Should I house share to get out of very bad debts

LegacyUser

Really need some advice here.

Due to a breakup, low paying jobs and increasing expenses, I have accumulated 15k in credit card debt. I've tried to get this down but theres always something I need to pay so eventhough I pay €400 per month off the card, I then use the card to pay a big ESB bill or car insurance or something like that. So I need to big time reduce expenses.

I've been living alone paying €700 per month but I can't afford this. Period. So theres a guy in work who lives in his own house in which he has let out a room to tenants previously but hes living alone now (breakup) and I'm wondering if I should ask him if I could take the room.

I REALLY REALLY don't want to house share, I like my privacy and living alone, but paying about €400 in rent would make a huge difference to me financially. Also I have a dog which makes it practically impossible to house share and this guy does like dogs and is very nice so I don't think I'd have any worries there (I was worried about someone being mean to my dog in a house share situation).

I think I need to take real action regarding the debt yes? every month I've no money and I've even had to get loans from my mam to buy food...very bad

Sound Bite

I'm not sure about asking a work colleague if you could move in would be a good idea but if your credit card is with a bank (not MBNA or Tesco) you should talk to them about converting the credit card debt into a term loan.

Banks will only restructure their only debt at the moment so if you card is not with a bank you should contact the credit card company as discuss a structured payment plan and see if the interest can be frozen if possible.

With a loan, you will benefit from a much better rate and also you'll have a clear structured plan to work down the debt over time.

If neither of these options work out for you, contact MABS who will help you organise a plan to work down the debt

suicide_circus

You say you dont want to houseshare....well like, nobody WANTS to houseshare but it is a financial necessity for some people and it seems that you are one of these people. Its just til you get financial stable again. But i wouldnt advise to share with someone you work with, it could get a little to "intimate". If you share with a complete stranger it will be easier to maintain the privacy you value so highly.

Blisterman

If he doesn't like dogs, why get him to houseshare? Put an ad up on gumtree and interview a few people to find someone you get on with, and who's happy to live with a dog.

Stavro Mueller

Credit card debt is a particularly hard one to clear because of the interest and the temptation (or need) to use it. Have you tried to contact MABS about your problems? Or would it be possible to get a loan from the credit union, clear the card debt and then pay the loan back over a longer term.

LittleBook

Blisterman wrote: »

If he doesn't like dogs, why get him to houseshare? Put an ad up on gumtree and interview a few people to find someone you get on with, and who's happy to live with a dog.

bad_debt wrote: »

I have a dog which makes it practically impossible to house share and this guy does like dogs and is very nice so I don't think I'd have any worries there

bad_debt wrote: »

I think I need to take real action regarding the debt yes?

Yes.

And the first step in this regard is cutting down on outgoings so a houseshare is a good way to go.

And while I completely agree with suicide_circus that I wouldn't normally recommend sharing with a work colleague, the dog could be a serious impediment to you finding a houseshare with strangers so I can understand why you're considering asking him. Also, it feels safer/nicer to move in with someone you already know rather than total strangers.

Get onto Daft.ie and see what are the options in your area before asking him and strongly consider the effect this could have on your working relationship.

And definitely look into converting that credit card debt into a personal loan and getting rid of it. Even in a low paid job, you have to learn to live within your means and credit cards are the bane of that.

bad_debt

bad_debt wrote: »

Really need some advice here.

Due to a breakup, low paying jobs and increasing expenses, I have accumulated 15k in credit card debt. I've tried to get this down but theres always something I need to pay so eventhough I pay €400 per month off the card, I then use the card to pay a big ESB bill or car insurance or something like that. So I need to big time reduce expenses.

I've been living alone paying €700 per month but I can't afford this. Period. So theres a guy in work who lives in his own house in which he has let out a room to tenants previously but hes living alone now (breakup) and I'm wondering if I should ask him if I could take the room.

I REALLY REALLY don't want to house share, I like my privacy and living alone, but paying about €400 in rent would make a huge difference to me financially. Also I have a dog which makes it practically impossible to house share and this guy does like dogs and is very nice so I don't think I'd have any worries there (I was worried about someone being mean to my dog in a house share situation).

