Money Struggle

LegacyUser

Looking for advice or maybe to see if anyone else may be in the same position so I dont feel so alienated

Due to a large amount of personal debt that both I and my wife had when we met we really struggle to make ends meet

Our combined take home monthly pay is is approx €3,700

Our rent is €700 per month and (cringing writing this) our debt repayments are around €1,200 per month, childcare is €300 per month

We have 2 kids

At the end of each week we literally don't even have €10 to our names and as we both work full time (and pretty damn hard) it is so so frustrating to live like this

The prospect of ever owning our home is as likely as us winning the lotto

We are killing ourselves to pay off extra debt even if it is only a few euro extra each month we are trying to get clear but looks like it will take between 6-7 years

We owe approx €32k in debt (including 2 car loans, a college loan, 2 credit union loans, an old credit card, and a small bank loan)

Each time we get a loan cleared my plan is to then use the payment for the cleared loan and put that extra into the next loan but something always comes up with one of the kids or the car or an unexpected bill etc.

Any advice????

Has anyone ever come out the other end of something like this and went on to live a normal comfortable life?

Neyite

Could you consolidate or restructure your loans perhaps?

Mod
Constructive and helpful replies please - From past experience of similar threads, I'm reminding everyone that bashing the OP for decisions they made in the past is not going to be allowed here.

Cuddlesworth

I think you should start looking at where your 1500 a month discretionary income is going.

With 2 kids it should be possible to get most bills under 250 a week including food.

baby and crumble

How long are the loans actually for? Because that's a very large amount to be paying in loan payments every month. I would certainly look at combining them all into one, much lower loan that extra can be paid into when you have it. Ok, so maybe it'll be a longer period but at least it would give you some breathing room.

Look at contacting MABs, they may be able to help.

BetsyEllen

Where is the other €1500 going?

Firstly I would look at things like your Sky, Broadband, Phone Plans, Bins, Gas, Electricity etc.
Can you save money anywhere?
Ring them all individually and ask when your contract ends.
I slashed my Sky bill from €39 to €21.50 per month yesterday.

Changing utility providers is a good way to save money; Flogas are best for gas and Energia for electricity last time I looked. That may have changed since.

Now with your current debts, I would urge you to call the companies you owe the money too and explain your dire circumstances. It is highly likely you will be able to restructure your monthly payments and lower them a bit.

If you don't find the companies very helpful individually, engage the help of MABS who will act on your behalf.

To earn a little extra cash sign up for some online surveys.
Red C Live is a good one, you could get a cheque for €50 every 2-4 months/
It's not a huge amount but every little helps.

ncmc

Do you mean your childcare is €300 per week? €300 per month seems very little for two kids. If it is €300 per month then where is the other €1500 going? Seems a lot to spend on bills.

I think you need to write down every penny you spend per month. List all your bills. See if there's any money to be saved by switching provider, cutting back on tv package etc.

That might save a few quid, but you really need to look at consolidating those loans, hopefully at a lower interest rate than you are currently paying (especially on the credit card debt) MABS should definitely be able to help you do this.

baby and crumble

Yeah actually I thought that was €300 per week on childcare. If that's your monthly then you definitely need to look at the rest of your bills. if you're renting you mightn't have the ability to change providers much but I'm sure you can cut down a few things.

I find getting on top of food outgoings to be the most useful for cutting down things. Shop in Lidl/Aldi, and cook in bulk. Invest in a slow-cooker for winter, it makes even the cheapest meats lovely and tender, and less work when you get in with the kids. You can make big batches of stuff and freeze for later in the week.

Look at going pre-pay with mobiles, lots of providers have a "top up by €20 and get everything free" kind of deal.

Think about getting rid of TV altogether and just having broadband with a chromecast- 90% of stuff is available for much cheaper/ free on catchup or netflix, the kids won't miss the tv subscription really and you could cut €40 a month off your bill.

