Debt in dire straits, need a consolidation solution

M

moody blues

Registered User
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11
In serious crap:

Am a high income earner, stressful job though, PAYE, however, have 3 Euro loans o/s bal = Euro 76k, and 4 GBP Loans outstanding bal = GBP 57k. Never defaulted or went into arrears etc.

Age:
33

Spouse’s/Partner's age:
31 - recently unemployed

Annual gross income from employment or profession:
E82,000 after pension contributions + inc Co Car BIK adjustments

Annual gross income spouse:
E0

Type of employment:
Private sector employees

Expenditure pattern:
We are both generally 'savers' i.e. no extravagent lifestyle but bad investors in hindsight

Rough estimate of value of home
E270k currently from 380K 2 yrs ago
Mortgage on home
E340k - equity withdrawn for UK investment
Mortgage provider:
IIB
Type of mortgage: Tracker, interest only, fixed rate
Fixed for another 18 months
Interest rate
5.09%

Other borrowings – car loans/personal loans etc

Outstanding Euro Loan Balances
23k 10 yrs 335/month - 9%
26k 5 yrs 630/month - 6.9%
27k 10 yrs 320/month - 6.9%

Outstanding GBP Loan Balances
11k 7 yrs 292/mt - 5.9%
7k 5 yrs 152/mt - 6.5%
23k 10 yr 250/mt - 8%
16k 10 yrs 227/my - 6.7%

E1450.00 in Mortgage repayments (Int only)

GBP 715/mt less net rent GBP 515 = negative cashflow of GBP 200 (property in negative equity of 60k approx)
GBP 732/mt less net rent GBP 465 = negative cashflow of GBP 267 (abt 30k in equity if able to sell)
+ GBP 300/month of management co fees inclusive

Therefore Total outgoings:
Euro outgoings = 2735/mt
GBP outgoings = 1688/mt (E2k approx on current exh rates)

Do you pay off your full credit card balance each month?
Normally but currently 5k balance

Savings and investments:
GBP15,000 to cover UK repayments shortfall this year

Do you have a pension scheme?
Contributory Co Scheme

Do you own any investment or other property?
Yes,

Ages of children:
None.

Life insurance:
No.

What specific question do you have or what issues are of concern to you?
Currently have a negative cashflow every month before food, ESB etc etc

Can't seem to cut a break from the debt trap - would like to get a single loan consolidation for the Euro loans at least, over 10 years, in order to assist with cash flow.

Loans were used for investments that haven't gone well in UK.

Anyone know of a way out?

Is handing back keys of house an option when still working?
 
Can you do the money makeover section as it's difficult to understand your post. This will help you to get some proper advice.
 
Bronte said:
Can you do the money makeover section as it's difficult to understand your post. This will help you to get some proper advice.
Click to expand...

Yeah, a clear list of income and expenditure is necessary to give more constructive advice/opinions.
 
moody blues said:
have 3 Euro loans o/s bal = Euro 76k, and 4 GBP Loans outstanding bal = GBP 57k.
Click to expand...

If we assume 1 EUR = 1 GBP, other than your mortgage, can you please confirm your net debt is around 122k? (i.e. 76k + 57k + 5k credit card less your 15k investment?)

Also, there is still more information needed, for example:
- how much are you paying in to your pension each month?
- are you paying health insurance (e.g. VHI)?
- have you any cars other than your company car? How much are they worth?
- have you any other commitments/investments not mentioned below?
 
Yes, if 1 Euro = 1 GBP Net Debt = Euro 123k exc Mortgages
No other Cars
Net Sal = 4500 after pension & Co Car.
Other Costs approx 1500 per month on Food, VHI, ESB, Gas, Sky & Gym (sky & gym being only luxury, if you'd call them that...!!)
 
Is your partner entitled to redundancy, or Job Seekers Benefit.
If there's a lump sum available, you might consider applying it to the highest rate loan, and try to negotiate better terms.
 
moody -- if you group all your euro loans together and bring them to the one Bank, say KBC (IIB) they should facilitate you as you have never been in arrears and as ahigh earner are the type of customer they want. Try the same with your sterling loans. This should facilitate all matters into a loan with lower repayments each month.
 
thanks Mercman

I tried this with Anglo & Dankse aabt 12 mts ago, but could see at that stage the credit boom had bust, they all wanted security up to the value of that amount, before I think it might have been easier.

Do you know if IIB do those kind of loans unsecured or would they also give me the security thing? Is there a specialist section that would deal with this kind of loan?

