Moneymakeover Money Makeover - Debt Being Serviced, but no funds for living!

WHATNOW said:

monthly unavoidable expenditure (medical) which amounts to 520pm

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Perhaps claim this tax credit in real time to make sure you pay less tax every month? I pay about €360 every month on meds and physio and I claim my med1 in real time to get the benefit of my tax credits being increased every paycheck.

Also have a peak at this lady on Insta, when I was saving for a house deposit I took inspiration from her meals for a fiver to really get as much saved as I could.

https://www.instagram.com/irishbudgeting/?hl=en

@WHATNOW, I've no further advise to offer you on top of all the excellent advise already given but I just wanted to jump in and say that your not alone when it comes to these types of financial stresses or problems, I think most of at some point have found ourselves in similar positions

I know in my case back in the early 90's I managed to get a 100% mortgage, a fairly large term loan and a sizable overdraft from my bank
Everything was going great until one day about a year and a half later, the phone rang in the office, some guy I've never heard of before was calling me from the bank, "when you get a moment Mr C could you pop down to us there's something I like to talk to you about"

I was not expecting what happened next in his office, "We need to talk about this overdraft that you have"
To which I replied "Sure what's wrong with it, I clear it at the beginning of every month"
He replied "Yes you do but by the end of the month it's right back up there again, That's not how an overdraft is supposed to work!!!"

I left the bank very angry that day but I knew deep down inside he was right, things had to change and they did
It took a while but I got there and am still practicing the habits that that meeting forced me to adopt

Your not in a bad position, your just in a mess and with a bit of housekeeping and tough love you'll get there
And some time in the future when you're on a well deserved holiday with your family, you might thank that underwriter

Best of luck with everything

PS. Don't forget to come back and tell us how your getting on and if you need any advise, we're always here.

WHATNOW said:

unavoidable expenditure (medical) which amounts to 520p

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Sarah Ryan said:

Perhaps claim this tax credit in real time to make sure you pay less tax every month? I pay about €360 every month on meds and physio and I claim my med1 in real time to get the benefit of my tax credits being increased every paycheck.

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[Why] doesn't the Drug Payment Scheme apply in both cases to cap expenditure on qualifying meds at €80 p.m.?
Of course any unreimbursed qualifying medical expenses may qualify for tax relief:
which is part of the reason that I originally asked...

ClubMan said:

Are you sure that your tax credits are correct?

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ClubMan said:

[Why] doesn't the Drug Payment Scheme apply in both cases to cap expenditure on qualifying meds at €80 p.m.?

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My medication is not covered under DPS or LTI either.

Well it would if I had diabetes, but I am very much trying to avoid that so am paying for it out of my own pocket so as not to be a burden on the system with something I can prevent and (semi) afford myself.

Sarah Ryan said:

My medication is not covered under DPS or LTI either.

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I presume that means that it's not approved (for use in your circumstances?) in which case it stands to reason that these schemes don't cover it?

ClubMan said:

I presume that means that it's not approved (for use in your circumstances?) in which case it stands to reason that these schemes don't cover it?

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Not right, and not wrong either. This may change in due course it's being reviewed by the government with the advancement in medications in this field.
There is one medication on the LTI scheme, but I don't have some of the satisfying criteria (even though I suffer from others related to it) However, Doc agrees the one I am on privately is better suited to me than the one he can offer.

Medical expenses is not only medicine, it can also include therapies which would not be covered under the drug payment scheme. And I think in this case the OP has already highlighted that the expenses are unavoidable so this is not discretionary spend and should not be up for our discussion.

ClubMan said:

Why] doesn't the Drug Payment Scheme apply in both cases to cap expenditure on qualifying meds at €80 p.m.?

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For example GLP1 drugs are covered under the DPS if you are diabetic but not covered if you are pre-diabetic. They may in future be covered but are not currently so if you have a family history of diabetes' and your blood sugars are putting you in pre-diabetic range doctors recommend GLP1 drugs, if you can afford them. About €180 a month.

But many chronic illnesses are not covered under the LTI scheme for drugs, treatments, and therapies. Many people with cancer say that it is very expensive to have cancer even if treated in the public system.

WHATNOW said:

we do have significant monthly unavoidable expenditure (medical) which amounts to 520pm, childcare, 800pm, and some activites for the kiddos, (swimming/irish dancing etc)

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That is great you are identifying monthly costs. Were there any areas you could see potential savings?

Back to the table of income versus expenditure


That gives €5645 spend which in this fake example leaves €3155. It is in that €3155 that you will find the savings. There are plenty more expenses that you will have, phone, bins, electric, heating, house insurance etc etc. Just lay them all out and while you may not be able to change the big item you may be able to make many small changes that will give you extra money to start clearing the loans.

For example last month I changed my phone from€45 pm to €14.98 which saves me €360 per annum. And despite moaning I tried a whole range of car insurance companies and saved €350 in renewal. If you are able to do the same you can start chipping away at the loans and start getting rid of them.

Best of luck, we would love to know how you get on and hopefully the health conditions improve.