lone_merchant
Registered User
- Messages
- 2
- Baby Step 1 – €1,000 to start an Emergency Fund
- Baby Step 2 – Pay off all debt using the Debt Snowball
- Baby Step 3 – 3 months of expenses in savings.
- Baby Step 4 – Invest 15% of household income into retirement
- Baby Step 5 – College funding for children if applicable
- Baby Step 6 – Pay off home early
- Baby Step 7 – Build wealth
A small amount of money put away from the age of we'll say 10 will cover education costs in the future.
Hi Brendan,This illustrates how inappropriate Ramsey's steps are for the OP.
A small amount of money put away will also clear debt.
It is much better for them to have cleared their expensive debt than to be in a position where they still owe the credit union €30k but have an education fund/emergency fund/savings fund of €20k.
Never borrow money at high rates to put it on deposit at 0%
Brendan
pick up the phone to UB and ask if they can do anything with the rate and say you are looking at switching to another bank or potentially breaking the term.
Thanks everyone for your replies, it's very much appreciated!
To answer some of your questions/comments.
I need to double check the mortgage interest rate. If the breakage fee is €4k, it'll be out of the question to switch mortgage provider even though my monthly amount will be reduced. I will contact UB anyway and see what they have to say.
My parents got a credit union loan to help us out, so a payment break from that loan wouldn't be possible. They're both retired and couldn't put that pressure on them.
Would it even be worth it to consolidate that loan into my own loan? The monthly repayments would be less but will probably extend the term.
Extra hours in my job isn't possible. I'm in the stages of going for promotion but currently acting in the job so if I get it my salary won't go up. My wife can do extra hours from time to time.
We've reached a point now where we've said we won't borrow again. I'm 38 now, I got my first loan when I was about 22 and haven't been out of debt since. It's sickening when I think about it.
I don't think it's as straight forward getting rid of the car as it's on PCP. We have a debt there that needs to be paid.
I'll definitely take a board some of the suggestions above. We'll really watch how every cent is spent!
Thanks again!
I need to double check the mortgage interest rate. If the breakage fee is €4k, it'll be out of the question to switch mortgage provider even though my monthly amount will be reduced. I will contact UB anyway and see what they have to say.
It was possibly the right thing to do at the time.I totally do not understand why you fixed two years ago
Monthly take-home pay: €1026
How much goes to the credit union
Spouse: €1250
How much is the child allowance
Rough estimate of value of home: 270K
Amount outstanding on your mortgage: 203K approx
[- think 3.99% with Ulster Bank, 7 Year Fixed Rate, started 2017, 28 years
Confirm the interest rate, confirm how much the repayments are
redit Union loan - 11,800 - repayments deducted at source (payroll) How much?
Owe parents approx. 14K due to loan for purchase of house - I repay €260 p/mth
SPOUSE: Credit Union loan - 10.8K - repay €300 p/mth
Car loan PCP: €300 p/mth
Life insurance: €55 p/mth
Our total loan repayments each month is approx. €850, not including car finance.
Well I missed the new car !It was possibly the right thing to do at the time.
Buying a new car they can't afford is what you should be questioning!
We've reached a point now where we've said we won't borrow again. I'm 38 now, I got my first loan when I was about 22 and haven't been out of debt since. It's sickening when I think about it.
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