newbie on here starting to tackle massive debt

GeorgeUK

Only some cards allow a money transfer as part of the promotional offer. These are sometimes known as super balance transfers.

I know that Virgin is one of them, but others are listed here:
http://www.stoozing.com/sbt.php

If it's not a SBT card then the interest rate charged will be more than the normal rate as this will be deemed a cash advance.

pittel

Unfortunately we dont seem to have any SBT cards in Eire.....I have just paid off my aib mastercard 2550euros by tranferring it to Mbna and topping its balance up to 11.5k.....The two cheapest cards in ireland are aib click 8.5%( no intro offer)and bank of ireland clear 9.5%(0% intro offer for 6 months)I owe Aib 12k on its visa card(apr 19%)..so I will apply for a bank of ireland clear card...should I do it now immediately or wait awhile as the recent activity on credit bureau with Mbna checking and 2 checks in May by remortgage companies could be a negative..my plan would be transfer the aib visa to boi clear..close the aib visa then (and also the aib mccard)

GeorgeUK

3 might be pushing it, but i would wait a month then apply. If 2 checks are going to be around 6 months or more when you next apply then you have little to lose by doing one now. I November/December you could apply if you don't get this and there will only have been 2 checks in the last 6 months.

How long is the interest free period?

If less than 12 months, might be worth keeping the aib card open and asking if they have any balance transfer offers for existing customers. You usually can't apply for the same card twice in 1 year - some may be longer.

pittel

I have been looking at everything again...I have 3 houses..my own plus two rental properties..these are both furnished modestly..perhaps this is an impossible question to answer..what % of the building insurance should the contents insurance be...here in Eire..house insurance is very high and I was thinking of reducing contents cover on rental properties to minimal..

pittel

Hfc have a written back and reduced the loan balance by 2116 euros as a result of cancelling the PPI..:beer:

I applied for Bank Of Ireland clear card and was refused..no late payments
on the credit bureau..I guess it must be too many credit requests.. I got the decline over the phone..there was suppose to be a letter giving the decision on the way but its 10 days ago now..

My big problem is aib..overdraft at 5800(6000 limit) and they want it down to 2000 by september 15th or else they will start bouncing DD...It will be very difficult to reach this target and its very stressful as my own home mortgage isa dd from that account.

balances now..july 5th 2009

aib visa 12400
mbna 11300
aibmcard 179

cu loan 15600
ptsb finance 18600 approx
aibloan 3100
hfc 9900

kbc mortgage 132k
ebs mortgage 174k...arrears of 1k..
hardware shop 1600

I have cut back on almost everything I can think of now..
The biggest problem are the two houses..

rental income 1180 mortgage 1480...loss of 300 a month
plus house insurance 75 a month
mort prot 68 a month
repairs + maintenance etc + void weeks...150/month

losing about 650/month or 160/week

impossible to sell until the recession lifts..

on int only so paying 695 instead of 1480 but they will review this on Nov 1st....I will request another 6 months as we cant pay 1480 at the moment..

still trying to keep positive and think of ways of boosting income etc..

Fire_Fox

Nothing is impossible to sell if it is realistically priced. My inclination would be to put both rental properties on the market and to get rid of whichever sells first or for the most reasonable price. Or sell the family home and move into one of the rental properties.

It seems a little crazy that two adults in your home are getting deeper into debt month on month whilst two other adults have savings and don't contribute to the household! Could you consider borrowing your kids savings and paying them back as soon as one of the rental properties sell? I know that probably sounds awful, but you are effectively the one saving each month as you are subsidising each one of your offspring hundreds of euros every month.

I am guessing that you haven't shared your money worries with your family. I think you should and get them all fully on board with debt-busting. They will have got used to a certain standard of living which actually isn't sustainable; you will be doing them a great service to teach them how to live on a budget when fly the nest.

pittel

Thanks

Certainly putting the properties on the market must be looked at..its very bad here in Eire at the moment...

