S/P in a quandry about car loan & savings

[lilymay]

Age: 35


Annual gross income from employment or profession: Currently getting Social Welfare
OPA - €220 per week (€11,440 p/a)
JSB - €76 per week (€2,736 p/a - payment finishes in Sep 2010)
C/A - €150 per month
Maintenance - €520 per month

Type of employment: e.g. Civil Servant, self-employed - Unemployed since being made redundant last year.

In general are you:
(a) spending more than you earn, or no
(b) saving? no

Rough estimate of value of home €168k
Amount outstanding on your mortgage: €145k
What interest rate are you paying? 2.75%
Monthly payment - €510 p/m

Other borrowings – car loans/personal loans etc
Car Loan - current balance is €17,800 - €463 per month
C/U Loan - €1,300 - €35 per week
C/U savings - €800
Montessorri - €136 per month though this will be nil come September

Do you pay off your full credit card balance each month? No - €100 p/m
If not, what is the balance on your credit card? €400

Savings and investments:

Do you have a pension scheme? No

Do you own any investment or other property? No

Ages of children: 1 child, 4 y/o

Life insurance: €36 per month


What specific question do you have or what issues are of concern to you?

I was working part-time for the last few years, and between work & OPA my take home pay was around €480 p/w nett. I am very careful about budgeting etc, late 2008 my car died and I bought a new car as the outlook at work was good and we were hiring. Car was bought based on that assumption and because I could afford the repayments. Fast forward to a year later and work has made 70% of us redundant.

I have two issues:

1. I can't afford the car repayments. I have rang the finance company and am going to try and sell my car to pay the balance owing as luckily the car prices second-hand would cover the balance on my loan. However then I would need to take a small 3/4k loan from the credit union to get another car as I live in the country and need a car.

2. I am looking for some ideas on how I could save money as I have no rainy day money and dread anything going wrong. I keep a spending diary and only shop with a list. I have approached my mortgage lender about going interest only for 12 months but they are not interested (pardon the pun - its with INBS)

I have looked at returning to work, and the rate of pay for admin staff would not cover the mortgage / car & childcare. Previously my mother minded my son whilst I was working but is not in the position to do that now and I have no other relatives who could do it. I have spoken to the CWO about applying for Mortgage Interest Supplement, but my income is too high to qualify and my mortgage is too low!!

Any advice? Thanks in advance.
Lily

 

[niceoneted]

Have you tried switching to a cc with 0% transfer for 6/9 months for a start.
Even if you sell the car and buy another and have to borrow for it from CU it will still be a much less amount so you might be able to manage it.
as you are out of work is the montessori necessary I know the childrens allowance covers it but it would be a saving for a few months and would clear the credit card or bring the cu loan equal to saving so would free up some further money.
You seem to be doing a great job hard and all as it is. Well done on the spending diary.
I only shop with a list also - only allow 3 non list items, and special offers if they are things I buy regularly.