New here and need advice desperately

A

amy1plus2

Guest
Hi all, Brand new to this site, have to say its been very interesting. Im looking for some much needed advice. Myself and my partner bought a new home last year but now find ourselves in a huge financially difficult situation. Let me explain. Our current outstanding mortgage is 425k, monthly repayments on that are 2,300 over 30 years, (the longest term we could get). We also have some loans, credit union for 21,000, monthly repayments on that are currently 300euro for approx the next 8 years. We have a smaller credit union loan of approx 3000 euro with weekly repayments of 70 euro for approx the next 10 months. We have a personal loan that we just got out to start up our own taxi, thats 13,000 with fortnightly repayments of 220 euro for the next 3 years. On top of all of that we have the usual standard monthly direct debit outgoings, ie, life assurance policy of 90 euro p/m, phone bills, approx 150euro p/m, television, 60euro p/m. And then there are living expenses, bills, electricity, gas etc, petrol, food shopping. We have a 1 year old and another baby due on New years day. I am on sick leave at the moment and am due to start maternity leave in approx 4 weeks. My take home pay per fortnight is approx 860euro. My partner's weekly take home pay is approx 900-1000euro. We find ourselves struggling to make our mortgage payments and even took a 3 month moratorium the last 3 months. My partner believes that our only option is to sell our house and move further away to a cheaper house. I do not believe this is an option. I know I would be miserable and crack up as he works quite long hours as it isand cannot imagine being in a house on my own with no family around. Downsizing in our area is not an option either as our house is only a standard 3 bed semi and as it is we don't have an awful lot of room. Any advice is greatly appreciated and badly needed, thanks in advance
 

Stifster

Registered User
Messages
665
Sell, rent. I have no idea where you are but you will get a 3 bed in say Sandyford for less than €2,000 a month. Buying for the sake of it and having a crazy commute is just not worth it.
 
S

SNOWBALL

Guest
HI Amy

Could you rent out a room for a year or so, €400 a month that would help with bills.I know you may not want that but its a way of getting extra cash.You do have a lot of outgoings it must be very hard.Maybe think of moving to another area it could ease the pressure.Can i ask where your house is?
 
A

amy1plus2

Guest
House is in Greystones. As we're a 3 bed with soon to be 3 children, renting a room out is not really an option. I know Im kind of asking for a lot but Im looking for suggestions apart from the obvious one of sell and move.
 

Bronte

Registered User
Messages
14,165
I understand your need to be near family with young kids. You need to look more closely at your weekly spending. Can you get rid of the phone which is costing 150 per month. Do you have a mobile as well which you could use instead a pay & go one. Do you need the cable costs of 60 Euro per month. Also where does the 3rd child come into it? By any chance do you have a garage at the side of the house that you could turn into a flat to generate some extra income? You didn't mention credit cards, do you have debt on these?
 

Sunny

Registered User
Messages
4,251
Have you done up a detailed budget to see exactly where you are spending the money. Have you examined your loans and mortgage to make sure you are getting the bast offers? Credit Union loans can be more expensive than banks. Taking a break from the mortgage won't really solve anything. If you need advice or help with the budget i would suggest you contact Mabs (www.mabs.ie). You shouldn't have to do anything drastic. Sounds like you may just need to tighten up a few things.
 
A

amy1plus2

Guest
Sorry, hit the 3 button instead of 2!!! 2 children, soon to be 2 children.. We don't have any credit cards, about the only debt we haven't got. No we don't have a garage or anything that could be rented out.
 

annR

Registered User
Messages
656
Hi Amy

I think I would feel the same if I was you in terms of not wanting to move or downsize.

Is your monthly take home pay at least Euro 5320? Thats decent. I've calculated your loans are 1020 pm plus mortgage is 3320. That leaves you 2000 pm minus the life assurance,phone,TV is 1700.

I would have a look at what you are spending the 1700 on.

phone bills, approx 150euro p/m, television, 60euro p/m.

That seems like a lot to be spending on phone and TV. Is there any way you could cut back?

I did the figures very quickly apologies if I've made a mistake, not my forte.
 

pc7

Registered User
Messages
593
Had a look too outgoings just pulling them out so they are easier to see: -
Mortgage - 2300
Credit Union 1 - 300
Credit Union 2 - 70
Personal loan - 440
Life assurance - 90
Mobiles - 150
TV -60
Total (exluding bills/food) = 3410

Incomings
You - 1720
Partner - 3600
Total = 5320
Balance - 1910 a month as mentioned above excluding child benefit and the 1000 a year lump sum for kids under 6.
Mobiles - cut these down straight away 150 is too much a month, get rid of the sky package and start putting these savings off the highest interest loan you have. Realistically you need to budget shop in aldi and pull back 1900 plus a month is plenty to live on. I think if you track your spending you'll notice other wastage. Good luck
 