TizTaly2015

Hi Op,

I work for MABS and yes, MABS could defo help you out with some support. However, there are really long waiting lists in certain areas and they are prioritising people who are in crisis debt (evictions, being disconnected, threatening letters from banks etc). This is not to say that an appointment wont be given to you, you might just have to wait a while.

There are self help guides available on the website (hope its ok to put this here??) -www.mabs.ie

Also, like most posters have said, I would sit down and be really honest about your spending on a weekly basis. Not monthly. Do it weekly. Multiply your monthly income by 12 and divide by 52. Include child benefit also (unless you specifically use it for the childrens needs). But a lot of people use the child benefit as an income source as, lets face it, we pay for everything for our children on a daily/weekly basis anyways!

I think you have some savings to make, based on the figures your saying. you don't mention travel costs, petrol, parking etc...these maybe areas you might have to look at..

Shop around. Take a day where you both can sit down and shop around. Pain the as* I know but its worth it.

All the best.

And just to let you know - you are not alone. There are so many people (including myself) who live hand to mouth on weekly/monthly basis.

Club55

We are lucky in that our childcare is €300 per month as they are looked after by close family member.

This is what an average month looks like:

Rent €700
Debt €1200
Childcare €300
ESB €100
Gas €60
Car insurance x2 €125
Sky TV €28
TV license €13.33
Contact Lenses €12.75
Car Tax €70
Bins €24
Broadband €45
Prescription Meds (unavoidable) €86
Vitamins €8
Groceries €320
Nappies €40
Diesel €260
Christmas Club €20

These are rough figures but when i add them up they come to approx €3,400.... on paper it looks like i should have an excess of €300 per month or €69 per week but this always seems to get sucked up by unexpected trip to doctor/dentist, car trouble, unexpected bill, medicine, damaged car wheels etc etc

Our sky bill is our single source of entertainment, we dont smoke, cant drink as cant afford to go to the pub. used to go swimming on a saturday but cant afford that anymore, we dont go to the movies as we cant afford it and babysitter etc so i feel that without the sky we would crack up

We do have 2 cars which i feel is a big hit on our finances, but as we both work 1 hour from home (in different directions) i cant see a way around this

To be honest im praying that i get made redundant from work so i can get a lump some to clear debt then maybe pick up a job (i would take anything) closer to home so we can get rid of one car

I can't switch gas providers as i am behind on my bill and I am going to look into getting metres in to help cut down those bills

Other than that i cant see any way out, we shop in aldi buy the cheapest of the cheap, herself bakes own bread, makes treats for the kids etc.

We are from very large families so the kids get a lot of clothes from their cousins but i know for a fact herself hasnt bought herself an item of clothing in about a year

Club55

I forgot to mention that I am the original poster by the way :-)

Regarding restructuring, going to mabs etc. we were hoping not to go down that route as we dream to have our own home at some point in our lives (aiming for 10-12 years time) and feel that if we go out to banks etc to restructure then our credit histories will be even more damaged

ted1

The max you have to pay for prescription is 144 a month, can you see if you can buy a few months at a time? That way 3 months would cost 144 as oppose to 250

Club55

ted1 wrote: »

The max you have to pay for prescription is 144 a month, can you see if you can buy a few months at a time? That way 3 months would cost 144 as oppose to 250

Thanks, I had never even thought about that so will look into it for sure

TizTaly2015

Listen, its so easy for outgoings to exceed what is budgeted for. I often show my eldest my weekly budget list when he asks me for money and he can't believe all that we pay for!! Life happens and gets in the way.

Debts have to be cleared :-( And in terms of going down any debt settlement arrangement, I can understand your concerns about that. Your income levels probably wouldn't allow for any settlement to be reached anyways as, on paper, you are financially capable of repaying your loans. Its just that you have no life because of it but banks dont really care about that!

Credit union may offer a restructured loan - extend loan term, reduce monthly repayments (you will end up paying a little bit more interest). Credit card - is this a set amount you pay monthly?

