To Consolidate or not?

U

Ukjennad

Guest
Age: 27

Annual gross income from employment or profession: €22,000

Type of employment: Admin permanent job

In general are you:
(a) spending more than you earn, or
(b) saving?
Recently was left go after 3 years ( No redundancy on Contract) was lucky enough to find another job straight away which is permanent but I went from a Salary of 31K to 22K

Rough estimate of value of home: €220,000
Amount outstanding on your mortgage: €265,000
What interest rate are you paying? .8% over the ECB
No Longer living in the house as me and my partner separated he is now renting a room and paying the rest ( happy to do this for now) but with the Hike in the ECB might ask me to contribute.

Other borrowings – car loans/personal loans etc:
Bank Loan 8K - 79 a week 2 years left
Car Loan 6K- 78 a week 2 years left
Overdraft 1100 - 30 a Quarter


Do you pay off your full credit card balance each month? No
If not, what is the balance on your credit card? 1800
125 a month ( Halifax monthly bill since they closed ) THis was 5k have brought it down in the last 4 months.



Savings and investments: Nothing left was out of work last year for 5 months went through my savings keeping up with my Loan repayments

Do you have a pension scheme? No

Do you own any investment or other property? No

Ages of children: N/A

Life insurance: Yes


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

I really just need some advise, Im back living at home after I separate from my ex last year. Everything was fine until I took a 9k Pay cut and now im struggling. Im not really left with anything any week to save. As im not likely to get a pay rise It could stay like this for 2 years until my 2 loans are gone. Should I ask my bank to consolidate my loans back over 5 years to give me some extra money so I can finally move out of my parents and save or should I just live like as I am no extra money for the next two years and struggle but be debt free in 2013?

Any suggestions is really appreciated.
 
If your parents don't press you to move out as soon as possible, I'd personally would stick it out for 2 years but be debt-free then, rather than having the debt around my neck until age 32. A lot may happen in these 5 years, you may want to start a family but will still have the debts...

Also, unless you are very disciplined financially, there is a danger of running up new debts if you consolidate.

Can you get any part-time job to bring in extra money and pay down the loans quicker?
 
No I wish I had the time to get a second job I work 9 - 6.30 Monday to Friday as it some days longer.

I could sell my car and clear one of the loans but I need to make more then 6 on it to buy another car as I need it for work.

I know I could go on as I am its really just not being able to save that scares me like if anything unexpected comes up I never have the extra money. I also hand up money at home and Im left with about 60 a week. Its just not possible to save out of that.
 
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