Debt and Money Advice PLEASE

lynsalot

Hi guys,

I'm looking for some financial advice - Every single month I end up in debt. It's getting me so down its unreal. My boyfriend has on more than one occasion had to sub me 50e til end of the month. It's embarassing. I have a big loan which is eating into my wages but its my priority to clear it.

My salary is a great salary 2K a month but I seem to have no cash to spend. I'd really appreciate anyone taking the time to read this!!

Mortgage is variable and costing circa 700e a month (Ex pays other half)
Management Fees 80 a month
Loan 200 a month
Bills approx 80 a month
Grocery - I budget around 200/month
Counselling 110e a month
Phone 50 a month bill pay
Cigarettes (First thing to go!!!!) approx 200 a month (I know)

I am an owner occupier and responsible for upkeep, which has cost me a few bob replacing a washing machine, getting a handyman in to replace flooring from flooding etc. I must squander so much money. I'm looking at this and seeing I have about 100 a week left over so where the hell is it? I very seldom go out like maybe once every 3 months. I have spirits at home so having a few drinks is normally just buying some coke zero in the shop.

Oh I'm in weight watchers just joined so thats 40 a month
Last month I had a doctors trip twice (Their insistence because I'm coming off medication) Medication was costing me 120 a month so I've decided to stop taking it and getting rid of all outgoings.
Used to spend a lot of money on take aways but recently started WW so thats the end of that.

Owe money to my mother 190e by september and my tenants deposit in October of 460e and I'm panicking big time.

So I need to give up the cigarettes. Gym membership is just up so not rejoining. I took out an overdraft when I broke up with my ex and I'm overdrawn every month but I don't have savings so need this to make sure I can replace things or pay things if and when they crop up. So I'd really appreciate some advice. Or any questions on my lifestyle I can clear up.

Really appreciate it

Thanks

lynsalot

Just to clarify a lot of take aways meaning one a week - which wasn't helping the oul weight loss so joined weight watchers.

Gym membership was 90e for three months (hadn't been a member for a year before that) and it came off the overdraft. This month I was almost 300e overdrawn so its eaten away any spending money from this month unless I got overdrawn again. ugh my heads wrecked. what am i doing with my cash

I shop in tesco or lidl, buy own brands, don't buy coffees in the mornings and bring my own lunch to work every single day. last clothing I bought were knickers because i badly needed them (TMI?) but i look around me and see people with new things and wonder how they're doing it. Not to mention people abusing the system - there was a program on a while ago about a girl spending benefits on clothes and booze and getting away with murder. My ex tenant was an actress with rent relief and social welfare and she worked cash in hand and had more money than me - really bugs me why I can't manage.

Drug dealer across the road never in work and cars going in and out all day and he's got 3 cars!!

Sorry rant over! I know i'm extremely lucky to have a job and to not have had to take a pay cut. And I also know there's plenty of people struggling and on the dole and genuinely on the dole. My father was on the dole when we were growing up and the guy beside me in work lost his engineers job a year ago and couldn't collect the dole because his wife had a part time job. He's now doing admin on contract. So I don't mean to offend anyone by my rant above.

Appreciate any advice thanks

The_Conductor

To be honest with you- you need professional advice on how to manage your money and budget etc. MABS provide this service free of charge (there is a waiting list however).

From your post above- sure you should give up your cigarettes, but how wise is it to give up your medication? If your sums don't add up- why are you killing yourself making unreasonable repayments on a loan- while you're paying a far higher rate of interest on your overdraft?

2k is a reasonable salary- however you have to weigh up your options and figure what is discretionary spending, and what is necessary expenditure. Irrespective of what medication you're on- you really shouldn't consider it to be discretionary, without first discussing it with a GP or practitioner.......

S.

LegacyUser

I would suggest you start a spending diary. That is get a small note pad that can fit in your bag and write down everything you spend be it .50c or €50.

Do you have a lodger too and are you getting rent? Reason I ask is the deposit you mention.

If you have been going for counseling and on medication for last year(s) make sure you claim your tax credits for these.

Cigarettes is an unnecessary spend.

Cut your shopping in half for the next few months. Porridge for breakfast, make big pots of stew, soup and the likes. Make your own bread. Shop for specials. Fruit and veg in lidl/aldi. This will also help with the WW.

