Monthly take-home pay 4400
Under no circumstances should you do this. Credit union loans are flexible in the sense that you can overpay and the like but the rate is around 15%. Your mortgage is about 2.5% now.leads me to think that if I got another credit union loan (over 5 years) to pay the mortgage off/deal with overdrafts while getting the work done on the house would relieve money worries somewhat.
To me you are in a fairly comfortable position, its all relative though I suppose.
Whats your mortgage per month, should be small enough Id imagine?
Do you have an expensive lifelstyle? Kids are very expensive I know!!
You have a net income of €4,400 per month and can't live on it?
I have four boys all stuck in sport so that's probably where the bulk of it goes.
You have a net income of €4,400 per month and can't live on it?
Then it's a budgeting problem. You need to go to MABS and they will help you to budget and live within your means.
There isn't a financial engineering solution to overspending.
Brendan
Under no circumstances should you do this. Credit union loans are flexible in the sense that you can overpay and the like but the rate is around 15%. Your mortgage is about 2.5% now.
If you could tell us where you are actually spending the day to day money maybe we could give a few suggestions for alternatives.
Lunches x 2 is about 50pw
need to reduce this to once a month or a forthnightSocialising - 50-80pw
No offense but I think this generic statement of where your money goes shows you don't really have a firm hand on your expenditure. How much is your electricity, gas, petrol, phone, TV, lunch, weekly shopping etc. You'd be surprised at how much you can save in unison with all of these. Your overdraft alone (on three different acconts) is costing you extra money. How much is owed currently to the credit union ? Tell them to take the 3k in savings and put it against the loan immediately.
I don't agree either, it's not excessive and we don't know the half of it, there may be two cars on the road with long commutes and the associated costs plus all the other normal bills not to mention teenagers! Three big lads would eat you out of house and home!
You could have a look at the budget planner on the Mabs site and stick in a few figures to see if there is anything obvious that can be cut down on.
bringing in your lunch is an obvious one tbh
another obvious one
need to reduce this to once a month or a forthnight
Credit Union outstanding loan is 19k. Can I do that with the 3k in savings?
Why have you a €19k loan?
That is one of the problems you need to fix. Borrowing money to buy things you can't afford.
Brendan
I can afford the loan.
I think that MABS will be able to sort out thinking like this. If you have nothing left at the end of the month, you can't afford the loan. You have no choice now. You have a very expensive Credit Union loan and unless it's possible to trade down the "good family car", you will have to pay it off.
MABS was initially to help people with general financial issues and poor family budgeting is the cause of most problems.
Brendan
15 and 16 year old may decide to go to third level in 2 or 3 years time. Will probably cost 3500 each per annum in fees alone, accommodation too on top of that depending on where they go, have you anything saved towards that?
First of all, you are a family of 6, life is going to be expensive. Even going to the pub for a bite to eat is going to cost you a fortune.
What you need to do is print off your last 12 months bank statements and see exactly where all your money went. Put it all on an excel spreadsheet.
You and your wife sit down and agree on a monthly budget. If you overspend one month, you underspend the next. See if you spend less than you earn. No need to go to extremes though. If you like having a few pints once a week, factor that in unless you can't afford it.
Try to get out of overdraft, it's costing you a lot to live in it constantly. It is going to take a while to do it. Request the bank reduce your limit bit by bit so you don't have that comfort blanket of going back into it.
Try to get the loans paid off.
It's going to take you a while to get into a good place financially and it will require work. You will need to keep an eye on expenditure on a weekly/ monthly basis, otherwise you will fall back into old habits.
with a bit of work and discipline you will be fine. You are at a very expensive time of parenthood but you have a small mortgage, secure jobs and good pensions.
Steven
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