Club55

TizTaly2015 wrote: »

Listen, its so easy for outgoings to exceed what is budgeted for. I often show my eldest my weekly budget list when he asks me for money and he can't believe all that we pay for!! Life happens and gets in the way.

Debts have to be cleared :-( And in terms of going down any debt settlement arrangement, I can understand your concerns about that. Your income levels probably wouldn't allow for any settlement to be reached anyways as, on paper, you are financially capable of repaying your loans. Its just that you have no life because of it but banks dont really care about that!

Credit union may offer a restructured loan - extend loan term, reduce monthly repayments (you will end up paying a little bit more interest). Credit card - is this a set amount you pay monthly?

The credit card is a set amount of €50 per month which is tiny but all I could afford to try and get it cleared, but fees go back on top of it so next to nothing comes off it each month in reality

woodchuck

Club55 wrote: »

We do have 2 cars which i feel is a big hit on our finances, but as we both work 1 hour from home (in different directions) i cant see a way around this

To be honest im praying that i get made redundant from work so i can get a lump some to clear debt then maybe pick up a job (i would take anything) closer to home so we can get rid of one car

The 2 cars jumped out at me. Are your places of work accessible by public transport? Even if it takes longer by public transport, it would save money if you can cut it down to one car. Or what about the possibility of car pooling with any work colleagues?

You could also look for a job closer to home as you suggested (if the pay is right - take into account money you'd save by not having to commute by car).

If you can find a way to live with only one car, I think that would save you a lot of money. Is there even a way to work from home occasionally? Even one day a week working from home would save a lot on petrol.

durtybit

Whats the year make and model of the 2 cars?

SarahMollie

Club55 wrote: »

Thanks, I had never even thought about that so will look into it for sure

Probably would help in that also pharmacies charge a dispensing fee each time they fill a perscription, so if you can do a few months at a time, this fee would only be charged once.

Also, are you claiming back everything possible in tax using the MED1 form?

Club55

woodchuck wrote: »

The 2 cars jumped out at me. Are your places of work accessible by public transport? Even if it takes longer by public transport, it would save money if you can cut it down to one car. Or what about the possibility of car pooling with any work colleagues?

You could also look for a job closer to home as you suggested (if the pay is right - take into account money you'd save by not having to commute by car).

If you can find a way to live with only one car, I think that would save you a lot of money. Is there even a way to work from home occasionally? Even one day a week working from home would save a lot on petrol.

I could get a bus but it would cost approx €40-€50 per week so not sure if that would help any, my wife can't as she is going to a remote location and her co-workers are all local to that office if you get what I mean

Two cars really is a drain, i am always afraid for her to be at home ie at weekends while im at work with no second car, i worry about the kids what if they need go to to hospital etc. probably silly i know,

Need to have a really good think about this

SarahMollie

OP - whats the nature of the debt repayments? Are they credit card by any chance?

MABS are of course the best to help with an actual restructuring plan, but you need to consolidate all your debt into one loan at the lowest possible rate.

Paying off debt is good.

Would it be possible to consolidate the debts into a single loan at a better rate?

Concentrating on the most expensive loans first would pay them quicker.

woodchuck

Club55 wrote: »

I could get a bus but it would cost approx €40-€50 per week so not sure if that would help any, my wife can't as she is going to a remote location and her co-workers are all local to that office if you get what I mean

Two cars really is a drain, i am always afraid for her to be at home ie at weekends while im at work with no second car, i worry about the kids what if they need go to to hospital etc. probably silly i know,

Need to have a really good think about this

Some quick maths based on the other car related figures you provided show you'd save between 6-16euro a week if you change to public transport... which granted isn't much at all, but is a start. But if you sell a car, that will help clear some debt too? Not to mention not having to pay for unexpected car issues as they arise.

I know what you mean about the emergency situations, but you're just going to have to weigh up your options there

Kalimah

Could I ask if you're both working fulltime? Unfortunately it doesn't seem like a great salary if you are. Are there prospects for advancement or pay rises in the future? I'd recommend that you make sure you are not paying too much tax by the way. There's a good PWC tax calculator online that you can plug both salaries into and the results should match what you take home - more or less.

