Need serious help and Im only 22

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InDeep

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Hey some advise needed here people if possilbe.


I am 22 and working in finance(you think i would have more sense) I earn 33k per year. Below is my current debt levels

BOI PL: 27K
GE PL: 7K
MBNA CC: 5K
BOI CC: 1K

I am starting to use my parents cards though to try win money on horses to pay off my debt ,I know this is a terrible idea and I wont do it again.

This month I have 80 euro to last me until next pay day which is the 18th October, I will get paid 2238, Out of that I need to pay 550 BOI Loan(mised payment from last month,this is the only time I have ever missed a payment on anything and hopefully since I will pay it back within a week I wont get a 1 on my ICB) I also have to pay my 2 loans which amounts to 800 euro and also pay 700 euro off my mams credit card along with 120 to my dads,100 euro to my sister and 60 to another friend. It is going to give me around 120 eurpo to live off for the month. I simply cant go on like this. Its all my own fauly but I need help to get out of it.

I want to buy a house but wont be able to with these two loans in place. Here is my plan below


At present i earn 2238,Loan and Credit Card Payments amount to 1000 euro leaving me 1238 surplus per month.From January onwards I intend to save 800 euro per month in the Credit Union leaving me 538 for social life per month. I need to save 10k with the Credit Union which should take me 8 months as I will have a lump sum of 4k to save in July next year. Once I have this 10k in the Credit Union I intend to borrow 30k(three times my savings) to pay off my loans. This will mean they will be off the ICB and as far as the Mortgage Lenders are aware I have no debt anymore as My bank statments will show no dd's or so's and my ICB will show no debt in place as Credit Union does not show up on ICB


Does anyone here think this is doable,can I live on 538 per month Social Life from now until November next year????

Well wether I can or not it looks like I will just have to.
 
Re: In serious help and Im only 22!!!

€538 for 'social life' is this for boozing and the like, or for necessities?

Do your parents know you are using their credit cards?

You may want to contact MABS for a chat.

There are also many existing threads on dealing with debt, some may be relevant to your situation.

Here
Here
Here

Have you approached any other cc companies to see if you can do a 0% ballance transfer (I suspect you will be rejected), so that you have a bit of breathing space on the cc debt.
 
Re: In serious help and Im only 22!!!

538euro a month for a social life, 135euro a week for socialising!?
 
Re: In serious help and Im only 22!!!

When I say socialising I mean food,transport to work,basically living costs

538 per month. Around 140 per week.

It will mean struggling for 9 months but I suppose worth it when I get my house.

By the way I work for a mortgage institution and dont feel there will be any problem in approving me along with my partner for 350k.

The main thing is I need to get sufficient savings with the CU so I can get a loan off them to pay my two PL'S this will mean that I have a clear ICB in terms of current debt.

In terms of credit rating. I have "0" on all my accounts bare last month but as I said I am paying that this month which will mean I will have a "1" but that will revert to a "0" within the next month so thats not too bad. Trust me everyone has a "1" somehwere in their lives.
 
Re: Need serious help and Im only 22!!!

It means that basically I will be living a very boring life for the next year but will be literally so carefull as I will be keeping excel spreadsheet of everything I spend and I mean everything. I will be so carefull in monitoring everything I spend that there is no chance I will ever go over 538 per month.No way at all
 
Re: Need serious help and Im only 22!!!

It's not more debt advice you need it's a sound kick up the This post will be deleted if not edited to remove bad language to help you cop yourself on.

You've amassed approx 40k worth of debt by the age of 22, resorted to using your parents cards to try and gamble your way out of trouble and now you reckon by going via the credit union you'll be able to get a mortgage of 350k with your partner since "as far as the mortgage lenders are aware i have no debt anymore"!!!

Christ man i'm sorry for being harsh but you need a long hard look at yourself and your spending habits. Can i gather from your post that you still live at home? Other than the debt you've already run up what are your actual monthly commitments? (i.e. rent, bills, car etc.)

Mabs isn't a bad idea at all. Get that under control and get your spending under control long before entertaining the notion of undertaking a mortgage. Forget about 'hiding' debt in the credit union you're just kidding yourself there and you know it.
 
Re: Need serious help and Im only 22!!!

I agree with you that I need to take a long hard look at myself in terms of spending habbits.Agreed and I am doing so.By creating this Excel Spreadsheet I am doing that.

An I have used my parents cards once which I am paying off on the 18th October.


I do however disagree in that hiding debt with CU is a bad idea.

I work in finance and it is no secret that the property market will slow next October/November and when it does I want to get on it. I deal with First Time Buyers a lot and can safely say that 85% of them hide their loans with the CU when applying.


