Really need to sort out my personal debt.

Discussion in 'Banking, credit cards, etc' started by fabnolan, Sep 17, 2009.

  1. fabnolan

    fabnolan Guest

    Maybe not the best first post but I'm sure I'm not the only person who might have over spent in the good times.
    I have amounted debts totaling about 23500.
    I have 5 loans on the go.
    Credit union-8500.
    Aib 9500.
    Aib card 1000.
    Boi 2000.
    Boi card 2500.

    My outgoings on these loans are killing me and I'm not able to save any cash.

    Credit union 120 per week.
    Aib 65 per week.
    Boi 40 per week.
    Credit cards i pay a amount of each week but not enough im sure.

    My girlfreind and I would like to buy a house sometime soon but as it is I'm not able to save.
    Any advice on how to get myself out of this hole would be great and maybe some mortgage advice.
    I've cut up both credit cards and burned them in the fire.
    Thanking you.
  2. so-crates

    so-crates Frequent Poster

    Without any information on income and outgoings it is nigh impossible to comment on your situation.

    In general though, one thing at a time. You are in no position to take on a mortgage and probably won't be in one for two years. Start by sorting out the debt you currently have. Then build up your savings and ONLY then look at incurring more debt.

    Also the basics are the same. Order your debts based on priority and cost. Try and clear your highest interest debts as soon as possible, then redirect your repayments to other debts. I would speak to the CU and see if you can negotiate a smaller repayment for a time in order to clear the credit cards faster. Once those are cleared you will have more money available to clear your other loans.

    In order to free up money you first need to work out what you are doing with it. Keep a spending diary and start identifying areas that you can spend less, draw up a budget and stick to it.

    If you want something more specific, I would suggest using the Money Makeover format for posting.
  3. chlipps

    chlipps Frequent Poster

    You are not alone as many posters have same dilemma so my response is as follows:

    1) Clear the credit cards first as they have highest interest rate or switch them to 0% interest
    2) As you have a credit union loan, i assume that you have money locked in here so i would try get that loan down asap to release the cash that is locked in.
    3) From there take the next highest interest loan and pay it off
    4) Start a daily record and record every penny you spend and then on a weekly / monthly basis try to spend less month on month. Try to save more each month and that is the challenge
    5) Get rid of sky, broadband, cut back on outgoings, go to work with packed lunches , shop in lidl, aldi etc... every means to cut outgoings is key to getting into a savings mode that a mortgage group will need to see before they give you a mortgage

    Best of luck
  4. fabnolan

    fabnolan Guest

    Cheers folks for the advice.
  5. Bronte

    Bronte Frequent Poster

    You also need to check your spending habits and change them. Do you know what caused you to get into debt and have you stopped this?