A

amy1plus2

Guest
yeah think we will have to get rid of the phones, they're mobiles, contract, so ill just have to forfeit the contracts. I know it looks so do-able (sp?) on paper but every month we just seem to be in over our heads. I think your all right about doing our best to watch what we spend, we should be well able to live off our incomes. But its just the unforseen things that constantly seem to catch us, like say a night out or our bills for hospital, with having the baby, approx 2000euro total. I have heard of people getting work -from- home jobs and I'd be interested to see if I could get one of these. Not knocking on people's doors trying to sell things but I've heard of a girl who does typing by dictafone at home and earns a set amount per 1000 words or so. So think ill definitely try to get something like that because obviously with a new baby Im not in a position to go and get any other kind second job. And also, as it is, my partner is working alot of hours to get the money he is getting.
 

pc7

Registered User
Messages
593
If you keep a diary of what you spend it's amazing how much you waste. Move to pay as you go phones say if you both go 087 you get free texts to 087 if you top up by 20 a month, I think the other operators offer competitive offers like this. As for going out, stay in! your broke. If your going to be a stay at home mum for a bit would you take on minding someone elses child? or school pick up there are ways to make a few bob? Not sure if you need qualification or that for such a thing. Just be firm with your cash no splurges. Best of luck you can do it. Any extra money you notice you are saving start knocking it off the big interest loans.
 

efm

Registered User
Messages
936
Amy,

Make sure you are claiming all your relevant tax back ie Med1, refuse collections fees etc.

What everyone else has said is true - budget, budget, budget - you'd be amazed at how much we all spend on "nothing". Also, Lidl is just down the road and is jammed everyday with people from Greystones stocking up cheaply.

But you need to stick at it - realistically it'll take 2 years to get into a better position, but once you get through you'll realise it was worth it.
 
A

amy1plus2

Guest
Well Im not in a position to take on minding a child now cos I have only 6 weeks left to go on this pregnancy so I'd have to stop in 4 weeks or so. Plus I am planning to return to work after my maternity leave finishes, on a part time basis so should roughly be on the same money. Really appreciate all the avice, am going to start my cash diary today!! I will keep you all updated on the situation, ta
 

MrMan

Registered User
Messages
1,470
Incomings
You - 1720
Partner - 3600
Total = 5320

You could possibly have an extra €600 spending money per month

Husband 900-1000 = say on average 950 per week*52 / 12 = €4116 per month
You 860 per forthnight * 26 / 12 = €1863 per month
Total €5979 per month spending money

Deduct
Total (exluding bills/food) = 3410

Leaves you with €2569 for bills food and sundry which doesn't sound bad at all.

I think we have all been in the position where all of a sudden debt feels like its consuming you and it is helpful to write things down and see exactly what position your in. You should be able to half your mobile bill and save some cash to put towards a holiday christmas etc, something to treat yourself with so that you feel that you are getting something for all your work. This is probably the hardest time of the year debt wise so hopefully things should be looking up soon.
 

annR

Registered User
Messages
656
But its just the unforseen things that constantly seem to catch us,

I've heard this before a few times, seems to be a stumbling block a lot of people have and obviously difficult to foresee.

I have some tips which might help
  • some expenses are foreseeable and you can budget for them for instance tax, insurance. You can also budget a certain amount for "unforeseeables but essential". Sit down and have a good think about what you know might be coming up and how much you want to set aside for unforeseeable stuff judging from what unforeseeables have cropped up in the past. Put the necessary amount aside per month and then you will know what you have to budget with.
  • Just don't spend any money. (on non essentials) Don't go out. Don't buy clothes. Cut the phone and TV. Shop in Lidl or Aldi (I find the Asian supermarkets very cheap as well if you cook Asian). Cook large stews and freeze them in portions. See if you can cut your energy bills by turning off rads in bathrooms and unused rooms.Try it for a few months until you feel you are in control of things.
  • Spend the *bare minimum* on Xmas presents and explain to friends and family that you won't be forking out, they'll understand. A small box of chocolates is cheap but a nice present (I wish more of my family went back to basics and just bought me chocolates).
  • Have a look at your receipts and see where your money is going and cut back. Ask your husband to keep his receipts too and have a look at them together. Get your husband to agree to the previous point as well.
  • If you are buying baby clothes try the charity shops (I admit I have no experience there)
Hope this helps. you have plenty of money, you just need to manage it better.
Ann
 

terrysgirl33

Registered User
Messages
690
If you work while on maternity benefit, you forfiet the benefit, so it may not be worth your while working.

If you have only two children you can rent out a room. We did it, the baby shared our room for a few months and then moved in with her sister. They have been very happy together and it has worked out well.

Are you sure your DH will earn enough driving a taxi? I don't know much about it, but it seems like the return isn't great (from a few posts here, I think).

I realise you are not able to cope with much now (at least I'm 30 weeks and finding it hard), but try to keep a spending diary and see where the money is going. You need a place to live, food and some clothes, everything else is negotiable.

Good luck!
 

terrysgirl33

Registered User
Messages
690
Meant to add, we were in a similarish situation when DHs contract finished and we suddenly had only one income, when we sat down and worked out where the money was going, we were amazed at how much we wasted. If we had those two incomes back again, we would be rich!! But as it is we frittered it away...
 
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