I am looking at my spending habbits and they WERE terrible. I AM getting back in control now and am taking responibility for my own actions.


I have admitted that all this is my own fault and have stated that I have now started to turn it around so why Do i still need kick up that ass?
 
Re: Need serious help and Im only 22!!!

By the way. I could approve 350k for myself now but feel that it would be terrible decision.,I need to save 800/900 next year to see is it a possibilty to live off 538 per month.

Once I buy the house I intend to top up to pay off my debt with the CU a year later as there should be enough in my house to release equity,so rather than pay PL interest rates I can avail of mortgage interest rates and a term of 8/10 years.
 
Re: Need serious help and Im only 22!!!

InDeep said:
I work in finance and it is no secret that the property market will slow next October/November and when it does I want to get on it.
Click to expand...
Can you tell me who has finally discovered how to predict the future with such confidence because I'd like to talk to them about some bets that I'm planning to lay. Yes - I am being facetious.
I deal with First Time Buyers a lot and can safely say that 85% of them hide their loans with the CU when applying.
Click to expand...
If they hide their debts then how do you know!?
 
Re: Need serious help and Im only 22!!!

InDeep said:
Once I buy the house I intend to top up to pay off my debt with the CU a year later as there should be enough in my house to release equity,so rather than pay PL interest rates I can avail of mortgage interest rates and a term of 8/10 years.
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Sounds dodgy to me - you seem to be banking on (a) house price deflation to get into the market and (b) subsequent house price inflation to ensure that you can rack up some equity quickly and then use this to cover your debts. It doesn't sound to me like you have really faced up to your debt situation and recognised that you need to deal with it and the budgeting/spending habits that lead to it but are looking for some easy way out.
 
So you are telling me that with Valuation of 350k that between time of drawdown and time of top up applcait on that the house in question will not have risen by 6.5% (This is all it would nee dto rise by to qualify by LTV). It is a 2 bedroomed townhouse in Swords..


The rate of house price inflation is enormous and as stated that house prices they will continue however to increase.

I intend to buy the house in question for 350k
Avail of 20k Top Up a year later (At which stage I will have reducted my mortgage balance to 342,capital from payments)

I will then be left with a mortgage balance of 362

I intend however to travel when I am 26 at which stage I predict that inflation will have risen at a level that will allow me to sell my house.Pay off my mortgage and make profit of around 40k before travelling.


This is achievable especially when you consider that I will be selling 6/9 months anticipated finish of Luas project to Swords.(House is located 1 min walk away from planned station)
 
You say that you see the housing market slowing down in October/November thus allowing you to buy (do you mean that prices will fall to a more affordable level for you?) and then within 6 months after you buying, prices will have started to rise again so you can release equity. There is an inherent contradiction in this.
 
Re: Need serious help and Im only 22!!!

InDeep said:
By the way. I could approve 350k for myself now but feel that it would be terrible decision
Click to expand...

Bank / building society staff approving their own mortgage applications?

That's a new one on me.
 
Indeep, seriously with the greatest of respect the scenario you are painting is pie in the sky denial.

You still haven't answered my question about your current monthly commitments before debt. If, as i suspect, these are negligble then your spending has been way way out of control for some time now and use of a spreadsheet and hoping for future home price appreciation (gambling again?) is not a good idea no matter how you look at it.

Give mabs a call and sort out your debt first, prove to yourself by doing it not by banging some numbers into excel.
 
Out of interest what have you done with the 40k loans? Travelled? College?
 
Second that... Betting on house prices following some sort of idealistic pattern to suit your needs alone ain't gonna work. This sounds like the kind of hare-brained scheme I'd associate with Ministers for Finance.
 
To answer questions


I am expecting slowdown in rate of inflation but inflation will never cease and if it does the country will fall into resecion in which case good luck to us all. What I predict is that house prices will always rise but will slow down by October,even if they then stay at that level there will still be a sufficient level of inflation to build equity in the house.


In answer to another question I do not have any commitments apart from 2 PL's and Credit Card.

I am here to prove all of you wrong,I know what Mabs do and I don't think going to them will help as deep down they only tell people what they already know but dont want to admit to.


I admit my spending habbits have to change and I know what I have to do. I will report back here in March to let you know how I am doing and I guarantee I will be well on my way. With expected bonus in work I hope to be in a position next March whereby my GE PL is cleared leaving me with just a BOI PL and credit card.

I am commiting to a 12 month plan here. It will be hard because I have to cut back on spending a lot but I am willing to do it to be in a better possition this time next year.

In my opinion most peoples problem here is that they don't really want to change spending habbits
 
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