Hi, i posted a post ytesterday on whether i should plough every € into clearing ALL my debt before going in to apply for a mortgage (currently on rent to buy, lease ends end of January 2012 - however, some people on the development have been denied mortgages and deal has been struck with developer to extend lease period by 6 months initially which could help).
Once my CC debt is cleared (this was originally for paying off some tuition fees overseas which had to be paid upfront, I didn't finish the course and they won't return money - I don't want to try anymore as it was during a very bad time in life and i really don't want to revisit), which all going well i hope to be by August time, I intend to plough every € into my car loan, so could potentially be paying a minimum of €1600 per month instead of €500. All going well, this could be cleared by September next year. But should i be saving instead? (All CCs are now cut up so i can't spend on them, except for one whch is for emergency use only now)
I give myself about €400 per month to live on. The day after payday I transfer €x into my DD account. This covers rent, insurance, VHI, bills etc. I have also included car servicing, tax, heating for the year (I pay €80 per month in electric to avoid big bills in winter).
I think i have started being very sensible in relation to money, and believe I have come about it logiccally, but any comments so far? Thanks in advance....
Age: 28
Spouse’s/Partner's age: N/A
Annual gross income from employment or profession: 68,000 + Expenses + Bonus (typically 5 weeks salary)
Annual gross income of spouse: N/A
Type of employment: e.g. Civil Servant, self-employed Private Sector - Insurance Industry, they are in a very strong financial position (rated very highly by Fitch rating)
In general are you: Currently diverting all savings to pay off debts due to higher interest rates, but not living beyond means
(a) spending more than you earn, or
(b) saving?
Rough estimate of value of home €300,000 (although on RTB scheme so this is the intended purchase price). Currently paying €1000 'rent' of which 50% is returned to me if i purchase this home.
Amount outstanding on your mortgage:
What interest rate are you paying?
Other borrowings – car loans/personal loans etc
Car Loan - €23,000 / €513 per month (originally €24,000 taken out last year, then topped up by €4,000 to move into home and purchase kitchen appliances etc)
Next Furniture - €1.600 paying €82 per month over 2 years on 0% interest
Do you pay off your full credit card balance each month? No
If not, what is the balance on your credit card?
MBNA - €2,300 (DD set up for €300 per month, plus i put money from expenses into it, as well as €600 savings every month. This should be cleared in the next 2 months)
AIB Credit Card - €4,900 This was a transfer from the MBNA when the promotional rate ran out - 3.9% for 12 months. I currently pay €250 per month off but when MBNA is cleared i will divert all the money i had been paying into clearing this off
Savings and investments: No savings, used as deposit on RTB scheme, helped out my parents a little bit buying oil etc in the winter, using what i used to save - €600, to clear debts off
Do you have a pension scheme? Yes - company contribute 8%, i contribute 7%, around €380 (I am hoping to continue maxing out my pension throughout my employment, making full use of relief available). I did think about dropping my contribution to 0 and then making ACV into it once debt is cleared, but if i don't see the money i can't spend it.
Do you own any investment or other property? No
Ages of children: N/A
Life insurance: Work policy - 5x salary tax free upon death. They will also pension me off for medical reasons on 66% of salary if i am off sick for a certain period of time. I think this is sufficient for now, until i actually have a mortgage.
What specific question do you have or what issues are of concern to you?
Once my CC debt is cleared (this was originally for paying off some tuition fees overseas which had to be paid upfront, I didn't finish the course and they won't return money - I don't want to try anymore as it was during a very bad time in life and i really don't want to revisit), which all going well i hope to be by August time, I intend to plough every € into my car loan, so could potentially be paying a minimum of €1600 per month instead of €500. All going well, this could be cleared by September next year. But should i be saving instead? (All CCs are now cut up so i can't spend on them, except for one whch is for emergency use only now)
I give myself about €400 per month to live on. The day after payday I transfer €x into my DD account. This covers rent, insurance, VHI, bills etc. I have also included car servicing, tax, heating for the year (I pay €80 per month in electric to avoid big bills in winter).
I think i have started being very sensible in relation to money, and believe I have come about it logiccally, but any comments so far? Thanks in advance....
Age: 28
Spouse’s/Partner's age: N/A
Annual gross income from employment or profession: 68,000 + Expenses + Bonus (typically 5 weeks salary)
Annual gross income of spouse: N/A
Type of employment: e.g. Civil Servant, self-employed Private Sector - Insurance Industry, they are in a very strong financial position (rated very highly by Fitch rating)
In general are you: Currently diverting all savings to pay off debts due to higher interest rates, but not living beyond means
(a) spending more than you earn, or
(b) saving?
Rough estimate of value of home €300,000 (although on RTB scheme so this is the intended purchase price). Currently paying €1000 'rent' of which 50% is returned to me if i purchase this home.
Amount outstanding on your mortgage:
What interest rate are you paying?
Other borrowings – car loans/personal loans etc
Car Loan - €23,000 / €513 per month (originally €24,000 taken out last year, then topped up by €4,000 to move into home and purchase kitchen appliances etc)
Next Furniture - €1.600 paying €82 per month over 2 years on 0% interest
Do you pay off your full credit card balance each month? No
If not, what is the balance on your credit card?
MBNA - €2,300 (DD set up for €300 per month, plus i put money from expenses into it, as well as €600 savings every month. This should be cleared in the next 2 months)
AIB Credit Card - €4,900 This was a transfer from the MBNA when the promotional rate ran out - 3.9% for 12 months. I currently pay €250 per month off but when MBNA is cleared i will divert all the money i had been paying into clearing this off
Savings and investments: No savings, used as deposit on RTB scheme, helped out my parents a little bit buying oil etc in the winter, using what i used to save - €600, to clear debts off
Do you have a pension scheme? Yes - company contribute 8%, i contribute 7%, around €380 (I am hoping to continue maxing out my pension throughout my employment, making full use of relief available). I did think about dropping my contribution to 0 and then making ACV into it once debt is cleared, but if i don't see the money i can't spend it.
Do you own any investment or other property? No
Ages of children: N/A
Life insurance: Work policy - 5x salary tax free upon death. They will also pension me off for medical reasons on 66% of salary if i am off sick for a certain period of time. I think this is sufficient for now, until i actually have a mortgage.
What specific question do you have or what issues are of concern to you?