household cashflow

Adamtown

I am 49. €530K mortgage on family home (valued about 550k) . Have another €430 K of investment property debt. Investment property is worth 240k and I am €25k behind on the mortage. Have €250K in pension. three children still in school. I am working – salary €68k, spouse stay at home mum. Have some credit card / credit union debt but that is being paid through MABS on a monthly nominal payment. Every euro not spent on household goes on servicing debt. We feel we cannot keep this up. Could I utilise the pension fund in some way ? Can I release any of my pension fund early?

mickman

oh dear - not a nice situation

is the investment house rented ?

yes you can cash in your pension - talk to the pension provider

SBarrett

No, you can't cash in your pension unless you have money in AVC's.

What kind of pension is it? If it is a personal pension plan, you cannot draw down on it until you are 60. If it is a company paid plan, you can draw it down from 50 with the trustees permission.

You are obviously not in a great situation. You should get professional help with this and get a deal done with the banks. They will do deals and it is not on the size of the debt but on the ability to repay. The deals are usually over 5 years and then the debt is written off.

I know people who specialise in this area if you want me to give you their number (before I get accused of touting for business, it's not me!)

Steven

Adamtown

Thanks for replies..

Yes house is rented to a good tenant - getting €1k a month but to be honest using it for monthly expenses rather than passing to bank. Have already cashed in the allowable AVC portion of my pension.

Yes SBarrett, if you could send me your contact i would greatly appreciate it.