My escalating debt is crippling me!

Noor77

Registered User
Messages
446
ClubMan said:
Read all about it! Before and after. It can be done... :D

I've gone up to €45k now....and no debts. It CAN be done.

Just prioritise your outgoings JamJam - and if it means being a social hermit for a while it will all be worth it in the end. Try to think everything through rationally - because panicking will actually make you spend more. Believe me, that bit is true - I have a friend who gets in to blind panics about her financial status and then to calm herself down goes on a spending spree.

My Aunt tried meditation to try and get rid of a nasty shoe-buying habit ...and it worked!
 

Jamjam

Registered User
Messages
58
Very positive indeed ...the only thing is I wish I was to get a mortage for 750 pm!

Not likely these days and if I could I wouldn't be able to afford it. Time for major observations and analysis of my outgoings. I think I will cancel that savings thingy...i mean its only 1500 but at least it will go towards paying my credit card. I wonder beacuse this is 0% for 6 months should I pay the credit union loan off first as it appears to have the highest apr. Anyway when I take on the extra work in October I will be lodging thsoe earnings straight in to CC.

Meditation ....sounds what I need....could I put it on the credit card??? LOL!

At least I'm relieved and can actually see light at end of tunnel after all the advice here. I can not emphasise enough my appreciation to ll

Jane
 

ClubMan

Registered User
Messages
44,630
Noor77 said:
My Aunt tried meditation to try and get rid of a nasty shoe-buying habit ...and it worked!
You mean she only buys nice shoes now? Or she's kicked the habit altogether? ;)
 

Havana

Registered User
Messages
240
All great advice!! Follow it!!! I was in a similiar situation a while ago (about 10k in debt) and came on here and got similiar good advice. It took me a long while to get into a frame of mind to make the changes but finally I did it and while I still have some debt (€4000) its one loan, one repayment, low interest rate and will be gone in 18 months!!! Its feels so good and such a relief and managable!

And the Credit Card is gone!!! That is the best thing. Considered for a while keeping it and having a low limit, but decided NO! Tried that before and doubled my debt on it. So get rid totally. Reduce your CU shares to €1 if they require you to save with them.

And good luck. You will do it!
 

Jamjam

Registered User
Messages
58
Havana said:
All great advice!! Follow it!!! I was in a similiar situation a while ago (about 10k in debt) and came on here and got similiar good advice. It took me a long while to get into a frame of mind to make the changes but finally I did it and while I still have some debt (€4000) its one loan, one repayment, low interest rate and will be gone in 18 months!!! Its feels so good and such a relief and managable!

And the Credit Card is gone!!! That is the best thing. Considered for a while keeping it and having a low limit, but decided NO! Tried that before and doubled my debt on it. So get rid totally. Reduce your CU shares to €1 if they require you to save with them.

And good luck. You will do it!

Sincere thanks. I actually don't have any CU savings as I had previous loans and paid off no trouble and they didn't ask for savings when I applied for this loan. I seriously am only using the MBNA cc as a loan. Will not be buying anything on it and while the other CC is 0% for 6 months on purchases. The only purchases I will be making will be for flights which is necessary for me. for my work but i will get expenses.

Can we just clarify what would be my best bet with the 3000K I am getting in July?
 
G

gordongekko

Guest
If it was me i would pay the 800 off the overdraft, lodge the balance and pay off the full credit card balance once the 0% balance transfer period is about to end.
 

Jamjam

Registered User
Messages
58
gordongekko said:
If it was me i would pay the 800 off the overdraft, lodge the balance and pay off the full credit card balance once the 0% balance transfer period is about to end.

Perfect ...that is what i will do. Thanks a mill.
 

ClubMan

Registered User
Messages
44,630
Jamjam said:
Can we just clarify what would be my best bet with the 3000K I am getting in July?
As mentioned several times previously - list your debts by the interest rate (APR) that applies and then start with the most expensive one. Try to clear your credit card balance(s?) before you exit the 0% period and go back onto the normal high rate.
 
D

Dipole

Guest
Your car loan got you in trouble here. You paid too much for that car.
Your '02 1.1 206 is worth €7000, if that, and you have got a 11,000 loan. No point selling it though especially if it is giving you good service.

Pay off and cut up the visa - that'll be one less €40 duty fee you'll have to pay next year.
Life Assurance? I'd question the need for it at the moment.

Stop saving for the moment and accelerate your loan repayments
Use your savings to clear your loans.

Once you are out from the hole you are under you'll have got used to living on a smaller disposable income and you can start building up your savings again.

You are not in a bad position. tackle the issue now and by Christmas you will be able to manage your debt comfortably.

If you have been in work for a while and your monthly wage has been variable from month to month perhaps you overpaid tax and you might be due some back - I got money back from the taxman a couple of years in a row because of overpayment and the cheque certainly was welcome when it arrived.
Explore rent tax allowance and any other allowances that may be available to you and see if they can be backdated to previous years to get money back. I got a work related tax allowance I didn't know I was entitled to through viewing threads on askaboutmoney.com
 

lff12

Registered User
Messages
416
abbie said:
I calculate that you have approximately 1,000 euros left over based on the 2,300 you earn or 1,400 based on the 2,700 you earn - I don't understand why you are getting so worried - some people live on 1,000 a month (including their bills)

To be honest most of the time I live on about 700 a month - and at my hardest up lived on only 75 euro per week.

