Money Problems-any tips please

LegacyUser

Hi,

Going unreg for this . Im so sorry if this email seems convaluted.

Basically Im in a job i like but I earn pretty crap money. 18,000year after tax. My job has alot of responsibilty and i really enjoy the peole i work with but at times it can be stressful. I was v lucky to get the job as jobs within the media/journalism area are hard to come by.

Effectively i owe lots of money. About 8,000e. This is a culmination of college fees and a bank loan for college. Im mid twentys and live at home. Please Help!! :-)

Problem is I find that I seem to have no money when the end of the month comes aroound. I find my outgoing cash flow is on stuff like cinema and going drinking with lads or the girlfriend. Everything else is on debt repayments and I feel like im getting nowhere fast. I cant wait to move out but because im financially crippled this seems like more of a long term goal-which is embarrassing to say the least.

I went to college because it was deemed ' the right thing to do'. While i dont regret college i do regret being so financially restricted now--i wasnt eligible for grants and i paid for everything-no parental support.

Any ideas.

I could leave my job-but this would mean loosing a job i know i wont get back ands its such a cool place to work (prob realise this and this is why wages suck too)

I work mon to fri. (40hours +) I also have some college repeats to do to .

Have other people been in this situation and if so what did they do to help themselves live their life while getting out of debt.Im so stressed its really hard to find the words to describe how i feel.

What can i do socially thats cheap and fun--i find that a few pints at the weekend is a great release that after a week of work and stress and pressure i feel i need it.

Ive sold of some of my possesions comp equip etc that i could spare to raise some cash.

Any advice I would really appreciate. PLease bear in mind that I like where i work ( and that they cant afford to give me a raise) too. Maybe its my outgoing expenditure thats the issue here rather then me comparing my annual wage.

Ok thank you all so much for both your patience and advice.

BeardyGit

You're not that badly sorted for the means to pay off this debt in a hurry. €400 per month for less than two years and it's done with. Make sure you don't take any other loans/credit cards etc until your debt is cleared.

If you're in trouble over the loans at the moment, contact the lenders and commit to paying each of them €200 per month by standing order/direct debit. Doesn't matter if that's not what was agreed previously - Tell them if you're having trouble making ends meet and let them know you want to pay off the debt but it's going to take longer than either of you thought initially.

I know you're probably thinking that your €1500 per month doesn't stretch very far but that's nonsense. It's all about prioritising your debt and cutting out (don't waste time cutting down) on the drink, smokes etc. Your girlfriend can pay her own way when you're out for a while - Just tell her you're taking care of business first so it's not hanging over you. If she can't understand that, she's not worth the effort no matter what you think. If the lads can't see it either, you're just going to have to be forceful with them.

If you can't see it - You're in a bad, bad way.

Sit down, write out a budget for yourself and be realistic about it. You can always contact the Citizens Advice Bureau if you want some help or would like them to contact the lenders to set everything up. If you're not serious about clearing yourself of the burden of debt - Don't waste their time.

Be tough on yourself - No mercy and no excuses and you'll deal with this in no time and learn a terribly valuable lesson.

Gil

whiskeyman

3 words.
Budget, Budget and Budget!

You've accepted you need to solve this problem, so you've going to have to work out every cent of inflow and outflow.
Try and cut as many corners from your outflow as possible.
It may meen sacrificing a lot of your social life / holidays, but it's the sacrific you'll have to make for running up the debt.
Small things make a difference - do you go out for lunch in work? Buy in your own supplies and bring your own. You wouldnt believe the amount you can save.
DO NOT quit your job under any circumstances.
You mentioned you live at home - are you paying rent to your parents?


I know people who were on less than you and didnt live at home.... they did it, so can you.

Best of luck -hopefully this will be a time you'll gain a lot of experience about money managment to help you when the good times come.

LundiMardi

Broke wrote:

Hi,

Going unreg for this . Im so sorry if this email seems convaluted.

Basically Im in a job i like but I earn pretty crap money. 18,000year after tax. My job has alot of responsibilty and i really enjoy the peole i work with but at times it can be stressful. I was v lucky to get the job as jobs within the media/journalism area are hard to come by.

