money makeover - please help!

S

seventhcat

Guest
Hi Ive just found this site and having spent hours reading some helpful posts i woul first like to thank everyone who posts on this site. It is very helpful and a valuable tool for anyone that has real money worries.

Secondly i would love to get some feedback to help me improve my situation.


Age: 35
Annual gross income from employment or profession: 36k


Type of employment: e.g. Civil Servant, self-employed: Retail

In general are you spending more than you earn or are you saving? im spending more than im earning

Rough estimate of value of home: 230k
Amount outstanding on your mortgage: 200k
What interest rate are you paying? not quite sure

Other borrowings – car loans/personal loans etc: 2 credit cards, owe 15k betwen them. One store card, owe 3k. 2 overdrafts each for 1k

Do you pay off your full credit card balance each month? I can only afford to pay the minimum payment every month.

Savings and investments: none

Do you have a pension scheme? not yet

Do you own any investment or other property? no

other outgoings: ESB 40 per month, home heating oil €30 per month, Petrol commuting to work approx €60 per week, car tax €40 every 3 months, basic ntl package €30 per month, health insurance €60 per month, car insurance €40 per month, house insurance €30 per month, mobile phone and broadband approx €120 per month.

Life insurance: only as part of motgage


What specific question do you have or what issues are of concern to you? I seem to be slipping deeper into debt every month and really need to turn things around before it is too late. Any help or advise would be most welcome! Thanks in advance!
 
ditch ntl, mobile/broadband to something more affordable. Aim to clear out the store card assuming this highest interest. cut up the two credit cards.
transfer as much as possible from credit card balances to an interest free credit card and cut that up as soon as you get it.
finally develop a budget and stick to it.
 
First priority is to clear the store card, the interest rates charged on those things is lethal. Do as the poster said above and transfer the balance of your credit cards to another card which offeres an interest free period. This is only a short term solution in the meantime you have got to be committed to reducing the excessive balances on these cards, and you should be asking yourself why you feel the need to fund your lifestyle with the aid of credit cards.

Do you really need an expensive health insurance policy, a quick look at Quinn Direct gives a price of 30e a month on their most basic policy and they may be other better deals if you check around.

120e per month on broadband and mobile also very expensive, they must be savings to be made in this area.

Check in with MABS www.mabs.ie, some useful infomation on their site.
 
I think I recall hearing an ad for Quinn direct saying that if you have your health / car insurance with them you get your home insurance free? You seem to be paying a lot of insurance.
Also you should find out what your mortgage interest rate is and do some shopping around.
 
What size is your home? Is is possible for you to rent out a room or even two rooms in your home?
 
Hi seventh cat, you have taken the first step by acknowledging that you have a problem.
step 2 is to physically cut up your credit cards and store cards and cancel them all---they are your road to ruin.

step 3 cut out all socialising for 2 months, thats ALL socialising--you cant afford it and if you dont get a grip you will find that you cant afford to socialise at all.

step 4 start paying off your store card asap then your creditcard then your overdraft in that order.

step 5 cut back on all bills, every thing you buy should be on a need basis as opposesed to a want basis, do some homework on your insurance bills, and phone and broadband bills.

step 6 get a parttime job and use all the money from this to pay off your bills.

its not easy but you will just have to suck it up for a while.

at the moment your paying approx 3k a year in interest unnecessarly, that would get you a good holiday every year and your handing it to the banks.
 
Re: the phone, get a pay as you go. O2 have a deal where top up by €20 per month and texts to all providers is free or by €30 per month and calls are also free (AFAIK). Ditch broadband and you have saved €1,000 pa straight away.
 
Lots of good advice so far.

I suggest you give up alcohol, eating out and buying new clothes for a few years. Without dramatic changes like these you will continue carrying this debt into your 40's.
 
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