Can you move to a ready to go and save yourself some money there. Vodafone also have a plan called simple which is a bill pay but you don't get the offer of upgrades. Much cheaper if you have a good phone.

thefeatheredcat

I think while MABS would be useful for you to talk to, have a look at their website as I think they have some budgeting tools available online. I think it's more managing your outgoings and prioritising your outgoings than anything really.

I would assume that you have no flexibility in your mortgage and loan but you do have some flexibility in other areas.. and I think you're doing the best you can but you have to be very honest and realistic with yourself about what you can afford and what you really cannot afford (even though it's something you think you need)

You say you budget groceries for around 200 a month, but do you know if you spend more or less than that? It would average about 40-50 a month.

With your phone... would there be a possibility to switch to a lower cost plan or a plan that gives you more of what you need like free texts or free calls within the network you are on? Do you really need a bill pay phone?

On cigarettes.... are you planning on cutting back or giving up altogether? Have you looked into the different methods of quitting and the cost, for example, the cost of patches? If you are seeing your GP soon, would be worth asking the alternatives btw.

You've given up your gym membership of 90 for three months in favour of weight watchers of 40 a month.... and weight watchers is more expensive as the gym would only have been €30 a month unless the €90 is only a special offer.... and on top of weight watchers there is the additional cost of the weight watchers meals and treats. Running, walking and cycling are free and basic exercises for your body you can find online (like stomach crunches, press ups etc) although you wouldn't have the support in terms of what you would get out of the gym/weight watchers. In any case, perhaps you can approach your gym with the fee and see what you can negotiate with them, as it could be cheaper now. Have a look at what recreational facilities are in the area that you could maybe use - for example if you have a local park, do many people jog/cycle there?

At the end of the day, health costs, mortgage, insurance costs, loan, bills, and food are the most important. Prioritise for these and budget for these and the rest would be considered discretionary spending.

You might have to take a bit of pain or make a sacrifice of a few things like weight watchers and that for a couple of months to give yourself some breathing space in order to pay back the deposit first, which should come before you paying back the loan to your parent (if they can be flexible, or you can work something out with them like half now, half at another time) but it would be worth it to make certain sacrifices for a short while so that you have the floating nest in the long run.

Wompa1

Obvious one's to me are the ciggarettes and weight watchers now.

WW is good but why pay to go to the class? Just keep yourself in line, all the class will do is make you feel like you have to stick to it or else you'll be embarassed in front of others.

You can still follow the points stuff and find stuff online too.what tv and internet package do you have?

can you bring down your phone bill? move to a 30 euro a month plan? do you have a car?

Hamiltonion

IMO you can cut groceries to E35 a wk and get by fine, look at changing your ph to pay as you go at E20 p/m for free texts or network calls (annoying but can make it work.)

If you cant bear to give up the smokes switch to rolling tobacco, about 40 in a 12.5 gram pack at E4.20

See can you get counseling through the state or a psychiatrist's referral.

Seriously though, main thing to do is contact MABS and see can you consolidate loans, those repayments are whats killing you

John Mason

• give up smoking
• give up paying weight watchers - just stick to one of their plans at home (or arrange something in work, my place has a weekly weight in and you have to donate 2e if your weight goes up)
• half the shopping bill, there is no way you should be spending 200e a month for one person. we spend 150e for 2 (and we eat damn well - too well in fact
• start a spending diary - every single cent you spend write it down
• are you sure about the medication?
• your bills seem really high - review all your bills and see if you can get cheaper deals. if you are not on the budget services with the gas and lecky, do it now - it means no more big bills
• the first thing you have to do is get rid of the overdraft
  

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lynsalot

Hey thanks a million for all the responses excellent advice!!

So just to clarify yes the meds were under supervision. When I spoke with the doc he said I'm on them for the maximum length of time I could be anyway so it was time to come off them. Counselling was taken up around same time and all going well.

For me, the pressure of the WW class works because I was doing it by myself and not really getting anywhere but learning a lot from the classes. After a little while I could probably do it myself (Did it before)

Definitely good idea about the groceries. My boyfriend spends every weekend in mine so its a cost for two people for those 2.5 days but I've gotten a few bob off him towards it before but hate asking. Seems vulgar to expect him to pay for 2 dinners and some cereal and cups of tea lol but I know he doesn't mind. He'll generally pick up something himself like a roll or something anyway. But def cut back to 150/month. Tesco came yesterday (I don't drive) and including delivery cost me 40quid and i am going to make it stretch for week and a half. Lots of frozen veggies and meat and have the rice and soy sauce there. Porridge for brekkie already there. Lots of tea bags, toilet rolls and detergent since previous shops so happy days!

