Hi All,
firstly, thanks for taking the time to read this, hopefully you will be able to offer me some valuable advice
Im 22, Female, living with my partner of 3 years. About 3 years ago I stupidly made the mistake of taking out a loan through Finance without considering the repercussions. It was a spur of the moment decision to buy a new car from a dealership (that saw me coming a mile away and completely overpriced the car). At the time, I had a minor loan for my original car (which i traded in as part payment for the new car). This loan had approximately 1 year remaining on it and was variable. Not much, at most about 1200 euros remaining at the time. The Finance loan was originally for 8250 euros (or so I thought - completely forgot about interest). It actually works out at around 11,500 euros by the end of it with interest, maybe more.
While on a gross salary of 18,000 P/A I had 2 loans in place - 239.80 per month for the new car loan, and 38.00 per week for the existing (1 year left). I had to move out of home at 18 on account of having a very large family as space was very limited, so I was also paying rent of 350 per month as well as bills, Insurance, etc. To top it off, I had a credit card maxed out by living beyond my means also - at 3000 euros. I have not nor will I ever ask my parents for money, I got myself into this mess and I will drag myself out of it. It was tough enough for them to raise 7 children.
So! I got an extra part time evening job waitressing, and used that money to clear the variable loan by August of that year, 6 months after I got the new car. Having that much less to pay was a big relief for me as I had a little extra each week, and working so much meant I had little time to spend.
3 years on, my debt has dramatically reduced. I finally feel (expecially after reading other posts) that I am on the right track to being debt free in 2010. So here's the status of things now;
Total debt as of right now: €6457.20
Monthly Income: 1902.33 (after tax - i.e. what goes into my bank acc)
(Occasional 70 euros from Part time job but as I work shifts I cannot be guaranteed this every week - I fit it in where I can)
Expenditures:
Rent: €225 Per Month (we negotiated with our landlord and have a 3rd tenant)
Car Loan: €239.80 Per Month (fixed)
Health Insurance: €55.00 Per Month (I'm not covered under my parents)
Pet Insurance (2 dogs): €22.00 Per Month
Sky Digital: €18 per Month
Household Bills are approx €60 per month at this time of year (Gas and Electricity)
Other car expenses (Petrol, tax, etc.) are approx €120.00 per month
Food bill is approx 50 euros per week each.
Savings: €100.00 per week by standing order to the Credit Union - only a recent move - currently has about 600 euros in it. The plan is to wait until it is large enough to wipe out the CC debt, and keep going that way as it builds. christmas this year is sorted, no further expense.
I feel as if I have cut back in a lot of places - I quit smoking (saving approx 20 a week), I dont drink often at all and am a bit of a homebird - thats where Sky Digital comes in - Id much rather watch a film with my partner than go out on the town. On the occasions that warrant a night out, i.e. a friends birthday, I usually drive to avoid spending money. We used to pay 325 euros each on rent, but I negotiated the landlord down in cost which he was happy to do as we are good tenants.
I have 2 pedigree dogs that were gifts whom I ADORE, so cutting out the insurance is not an option - it covers all vet fees so I never have to worry about an unexpected vet bill. I also buy their food in bulk and 3 months worth of pet food comes to less than 50 euros, which my partner and I buy together. At the moment, I have enough food for another 2 months. They are like babies to me and whatever they need they will get. I also have a fantastic vet who adores them (I think he has hopes to get a pup for his family) and he really does take care of us.
I myself was in a car accident last year (someone ran me off the road) and suffered severe back and neck injuries - all of which I had to pay out of pocket for as at the time I had no health insurance, wasnt covered on my parents insurance and for some reason didnt qualify for a medical card. I placed a lot of my medical expenses on my Credit Card, which at one stage was over 4,000 euros. I am proud to have gotten that down to 2,200 currently and still going. As of yet, I have not received my expenses back from the insurance company - once that comes, it will go towards clearing any remaining debt. It seems to be taking forever though!
I should also point out, any remaining monies at the end of the week automatically goes towards my credit card at the moment, or on to the ESB bill which I have added to my online banking (the last one was quite high so Im trying to plan ahead).
I do know that my case is nothing compared to what others are facing and I appreciate that. I have payment protection on my car payment in the event I loose my job and that eases my worry - my job isnt looking 100% certain at the moment (as is the same for almost everyone else in the country).
