Case study Single working mother just in arrears, not sure how to proceed

User Input|
Type of household|Single Adult
Type of transport|Private Vehicle

No. of primary schoolers|1


Reasonable Living Expenses|€
Total Before Deductions|1,428.27
| 1,428.27
Less Child Benefits|(130.00)
Total Set Costs | 1,298.27
Childcare|180.00
Total Costs | 1,478.27

|€
Net Income|2,900.00
Total Net Income | €2,900.00
Reasonable Living Expenses|1,478.27
Available For Creditors | €1,421.73

You have sufficient income available to pay your mortgage repayment in full.



Could you get suitable accommodation for less than your mortgage repayment of €1,248?
How much would it cost to rent similar accommodation?

Forget your daughter's education - your problem is now
Pay off your creditors rather than build up savings. Your Credit Card is costing you around €600 a year in interest. Paying the€1,700 off it, would save you €300 a year. You are probably earning €40 a year on your savings. This makes no sense.
What discussions have you had with KBC?
You got a one year interest only period. What happened after that?

I had an extremely negative experience with my bank and this has meant that I was reluctant to contact them again.
Click to expand...
You have to get over this. You can't resolve your problems without talking to KBC.

They have already given you an interest only period, so KBC is not all bad.

You need to be in the MARP. They might give you breathing space to pay off your expensive unsecured creditors, which should be your priority.
 
Without wanting to pry, you don't seem to have a figure in for maintenance from the father of the child - is that a road you could re-visit? If you don't want to answer this, don't.
 
The bank wants you to make the full repayment, and not just interest only.

Statements like "Surely the borrower ends up paying more long-term" are commonplace, but meaningless. If you rent a house for 10 years you will pay more rent than if you rent it for 7 years. It's the same with a mortgage. You judge the cost by the amount of interest you pay every year. The longer you have the mortgage, the more interest/rent you will pay.

If the bank agrees to give you interest only, the monthly cost will reduce to €900 (240,[email protected]%/12)

Although you are in severe negative equity, you would have an extra €300 of cash each month.
 
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