I feel your pain.

BetsyEllen

OP I know that you dream of owning a home but the way you are going, you're never going to be able to. As you can't save a deposit.

So by extending the terms on your loans you're not really putting yourself in a worse situation mortgage wise, but you are lightening your load each month and looking after your mental health by reducing your stress.

I would love to own a home one day too but I couldn't live on virtually no money in the meantime to get there.

You seem to be at the very minimum outgoings wise, your sky and broadband seem to look to be the cheapest you could get so really the only place you could cut back is on the loan repayments.

By the way, just because you're in arrears on your gas doesn't mean you can't move. Some companies (such a Bord Gais) will check if you're 'debt flagged' but not all will. BG are expensive anyway.
There's no harm in calling another gas company and trying to switch, you may get lucky. And then just arrange to pay your current supplier back at a tenner a week or something, whatever you can afford.

Pre payment Meters are OK for budgeting purposes but you won't save money; the cost of them is higher to run as you get charged the company's standard rate, whereas direct debit options can save you up to 20%.

Edited to add - just seen another poster ask about your salary and this is a good point. An average of €1850 take home each isn't fantastic, are you looking at other options closer to home? Have you had a pay rise in the last couple of years, if not is it something you could approach with your boss or your wife could?

batmanrobin

I find it helpful to get out my bank statement and go through everything and see where I can cut back.

If it's weekly, €300 seems excessive for food shopping for 2 adults and 2 children. 8 of us were fed on €100. You just have to buy the cheap stuff I'm afraid. Get the brand of whatever super market you shop e.g if dunnes, but their label. Buy fresher ingredients rather than packaged foods. My shopping was halved by doing this. You could save yourself nearly €200 by doing this.

See if you can work out a smaller repayment on your loan. That's the biggest killer for you it seems.

You might have to think about cutting back to one car. It doesn't sound like you can afford 2 right now.

Neyite

Any chance you could bike to work? The bike to work scheme might help there, and once you have the right gear you have no further big outlay.

Check that you are claiming whatever you can back from Revenue at the end of the year - you get 20% of certain medical expenses back. As well as that, ring Revenue and get a P21 balancing statement, I know a few people who got a nice little bit back.

Reusable nappies would also save you money (too much faff for me but some swear by them.) It might also help with the bin charges if they charge by weight because a bin bag of those weighs a ton! But if they are at the age where you'll soon be toilet training there might not be much point switching.

I found I saved a bit by batch cooking in bulk and freezing meals, and by using a slow cooker along with cheaper cuts of meat.

sonandheir

Club55 wrote: »

Debt €1200
ESB €100
Car insurance x2 €125
Contact Lenses €12.75
Prescription Meds (unavoidable) €86
Vitamins €8

Couple of things I noticed:

Debt €1200 - consolidate this into one loan

ESB €100- switch provider, try to reduce consumption

Car insurance x2 €125 - this is €1500 a year, can you ring around try to get 2 quotes with same company. Also notice car tax is high, can you trade car for smaller engine size?

Contact Lenses €12.75
Prescription Meds (unavoidable) €86
Vitamins €8
- can you buy any of these online in the UK, I have got stuff mainly non prescription but have saved loads doing it.

Penny Tration

Have you considered buying meds from the UK as mentioned? Vitamins can be got for 60 cent in aldi. Contacts are 13 a month, but a pair of glasses could be sixty quid, lasting a few years.

Ursus Horribilis

Have either you or your wife considered trying to find a new job. If one of you got a job nearer to home/ in the same direction as the other you could sell one of the cars.

Sound Bite

The main problem is the short term debt is crippling you. The rest of your monthly outgoings seem reasonable.

I would recommend mabs also. I know you are saying you want to get a mortgage but unless you get the short term debt under control you will struggle to save for a deposit to qualify for a mortgage anyway.

