EBS Pre-Arrears Case

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oceallachain

Registered User
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18
Income details

Net monthly (i.e. after tax) Income self: E2,800
Nature of income e.g. public servant shift worker so depending on roster could earn E200 more a month
Income history: e.g. In current role since 2006
Net monthly income partner/spouse: E0; not entitled to social welfare as I'm working
Income history: Qualified chef; currently caring for our children
Amount of child benefit received (Should be €130 per child): E260
Amount of Mortgage Interest Supplement received (MIS is the social welfare payment to unemployed people, don't confuse with TRS): E0

Personal circumstances so we can calculate your reasonable living expenses

One adult family or two adult family: 2 adults
Do you need a car for work or do you use public transport? Car, we live in a very rural area at least 15km from any supermarket. Realistically we need two cars
Number of children 0- 2 years old: One (will be three in Feb 2015)
Number of 3 years old children: One (will be four in Aug 2014)
Monthly childcare costs: E0, as wife is not working
Monthly spend on special circumstances: Non really thank god, just prescription medication


Home loan

Lender: EBS
Amount outstanding: E268,000
Value of home: E175,000
Interest rate: variable 4.58%
Monthly repayment: E1,163 (this includes TRS reduction)
Amount in arrears E0, we've worked so hard on this. Maybe we've worked too hard. We've brought so much pressure on ourselves its at braking point.

Summary of discussions and agreements with the bank None so far, considering approaching IMHO now. I'm posting here to see if theres any point.

Credit Union
Amount of shares E7000, save E80 per week for contingencies as we no longer have health insurance
Amount of loan outstanding E0


Do you expect any lump sums in the medium term future?
No


How important is retaining the family home to you?

I really want to keep the family home even if it means having a large mortgage and negative equity for years to come.


Any other relevant information

What is your preferred realistic outcome?
Split mortgage for a few years whilst kids are young would be ideal. We've sacrificed a lot. Got rid of all pay TV, got rid of health insurance which upset us, changed utility providers a ton of times.

We've literally been living off of E100 per week on food and day to day expenses. I don't think it's feasible anymore.
 
Do you have other expenditure per month? Adding up your mortgage, savings and weekly shopping/living spend outlined here you have quite a lot of extra money at the end of the month.
 
idkwatmi said:
Do you have other expenditure per month? Adding up your mortgage, savings and weekly shopping/living spend outlined here you have quite a lot of extra money at the end of the month.
Click to expand...

I get to take home E677 as E23 is taken from salary to pay union, life insurance, illness insurance and such. Of the E677, E290 covers the mortgage which leaves E387, Food is E100 like I said which leaves E287. I spend about E80 on diesel for the car which leaves E207. Electric and heating come to about E50 spread over the year which leaves E157. I save E80 per week which I also stated which leaves E77. The rest goes into a budget account which pays for car (insurance and tax) for my wife and I, house insurance, mortgage life cover, mobile phone bills etc.

Thanks for your reply.
 
I've just seen the ISI's living expenses guide online and it looks as if I'm doing okay!! I better shut up complaining!!!

My reasonable living expenses are E1407.50 + E242.26 + E66.27 = E1716.03
Adding this to my mortgage gives E1716.03 + E1163 = E2879.03

Looks like I'm on the borderline of sorts. I presume the banks don't increase the level living expenses under any circumstances!?!
 
It is okay to feel under pressure but it is also good to give yourself perspective, sometimes that helps with the pressure :)
I am not a massive fan of shirking savings but in this case I think you need to reduce your weekly savings amount. You are putting yourself under strain to put away €80 per week, does this include money into your budget account or is it totally separate (I think you have said it is totally separate but just to check)? If it is totally separate it is a an expense and you need to treat it as such. You have a cushion built up. It is a little more than two months of your household income so while it is not massive it is there. You have the capacity to give yourself a break - I think you need to do so. You could increase your weekly food/living budget by €50 and still save €30.
Alternatively, decide that the €7k is your rainy day fund. Park it and start a new savings marked "holiday" and start putting the €30 into that - then use it.
 
Thanks so crates for the advice above.

I've read online that EBS have increased reasonable living expenses to 20-25% over and above that of ISI's. If this is true I'm certainly living a few hundred euro below their guidelines. Also when my daughter turns four in a few months ill be even more below the guidelines to the tune of 300 euro. Could anything be done for me?

I've struggled to pay this mortgage, as I should do. We've gone without, as we should do.
 
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