Dewdropdeb
Registered User
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- 14
I feel like we've made a lot of progress having had over 50k debt at one point, but also feel a bit lost as to where to go from here. Any advice much appreciated.
TIA!
OP is struggling to make ends meet. Renting a new car is hardly the solution.Also,I've heard that pcps are easier to get with a dodgy credit history as the car remains the property of the financial institution.
I'm certainly not judging you,and my intention was not to be smug.
Have you got a recent ICB report,to see if your credit history is as bad as you think it is?
Also,I've heard that pcps are easier to get with a dodgy credit history as the car remains the property of the financial institution.
You will need a deposit ,though .
Hi debs
Is the salary quoted allowing for your return to education ie is it going to go down ?
Mtk
OP is struggling to make ends meet. Renting a new car is hardly the solution.
In 12 months time, plan to pay 3-5k cash for something reliable and fairly economical. It's the cheapest way to run a car. Don't be tempted to borrow for better fuel economy - interest and depreciation on a more expensive car inevitabley cost you more than the fuel you'd save.
Stick with the budgeting. I swear by youneedabudget.com and their "4 rules". Imagine how sweet it'll be in a couple of years when a big bill (the vet, the car tax, christmas) comes along, and it doesn't even cause a ripple in your cash flow.
I think one thing you need to prioritise is building an emergency fund. One that can be accessed for unexpected hiccoughs like the vet bill. I would not wait until the credit card bill is paid off - the sooner you start the better, even if you start with a small amount (maybe €20 pw) and then increase it once you have cleared the CC. Emergency fund should be saved in a very accessible savings account (jam jars and mattresses are too tempting), one that allows you to access the money easily. This money needs to be clearly flagged in your budget and saved up front so you are not struggling to put it aside after you've bought the basics. As a rule, I pay rent, utility bills and savings first, that way I know what my residual income is. I never plan on the basis of my take-home pay, only on the basis of my residual income. It is always something of a education to see what resources you actually have available to you!
Debts remain on your credit history for 5 years after the debt has been cleared. I would suggest you need to consider paying down the CC debt sooner. At your income level €300pm is frankly quite low and as it probably continues to accrue interest it is costing you to pay it off slowly, it would be better to make a determined effort to clear it sooner if possible.
After that you need to start strategising. What savings goals do you have and what timeframe are they in. Retirement is an obvious one. Clearly house purchase is also one. Probably education planning also needs to come into it.
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