If any of your debt is with the same financial institution e.g. credit card and bank loan, the bank will look at restructuring it all into one loan. The interest of the credit card is probably double the interest rate on a loan so that is well worth doing. Meet with your bank and explain your situation and ask them to restructure the debt so its more manageable.

I would also look at if you really need two cars. They were be a huge saving if you could manage with just one. If you need 2, could you change them for a cheaper option or even change one.

Please reconsider talking to MABS

Fakediamond

As someone else said, pay highest interest loans first, as this is likely to be credit card, try and switch some of your debt repayment to this first and also consolidation loan for others, but read the small print first!

I hate to ask, but could you do some extra work? I know people who make good cash doing take-away deliveries, great tips!

Daintydoll1

You really need to consolidate all your debt into one loan.
If you are paying 1200pm, that's 14400 a year. If you get a personal loan of 32k with repayments of 1k pm, the loan will be cleared in c3 years vs the 6/7 years you are currently facing.
While you would only be freeing up 200 pm, there would be light at the end of the tunnel if you knew that debt would be cleared & you could start saving for a house in 2019.
Definitely consult MABS. Best of luck OP

Toots

The short term debt is really what's crippling you here. Are the 2 credit union loans with the same credit union? If so, would they be able to consolidate the two into one loan and maybe increase the term, which would hopefully lead to reduced repayments. If all the other debts are with separate institutions, it's unlikely you'll get one to agree to take on the debt of the others. Any that are with the same place, see can you restructure. Are the cars on HP or was it an actual loan?

You're right about the cars being a huge drain, the tax is very high and so is the insurance. If your job is too far away to cycle, and the bus is too expensive, would it be worth looking at something like a moped or motorbike? My brother in law recently sold his car and got a moped and he says he's really noticed a saving. It would also mean that your wife wouldn't be left without a car on the weekend if you were in work. If you sold one of the cars, you'd likely have enough to get a decent enough moped/bike, and pay down the balance on the loan.

With the prescription meds, have you looked into whether or not you'd be eligible for a medical card or a GP visit card? I know it's small amount in the grand scheme of things, but it could lighten the load a little bit every month. I was 'technically' a bit above the income threshold but because I've got a condition that requires prescription medication that costs just under €100 per month, I was able to get a medical card for myself, and my husband was given a GP visit card.

LegacyUser

You can't buy more than one month's worth of prescriptions at a time to bring your total to over 144e. So you are stuck with the 86e per month I'm afraid. Unless you qualify for a medical card. You might get a gp card pn your incomes as they take rent payments into consideration.

Club55

batmanrobin wrote: »

I find it helpful to get out my bank statement and go through everything and see where I can cut back.

If it's weekly, €300 seems excessive for food shopping for 2 adults and 2 children. 8 of us were fed on €100. You just have to buy the cheap stuff I'm afraid. Get the brand of whatever super market you shop e.g if dunnes, but their label. Buy fresher ingredients rather than packaged foods. My shopping was halved by doing this. You could save yourself nearly €200 by doing this.

See if you can work out a smaller repayment on your loan. That's the biggest killer for you it seems.

You might have to think about cutting back to one car. It doesn't sound like you can afford 2 right now.

It's €300 monthly for groceries not weekly. My wife does a great job of budgeting and making her own items from scratch etc.

XsApollo

Your outgoings are pretty similar to my own bar the debt, 2 adults 2 young kids.
The only thing that is a bit high is the ESB bill , ours is about 60 a month ,are you on level pay for gas and ESB?
We pay 55 a month for ESB and the same for Gas.
It's perfect
No surprise big bills in the winter.

Have ye both mobile phones?
What are the bills like on them?
Also do you use the brodband much or just for browsing?
Could you use your phones for that and lose the broadband?

The debt is the problem , your outgoings arn't excessive.

bp

Taking a pizza/ take away delivery at weekends is a good idea or getting a moterbike or moped. Definitely cheaper to run although you would need to invest in good gear.

