I really need some guidance - help!

good intentions · 30-08-2007 06:04PM #1

Hi Folks,

This is my first ever post - and I desperately need some advice!

I had a really good job, great girlfriend, good car and great prospects.

I'm 28.

However, 3 years ago I got into the class a drugs, and as you can imagine it was a downward spiral - I lost everything.

I'm glad to say that I am now clean, and have been for 6 months, apart from the odd spliff.

But I have paid a major price - I lost my career, my girl, my friends and the respect of my family who used to admire me so much.

Thankfully, I have got a new job which is excellent pay, and have reclaimed most of my friends.

But when I was on the drugs I amassed huge financial problems. I had a model credit rating until I hit the Coke, but here is a summary below of what I owe.

Bank Overdraft - 5000
Bank Loans - 17000
Credit Cards - 8000
Car Finance Company - 8000 (I owed 25k on the car after 1 year, and they took it back, sold it, and gave me a balance of what I owe)
Dad - 25000 (he gave me money to pay compensation to a bloke I nearly killed in an assault to get me out of a prison sentence)

The threatening letters and debt agencies were onto me for a good year and a half, maybe more, and the letters stopped coming about 6 months ago. This is because I actually have no assets whatsoever. (I do have a house, but thankfully my ex and I put that in my name)

I'm not too worried about what I owe my Dad for now, as it's a long term term loan and doesn't affect my credit (he agrees it's best to sort out the banks first, but he won't help me out anymore out of principle which I agree with, we're not a wealthy family)

Long stort short - can I declare myself bankrupt, like in the UK? I know a friend of mine who did this, and had his credit rating back to normal within 3 years.

If I can't declare myself bankrupt, what are my options? Ideally, I'd like to settle with the financial institutions, which I feel they may be keen on as I have no assets. I was kind of hoping to pay a lump sum (something like 1euro for every 4 owed) and start building my credit rating back up.

I really need to get myself back in the black and have given myself 3 years to do it.

I just don't know how to go about this...please help me!!

All advice will be most greatefully received!

Peace out

D

ntlbell · 30-08-2007 06:21PM

if you have a job with excellent pay i don't see why you want to declare yourself bankrupt?

have a chat with mabs and work out a repayment scheme that you can afford.

pay it off and move on

good intentions · 30-08-2007 06:29PM

Thanks for the response!

So what or who is mabs then?

If I pay back all of the money, it will take 3 years - then I have to start the process of building back the credit rating, which means it may be up to 8 years before I can get a credit card etc.

I'm just wondering are there any quicker ways to build back up my credit rating more quickly - I will be looking to get a mortgage in a few years, and also really need a credit card, for business purposes as much as anything!

Do appreciate the reply though

Ruu_Old · 30-08-2007 06:33PM

Money Advice & Budgeting Service, it is free. Check the website here. Best of luck.

dame · 30-08-2007 06:56PM

Would your ex be willing to sell the house? Or you could offer to let her buy you out. You could agree to sell it to her for the price you bought it for or a little more. That way she wouldn't have to sell her home and try to buy somewhere new that she can't afford, but at the same time you could pay off your debts and start afresh.

LegacyUser · 30-08-2007 07:35PM

Hi. Great you are getting your life back in order. Fair dos on that one. However if you have a good job with good prospects why not front up to your respobsibilities and pay off your debts. No one made you go off the rails. You did that all on your own. Everyone will have more respect for you if you take care of your debts and build up your credit rating the normal way. Yeah so it's not easy and it might take a while but you know what life isn't easy for everyone. You had the best of oppertunities so tough luck kiddo if you have to suffer a little for your behaviour.

Dudess · 30-08-2007 08:08PM

I agree with dame on the house. You're not in any position to be paying a mortgage. You're gonna have to rent - you're only 28. Plenty of people your age and older are still renting in this day and age because of exorbitant house prices.
So you owe €63,000. Sit down and work out your budget - what are your essentials every month? What luxuries can you do without? (you're gonna have to deny yourself unnecessary vices - it really is the only way).
You say you've a "good car". What do you mean by that? Is it a nice, new-ish car? Could you not make do with a basic, functional car for a few years - e.g. a 99 Volkswagon Golf or something? If your current car is expensive, I don't see any reason for you not to sell it and buy a cheap but sturdy one.