Effectively i owe lots of money. About 8,000e. This is a culmination of college fees and a bank loan for college. Im mid twentys and live at home. Please Help!! :-)

Problem is I find that I seem to have no money when the end of the month comes aroound. I find my outgoing cash flow is on stuff like cinema and going drinking with lads or the girlfriend. Everything else is on debt repayments and I feel like im getting nowhere fast. I cant wait to move out but because im financially crippled this seems like more of a long term goal-which is embarrassing to say the least.

I went to college because it was deemed ' the right thing to do'. While i dont regret college i do regret being so financially restricted now--i wasnt eligible for grants and i paid for everything-no parental support.

Any ideas.

I could leave my job-but this would mean loosing a job i know i wont get back ands its such a cool place to work (prob realise this and this is why wages suck too)

I work mon to fri. (40hours +) I also have some college repeats to do to .

Have other people been in this situation and if so what did they do to help themselves live their life while getting out of debt.Im so stressed its really hard to find the words to describe how i feel.

What can i do socially thats cheap and fun--i find that a few pints at the weekend is a great release that after a week of work and stress and pressure i feel i need it.

Ive sold of some of my possesions comp equip etc that i could spare to raise some cash.

Any advice I would really appreciate. PLease bear in mind that I like where i work ( and that they cant afford to give me a raise) too. Maybe its my outgoing expenditure thats the issue here rather then me comparing my annual wage.

Ok thank you all so much for both your patience and advice.

no offence, but 18,000 AFTER tax is not that bad for someone living at home, maybe for an 'educated' person it's bad but you'd be surprised the amount of **** money college grads make.

You're not that bad off, i take it you drink and smoke and all the rest, seems like you have your cake and eating it too, i'm in debt myself, probably about as much as you are, i don't earn much more, i live at home, i'm not struggling at all really, and if i do get into debt it's only because i like my luxuries really. Suck it up.

Be thankful you're in a job you love, most people are in your position and worse, and fúcking hate what they do. Myself included.

Faith

I survive very comfortably on about €1100 a month, and €600 of that goes on rent and bills.

There's plenty of ways to save money.
Quit smoking, if you're a smoker, and you'll save a bundle.
Don't go to the pub more than once a week, and limit yourself to 3 pints or something.
Walk, cycle or take the bus instead of using taxis.
Switch off lights when you leave a room.
If you buy your own groceries, get cheap Tesco own brand ones.
Look for discounts whereever you can get them, especially if you're still in possession of a student card.
Don't buy clothing unless you absolutely have to.
Don't waste your money on crap that you don't need.
Be sensible when you're spending money.
Don't use a credit card.
Like Gil_Dub said, set up a direct debit to start paying off your debts.

Esel

Contact MABS - http://www.mabs.ie/ Make an appointment and keep it. Apply the advice offered.

Stop eating out. Make and bring a packed lunch. Maybe it's not 'cool', but you can't afford to be cool at the moment. Or, if you can't handle not being cool, bring a load of fruit to work (bananas are good, but not only bananas) and snack on that instead of eating out/buying a sandwich/roll. Eat a good breakfast at home, so you are not hungry until lunchtime.

Over at least a week (preferably longer), make a note of *everything* you spend money on. This will help you see where you are squandering money.

Appraise your spending on clothes. You probably have more than enough already.

If you are a guy, go to the local barber, not a hairdresser. Better still, buy a Wahl or similar clippers and cut your own hair. It's surprisingly easy, and you will save a lot of money over time.

Cut up your credit card, after making a note of the number. That way, you can still make a considered purchase on-line or over the phone, but cannot make impulse buys in shops, or worse, pay in bars for drink (for yourself and others).

Do not stay in a 'round' system in the pub. Go out with a certain amount of cash in your pocket, and make it last.

Depending on where you live, walk home or get the nitelink. Consider buying a weekly bus pass, or a 10-ticket 90 minute travel pass for €16.00. They are brilliant.

Stop buying take-aways and/or TV dinners. If meals at home are available, avail of them. Say thanks to whoever prepares them.

Do you use dry-cleaners? Cut down drastically.