Re: UK Loans, do you know of any providers that would consider this?

Thanks
 
I still find it difficult to read, would be better if you just converted everything into Euro, especially to see if your investments make sense. Also what are the UK investments. Anyway the positives, you are young and have a good salary and no kids. Is IIB subprime? If so try not to consolidate with them. You say you always pay the credit card balance but this is not so if you have a balance of 5K. If you are living beyond your means then you need to take action such as cutting up the credit card, getting rid of sky and the gym, and yes for you they are luxuries. If you do not manage to consolidate and you make savings then after the credit card I'd be throwing as much money as you can at the 9% and 8% loan. You are at a good time for interest rates so 9% is way too high. You also ought to clarify the remark that you are a saver when you have so many loans. How did you arrive at having so many loans. (what were the loans for)
 
Bronte said:
Anyway the positives, you are young and have a good salary and no kids. Is IIB subprime?
Click to expand...

What a ridiculous remark !!!! Since when is having no Kids a positive ? There are persons in the world in far worse conditions and are delighted to have children. And there are many women who are unable to have them and would give everything to be aable to have adopt foster etc.

IIB Bank are the same as KBC one of the largest Banks in Europe. They will view the matters with an open mind on the entire situation. As long as no payments missed in the past they are more likely to assist you.
 
mercman said:
What a ridiculous remark !!!! Since when is having no Kids a positive ? There are persons in the world in far worse conditions and are delighted to have children. And there are many women who are unable to have them and would give everything to be aable to have adopt foster etc.
Click to expand...
and this couple are not those people and they do not need any dependents at this point in time and debt. get off the horse before you get altitude sickness:rolleyes:
 
:p:p- That's about the most suitable reply for you Pennypitstop.
 
Assuming your PAYE in Ireland, have you transferred your wife's tax credits and standard rate cut off to your tax payaments? Are you claiming all your tax credits? for example, bin credits, private health insurance They might only be small amounts but when money's tight every little helps.
 
Could you sell a share in what I presume are buy-to-let properties in the UK? For example sell a 50% share at current market rate (ie a loss) and pay off some of the mortgage? The buyer would probably have to be a friend or family member.

Are you doing interest only on these ?properties...if not could you negotiate that...would be in your current providers interest especially if you are in negative equity....or else negotiate increasing the term of these UK mortgages to reduce the monthly cash flow issues.

Increasing the rent is not generally an option in the Uk at the moment..in fact you are probably lucky if your tenants don't ask you for a reduction.

The other option is to increase your income, somehow...extra job etc.Wife get some sort of job ASAP....childminding, after school pick ups etc etc.

Sterling is weak at the moment so your UK problem is likely to get worse if sterling strengthens.

You certainly have to batten down the hatches re sky and gym..although getting out of a gym contract mightn't pay off...but don't renew.
 
Thanks for reading & comments.
Re: expenses, take it from me I have done them all bar sky & gym, i.e. interest only, terms, tax reliefs etc etc.

No wife, just girlfriend - claiming her tax credits isn't an option, girlfriend, not wife.

Without sounding appreciatative, my primary query is on unsecured consolidated loan providers for large debt in order to facilitate cashflow.

Equally, for anyone without these type of debts issues, its easy to say & see rates have come down etc & draw conclusions from that. Rates are not the problem in the world of dried up credit, liquidity is, therefore, banks will charge premiums on loans, mortgages etc above and beyond the norm as the wholesale rates are higher & because banks need as much cash as they can hold onto or make in order to repair their balance sheets etc.

Please no more suggestions on the penny pitching savings of a bill or two, I have cut back as much as I can, exc sky & gym, as I say my main question is on a consolidated loan providers for large debt in order to facilitate cashflow, to someone with an excellent credit history, rather than saving a tenner here or there.

Re: Credit Card, I have for donkey's years always cleared them, only very recently did the balance climb up, its my number 1 target.

Re: Loans purposes - I arrived at the property game too late, and then let it go higher and higher, never able to get on, working my socks for for that pay rise, year on year, to get on the ladder & then used loans to fund other property purchases - 1 here and 1 in UK. Had other apt in UK earlier, as I lived & worked their for a no of years. Came home to motherland & got nailed on the property boom bust scenario.
 
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Could you detail which of the loans detailed above are credit cards and are bank loans.

You could consolidate your credit card balances to a 0% rate card.
As it is your priority, any payments would be used to clear the card without paying interest. That would free up some cash to tackle the rest of the loans.
 
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