fixed rate ending July. Will discuss it with them then? Would I actually be paying much less though? Is there a possibility bank will say no to going interest only?

My pension contribution of 3% is matched by my employer.

I definitely won't get a payrise. Very strict on once a year...unfortunately that doesn't come around til January 09. Am paying E50 to a work Xmas club, so think I'll cancel that.

Michael M, think you're right about paying it off the hard way. Can't believe I'm in the situation I'm in, although from reading other posts, I don't think I'm the worst off. Have never missed a loan or mortgage payment. It's just those damn credit cards!!
 
SMR123 said:
Don't know about interest only. That seems to be mostly what I'm paying anyway.
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You can estimate the interest/capital split of your ongoing repayments using Karl Jeacle's mortgage calculator.
Will be going to bank next month, for a review on mortgage as fixed rate ending July. Will discuss it with them then?
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Be very careful here. Don't expect independent, professional advice in your own best interests from the lender.
Would I actually be paying much less though? Is there a possibility bank will say no to going interest only?
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See above. You should save the capital portion of any ongoing repayments although obviously the mortgage will cost you more in the long run since your capital outstanding will remain static as long as you are on interest only. However it may be one small cashflow improvement measure/option.
My pension contribution of 3% is matched by my employer.
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OK - so there could be an argument for continuing to contribute depending on how severe your debt/cashflow issues are.
Am paying E50 to a work Xmas club, so think I'll cancel that.
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Definitely. And forget about buying presents for the moment or at the very least set a strict budget and stick to it. You simply cannot afford such discretionary spending right now.
 
badge55 said:
Spending diary does work and will prob save you 150+ per month
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Can you elaborate on the Spending Diary?

Our monthly expenses are fixed for loan, rent, esb, gas, phone+broadband, petrol(1 car), we buy no alcohol, I take lunch to work, rarely eat out, take no holidays, [ sounds mortally boring I know ] the only variable is the weekly shop which varies from 100 to 150 depending on whether we need certain items that we stock up on.

Wife is going on maternity leave soon and not entitled to maternity pay so we will be getting maternity pay from social welfare, 280 a week.

Anyone else gone from double salaries to basically 1.40 - an tips on not getting stuck? As we have little wiggle room at end of month as it is, can't see much room to maneuver adding nappies to the weekly shopping bills and everything else we will need to buy. I guess we are far from unique.
 
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It's simple - but not necessarily easy. You need to budget according to your means and stick to the budget.
 
Captin Sobel


We are in the same situation - would love to budget but I have no idea yet how much baby is going to cost. Even from buying a few bits it seems very expensive. I am already looking into bulk nappy buying and using Boots advantage card etc There is a lot of info out there on money saving tips in that regard and you can always go back to basics -compare prices and buy the cheapest.
My strategy in terms of not getting stuck is to keep a very close eye on baby costs and try to budget it in along the way without interfering with mortgage or regular savings. This is easy if you already keep a budget (as you do by the sounds of it).
A
 
just read to see how you are getting on OP .... looks like you are doing well sticking to a budget - im trying really hard - but finding it hard !! still must just chip away and hope it makes a difference soon.
am taking in 2 students also for the summer months - we cook a lot in our house so adding 2 to the pot - hopefully will mean it will pay a dividend worth the trouble !!!

anyway as for nappies (2 posters above) ... lidl ones are 8.40 for 40nappies and pampers is 17.99 (apx) for 46 !!! go figure ... AND aldi and Lidl nappies are just as good !

wish you and me all well working out a strategy to keeping on top of things ... seemingly brian cowan has stated today that he will definately improve the costings on everyday household expenses (grocery and service) ... now how is he going to do that ???? emmm
 
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