If you have a car, do you really need it?

Regularise your outstanding loans, as advised above.

I'm running out of impromptu ideas for you, but I hope you get the message.

€360 per week into your hand is not too bad for someone living at home. How much do you hand in for your keep?

Go to MABS.

seamus

€8,000 isn't that much. I owe twice that on motor loans and my family laugh at me for considering that "debt" (they have mortgages ). I may be shot for this, but you can rework your loan so that you have to pay it off over a longer term. This leaves you a little bit more breathing room.

Your plan however, should never be to stick with a loan for its period. Throwing spare money against your debts is much more profitable in the long run than saving that spare cash (for example)*. If you have a variable rate loan, you can pay off extra money when you have it, or just pay off the whole thing if you get a windfall.

As everyone has said, you're not nearly as badly off as you think you are, and simply controlling your own cash flow is the problem. I survived for six months on less than you're getting now with beer every weekend, a girlfriend to please, rent to pay and a motorbike to maintain. Most months I even had a couple of hundred quid left over.

Do a search on similar things. There have been a few threads on this kind of thing. I personally keep an excel sheet which I "reset" every pay day. It shows my expected cash flow until the next pay day, and I update it every couple of days to see how I'm going -v- what I planned (you will always spend more than you budget for unless you get in extra money that month).

That is, an €8,000 loan over five years will cost more in interest than an €8,000 savings account will make in interest in the same time. If you have the discipline, use a savings account to pay off your loan, but redirect your loan payments into the savings account. After 5 years, you'll have siginficantly more in the savings account than you would have had, and you'll be debt free.

TheNog

First thing u need to do is apply for a loan with your local credit union and ask for the full amount of all your loans. You should use this loan to pay off other loans. The reasons behind this is to pay one loan only and therefore one interest rate which is lower than the banks offer, therefore a lower monthly repayment. Also Credit Unions are very helpful and understanding. At the end of the loan you will pay less credit than the credit of a few loans put together.

So your steps are:

1. Visit Credit Union
2. Work out a weekly/monthly budget (depending if u get paid weekly/monthly by your job
3. Visit MABS if u find ur budget is not working out for you. They are experts.

All in all your debt is not severe and it is not the end of the world. You are young yet so learn from this experience 'cos u will encounter bigger debts with more at stake than your lifestyle being cramped.

CoolGuy2006

ok mate, i was like you 2 years ago. I was on the same money as you, slightly less actually.


with credit cards and bankloans i too was 8000 euro in debt. It took me 2 years to pay it off but last friday was the last payment. It is doable, I saved very hard but also have been able to travel alot and go out. It means not going out everyweekend but the weekends you do go out you should make the most of them because life without fun is no good and makes the whole thing seem harder. Plan a budget and stick to it. Seriously mate, i was on less money than all my mates and i seemed to get more value of life because i budgeted. I still went out, partied, booked 17 flights to europe in total, had a great 2 years in all honesty. Feels great to be debt free now:-)

Anyway, i did it and had alot of fun too. Still, took 2 years though

memphis

In a simular situation to yourself.

I'm a full time student with a car loan, and regular Bupa payments... I have no job, no regular income, and no grant. I get by though. The huge advantage is that I'm living at home, and though not on a Grant I do get a petrol allowance from the college... which is a big help. Its not alot but its still alot better than nothing. I work during the summer and help out the odd time (not too often) in my cousins shop.... and whatever I earn is used to finance myself for the college year.

My budget is tight, but I still find time to socialise, pay back my car loan and Bupa, and also credit card bills. I have recieved no financial help from my parents apart from the fact that I eat and sleep under their roof.

The point I'm making is, you need to look at what you have, how much you spend, and how much you can actually afford to spend. Then draw a line between the two. You'll survive. Just budget your spending wisely.

Failing that contact Eddie Hobbs (joking!!!)

CoolGuy2006

"I have recieved no financial help from my parents apart from the fact that I eat and sleep under their roof."

well, i think you will find that that adds up to a huge amount of financial help to be honest. Accommodation and food = $$$$$$$$

Respect to your Homies

Rogueish

O.K. I'm sorry if I'm speaking the obivious but what about a part-time job.

