22 and a 2nd year college student in dire financial straights!!!

D

dieselhead

Registered User
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Hi everyone,

I am a college student in desperate need of some advice, I am in alot of debt, €10,000+ is the figure. I have an AIB student loan for a car from 3 years ago which is 130pm, insurance is €67pm, CREDIT UNION student loan €136pm which I am 2 payments behind, overdraft of €650 and my credit card has just been maxed out at €350.

I do not have a job and my savings have ran out, and am still unaware if I will get the student grant. i have handed out 30+ CVs in the last month to no avail, I really am on my last gasp.

I know consolidating them would be good but like will the bank give me a larger loan even tho I still owe them €5,500??? and even if they did I still would not be able to pay them back. I was considering selling my car but the NCT is out and it needs some work done to pass but the car is'nt worth the remaining balance on the loan because last year when I lost my job I ''topped up'' my loan back up to the €6000 I had originally borrowed because I needed money to pay for my insurance, college fees etc.

My parents are not in a position to help me, my father is pretty much bankrupt and my mother is trying to keep her business afloat.

I am 22 and a 2nd year college student and as far as I know I do not qualify for any help from the social welfare.

If anyone can help I would greatly appreciate it because my head is in ribbons and I have no idea what to do or where to go from here.

Thank You
 
Sorry I can't really help you, only to say that you should maybe contact MABS.

You seem to be living beyond your means. Stop taking out loans until you get a job.

Did you get out of the pub business?
 
What part of the country are you in? I have a niece going into 2nd year in UCD. She worked practically full time hours last year as a sales assistant in a shop in the Dundeum centre got all summer work and she is going to do 20 hours per week this coming year - her choice. She brought home a list of jobs at the centre last week for a friend and there were 4 pages of jobs listed for various jobs in the centre.
Do you need the car or do you want it? It is costing you too much. It is illegal to drive it if you don't have a current NCT on it.

I would approach the credit union about consolidating. Also mabs and start a spending diary.
 
I'm 39 so not exactly ancient (no jokes), but honestly, when I was in college, I didn't know a single person with a car. Is it really a requirement?
 
Im in Athlone IT and yes I need the car as I commute 50mins to college everyday. I have considered selling it and buying something cheaper but its a good reliable car that is very economical but the thing is that even I were to sell it it would cost bout 300+ to get it ready for the NCT and since the recession the value has plummeted to less than half what I paid for it so I wouldnt get enough to pay off the car loan.

Billo yes I got out of the pub last winter was soo bad I had to cut my losses.
 
We reckon you have two priorities :

1. Reduce spending
2. Increase income

Consolidation sounds great , but is not an option - well we don't know of any financial institution that will take on anothers loans .

If it is suggested that you move your credit card loan/ freeze interest to an interest free credit provider , then best of luck , because we have asked our CC company to freeze interest , but they are not forthcoming

Banks are becoming less and less co-operative and are not willing to provide credit , no matter what the circumstances .

This leaves you with 2 options :
1. Reduce spending
2. Increase income
 
Firstly, have a look on [broken link removed] to see if there is anything suitable for you.

Secondly, don't panic. You will be working for the rest of your life so you will be able to pay off the debt. One day it will all be paid off. Your priority now is to prevent the debt getting any bigger, and to slowly chip away at it.

Have you cut out all discretionary expenditure completely, e.g. have you given up alcohol and junk food?
 
I would still consider selling the car and getting something cheaper and paying off a chunk of the car loan with the difference this should help bring down your monthly repayments. Contact the credit union/bank and tell them you want to pay it over the same time frame but with less per month after you pay the lump sum.

That should give you some breathing space while you try to get a job. If you continue to live beyond your means your debts will only mount up so I would advise you to take action now before your credit rating is affected for the future... missing payments is not good news
 
dieselhead said:
Im in Athlone IT and yes I need the car as I commute 50mins to college everyday. I have considered selling it and buying something cheaper but its a good reliable car that is very economical but the thing is that even I were to sell it it would cost bout 300+ to get it ready for the NCT and since the recession the value has plummeted to less than half what I paid for it so I wouldnt get enough to pay off the car loan.

Billo yes I got out of the pub last winter was soo bad I had to cut my losses.
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How about selling the car and living in Athlone? Worth getting the NCT done.
 
dieselhead said:
Im in Athlone IT and yes I need the car as I commute 50mins to college everyday. I have considered selling it and buying something cheaper but its a good reliable car that is very economical but the thing is that even I were to sell it it would cost bout 300+ to get it ready for the NCT and since the recession the value has plummeted to less than half what I paid for it so I wouldnt get enough to pay off the car loan.

Billo yes I got out of the pub last winter was soo bad I had to cut my losses.
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When I first went to college, 50mins from where I used to live, I used to get a bus or 'thumb' into college. I had no car. In fact no 17-25year olds had no cars then too & it was not unusal to see people hitching in & out of college. 'Ditch the car & hitch to college'. My view anyway!
 
Tough. He owes money and he has no income so something has to give.

Of course people now will say he has a right to a third level education regardless. Sorry but I disagree.
 
Pope John 11 said:
'Ditch the car & hitch to college'. My view anyway!
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Who even hitches anymore?? How is that safe??
And I think advice to drop out of college is misguided since the college education will surely benefit the OP's chances of earning in the future.
 
fizzelina said:
Who even hitches anymore?? How is that safe??
And I think advice to drop out of college is misguided since the college education will surely benefit the OP's chances of earning in the future.
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The OP has four options:


1. If you get the student grant use this, to pay off the loan. If you are in 2nd year in college, did you get the grant last year?

2. Get part-time work outside of college hours & agree a monthly sum to pay off the loan with the bank.

3. Get rid of the car to at least pay off half the loan & agree with the bank that the rest will be paid in the summer of 2011, when you can get some fulltime work.

4. Defer college for a year & look for a full time job to pay off the loan.

At the moment, the OP cannot get parttime work, hence why I chose option 2. Whoever said it was safe anyway for 17-23 or 24 year olds to drive a car. The OP could check if a bus or a neighbour is going to Athlone, hitching a lift as a last resort.

The OP bought the car when he/she was only 19, to me that is considered a luxury item at that age.
 
OP needs to put a sign up in college looking for someone to get lifts off weekly to and from college where possible. There is bound to be another person in the college who travels there daily from the same area as the OP. She could throw them 10-20 quid a week towards petrol, get her backside to college and home safely and also sell her own car to clear the debt.
 
dmos87 said:
OP needs to put a sign up in college looking for someone to get lifts off weekly to and from college where possible. There is bound to be another person in the college who travels there daily from the same area as the OP. She could throw them 10-20 quid a week towards petrol, get her backside to college and home safely and also sell her own car to clear the debt.
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Exactly what the OP needs to hear, but does not want to hear.

Unfortunately everyone in Ireland, from the age of 17 upwards now think its their devine right to have a car. You see it in the schools nowdays, something I used to dream about, as I watched Ferris Buellers Day Off.
 
I know plenty of people that did this in college and I did also with 2 friends. Its not abnormal. OP wants her cake and to eat it too i.e. be debt-free but driving a car with no job. It clearly doesn't work.

She needs to do what she can now to get rid of her mounting debt to have a good chance later in life. It will be a good lesson for her, as I myself know from personal experience.
 
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