newbie on here starting to tackle massive debt

pittel

Just joined this forum
present situation

132k mortgage on own house

174k mortgage on 2 other rental properties

4other loans
3k
19k
17k
10k

total 50k

credit cards
12k
2.5k
9k

total 23.5k


grand total 380k approx

income
3414/month (after 380 deducted at source for 19k loan)
980/month(additional income)
640/month(rental at moment)

total 5034/month

repayments down to 3264/month at the moment

all living expenses ..3135/month

shortfall of 1365/month...340/week

I have managed to get my home mortagage from 1500 down to 1200 for 6 months and rented mortagage down from from1500 to 695(interest only for next 6 months)..the figures above are after these changes..

unfortunately I have ran out of patience with my current bank(dont have my mortgages)who are
refusing to convert their 2 credit cards to a term loan..they upped my overdraft by 4k until sept 15th but I cant see how I will deal with them then... I have a perfect credit record but banks wont remortgage
my house even though its worth 550k alone..btw I am living in Ireland


my wife is very supportive but i'm finding it hard to sleep..its difficult to bridge 300/week..saving 150 on food is our aim..

one of the rental properties is unlet and it is very difficult to let houses here right now..

any questions/comments please

wantabetterlife

Hi, How do you manage to spend over 3k a month on living expenses? Can you give a bit more detail. I live in northern ireland and we also have a house rented out but it was empty for a while and i know that this can be very stressful. Could you lower the rent?

GeorgeUK

Are you able to reduce the interest rates you have on the cards or get new cards with a 0% APR promotion?

Are there any bills you can reduce?
Have you checked the council tax banding is correct (not sure about Ireland for this though)
Any bank charges that you can claim back?

Might be worth posting up a statement of affairs and show the 2 rentals as loans.
http://www.makesenseofcards.com/soacalc.html

kissjenn

We've rental properties too and the market here (Scotland) is tough at the moment.

Don't know your target renters but have you looked at making the base as broad as possible eg taking students, benefits, pets etc.

If property is completely empty of all furniture here we pay 0 council tax for 6 months.

We also looked at Gumtree, not successful; advertised in local papers and wrote a pre-emptive letter to the homeless department of the council saying we'll consider taking someone. Also ensured rent required to sat between non-benefit and benefit tenants (again no idea if this is relevant in Ireland) to maximise potential renters.

Another thought (and then I'll shut up honestly) there are companies who act as middlemen for Council eh Orchard and Shipman. You rent your property for say 5 years and they guarantee an amount every month. O&S then sub-let to the council who effectively add it to their council and emergency housing stock. After 5 years you get it back in the same state you let it.

I lied (thought of something else). Do you manage the property yourself or factor. We self factor because we couldn't afford to hand out 10-15% of gross income every month. If the flats are local to you, that's a potential way to save a good bit.

Such a liar (editing to add more) what type of mortgages do you have on rental properties and if repayment why? Again tax laws may be very different (assuming here that Ireland is Eire not NI) but here you don't get tax relief on repayment element of mortage and will pay Capital Gains when you sell so unless you "want" the property in the future - say to retire to - then why pay any extra, ever, to those mortgages.

Hope something in there helps. If you know all this please say and I'll be quiet, if it's new and helps let me know.

pittel

Thank you all 3...I will reply to each as I get time through the day..

pittel

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 5
Number of children in household......... 0
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 3414
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 1620
Total monthly income.................... 5034
Monthly Expense Details
Mortgage................................ 1200
Secured/HP loan repayments.............. 695
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 100
Gas..................................... 100
Oil..................................... 60
Water rates............................. 0
Telephone (land line)................... 30
Mobile phone............................ 10
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 80
Groceries etc. ......................... 1800
Clothing................................ 0
Petrol/diesel........................... 160
Road tax................................ 63
Car Insurance........................... 93
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 162
Contents insurance...................... 31
Life assurance ......................... 66
Other insurance......................... 370
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 5033

Assets
Cash.................................... 0
House value (Gross)..................... 850000
Shares and bonds........................ 0
Car(s).................................. 17000
Other assets............................ 0
Total Assets............................ 867000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 132000...(1200).....3
Secured Debt.................. 174000...(695)......4.6
Total secured & HP debts...... 306000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
CARD1..........................12000.....360.......19
CARD2..........................9000......150.......18
CARD3..........................2550......105.......18
LOAN3..........................10000.....266.......22
LOAN2..........................3200......98........9
LOAN1..........................17500.....393.......9.38
Total unsecured debts..........54250.....1372......-

Monthly Budget Summary
Total monthly income.................... 5,034
Expenses (including HP & secured debts). 5,033
Available for debt repayments........... 1
Monthly UNsecured debt repayments....... 1,372
Amount short for making debt repayments. -1,371
Personal Balance Sheet Summary
Total assets (things you own)........... 867,000
Total HP & Secured debt................. -306,000
Total Unsecured debt.................... -54,250
Net Assets.............................. 506,750

lunar

Hi and welcome to the forum. Is the figure for groceries etc correct? £1800? Can you breakdown what this includes?

pittel

wantabetterlife wrote: »

Hi, How do you manage to spend over 3k a month on living expenses? Can you give a bit more detail. I live in northern ireland and we also have a house rented out but it was empty for a while and i know that this can be very stressful. Could you lower the rent?

thank you

we have 3 children,24,23 and 18

the eldest is studying for a PhD..he has a PhD allowance ..has a car loan etc..

2nd is working to save for his 5th year in college .does his Architecture degree nest June..saving approx 8k to cover year ahead..

3rd doing Leaving Cert..hopes to get part time job..has 2k saved already

we are loath to ask them for money for food..but feeding 5 adults with the cost of food in ireland is problematic..

started ALDI now so hope to reduce food bill by one third..


on the unlet house we appear to have a tenant moving in next week,so this gives us 134/week extra ..we dropped the rent..

the 2 houses are older houses so very difficult to let in current climate..

jackieb

Cutting your grocery bill by a third still means you'll be spending £300 a week on them. Do you really need to spend that much?

pittel

lunar wrote: »

Hi and welcome to the forum. Is the figure for groceries etc correct? £1800? Can you breakdown what this includes?

Thanks..

one point to note ..I am in the Republic Of Ireland and food prices are much higher than Uk

I dont have a breakdown item by item..It is roughly 50 euros a day plus an extra 100 at the weekend..thats 450..

now it does include petrol for my wifes car(10/week) and some items which are included as 0 in the sheet..

I need to break it down more..

My aim would be to get it down to 300/week..1200/month by using Aldi etc

pittel

GeorgeUK wrote: »

Are you able to reduce the interest rates you have on the cards or get new cards with a 0% APR promotion?

Are there any bills you can reduce?
Have you checked the council tax banding is correct (not sure about Ireland for this though)
Any bank charges that you can claim back?

Might be worth posting up a statement of affairs and show the 2 rentals as loans.

Thanks

have the sheet posted above...

Have looked at bills and got some improved already..have to look into
house insurance and whole mortgage protection thing..

council tax does not apply here..

looking into switching cards but far less options here than in uk..

the 10k loan has PPI..must investigate this..