Yes I know that you have a fulltime job of 40+ hours a week and that you really appreciate your weekends to chill out etc but taking on a few hours in the local pub or other such establishment could bring in between €50- €70 extraa week for a six or seven hour shift which does mount up.

Or could you freelance - I don't know what your qualification is but would it be something that others would find useful. Computers, CAD, etc some private type work might be ideal- you can do it at your own pace and name your own price - within reason.

This goes on top of the very relevant advice of budgeting that the other boardsters have suggested.

Good Luck

Bottle_of_Smoke

dude i dont know what you're spending your money on, im on same sal, well around the same 21k gross. I dont have a loan but rent is E5400 a year, you could pay back half that & your loan is gone in four years

RainyDay

TheNog wrote:

First thing u need to do is apply for a loan with your local credit union and ask for the full amount of all your loans. You should use this loan to pay off other loans. The reasons behind this is to pay one loan only and therefore one interest rate which is lower than the banks offer, therefore a lower monthly repayment. Also Credit Unions are very helpful and understanding. At the end of the loan you will pay less credit than the credit of a few loans put together.

Credit unions are not necessarily the cheapest form of credit. You need to check the APR% on all possible sources if you are refinancing. In particular, the policy of some credit unions to require you to keep some funds on deposit creates another hidden cost which is not included in the APR calculation.

Credit unions are not necessarily the most understanding of lenders. They will pursue debts through the courts. Remember the first show in the series of 'Show me the Money' with Eddie Hobbs where the high-spender was days away from a commital hearing (i.e. her credit union has requested a court to send her to prison for non-payment of debt).

Lux23

They all gave you very good advice and if I was you I wouldn't leave a job that I loved, maybe you should think about doing some freelance work. And learn how to budget, you have plenty of money to live on if you are at home.

TheNog

RainyDay wrote:

Credit unions are not necessarily the most understanding of lenders. They will pursue debts through the courts. Remember the first show in the series of 'Show me the Money' with Eddie Hobbs where the high-spender was days away from a commital hearing (i.e. her credit union has requested a court to send her to prison for non-payment of debt).

Ah come on I cannot believe u are using that idiot of a woman as an example of credit union pursuing debts. If i remeber correctly she made approx. 35k a year but was spending 45k+ a year!!!! She admitted to ignoring all letters from her lenders and her plan for the court date was to cry in the face of the judge!!!!! Crap like won't rub....

Anyway credit unions are not charities and they are pretty much non profit organisation. Can u blame them for trying to get back their money??? Have a look at AIB or BOI with millions apon millions of profit each year. Where do u think that profit comes from?? These banks are charging their customers for everything they do and as we now know over-charging us in the past.

memphis

CoolGuy2006 wrote:

"I have recieved no financial help from my parents apart from the fact that I eat and sleep under their roof."

well, i think you will find that that adds up to a huge amount of financial help to be honest. Accommodation and food = $$$$$$$$

Respect to your Homies

What I meant by that was that I do not get any hand outs from them, and all my expenses such as my car loan, Bupa, socialising, and mobile phone bills are paid outta my own finances.

I do get by though, and yes living out home is a big bonus, I'm not dismissing that!

RainyDay

TheNog wrote:

Ah come on I cannot believe u are using that idiot of a woman as an example of credit union pursuing debts. If i remeber correctly she made approx. 35k a year but was spending 45k+ a year!!!! She admitted to ignoring all letters from her lenders and her plan for the court date was to cry in the face of the judge!!!!! Crap like won't rub....

Anyway credit unions are not charities and they are pretty much non profit organisation. Can u blame them for trying to get back their money??? Have a look at AIB or BOI with millions apon millions of profit each year. Where do u think that profit comes from?? These banks are charging their customers for everything they do and as we now know over-charging us in the past.

I'm not defending the lady in question, and I'm not criticising the CUs for pursueing debts. I'm simply pointing out that your broad generalisation that CUs are cheaper and more understanding than the banks is not correct. Some CU deals are great - some are not so great. Do the maths.

colm_mcm

you have to keep reminding yourself "What would Eddie Hobbs do"?