Could you look at switching credit cards, there used to be 0% interest on transfers which would really helps as the card will cripple you.

As the others have said call mabs, that is what they are there for, and talk to CU etc about extending the term your loan to get the credit card paid off faster

kirving

The elephant in the room here is the short term debt. No matter how much you save on food and really try to cut down, its 1/3 of your total income, with it and rent taking up almost 2k. Your rent seems very reasonable though.

You can cut down on the small luxuries all you want and be miserable, but the savings made will pale in comparison to what you could do if you restructure your debts. I wouldn't worry about what this may do to your credit rating. Buying a house is a few years down the line at the minute anyway, because you'll first need to save for a deposit.


If you're determined to pay off the debt as it is - look at the car outgoings.

As another poster asked, what are the makes and models of both your cars? Do they make up a significant portion of that 32k? The reason I ask is because until I added up what my car was costing me, I didn't really appreciate it. By getting the bus you'll save tax, insurance, repayments, diesel, servicing, unexpected repairs.

I know you say you want to keep the car for emergencies, but you can use a taxi here. If it's a serious emergency like an injured child or your wife is worried about something at home, it's time for an ambulance or the Gards anyway. You can also get yourself insured for very little extra to be insured on any car fully comp. You could then look at borrowing a friends or family members car when you need it in the knowledge that you're fully covered.

Mooooo

OP gather everything together. All income outgoings etc. Go to a couple of banks not just the ones you are with and apply for a personal loan over a minimum of 5 years. This would close on half your repayment figures and allow you to have extra to spend in a month and/or save. You'll be clearing those obviously expensive debt issues. In terms of the future for a mortgage then you will be paying a manageable loan, rent and if ye can put a couple of hundred away as savings it will all look better to banks in the future. One of the biggest problema with debt is people try to pay it off too fast and then get caught with unrealistic and unmanageable repayments. The 1200 a month would clear a 100k loan over 10 years that's how rediculous the repayments levels are for your level of debt

Mooooo

OP gather everything together. All income outgoings etc. Go to a couple of banks not just the ones you are with and apply for a personal loan over a minimum of 5 years. This would close on half your repayment figures and allow you to have extra to spend in a month and/or save. You'll be clearing those obviously expensive debt issues. In terms of the future for a mortgage then you will be paying a manageable loan, rent and if ye can put a couple of hundred away as savings it will all look better to banks in the future. One of the biggest problema with debt is people try to pay it off too fast and then get caught with unrealistic and unmanageable repayments. The 1200 a month would clear a 100k loan over 10 years that's how rediculous the repayments levels are for your level of debt

silverbolt

i dont think anyones suggested it bu can you combine the broadband with sky. Sky hav excellent broadband if they operate in your area?

PokeHerKing

OP do not cut back on anything else. You're already living well within your means and it's currently no life at all. It's just survival and it's admirable.

As has been said, consolidate your debt and that will give you some breathing space. Get it paid off in 3-5 years and then look at a mortgage.

You won't be punished by a bank for this. You will just have a loan history that you've been paying off for 3-5 years.

intheclouds

Club55 wrote: »

Rent €700 - ok
Debt €1200 - the best way to manage debt is either to consolidate it or organise it so the highest interest debts get paid down first. Can you break this figure out by amount and interest rate?
Childcare €300 - this is great!
ESB €100 - seems about right
Gas €60 - seems about right
Car insurance x2 €125 - this seems high, 3k car insurance for both of you for a year? Surely you can bring this down?
Sky TV €28
TV license €13.33
Contact Lenses €12.75 - I buy prescription glasses from zenni optical online for under 20 euro delivered - ive had the same pairs for years.
Car Tax €70 - a month? This seems very high? Can you downgrade to smaller cars?
Bins €24
Broadband €45 - sky AND broadband for 28+45 a month? I just have broadband and I watch whatever I want online.
Prescription Meds (unavoidable) €86 - can doc prescribe generic versions of anything? Can longer prescriptions be used?
Vitamins €8 - cheaper in LIDL
Groceries €320
Nappies €40
Diesel €260
Christmas Club €20

It occurs to me you can definitely cheapen the car situation by either getting rid of one car and one of you using public transport or cycling to work (or a job change) or downgrading the cars.