I'd suggest clearing the credit cards and possibly the overdraft first.
Get rid of the savings and life assurance.

To be honest I don't think you have a problem if you've 1000 left in the bank, but if I were you I'd put an extra 200 euros a month off the car loan to try to pay it off more quickly. My way of working is that once my credit card goes over 1200 I pay off 650 a month until its cleared before I start spending again. It hurts but I learn the lesson.
 

mell61

Registered User
Messages
360
as well as looking at your debt, look at your current spending. My personal favourite way of checking off where my money 'disappears' to is a notebook / money diary.
as soon as a cent leaves your pocket note it down (playing catch up later that day doesn't work, its amazinf how easily I can forget a bottle of water, petrol, magazine...). It can provide a wake up call for where you are spending unneccessary money. You might feel silly for a day or 2, wandering around with a notebook, but if you have one a PDA is a useful, or even post-its. Check your progress at the end of the week and see if there is a trend... does a night out have you spending excessively on energy drinks / breakfast rolls / chocolate.... Do you treat yourself to something on payday, even when it isn't payday...
you may find another hundred Euros or so that you can use against your debt.
Personally I found Alvin halls books 'your money or your life' and 'money for life' very good for giving you the basics of getting out of debt. If you are close to dublin, I've noticed that Chapters on abbey st frequently have 1 or other second hand. If it helps to encourage you at one point he had maxed about 30 credit cards at the one time (he's american, we'd be bankrupted with the tax here!), so he's been there and does know the pain.

One other item you might want to consider is if you have Eu3000 to pay off against debt, do you want to reduce the number of debts... would it help your frame of mind to only have fewer outstanding debts? so would you prefer to pay off overdraft, visa and most of your MNBA and only need to concern yourself with CU and BOI. paying off highest interest first is a good idea, but sometimes you may find that only have 2 debts instead of decreasing balances on 5 may help you focus. Its a personal preference I have, others will disagree.

Good luck to you
 

ClubMan

Registered User
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44,630
mell61 said:
One other item you might want to consider is if you have Eu3000 to pay off against debt, do you want to reduce the number of debts... would it help your frame of mind to only have fewer outstanding debts? so would you prefer to pay off overdraft, visa and most of your MNBA and only need to concern yourself with CU and BOI. paying off highest interest first is a good idea, but sometimes you may find that only have 2 debts instead of decreasing balances on 5 may help you focus. Its a personal preference I have, others will disagree.
Yes - I disagree with this. Applying subjective personal preferences to dealing with debt is a dangerous approach in my opinion. Much better to adopt a stringently objective analysis. Such an analysis will consider the costs and benefits of all strategies and, when it comes to debts, will generally dictate that the loan(s) with the highest overall cost should be tackled first.
 

clareG

Registered User
Messages
128
MABS will advise you how to get out of debt but I would suggest that you cut up the credit card NOW. Check out the mabs website www.mabs.ie. There are hints there on what to do and also a spending diary for you to fill in. Good luck.
 

mell61

Registered User
Messages
360
Hi Clubman, Jamjam
As I did say it was a personal point of view regarding paying off the smaller loans so that the focus could stay on the larger loans.
In much the same way some people losing weight focus on the scales, others focus on the size label on their jeans. Different people work with different targets.
Jamjam has suggested that the debt is giving him a lot of concern, keeping him awake at night, perhaps along with the various options open to him outlined already, would a couple of fewers debts assist him in tackling the biggest problems and being able to give them indepth analysis. He would already have hit a couple of 'targets' in clearing his debts, and each target can help to keep people on the road to financial freedom.
Its a different view point I recently came across in a personal finance book, and one that struck a cord with me.
 

Jamjam

Registered User
Messages
58
Thanks again for all the info. I need to print it all off and digest it. I feel so much better however I really do feel I need to contact MABS as suggested here.

Since the life assurance is only 30euro a month should I just hold on to it? I mean thats not breaking me. It's the credit card thats killing me. But i know what I will be doing with that now ....and thats for sure.
 

ClubMan

Registered User
Messages
44,630
Bear in mind that MABS will just give you advice on your options and in some cases (don't think it applies here) attempt to mediate between creditors and debtors. However ultimately it is your job/responsibility to sort out your own affairs. Reviewing this thread, the key topics in this forum and other resources such as the MABS website, listing/collating/analysing your finances, keeping a spending diary, having a proper budget/financial plan etc. are all great ideas.
 

Jamjam

Registered User
Messages
58
I was told by a friend of mine who is a bank manager that banks etc won't touch you again once (i.e give you mortage) they hear MABs are involved. I presume this is nonsense???
 

ClubMan

Registered User
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44,630
I think the only way they will know that MABS were involved is if MABS make representations on your behalf to creditors. Otherwise (e.g. if you go to MABS for advice as opposed to direct intervention - which I presume they only do in crisis situations and/or for those with low means/earning capacity and high debts) I think it's all confidential between you and MABS. Certainly they can't check if somebody approached MABS through the ICB or whatever in case that's what's worrying you.
 

Jamjam

Registered User
Messages
58
Sincere thanks for that. I actually thought/ hoped that would be the case. I have nothing to loose by contacting them. Meeting set up for next week !!
 
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