If anyone can give me some further advice I would really appreciate it. Am I on the right track or have I disillusioned myself?
firstly, thanks for taking the time to read this, hopefully you will be able to offer me some valuable advice
Im 22, Female, living with my partner of 3 years. About 3 years ago I stupidly made the mistake of taking out a loan through Finance without considering the repercussions. It was a spur of the moment decision to buy a new car from a dealership (that saw me coming a mile away and completely overpriced the car). At the time, I had a minor loan for my original car (which i traded in as part payment for the new car). This loan had approximately 1 year remaining on it and was variable. Not much, at most about 1200 euros remaining at the time. The Finance loan was originally for 8250 euros (or so I thought - completely forgot about interest). It actually works out at around 11,500 euros by the end of it with interest, maybe more.
While on a gross salary of 18,000 P/A I had 2 loans in place - 239.80 per month for the new car loan, and 38.00 per week for the existing (1 year left). I had to move out of home at 18 on account of having a very large family as space was very limited, so I was also paying rent of 350 per month as well as bills, Insurance, etc. To top it off, I had a credit card maxed out by living beyond my means also - at 3000 euros. I have not nor will I ever ask my parents for money, I got myself into this mess and I will drag myself out of it. It was tough enough for them to raise 7 children.
So! I got an extra part time evening job waitressing, and used that money to clear the variable loan by August of that year, 6 months after I got the new car. Having that much less to pay was a big relief for me as I had a little extra each week, and working so much meant I had little time to spend.
3 years on, my debt has dramatically reduced. I finally feel (expecially after reading other posts) that I am on the right track to being debt free in 2010. So here's the status of things now;
Total debt as of right now: €6457.20
Monthly Income: 1902.33 (after tax - i.e. what goes into my bank acc)
(Occasional 70 euros from Part time job but as I work shifts I cannot be guaranteed this every week - I fit it in where I can)
Expenditures:
Rent: €225 Per Month (we negotiated with our landlord and have a 3rd tenant)
Car Loan: €239.80 Per Month (fixed)
Health Insurance: €55.00 Per Month (I'm not covered under my parents)
Pet Insurance (2 dogs): €22.00 Per Month
Sky Digital: €18 per Month
Household Bills are approx €60 per month at this time of year (Gas and Electricity)
Other car expenses (Petrol, tax, etc.) are approx €120.00 per month
Food bill is approx 50 euros per week each.
Savings: €100.00 per week by standing order to the Credit Union - only a recent move - currently has about 600 euros in it. The plan is to wait until it is large enough to wipe out the CC debt, and keep going that way as it builds. christmas this year is sorted, no further expense.
I feel as if I have cut back in a lot of places - I quit smoking (saving approx 20 a week), I dont drink often at all and am a bit of a homebird - thats where Sky Digital comes in - Id much rather watch a film with my partner than go out on the town. On the occasions that warrant a night out, i.e. a friends birthday, I usually drive to avoid spending money. We used to pay 325 euros each on rent, but I negotiated the landlord down in cost which he was happy to do as we are good tenants.
I have 2 pedigree dogs that were gifts whom I ADORE, so cutting out the insurance is not an option - it covers all vet fees so I never have to worry about an unexpected vet bill. I also buy their food in bulk and 3 months worth of pet food comes to less than 50 euros, which my partner and I buy together. At the moment, I have enough food for another 2 months. They are like babies to me and whatever they need they will get. I also have a fantastic vet who adores them (I think he has hopes to get a pup for his family) and he really does take care of us.
I myself was in a car accident last year (someone ran me off the road) and suffered severe back and neck injuries - all of which I had to pay out of pocket for as at the time I had no health insurance, wasnt covered on my parents insurance and for some reason didnt qualify for a medical card. I placed a lot of my medical expenses on my Credit Card, which at one stage was over 4,000 euros. I am proud to have gotten that down to 2,200 currently and still going. As of yet, I have not received my expenses back from the insurance company - once that comes, it will go towards clearing any remaining debt. It seems to be taking forever though!
I should also point out, any remaining monies at the end of the week automatically goes towards my credit card at the moment, or on to the ESB bill which I have added to my online banking (the last one was quite high so Im trying to plan ahead).
I do know that my case is nothing compared to what others are facing and I appreciate that. I have payment protection on my car payment in the event I loose my job and that eases my worry - my job isnt looking 100% certain at the moment (as is the same for almost everyone else in the country).
If anyone can give me some further advice I would really appreciate it. Am I on the right track or have I disillusioned myself?