I think I need to take real action regarding the debt yes? every month I've no money and I've even had to get loans from my mam to buy food...very bad

I'm confused about why you even need to ask. Who do you think WANTS to houseshare? Those of us who do it do it for financial reasons. If I had 15K in credit card debt, I'd be looking to reduce expenses in any way I could. Sharing with colleagues sometimes works out and sometimes doesn't. I wouldn't rule out sharing with strangers because of the dog - I've lived in house shares with pets and nobody minded as long as the owner of the pet looked after it and it wasn't chewing up everyone's stuff. Loads of people like dogs and those who don't probably wouldn't want to live with one so you probably don't need to worry about people being mean. Living on your own is a luxury and shouldn't even be an option for someone in your financial situation. It sounds like you're living way above your means - try to talk to a friend who's good with money (if you don't want to post your expenditure here) and work out where you're going wrong.

LegacyUser

With €15k in credit card debit you need to find a house share. I would look at daft.ie as one of the previous posts said.
I would have a chat with the local credit union and ask them what they would need from you to give you a loan of this amount to pay off credit card debt.
You will have to save with them for x period of time before getting a loan. As you pay off the loan you can put x amount of each payment into savings so when the loan is paid off you will have savings build up.
I would also look at contacting mabs about this look up mabs.ie.
If you go on to the nca.ie website they have a good budget plan there were you can put in your income along with your expenses be they weekly, monthly, quarter or yearly.
Ways to save money:
Get a note book and write down every cent you spend in the next 2 weeks be it for food, esb bill, coffee going to work, newspapers, mags ect
Then you need to work out a week month year what you spend on these odd items ie
coffee €2 a day x 5 = €10 x52 = €520 / lunch €5 a day x 5 = €25 x 52 = €1300
Bring a coffee to work each day along with a lunch could save you €1820 a year.
Also you need to look at your mobile phone costs. If you have a bill phone change it over to pay as you go for €20 per month O2 now have a good offer.
Also if you have health insurance look up hia.ie and see if you could get a cheaper policy when your policy is finished for this year.
In regards to food. I would make meals from scratch and freeze them to have a dinner when you come in from work - this will stop you getting takeaways. Also make a shopping list, keep an eye out for special offers and stock up when you see these. If you have a Aldi
near you shop here as your money will go further.
I was in debit a few years ago and paid off my debits so I know what you are going through.
Since then I have become unemployed so budgeting helps me to have an odd treat, eat well and keeps my bills paid. I have never got into debit since then.

LegacyUser

Lance Scarce Tightrope wrote: »

I wouldn't rule out sharing with strangers because of the dog - I've lived in house shares with pets and nobody minded as long as the owner of the pet looked after it and it wasn't chewing up everyone's stuff. Loads of people like dogs and those who don't probably wouldn't want to live with one so you probably don't need to worry about people being mean.

This makes sense and is very reassuring.

While I do appreciate the budgeting advice, I already do all of the stuff listed. I wouldn't know a take away if I fell over one. Only today I made a shephards pie and I'll need to get 4 days out of it as I have €9 until I get paid the week after next ffs. My job pays for my health insurance and I've the cheapist deals possible with everything. Except rent. So its not like I'm an idiot who can't manage money. I'm just an idiot with no money. I actually work in acounting but my salary is pretty crap at the moment and the €400 towards my credit card bill each month is a killer.

The banks won't loan me 15k as they don't want to take on anyone elses debt (the credit card is with MBNA) and I'm not in the credit union nor can I even afford to start saving with them (and surely I'd need to have at least a few grand saved before getting a 15k loan??) so I'm fcked in that regard.

My co-worker told me that he did house share previously so thats why I thought I would ask him but actually having really thought about it I'm not into that idea at all. It would be too intimate as someone said here.

People keep mentioning MABS here but what can they really do? Do they just draw up some budget plan cos I already have my own budgets.

I def need to house share but my dog is the issue as I leave him home all day while I work and thats why I prefer my own place for peace and safety (as he sleeps all day cos hes old and gets long walks twice a day to completely tire him out!) so I'm just so dubious about living with strangers.