SarahSassy · 30-08-2007 08:33PM

good intentions wrote:

I have got a new job which is excellent pay

I really need to get myself back in the black and have given myself 3 years to do it.

You have a job which pays you well and you still wont pay your debts???? People like you make my blood boil. There are people out there struggling every day, going to money lenders to buy their kids Xmas presents and the likes of you, who is earning good money wont pay what you owe.....

You really need to cop on.... I assume the drugs was your attempt to run away from reality and you are doing the same here now... You have begged and borrowed money from everyone to pay for your drug and violence... I think you should have to pay every penny of it back....

You are not worried about paying your Dad back?????? Jesus you are selfish. Im sure not too many parents have €25,000 hanging around and Im sure he is only delighted to have to pay out blood money for you assaulting someone... Am sure there is nothing better he could be doing with his money....

Once again you are not taking responsibility for your life. You are running away and letting other people clean up your mistakes and messes. You have a house, which surely has appreciated in value since you bought it but you wont do the honourable thing.....

Approach a credit union and take out a loan to repay the lot in one swoop and take control of your life and pay for your own mistakes rather than getting bailed out every time.....

If you do not pay off these debts in full you are effectively stealing.... You are stealing money from the Banks and am sure your Dad will never see his money.... You have had everything handed to you so sell the house or get a loan and stand up and be a man....

You mentioned offering the Bank a lump sum e.g. €0.25cent per €1. Your Bank debt is €38k so thats €9.5K - where are you getting THAT lump sum from??????????

D Bronc · 30-08-2007 09:09PM

I agree with ntl bell who suggested MABS (Money and Budgeting Service). They offer a fantastic service and they only take what you CAN afford after your other bills ie Shopping, Esb, Mortgage etc. They do all the negotiations with with your creditors also which would make it that bit easier for you. I dont think declaring yourself bankrupt is a good idea, this wont go away that easily so contact MABS asap. Hope it all works out for you.

dudara · 30-08-2007 09:25PM

SarahSassy wrote:

You have a job which pays you well and you still wont pay your debts????

I don't think that's quite what he said. He now has a well-paying job once again and wants to know what to do to pay off the debt that he has. He's not trying to avoid it.

SarahSassy wrote:

You are not worried about paying your Dad back??????

He said that he would, but that his dad and himself had agreed that it was not a priority debt to clear.

You seem to be taking a very aggressive attitude to this poster who has come here looking for advice. This forum is about offering assistance.

To the OP - Contact MABS - they will offer you advice on how to budget and tackle your debt.

SarahSassy · 30-08-2007 09:30PM

He is thinking about paying 25% of his debt.

I am entitled to have an emotional reaction to something which annoys me.

dudara · 30-08-2007 09:37PM

He is thinking about paying 25% of his debt to start to bring back up his credit rating. I can only presume from what he has said that he intends this to be the first phase of a long term plan.

SarahSassy · 30-08-2007 09:49PM

good intentions wrote:

Long stort short - can I declare myself bankrupt, like in the UK? I know a friend of mine who did this, and had his credit rating back to normal within 3 years.

If I can't declare myself bankrupt, what are my options? Ideally, I'd like to settle with the financial institutions, which I feel they may be keen on as I have no assets. I was kind of hoping to pay a lump sum (something like 1euro for every 4 owed) and start building my credit rating back up.

It reads to me like he wants to declare himself bankrupt and as such either not pay all back or only pay part of it.

To 'settle' with a bank is to offer them money in full and final payment of your debt and he is here talking about €1 in every €4 i.e. 25%

ircoha · 30-08-2007 10:02PM

dudara wrote:

He is thinking about paying 25% of his debt to start to bring back up his credit rating. I can only presume from what he has said that he intends this to be the first phase of a long term plan.

I go with SS here: "pay a lump sum (something like 1euro for every 4 owed)" reads like a once off settlement as an alternative to going b/krupt.

OP: I got lost on the house, u say it is in your name: ur best best is to try and extend the term of your debt so if u can
get some 33 year debt secured on the house to refinace all the loans then the cash flow will be eased a great deal.