Another obvious solution here is for one or both of you to get better paid jobs.

Another thing I would consider is stopping payment on some of the debt and allowing it to go to a debt collector and agreeing to settle for a figure lower than the amount owed.

Also contacting some of the debtors and asking them to stop fees and interest on the debt or else you will have to stop paying and do above.

I dont know the split on the combined take home - but considering there are childcare and travel costs - it might make more sense for one of you to not work and then mind children in your home for money and eliminate a childcare and travel bill at the same time?

Mooooo

intheclouds wrote: »

Club55 wrote: »

Rent 700 - ok
Debt 1200 - the best way to manage debt is either to consolidate it or organise it so the highest interest debts get paid down first. Can you break this figure out by amount and interest rate?
Childcare 300 - this is great!
ESB 100 - seems about right
Gas 60 - seems about right
Car insurance x2 125 - this seems high, 3k car insurance for both of you for a year? Surely you can bring this down?
Sky TV 28
TV license 13.33
Contact Lenses 12.75 - I buy prescription glasses from zenni optical online for under 20 euro delivered - ive had the same pairs for years.
Car Tax 70 - a month? This seems very high? Can you downgrade to smaller cars?
Bins 24
Broadband 45 - sky AND broadband for 28+45 a month? I just have broadband and I watch whatever I want online.
Prescription Meds (unavoidable) 86 - can doc prescribe generic versions of anything? Can longer prescriptions be used?
Vitamins 8 - cheaper in LIDL
Groceries 320
Nappies 40
Diesel 260
Christmas Club 20

It occurs to me you can definitely cheapen the car situation by either getting rid of one car and one of you using public transport or cycling to work (or a job change) or downgrading the cars.

Another obvious solution here is for one or both of you to get better paid jobs.

Another thing I would consider is stopping payment on some of the debt and allowing it to go to a debt collector and agreeing to settle for a figure lower than the amount owed.

Also contacting some of the debtors and asking them to stop fees and interest on the debt or else you will have to stop paying and do above.

I dont know the split on the combined take home - but considering there are childcare and travel costs - it might make more sense for one of you to not work and then mind children in your home for money and eliminate a childcare and travel bill at the same time?

Stopping payment on the debt is badly advised if the op wants to attempt to buy a home in the future. Credit rating etc all effected as well as the fact if it's restructured it is affordable for the op.

intheclouds

Mooooo wrote: »

Stopping payment on the debt is badly advised if the op wants to attempt to buy a home in the future. Credit rating etc all effected as well as the fact if it's restructured it is affordable for the op.

Sure - dont disagree at all - we all have to make decisions and live with the consequences.

Club55

For the type of debt this is what we are looking at

Please no comments about how we shouldn't have gotten into this situation as we are already well aware of that. A lot of these are loans that we had before we met, and when you put them all on paper its scary, our main focus is trying to clear them and most importantly not get into any other debt

BOI Loan balance €1,319 - Repayment €85 per month
Credit union Me balance (stupid as a teen) €7,000 - Repayments €175 per month
Credit union Wife (college debt) balance €5,150 - Repayments €240 per month
Credit union Joint balance €3,193 - Repayments €120 per month
Debt Collector(debt thats over 10 years old, they have settled on €50 pm) €5,120
Loan for a car €8,886 -€228 per month-Can't sell the car have tried! 2011 mondeo
Credit card debt (historic) €948 - Repayments €119 per month
Current credit card €500 - Repayments €50 per month - never reduces balance due to interest
Family loan repayment €100 per month

Seems like an awful lot, bank loan and credit union loan taken out due to emergencies and poor health situations with up to 8 weeks in hospital with no pay so they were unavoidable

Car loan was a huge hit to us a few years back but we literally had no car as our older car blew the engine, i couldnt get to work and we couldnt gather a few thousand together to buy something so we went down finance route

I can't imagine that any bank in their right minds would give us a consolidation loan?

ted1

What's the debt collector one ? Was it a debt that was sold ? That could be one that you could ignore or settle for a much lower sum.