Tried MABS before but I think they couldn't really help as it was in relation to debt consolidation (Which I did and left with me with one 4K loan) So they don't really look at groceries etc. BF bought me a samsung for my birthday in Feb so I'm on a 6 month bill pay contract at 45e a month but it always ends up at 50e with extra costs. After 6 months I can switch to a cheaper bill I think. Coming up soon now.

I don't drive. Luas it everywhere or walk and pay for luas through my payslip before tax so thats already taken care of. Could get myself a bike and save myself approx 50e a month but it would be taxed so not sure what it would end up as.

John Mason

Do not buy your meat in the Supermarket - its a lot more expensive and of inferior quality. get yourself to the butcher. they always have special deals on.

Buy the deals and freezer individually i.e., two sausages in cling film, two rashers, a few peice of black pudding etc. we freeze them in breakfast packs

Neyite

Some months when we have a lot of bills and money is short, I make a massive pot of veg soup, I usually get about 15 portions out of it.

Buy in a green-grocer, not the supermarket as its cheaper. Serve with heaps of boiled potatoes and your belly is full with healthy food. All for about 15 quid, 20 if you add some meat like ham. We usually have that for about 4 days for the week (the week before payday) and freeze the rest to use up for lunches during the next month.

I generally cook in bulk for stews curries and pasta sauces. I think if you bought fresh instead of frozen it would help you twofold - with the weightwatching, and also with your money watching.

I made a big saving by switching to cheaper service providers - ring them all to see what deals they would be likely to offer you to stay if you were thinking of swiching. Same goes for your counselling - I dont think you should give up, but some of them are open to negotiation (all they can say is no!)

Fags: well. ya know yourself - but remember its common to go in to buy the fags, and end up spending a few quid more with impulse buys while you are in the newsagents - lotto, sweets, paper. Switch to tobacco and roll your own. Far cheaper and you will smoke less which will be handy when you finally do kick the habit.

Dark Phoenix

give up the cigarettes its costing you a fortune.

When shopping think in terms of meals and days so you only buy what you need. Personally I find it costs less to buy frozen food or food you can freeze where possible as there is much less waste and you don't have to worry too much about food going off. When I shop I put some food in the freezer for later on and some in the fridge to cook in the next few days and then just plan in advance.

I wouldn;t pay 40 a month for weight watchers its pretty expensive. Instead just be careful when shopping and only buy healthy food and what you need sure straight away its a healthier diet with less impulse buying.

I would also figure out where else you spend money. Start a spending diary, write down everything you spend go through reciepts and record that it can be an eye opener. It was only when doing this I realised chemists were my weakness I'd go in for medication and buy all sorts I don;t need I have since banned myself from boots

I know it is awful worrying about money but without the cigarettes and teh weight watchers you would have your mum paid back in no time so I think its time to priotitise what is most important. It is possible to lose weight and eat helathy without weight watchers but is it possible to pay your mum back with it?

Re counselling see if there is any available free?

I think definately write down what is a necessary and discretionary spend.

Fentdog84

PYF=Pay yourself first

On payday have a standing order/direct debit going out of your account into a savings account where the money is hard to get at. Say 200-300 euro minimum. Do this before you pay bills or anything else. Remember its YOUR money, all the other creditors can wait a little..make them sweat if needs be..and only use this money in absolute emergencies.

As for the other spending, well you know what are necessities and what's not. As someone who is forever trying to quit smoking, well if it isnt happening for you right now, consider cutting down by half or two thirds or alternatively, smoke rollies. They are twice as cheap as normal cigarretes.This is a massive difference. You can buy filter tips in shops to put in them so there isnt really much difference with the normal cigarette..rolling is easy after a little practice and there is rolling machines you can buy also. Obviously long term quiting is what you really need to do but short term if thats too hard I recommend swtiching to rollies.

The_Conductor

Fentdog84 wrote: »

PYF=Pay yourself first

On payday have a standing order/direct debit going out of your account into a savings account where the money is hard to get at. Say 200-300 euro minimum. Do this before you pay bills or anything else. Remember its YOUR money, all the other creditors can wait a little..make them sweat if needs be..and only use this money in absolute emergencies.

As for the other spending, well you know what are necessities and what's not. As someone who is forever trying to quit smoking, well if it isnt happening for you right now, consider cutting down by half or two thirds or alternatively, smoke rollies. They are twice as cheap as normal cigarretes.This is a massive difference. You can buy filter tips in shops to put in them so there isnt really much difference with the normal cigarette..rolling is easy after a little practice and there is rolling machines you can buy also. Obviously long term quiting is what you really need to do but short term if thats too hard I recommend swtiching to rollies.