The interest on the CC debt in default is prolly 22%:eek: :eek:

dudara · 30-08-2007 10:24PM

My apologies - I didn't pick it up quite right.

OP - you need to discuss this situation with professionals. I admire your desire to sort it out somehow. I do not know if you can partially write off the loan but if you are earning a good wage and have a share in a house, you should be able to come to some arrangement.

orlyice · 31-08-2007 02:24AM

debt consolidation is best route to go here. borrow and clear all your debts (if your credit rating is crap then it might not be possible but worth a go, try a company that deals in specialist loans!) try clear as much as you possibly can. if your parents live nearby then move in with them, it'll be cheaper rent!!

in a couple of years when you have a large part of your debt paid off, go for a mortgage. try specialist mortgage companies that do mortgages for people with poor credit ratings, but be warned the intrest will be higher!! if you are accepted you will probably have to clear the exising loan. i know your dad has helped you out in the past but ask can you put the second loan in his name. it'll mean he gets his money back and have a direct debit coming out of your account. i know this is a big thing for you to ask him but show him what you have been paying back in the past and give him your word that you will not mess up and affect his credit rating, a few bounced direct debits can affect it!!

just make sure that any exisiting loans are not written off!!! it will completely mess up your credit history. companies selling your debt is big thing too, try get it sorted before either of those happen.

good luck!!!

KilbarrackBlows · 31-08-2007 02:35AM

Ok
You sound like your from a well of family if you have your own house at your age etc
Sell the House
Sell the Car

pay off your det pay of your dad
move back in with your dad till you get back on your feet det free.
sorted go now do it now go go !

K-9 · 31-08-2007 02:58AM

orlyice wrote:

debt consolidation is best route to go here. borrow and clear all your debts (if your credit rating is crap then it might not be possible but worth a go, try a company that deals in specialist loans!) try clear as much as you possibly can. if your parents live nearby then move in with them, it'll be cheaper rent!!

in a couple of years when you have a large part of your debt paid off, go for a mortgage. try specialist mortgage companies that do mortgages for people with poor credit ratings, but be warned the intrest will be higher!! if you are accepted you will probably have to clear the exising loan. i know your dad has helped you out in the past but ask can you put the second loan in his name. it'll mean he gets his money back and have a direct debit coming out of your account. i know this is a big thing for you to ask him but show him what you have been paying back in the past and give him your word that you will not mess up and affect his credit rating, a few bounced direct debits can affect it!!

just make sure that any exisiting loans are not written off!!! it will completely mess up your credit history. companies selling your debt is big thing too, try get it sorted before either of those happen.

good luck!!!

Try MABS first. Some of the subprime lenders are planning to hike another 1% on to loans/mortgages to cover them from losses in the states. You will be paying 3/4 % more than banks, could eventually be double interest rates of banks. These are loan sharks, started advertising as your best friend and are showing their true colours now.

If you go down this route, be prepared for big increases in your repayments.

DublinWriter · 31-08-2007 07:19AM

OP - firstly congrats on sorting your act out and getting clean.

Secondly, make an appointment to see someone in MABS as soon as possible. They are a government agency and their advice is free.

Thirdly, avoid putting any existing unsecured loans on your mortgage.

good intentions · 06-12-2007 02:00PM

Hi Guys,

Just an update for you all!

Thanks very much for your positive replies (most of you, a couple of the usual crappy stuff that you'd come to expect on a geeks board, sorry I mean Internet chat forum!)

Anyhoo - I've managed to sort things out - a coupel of months ago my dads cousin died and left a substantial amount of money behind. I've been able to pay off all my debts, pay my dad back, pay for my rehab in blackrock clinic, and pay off the mortgage.

So thanks be to God it's a good end to 2007, and here's looking forward to a 2008 of debt free soberness, with the new job going exceedingly well.

ps - for those of you knocking Katy French on here, get a life - her mum and dad are neighbours of mine, and I tell you one thing - they are a classy family, and Katy is a great girl, nothing like the media persona. Get well soon Katy x

biko · 06-12-2007 02:04PM

Thanks for the update, hope things continue to work out for you!

