S
Stormy beach
Guest
DETAILS
Age: 45
Spouse’s/Partner's age: Separated
INCOME
Annual gross income from employment or profession: €90,000 pa,
Monthly net income: €5200
Annual gross income spouse: N/A
Type of employment: 3rd level lecturer
Expenditure pattern: In general are you spending more than you earn or are you saving? Struggling!
DEBTS
Rough estimate of value of home: €800,000
Mortgage on home €180,000
Mortgage provider: Permanent TSB
Type of mortgage: Tracker
Interest rate 5%
Other borrowings – car loans/personal loans etc
Credit Union Loan: 25000
Term Loan BOI: 15,000
Term loan GE Money 4000
Do you pay off your full credit card balance each month? Yes, just about!
If not, what is the balance on your credit card?
Ulster Bank: 14,000
MBNA: 20,000
Permanent TSB: 4000
AIB 4000
MONTHLY EXPENDITURE
Mortgage: 1400
Credit Union: 500
BOI term loan: 350
GE Money term loan 200
Credit card minimum payments: 1000
Total: €3450
Savings and investments: None
Do you have a pension scheme? Yes, defined benefit – final salary scheme
Do you own any investment or other property? No
Ages of children: 23
Life insurance: Convertible term policy, ~ €300,000 assured, premium €95 pm
What specific question do you have or what issues are of concern to you? Until a few years ago I was in a very comfortable financial situation. My wife and I both had good incomes, we owned our home outright, had no debts and had savings and investments set aside over the years. In rapid succession I separated from my wife and suffered a long term physical illness and severe mental stress/breakdown. At the time I opted to raise a modest mortgage to buy out her share of the house and left the investment portfolio with her. I was comfortably able to service the mortgage until I became ill, ultimately going on to half pay and then disability benefit for about a year. During this time I ran up huge debts, about 44k in loans and 42k on credit cards. I had no difficulty in getting the money as I had a good employment and good financial history over the years. However that has now changed. I simply couldn’t face up to my problems and just took out one loan after another to keep going. Eventually I fell into arrears and started missing the monthly payments. I just ignored the flood of warning letters and eventually just stopped opening the familiar envelopes.
Fortunately I am now back at work and back in control again. I am making the minimum payments to all lenders and have staved off threats of court action. But these repayments amount to over two thirds of my net income and the interest rates are huge. I am left with about 1700 per month out of which I pay household bills and run a car.
I would like to consolidate my short term debt by getting a top-up mortgage or remortgage. Repayments on 86000 at mortgage rates would come to about 550 pm. This would bring my total repayments to under 2000 leaving me with a comfortable 3200 pm clear. However, my credit rating is now appalling and shows a history of missed payments and so on. Permanent TSB have refused to top up my mortgage and BOI and Ulster Bank have refused me term loans to clear the credit card debt.
It looks like they are happy as long as the credit card debt is being serviced at exorbitant interest rates! I don’t expect people to feel sorry for me, I’m a grown adult who got myself into this mess but I would be very grateful for any advice or thoughts as to where to go from here. Should I approach other lenders? Mortgage brokers? Sub-prime lenders?? Many thanks for reading this far!
Age: 45
Spouse’s/Partner's age: Separated
INCOME
Annual gross income from employment or profession: €90,000 pa,
Monthly net income: €5200
Annual gross income spouse: N/A
Type of employment: 3rd level lecturer
Expenditure pattern: In general are you spending more than you earn or are you saving? Struggling!
DEBTS
Rough estimate of value of home: €800,000
Mortgage on home €180,000
Mortgage provider: Permanent TSB
Type of mortgage: Tracker
Interest rate 5%
Other borrowings – car loans/personal loans etc
Credit Union Loan: 25000
Term Loan BOI: 15,000
Term loan GE Money 4000
Do you pay off your full credit card balance each month? Yes, just about!
If not, what is the balance on your credit card?
Ulster Bank: 14,000
MBNA: 20,000
Permanent TSB: 4000
AIB 4000
MONTHLY EXPENDITURE
Mortgage: 1400
Credit Union: 500
BOI term loan: 350
GE Money term loan 200
Credit card minimum payments: 1000
Total: €3450
Savings and investments: None
Do you have a pension scheme? Yes, defined benefit – final salary scheme
Do you own any investment or other property? No
Ages of children: 23
Life insurance: Convertible term policy, ~ €300,000 assured, premium €95 pm
What specific question do you have or what issues are of concern to you? Until a few years ago I was in a very comfortable financial situation. My wife and I both had good incomes, we owned our home outright, had no debts and had savings and investments set aside over the years. In rapid succession I separated from my wife and suffered a long term physical illness and severe mental stress/breakdown. At the time I opted to raise a modest mortgage to buy out her share of the house and left the investment portfolio with her. I was comfortably able to service the mortgage until I became ill, ultimately going on to half pay and then disability benefit for about a year. During this time I ran up huge debts, about 44k in loans and 42k on credit cards. I had no difficulty in getting the money as I had a good employment and good financial history over the years. However that has now changed. I simply couldn’t face up to my problems and just took out one loan after another to keep going. Eventually I fell into arrears and started missing the monthly payments. I just ignored the flood of warning letters and eventually just stopped opening the familiar envelopes.
Fortunately I am now back at work and back in control again. I am making the minimum payments to all lenders and have staved off threats of court action. But these repayments amount to over two thirds of my net income and the interest rates are huge. I am left with about 1700 per month out of which I pay household bills and run a car.
I would like to consolidate my short term debt by getting a top-up mortgage or remortgage. Repayments on 86000 at mortgage rates would come to about 550 pm. This would bring my total repayments to under 2000 leaving me with a comfortable 3200 pm clear. However, my credit rating is now appalling and shows a history of missed payments and so on. Permanent TSB have refused to top up my mortgage and BOI and Ulster Bank have refused me term loans to clear the credit card debt.
It looks like they are happy as long as the credit card debt is being serviced at exorbitant interest rates! I don’t expect people to feel sorry for me, I’m a grown adult who got myself into this mess but I would be very grateful for any advice or thoughts as to where to go from here. Should I approach other lenders? Mortgage brokers? Sub-prime lenders?? Many thanks for reading this far!