Just what are you suggesting the OP do?
Hide 200-300 a month, before she pays any bills- and tell her creditors (and herself) tough titties? Her largest monthly expense (and unfortunately due to further rise) is a variable rate mortgage payment- everything else is a fraction of this. 35% of her income is ringfenced for this purpose. Suggesting she hide an additional 15% leaving 50% of her income for all other expenditure (including her term loan which is the result of debt consolidation) just doesn't add up....... Squirrelling the money away to make it more difficult to get at- isn't going to stop her smoking- which seems to be the only extravagance she allows herself (and even then, of all the fulltime smokers I know, none spend only 200 a month on cigarettes).

I think everyone is agreed- the cigarettes have to stop. Outside of that- she actually doesn't have a lot of leeway- perhaps a different tack might be to see whether its feasible to try to increase her income- letting a room under the rent-a-room scheme for example?

I just don't 'get' the lets squirrel away a couple of hundred into a savings account approach- frankly in this day and age its pretty meaningless. I can access my savings account and transfer funds immediately (well it takes 5 minutes) into my current account if I so wish, all automated over the phone. I'm sure anyone else could- if they put their mind to it......

lynsalot

Hi guys,

Thanks for all the advice. Ok... so I've decided to quit smoking. It has to go and yes its (ONLY??) 200 a month. About 15 per day. Some days less but more on weekends. Def 5 packs a week average. But lately that €8.60 is paining me to hand over.

On the bright side, once I quite smoking I've an extra €50 a week, and once my 4K loan is paid thats another 200 a month... so a massive saving there.

Not prepared to budge on the counselling. I've been to lots and never found them any use. This lady does CBT and its invaluable... honestly its worth being in debt. She's turned everything around in only a few weeks. And its long long overdue so i'm happy with the price she charges. 55e a session once every two weeks (Did research this and most charge 80 which is sickening)

My bf is moving in with me in October and he's got a lot more spending money so it should ease things for me. I already rent out my only room. Unless I rent the room out after he moves in aswell but he said he doesn't want to live with an extra person (He mightn't have a choice hehe)

Its crazy I don't drive and I want to... but where will it come from. i think when I got married to a4sehole (hehe) I overspent on the apartment we bought. He earned more and paid more for it. Separation comes along and its all different. Oh well thats life. On another thing, does anyone know what happens to property in negative equity in divorce? Interested to find out.


Thanks again... and oh god how i'd wish to put money away at the start of the month lol and not neeeed it. I've tried it and on week 4 its all lobbed back into the current account in a panic

The_Conductor

lynsalot wrote: »

On another thing, does anyone know what happens to property in negative equity in divorce? Interested to find out.

There are several factors that are taken into account for a property in negative equity should the couple separate/divorce.

1. Does either of the couple want to keep the property?
2. Is the lending institution satisfied with that member of the couple as a sole mortgagee?
3. The negative equity in the property is a capital loss that is normally apportioned equally between both parties- i.e. the person who is leaving the property hands over amount x to the person who wishes to keep the property, in full and final satisfaction of any claim that they or any other party might have against them, in relation to the property. This has to be with the full knowledge and consent of the mortgage lender.
4. In the event that the mortgage lender is not satisfied to allow either party to the loan to proceed as the sole mortgagee, the property is placed on the open market and sold within a specified time frame. On sale of the property, the negative equity would normally converted into 2 term loans, one for each of the original mortgagees, and they would be expected to adhere to whatever the terms of the loan might be.

The big issue is family law solicitors pushed women who were separating during the good times to demand a full and fair portion of any property vested in the relationship- and now most women assume that there is an asset that they are entitled to a chunk of- should things go pear shaped. Unfortunately the inverse of this is they also have a liability associated with the relationship- in the event of negative equity.........

The nature of negative equity is such that for many couples, they are forced to formally continue to pay their mortgage ad-infinitum, as the nature of the debt is such that neither party is in a position to break free independently from the dwelling, which in turn becomes a millstone.

We have a few interesting threads broadly discussing this over in the Accommodation and Property forum.

S.

Naikon

OP, why are you spending more on counselling than bills per month? Unless you gain a profound insight for that price, I would dump the counselling. They are taking you for a ride if that is one or two sessions a month or similar.