The debt is doing my head in at this stage.

Neyite

MABS do help people budget, but they can also negotiate better terms for you with your creditors, or maybe even your bank. It also looks better down the line if you did fall into serious arrears and are being pursued that you consulted MABS previously and took their advice.

They might be able to put pressure on the bank to convert your CC debt to a loan which has lower interest repayments than a card would, giving you more money for bills every month.

I agree with the flatshare advice - I've shared with colleagues before and you both quickly get very sick of each other, so avoid sharing with the colleague if you can. Find a pet friendly house share, as cheap as you can. Your bills will be less if they are split, but do pay attention to what kind of bills the flatshare will have, especially with houses with storage heaters. Those can be a big money drain.

LegacyUser

Neyite wrote: »

MABS do help people budget, but they can also negotiate better terms for you with your creditors, or maybe even your bank. It also looks better down the line if you did fall into serious arrears and are being pursued that you consulted MABS previously and took their advice.

They might be able to put pressure on the bank to convert your CC debt to a loan which has lower interest repayments than a card would, giving you more money for bills every month.

I agree with the flatshare advice - I've shared with colleagues before and you both quickly get very sick of each other, so avoid sharing with the colleague if you can. Find a pet friendly house share, as cheap as you can. Your bills will be less if they are split, but do pay attention to what kind of bills the flatshare will have, especially with houses with storage heaters. Those can be a big money drain.

I didn't realise MABS could so stuff like that so thats brill !! I'll def be onto them tomorrow first thing so thanks for that.

The only thing is I already have a loan with AIB and the balance on that is about 9k (no judgment pls guys) so I wonder would they loan the 15k for the credit card. My track record is perfect with AIB, I've never missed a payment, so hopefully that will go in my favour. The interest on the credit card is about €200 per month !!!!

I'm looking at house shares and I'm gonna ask a few people would they accept a dog and hopefully someone out there will take us in...

Sleepy

TBH OP, you've no choice but to house-share at this stage. If the dog is a serious block to that, you have to consider if you can afford to keep him / her.

LegacyUser

Sleepy wrote: »

TBH OP, you've no choice but to house-share at this stage. If the dog is a serious block to that, you have to consider if you can afford to keep him / her.

So I should think about getting rid of my dog? Give him into the pound or something like that?

I'd sooner sleep on the streets.

Stavro Mueller

Maybe a house share doesn't sound so bad after that suggestion

Out of curiosity, are you in a position to take someone into where you're living now rather than the other way around? If it was, it might make the dog part of your predicament a bit easier.

LegacyUser

cymbaline wrote: »

Maybe a house share doesn't sound so bad after that suggestion

Out of curiosity, are you in a position to take someone into where you're living now rather than the other way around? If it was, it might make the dog part of your predicament a bit easier.

Thanks for the support :-)

I do live in a 2 bedroom apartment but theres only storage heaters and the bills have been insane. I have honestly thought that there was something wrong with the electricity supply as the bills have been so high. This is another reason I want to leave the apartment. So this should save some money too.

Just saw an apartment for a couple of hundred cheaper than where I am now so gonna ring them tomorrow !!

tbh

bad_debt wrote: »

So I should think about getting rid of my dog? Give him into the pound or something like that?

I'd sooner sleep on the streets.

I admire someone with principles, but the simple truth is, you can't afford them. Just like you can't afford to live alone. The sooner you face that reality, the closer you are to getting rid of your debt and starting your live proper. At the moment you seem to want to have your cake and eat it - let me know how that goes for you.

Citycap

The house share with a work colleague may not be so bad. But you must really make serious efforts to cut that debt. Some of the posters have good ideas and with that type of discipline twelve to fifteen months would see a big change in your situation. However despite the belt tightening I recommend having a small saving fund of maybe 10/15 a week that would fund a 2/3 night hotel break after six months. There are some great offers available and there is nothing more demoralising than having nothing to look forward to.

