Need help to sort me out

suimhneach

Registered User
Messages
78
don't know how i got here but have a loan of 10,000 from been self employed and stupid not knowing how to do my taxes use to get bills for tax for 8000 when i earned 17,000. so got loans over the years and now its 10000. then i use to have problems getting paid and somethimes could be 3 months till i got paid. so got a credit card and it was brilliant without it i wouldn't have been able to live at all. the credit limit was 1,700 but then two years ago they upped my credit limit to 5,200 and now im at the limit on that. Last year i got a full time employment. i dont have a morgatage i cant afford one, i dont have a car, i have rent 500 a month and just normal day to day living expenses and i keep myself to a strict budget but i just cannot seem to pay anything off. i earn around 2000 take home every month. i just dont know what to do i feel like im sinking
 

Welfarite

Registered User
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3,058
Suimhneach, maybe if you filled in the key-post template thingy (basic infor required) listing all your income/outgoings, etc,it would help people to give advice.
 
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suimhneach

Registered User
Messages
78
Is this it?

Annual gross income from employment or profession: 28560


Type of employment: e.g.

Expenditure pattern: In general are you spending more than you earn or are you saving? Spending

Other borrowings – personal loans etc 10 000

Do you pay off your full credit card balance each month? No
If not, what is the balance on your credit card? 5200

Savings and investments:

Do you have a pension scheme? no

Do you own any investment or other property? no
 

annR

Registered User
Messages
656
Hi

Can you list out what your outgoings are? I think the advice is mostly going to be along the lines of . . .see what you are spending on, can you cut back on something in order to pay your debts?
 

suimhneach

Registered User
Messages
78
Outgoings rent 500 pm
Fuel / Fire 20 week
Oil 504 every 4 months
food living in rural area local shops so around 50/60 week
loan repay 115 fortnight
cc 900 month
 

Harlequin

Registered User
Messages
81
Are you making the minimum payments on your loans or are you in arrears? Is it all one loan or are there several loans with different providers? Is the loan from a normal financial institution or is it with a sub-prime lender? What is the interest rate?

If you are in arrears, you need to make contact with your financial providers to see about arranging a new payment schedule. Do NOT just bury your head in the sand - if you've fallen into arrears, you have to tackle the issue ASAP.

If you're not in arrears, you might still be able to rearrange things - getting a longer term on the loan could give you the breathing space you need to tackle the more serious matter of the credit card.

The general rule of thumb is tackle the most expensive debt first - your credit card interest rate is almost certainly higher than the interest rate on your loan, so focus on clearing that first.

First thing to do if you want to pay off the credit card - stop using it. Cut it up, delete the number from any website profiles you've used it on (like Amazon or Play) and stop thinking of your credit card as being money available to you.

Always make the minimum payment each month so you don't run into trouble but make an effort to put a lot more than that into it. Every spare penny you have can be put into clearing the credit card and saving you from paying huge amounts in interest.

Try and make a note of your living expenses so that we can see where you could perhaps trim some of the fat - often people don't realise how much they're spending on groceries or phones or a night in the pub once a week. If you even found an extra €50 a week that you didn't realise you were wasting, it would help you get out of debt that bit faster.

It might even be possible for you to get a part-time job for a few hours a week and put all the income from that into repaying your debts.

It looks like a manageable situation to me. Your problem was not having a regular income and now that you do you should be able to bring yourself about. Just prioritise your debts above everything else - no holidays, no €200 trips to the pub or restaurant etc etc and you should manage ok. It won't be dealt with overnight but if you're sensible about your money, you should be able to live reasonably well and pay off your debts.

Listen to the advice on AAM and read some of the other money makeover posts - the same stuff comes up again and again so you should get an idea of where people go wrong and how to sort it out.

Good luck!
 
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Welfarite

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3,058
Your outgoings are 1100 per month by my reckoning. You take in 2000 per month. This gives you 900 disposable income after food, fuel, loans paid, rent. This is not too bad. Is ther something else you're forgetting about? Are you including credit card debt in your repayments?
 

suimhneach

Registered User
Messages
78
i wish! havent been in a bar since september we cook at home so as to save last time we went to dinner was once over the christmas im very strict with money in that way i have stopped using the credit card. perhaps you are right maybe now i have a regular income things will turn right. Its all the one loan with BOI cant tell you what the rate is and thankfully not in arrears. Its just the old debt and trying to get rid of it. As for part time job im doing a night course as have been promised a better job within company if i do this. Have not been on a holiday in 4 years and not planning any this year either.
Thanks for the reply maybe i just need to step back and take another look
 

ClubMan

Registered User
Messages
44,630
As I mentioned elsewhere today a common problem when people outline their budgets off the top of their head is that they don't actually do it accurately. Keep a spending diary for a few weeks and that will sanity check your earlier figures.
 

Welfarite

Registered User
Messages
3,058
You say "we"? If two of you are living off 900 per month, that's a different matter! When you say "all the one loan", do you mean that the CC was converted to term loan and that is what you are repaying? Have you cut up the credit card?
 

suimhneach

Registered User
Messages
78
`walf. there are 2 of us living on whats left over most months as my fella is a fisherman and has only been able to fish 2 days since the beginning of december no fishing no money. the c c minimum repayment every month is 900 for the moment so there is no 1100 left over after i wish. if there was i wouldnt be here scratching my head
 

Harlequin

Registered User
Messages
81
The minimum repayment is €900??? Maybe I'm confused but even back when I had a debt of €3k on a credit card my minimum payment was only ever about €150. Or is that the minimum payment you've agreed - I think the bare minimum my CC provider would accept was 5% of the balance. If you've agreed to pay more, then fair enough, you'll clear the debt faster which is good but not if you haven't enough to live on in the meantime.

Agree with Welfarite about it making a big difference to have two of you living off that. Much more difficult to do. If no fishing, no money, maybe for the time being your fella could get a part-time or full-time job doing something else? Even minimum wage stuff would be better than nothing. Or is he getting jobseekers benefit/assistance? Can he contribute anything?
 

Welfarite

Registered User
Messages
3,058
I'm also having difficulty figuring out what debt you actually have. How much do you pay to BOI each month? Have you asked to convert CC debt into term loan. Ther eis a scheme called "Fish Assist", similar to Farm Assist, to help fishermen who have low incomes. Do you know about this? Have you gone to SW at any stage? Maybe you should, in the first instance, contact www.MABS.ie adn then go to SW and ask if there is anything you or your spouse can claim.
 
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suimhneach

Registered User
Messages
78
yeah i am maxed on cc 5200 and minimum is 946 this month and last. He is looking for another job at the moment but still hoping for a break in the weather to go back fishing. Been a fisherman you cant get sw as far as i know cause you have a job and youare going to go back to it. Next to impossible to get a job where we are too he use to work in construction but mean living away from home cause job was in another county and he was paying rent and cost of fuel ect at the end of the day wasnt really making any money
 

Welfarite

Registered User
Messages
3,058
Been a fisherman you cant get sw as far as i know cause you have a job and youare going to go back to it.
I don't know where you're getting this fro... perhaps ten/twenty years ago when fishing was good. Times ahve changed. Go to SW tomorrow and enquire as to what you might be entitled to. Go to the Information Officer.
 
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