I take your point about my two sons,however the 23 year old returns to college in Sept in Scotland..his tuition fees are paid but he must pay about 4k for accomodation for the year plus day to day living expenses..so he is working to save that money..its his degree year so he must work as little as possible during the year. The 24 year old has a PhD allowance of 16k a year for the next 3 years..he should contribute something,,he has money left over after his car loan and petrol is paid for..

kissjenn

pittel wrote: »

I have cut back on almost everything I can think of now..
The biggest problem are the two houses..

rental income 1180 mortgage 1480...loss of 300 a month
plus house insurance 75 a month
mort prot 68 a month
repairs + maintenance etc + void weeks...150/month

losing about 650/month or 160/week

impossible to sell until the recession lifts..

on int only so paying 695 instead of 1480 but they will review this on Nov 1st....I will request another 6 months as we cant pay 1480 at the moment..

still trying to keep positive and think of ways of boosting income etc..

Hi,

I'm completely lost with these figures. Can we take 1 thing logically at a time to understand?

Lets start with the 2 Buy-to-Let properties.

Outgoings

Mortgage - 695 until Nov 2009
Insurance - 75
Mort Protection - 68 What is this for? How do you ever claim? These mortages are rental not personal income based?
Contingency - 150
Total 988

Income

Rents - 1180

So if you sort out the mortgage protection you are currently making 200 - 250 per month profit NOT 650 loss. As discussed before there is no logical reason to make repayments to BTL mortgages unless you long term plan to keep and live in them. If inheritence or presents for your sons, you just cannot afford this and keep them through uni etc etc. Change you mortgage package to interest only properly long term and then you can wait for the market to pick up as these are actually making you money and not a cash pit. Then rationally choose what you want to do with them.

Or have I got this completely wrong?

If I'm right then I suggest you redo you SOA with the corrected figures and we look at where you are overall now. If you chunk this up it becomes manageable and you'll see the wood from the trees.

pittel

Hi Kissjen,

Thank you for your help ..when I took out the mortgage originally on the rental properties there was no buy to let type mortgages in Eire..only repayment. Clearly we cant afford this but now it should be no problem converting to interest only.Also I think the lender demanded motgage protection at the time,but lets assume we can cancel this.

I will put up a new statement of affairs based on these changes ,as soon as possible...

I am keeping a day to day spending spreadsheet to try to identify any areas for further cuts....

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............................ 2254
Total monthly income.................... 5668
Monthly Expense Details
Mortgage................................ 1500
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. ......................... 1200
Clothing................................ 50
Petrol/diesel........................... 160
Road tax................................ 63
Car Insurance........................... 93
Car maintenance (including MOT)......... 40
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 50
Pet insurance/vet bills................. 0
Buildings insurance..................... 143
Contents insurance...................... 37
Life assurance ......................... 66
Other insurance......................... 300
Presents (birthday, christmas etc)...... 0
Haircuts................................ 68
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 50
Total monthly expenses.................. 4908

Assets
Cash.................................... 0
House value (Gross)..................... 850000
Shares and bonds........................ 2200
Car(s).................................. 17000
Other assets............................ 0
Total Assets............................ 869200

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 132000...(1500).....2.53
Secured Debt.................. 174000...(695)......4.85
Total secured & HP debts...... 306000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
card1..........................12500.....360.......19
card2..........................11500.....150.......18.9
card3..........................200.......101.......18.3
loan3..........................9900......235.......22
loan2..........................3100......98........9
loan1..........................15600.....393.......9.38
Total unsecured debts..........52800.....1337......-

Monthly Budget Summary
Total monthly income.................... 5,668
Expenses (including HP & secured debts). 4,908
Available for debt repayments........... 760
Monthly UNsecured debt repayments....... 1,337
Amount short for making debt repayments. -577
Personal Balance Sheet Summary
Total assets (things you own)........... 869,200
Total HP & Secured debt................. -306,000
Total Unsecured debt.................... -52,800
Net Assets.............................. 510,400
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.