Shop closed Down..... Debt Debt Debt

T

toadettee

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Me and my partner had a shop open for a year and a half which closed down early last year.

I was running the shop and t the same time it closed down he got let go from his job. We have a bank loan and credit union loan from this shop.

We also have a mortgage and as we have been unemployed, we have been receiving mortgage relief. We still have to pay almost €200 a month to make up the difference but the problem is we have not been able to pay off any of the loans we owe and now we are starting to owe more than we borrowed in interest, not only this but as there is only a small amount going into our current accounts and credit card (the minimum, when we were working we always paid well over the minimum) the bank have started sending us letters to cancel all our overdrafts and my partners credit card.

We no longer use the credit cards, just trying to pay them off little by little. We have an appointment with MABS for later in the week, is this the right way to go, we want to keep our house. And if we could we would obviously keep our bank accounts out of overdrafts but it is impossible earning a third of what we used to earn per month. We have already bit the bullet and put our house up for rent and are willing to move back home to try and keep our bills down but i fear we still wont be able to keep up with all the debt.

Any advice on this, the loans are quiet big adding upto about 46g not including the credit card or overdrafts.
 
Contact Mabs they are really helpful and will contact all your lenders individually for you to assertain a budget plan within your new income .i.e. your money coming in. Keep your chin up and stay focused together, you both will get thru this.But the main tip i can give you is....dont hideaway from it, open the letters, talk to the banks, keep the lines of communication open and you will be surprised how less stressful it will be for you in the long run.
 
have you got equity in the house? If you do have a sizable chunk, you might be better off to sell it (as you can't afford to live in it), clear your debts and start afresh.
 
Thanks senni, we have been keeping in contact with our local bank branch the whole time, had a meeting as recent as december but they maintain there is nothing they can do, we need to pay. Had a meeting with mabs, it went well.

Kemo_Sabe We could not sell the house in the current climate for more than 10 grand more than whats left on our mprtgage, 3 years ago we would have got what we needed but it was valued 2 months ago. So that is pointless, still left with the debt and have no house left at the end of it.
 
It sounds a little sententious but I think toadettee that sometimes all you can throw at something is time. By the sounds of it you are doing everything you should be, you are in contact with your creditors, you have sought help from MABS and you have reduced your outgoings. The only things I would say, is draw up a budget, monitor your spend on a daily basis using a diary and finally try and identify a new revenue stream (getting over wordy again :) of course I mean try and see if you can pick up some extra work). It is going to be quite a while before you will see a dent in your debt - I think it just may take some getting your head around.
 
A good source of personal finance information is the 'Your Money' section in each Tuesday's Irish Independent newspaper. Articles from which are available online at www.irishindependent.ie. Type 'Your Money' into the search box at top right of home page. There is a wealth of practical recommendations that could be of use to you.

You are doing the best you can and take each day at a time and each seperate issue at a time and you will get through this.
 
Have Mabs been able to help you with drawing up a budget and have they helped you to contact the bank, credit union and credit card company. I believe they can help you negotiate the interest etc. Maybe another meeting with the bank, always keep in touch with your lender. You are doing the best you can and nobody can expect any more.
 
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