Stavro Mueller

I'd only give up my dog as a very last resort and only if I had no other options. But unless you can find somewhere very very cheap you'd be foolish to insist on living alone. The numbers just don't add up. Most people who house share do so out of necessity or pragmatism. It's not the worst thing that can happen to anyone. If you swallow your pride, get your debt sorted and get your finances back on track, then you can go live alone again. To be frank, beggars can't be choosers.

fits

Dogs are expensive enough to keep with feeding, vet fees. Paying rent for somewhere that can house one is another expense. I am not saying you have to give up your dog, but if you are in serious debt, all costs need to be considered. Rehoming is another option. But as dogs are so good for exercise and mental health, and you are obviously attached (as I am to mine) I too would look at cutting other costs as much as possible first.

LegacyUser

I don't know if the advice to get rid of the dog is meant to be "tough love" or something, but imo it is too tough. Much too tough, and sounds completely insensitive.

Of course you shouldn't get rid of your dog. He/she could be one of your main sources of companionship.

As long as you can feed and care for the dog that is all that matters.

homemadecider

puppylove2 wrote: »

I don't know if the advice to get rid of the dog is meant to be "tough love" or something, but imo it is too tough. Much too tough, and sounds completely insensitive.

Of course you shouldn't get rid of your dog. He/she could be one of your main sources of companionship.

As long as you can feed and care for the dog that is all that matters.

I'm pretty sure that the OP getting out of his/ her huge debt also matters?!

Stavro Mueller

As long as a dog stays in good health, keeping one need not break the bank. Anyway, the issue of whether he keeps the dog or not is going off the point. He's so much in debt and having to pay so much on two fronts that he needs to sort that. So in other words, find a house share that is ok with having a dog around and approaching MABS to see if they can help do something regarding the restructuring of the debt.

daithi1970

sound out your workmate about it-they can only say no..who knows, they might like the company..not to mention the extra cash!
daithi

K.Flyer

Its a tough position to be in and 15k on a credit card is going to be a slog, but it can be done.
You say you are with MBNA, by any chance did they sell you an insurance policy to cover the card in the event of something happening to you. Some of these policies were miss-sold and people have claimed their money back.
Have you spoken with MBNA yet about your difficulties, they can make adjustments or may offer you a term loan.
Have you thought of trying to get a part-time second income, even 50 - 100 euro extra a week would make some difference.
Another thought, and probably your least favorite, maybe move back to the parents home for a year while you plough into clearing the debt.

mikemac1

House sharing can be a pain but it has to be done by most every student and then by young working people too.

It's normal you like your own place OP but you'll have to slog through this debt for the next year or two. Well two at least, it's a lot of debt.

Banks and companies love when you talk to them so certainly keep the communication channels open.

Lots of advice in the thread already, I'd just add a +1 to the post about having a treat for yourself in maybe 6 months. This will be a long hard slog and you need something to look forward to.

Doesn't have to be very expensive, maybe a weekend in Galway, maybe a football trip to your team in England or maybe buying some clothes.

Good luck

Also you are a working person so sign up to PAYE Anytime on the revenue site and claim for everything you can. Medical expenses, college fees, rent relief in past years, claim it all!

LegacyUser

puppylove2 wrote: »

I don't know if the advice to get rid of the dog is meant to be "tough love" or something, but imo it is too tough. Much too tough, and sounds completely insensitive.

Of course you shouldn't get rid of your dog. He/she could be one of your main sources of companionship.

As long as you can feed and care for the dog that is all that matters.

I'm so glad someone posted this as re-homing my dog is an unbearable idea. When I get down about the debt, the only thing that keeps me going and relaxes me is that little dog. I need him to keep me going.

I did view a room in a house last night and I so appreciated them letting me view the room with my dog (we looked at it together!) as I have contacted a few people and as soon as I mention my dog its like no way !!! I asked them to have a think about letting me stay with my dog and I would also think about the room. I think they really (really really) need the extra bit of cash which is why they allowed me to even view the room.

I'll give them a text tomorrow to see what they think and take it from there.
Taking all bills into account I'd save 300-400 euro per month. Sweet !