The J Stands for Jay

Phone up each of the companies you have debt with and ask if they can reduce the interest rates. I've done it myself in the past and it had no effect on my ability to get a mortgage.

Look into cancelling the sky TV subscription but keeping the box for all the free channels (most of what's on sky is available FTA anyway).

SarahMollie

Can you consolidate all the credit union debt and seek a better rate?

Also, prioritize getting rid of the credit card debt. Even though there isnt much of it, paying interest only is very expensive and gets you nowhere.

Would the family give you a break on your repayments until you have the credit cards cleared at least.

As for who will work with you - you just need to get an appointment with MABS asap. Theres just too many types of debt there to deal with on your own and it seems like you're inspiring.

SarahMollie

Club55 wrote: »

Seems like an awful lot, bank loan and credit union loan taken out due to emergencies and poor health situations with up to 8 weeks in hospital with no pay so they were unavoidable

Also, if something like this were to happen again, you should really seek a meeting with the community welfare officer (if thats what they're called) as there are likely some social welfare payments that could be appropriate in a case like this, instead of going straight to the banks.

Mooooo

Club55 wrote: »

For the type of debt this is what we are looking at

Please no comments about how we shouldn't have gotten into this situation as we are already well aware of that. A lot of these are loans that we had before we met, and when you put them all on paper its scary, our main focus is trying to clear them and most importantly not get into any other debt

BOI Loan balance 1,319 - Repayment 85 per month
Credit union Me balance (stupid as a teen) 7,000 - Repayments 175 per month
Credit union Wife (college debt) balance 5,150 - Repayments 240 per month
Credit union Joint balance 3,193 - Repayments 120 per month
Debt Collector(debt thats over 10 years old, they have settled on 50 pm) 5,120
Loan for a car 8,886 - 228 per month-Can't sell the car have tried! 2011 mondeo
Credit card debt (historic) 948 - Repayments 119 per month
Current credit card 500 - Repayments 50 per month - never reduces balance due to interest
Family loan repayment 100 per month

Seems like an awful lot, bank loan and credit union loan taken out due to emergencies and poor health situations with up to 8 weeks in hospital with no pay so they were unavoidable

Car loan was a huge hit to us a few years back but we literally had no car as our older car blew the engine, i couldnt get to work and we couldnt gather a few thousand together to buy something so we went down finance route

I can't imagine that any bank in their right minds would give us a consolidation loan?

The main thing banks will look at is repayment capacity. You are looking for 32k over 5 years. You are currently meeting those debts which have a repayment capacity of twice what you are looking for so I don't see why not. You will be paying back less than what you are now and less overall as there will be interest savings on credit card and possibly even credit union. If you wish perhaps ask someone you know/trust to give a hand putting everything together. Be confident going in to the bank don't go in saying your in trouble just say you are wishing to make things better from a cash flow point of view. If ye are secure in your jobs they should deal with you. If you don't try you'll never know

Club55

Thanks for your advice so far everyone, some points that I will be looking into for sure, every cent counts at this stage so every saving is a huge deal for us

It's just so frustrating as we are not entitled to rent allowance/council house as we are earning too much (€32k & 20k) but they don't take any outgoings into consideration

I am praying I get made redundant at work which would make me approx 20k which would clear an awful lot of debt, then hopefully i could pick up something locally and cut out one car (hopefully sell our cheaper car which would help clear another thing)... but this may never happen.

I am currently due a payrise and have been doing a job above my paygrade for 2 years now, they keep promising the payrise will come every quarter but I am starting to think it will never come now at this stage. I know the obvious answer would be to leave but then I lose the possibility of getting made redundant with 6 years service - Company is currently restructuring which is why I am holding out for redundancy