Aura · 06-12-2007 02:10PM

Well done on getting yourself back on track.

Ain't easy and shows great strength.

kraggy · 06-12-2007 02:18PM

Firstly, well done on getting clean.

Secondly, however, you seem to have gotten off light. It's good that you've sorted out your financial worries. But what would you have done if you hadn't been left money by your cousin?

Enjoy your good fortune but it's also important to learn from your lesson.

Good luck in staying on the straight and narrow.

Aura · 06-12-2007 02:24PM

Sometimes good fortune comes just when we deserve it most. Karmic I suppose...

good intentions · 06-12-2007 02:29PM

Well I'm a great believer in Karma myself. Good things happen to good people. Yes I got myself into a bit of trouble, but I didn't mention the fact that I have been involved with a local youth club since it's inception, I travelled to Africa with the Niall Melon Township fund, and I am a street fundraiser for Cancer Research. I consider myself a good person, and would do anything to help anyone, so maybe Karma is recognising my work!

Anyway, cheers everyone, and happy Christmas! Is it too early to start saying that??

Wacker · 06-12-2007 02:34PM

good intentions wrote: »

Well I'm a great believer in Karma myself. Good things happen to good people.

Good things?!? A family member died. That isn't a good thing. You just got lucky. Just be sure to never puy yourself in a situation where you're dependant upon luck again.

Aura · 06-12-2007 02:43PM

I think the very fact that the OP posted here looking for help or guidance shows he does not wish to be in the situation he was in. In my eyes, his recent update is further testament to his acknowledgement of the gravity of this situation.

Hats off and sorry to hear about your Dads cousin.

A.

good intentions · 06-12-2007 02:51PM

Wacker

Dads cousin - 103 years old

Died with a family of at least 60 people around him - sad yes, but it's the circle of life. And he wasn't a flash man either. My family and I received his inheritance because we are a tight family and we were always there for him. My dad and I took turns bathing him. My mum wiped his ass. My little sister fed him and read the paper for him.

If you live to be 103, wealthy, and have a loving family that care and would do anything for you, I think that's actually quite a good time to bow out.

A sad occasion yes, but a happy family - what more could you ask for in life?

LegacyUser · 06-12-2007 09:04PM

Each one of your posts sounds arrogant and stuck up in my opinion!
There are plenty of people who would not have a wealthy and loving family to get them out of such a situation! These are people in society that i have no doubt you stick your nose up at.

There are also plenty of people who would not be as financially well off as yourself but who still put in 10 times the voluntary work that you mention you do. Wheres their Karma?!

K_P · 06-12-2007 10:34PM

good intentions wrote: »

Hi Guys,

Just an update for you all!

Thanks very much for your positive replies (most of you, a couple of the usual crappy stuff that you'd come to expect on a geeks board, sorry I mean Internet chat forum!)

Just don't forget that you were the one who came looking for advice at this here geeks board.

thestarrover · 07-12-2007 02:19AM

K_P wrote: »

Just don't forget that you were the one who came looking for advice at this here geeks board.

crikey, this board is gas, I only fell upon this thread by mistake, and with the cursory glance I ran through the posts it seems like yet another story of middle class cocaine abuse,

course when your life is falling apart, it seems as desperate as it can get. But hold on, when the rich relative dies and "abrakebabra" clears your debts with the Blackrock clinic, you feel naturally relieved and in some way vindicated that your hard time has been paid off.

But when you're back on form you start making snippy comments about other threads. My advice is to get real buddy and instead of pouring your charitable heart out with the Mellon fund in S.Africa, maybe you should try to help other addicts in you own city who don't have the luck you have had,

Trust me I know what damage drugs can do, but you are the 1 in 100 who has a fairy godmother,and as difficult as it has been for you, (and I'm sure it has) spare a thought for those who never had or never will have the opportuiities that you have had. Maybe this is better than snipping at other members.

There is a lot of people who get tangled up in drugs, some are fools, some are naive, but all are trapped. All wish that Santa will bring them the same thing.
It appears that your wish has come through, spare a thought for those who can only keep on hoping. Cheers

I really need some guidance - help!

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