How much banks allow as reasonable living expenses
How much banks allow as reasonable living expenses
How much the banks allow as reasonable living expenses is not provided by each bank but an article in The Sunday Times is very helpful in outlining what Bank of Ireland expect. To get leniency or forbearance from your bank, they will ask you to complete a standard financial statement which includes a breakdown of your household budget. The banks do not give you a guide line on what they accept as reasonable living expenses so The Sunday Times article is a very useful indicator of what the banks class as reasonable. This is based on confidential information from Bank of Ireland but the bank declined to comment on the figures. The bank allows you month budgets of the following;
- Groceries – €600 to €800 per month depending on the children’s ages
- Electricity – €120 per month
- Gas/Heating – €120 per month
- Cable TV – €30 per month
- Mobile Phones – €65 per month for all phones in the house.
- Private Health Insurance €166 per month
- Socialising – €200 per month
Total costs allowed for a single person is €1,278 per month before mortgage costs.
Total costs for a lone parent is €2,567 per month before mortgage costs including €800 per month for childcare.
Total for a family of 4 with 1 person working is €2,195 per month before mortgage costs if they have 2 young children and €2,342 if the 2 kids are teenagers.
It would be of more assistance to families if each bank gave an indication of what they expect for family expenditure items each month and an overall monthly amount to remove another point of pressure. Frank and open discussions are more supportive than the cloak and dagger approach.