Any help welcome

cKITTY · 7 October 2016 at 9:40PM

Hello ,

I hope someone can offer me some help , I have been treading water for the last 6 years since my divorce but I have realised that Im actually just making the minimum payments and slowly but surely skinning further and further into debt .

I have read a few posts tonight , and I have seen that a SOA is essential ............so here goes , gulp , please be gentle :

Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 850
Partners monthly income after tax....... 0
Benefits................................ 805
Other income............................ 600
Total monthly income.................... 2121[/b]

Monthly Expense Details
Mortgage................................ 525
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 115
Electricity............................. 111
Gas..................................... with the electric
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 0
Mobile phone............................ 73 (one ends this month , other tied in till sept 17)

TV Licence.............................. 12
Satellite/Cable TV...................... 75 (tied in till November 16)
Internet Services....................... 0
Groceries etc. ......................... 250
Clothing................................ 50
Petrol/diesel........................... 100
Road tax................................ 12
Car Insurance........................... 45
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..................... 24
Contents insurance...................... 0
Life assurance ......................... 24
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 50
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1481

Assets
Cash.................................... 0
House value (Gross)..................... 160000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 164000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 106931...(525)......0
Total secured & HP debts...... 106931....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
TESCO CC.......................3986......88........0
VIRGIN CC......................2128......64........0
VERY 1.........................2993......150.......0
OVERDRAFT .....................5000......77........0
NEXT ..........................1463......88........0
VERY 2.........................2848......100.......0
Total unsecured debts..........18418.....567.......-

Monthly Budget Summary
Total monthly income.................... 2,121
Expenses (including HP & secured debts). 1,481
Available for debt repayments........... 640
Monthly UNsecured debt repayments....... 567
Amount left after debt repayments....... 73

Personal Balance Sheet Summary
Total assets (things you own)........... 164,000
Total HP & Secured debt................. -106,931
Total Unsecured debt.................... -18,418
Net Assets.............................. 38,651

cKITTY · 7 October 2016 at 9:42PM

Opps Sorry I also pay £14 mobile phone insurance and £100 a month paying back money I borrowed from my Dad.

Sanctioned_Parts_List · 7 October 2016 at 9:56PM

Hi cKitty,

You're absolutely right, and well done for reading around first and coming prepared :T

Your first post looked ok-ish, your second shows that you're actually losing £41 per month, so your debt will be increasing by this each month. No doubt you'll also be expecting what comes next:

* Lose the satellite TV - this is an expensive luxury when you have debts
* Don't fear the mobile phone contract - contact your supplier and try to negotiate a cheaper rate - especially the one that's about to expire, you should be able to really beat them down on a SIM-only deal.
* Presents and haircuts - £50 is a bit on the generous side
* Gas/electricity - you've missed this site's big utility deal for the year, but Noddle's doing the same. Sign up to Noddle.co.uk and register your interest for their group utility tariff. If they get enough subscribers, they try to negotiate a group discount with one of the energy companies

Then your loans/CCs are all showing as 0%, which doesn't ring true. On the stoozing site is the snowball calculator - use it with the actual interest rates of your cards to set the repayment priority.

The experts will be along in a minute with more frugal ideas...

EssexHebridean · 7 October 2016 at 10:03PM

Well done for realising you're struggling - sounds like you've had a tough time of it.

Comments on the SOA in red...

cKITTY wrote: »

Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 850
Partners monthly income after tax....... 0
Benefits................................ 805
Other income............................ 600
Total monthly income.................... 2121[/b]

Monthly Expense Details
Mortgage................................ 525
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 115 Assume you are getting your single person discount on this? Is the payment over 10 months, or 12?
Electricity............................. 111 Have you checked whether there are better deals out there for you?
Gas..................................... with the electric
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 0
Mobile phone............................ 73 (one ends this month , other tied in till sept 17) Who is the second mobile for? what is the cost of the contract that ends this month?

TV Licence.............................. 12
Satellite/Cable TV...................... 75 (tied in till November 16) Look to cut this to absolute basic for a while once the contract is up
Internet Services....................... 0
Groceries etc. ......................... 250 You can trim this down a bit
Clothing................................ 50 Again, until your finances have stabilised you can almost certainly manage with the clothes you have. What proportion of this is for the kids? How old are they - can you get away with eBay buys etc for them?
Petrol/diesel........................... 100
Road tax................................ 12
Car Insurance........................... 45 This is quite high - have you been through the comparison sites?
Car maintenance (including MOT)......... 0 You nheed to have something in here else when the service/MoT comes around you'll be back to square 1
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..................... 24 Does this include contents?
Contents insurance...................... 0
Life assurance ......................... 24
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50 Every month? Are you actually setting this money aside?
Haircuts................................ 50 Pardon the pun but can you trim this at all?
Entertainment........................... 0 Nothing? No quick trips out for a burger/coffee while you're out shopping/days out with the kids?
Holiday................................. 0
Emergency fund.......................... 0 You already know what we're going to say about this, don't you...
Total monthly expenses.................. 1481

Assets
Cash.................................... 0
House value (Gross)..................... 160000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 164000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 106931...(525)......0
Total secured & HP debts...... 106931....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
TESCO CC.......................3986......88........0
VIRGIN CC......................2128......64........0
VERY 1.........................2993......150.......0
OVERDRAFT .....................5000......77........0
NEXT ..........................1463......88........0
VERY 2.........................2848......100.......0
Total unsecured debts..........18418.....567.......- Are all these really on 0%?

Monthly Budget Summary
Total monthly income.................... 2,121
Expenses (including HP & secured debts). 1,481
Available for debt repayments........... 640
Monthly UNsecured debt repayments....... 567
Amount left after debt repayments....... 73

Personal Balance Sheet Summary
Total assets (things you own)........... 164,000
Total HP & Secured debt................. -106,931
Total Unsecured debt.................... -18,418
Net Assets.............................. 38,651

OK it's squeaky but we've seen worse - and there is definitely room for savings. The Very accounts are killers though.

I assume the "other" income is from your ex, in relation to the kids. Is this the amount he should be paying for them according to your ancillary relief order?

According to your SOA you should have a surplus, but I;m guessing from what you've said that you don't have - a spending diary would be a good first port of call for you, I'd suggest. You need to work out exactly where your money is going - things are too tight not to know.

*edit* I've just seen your second post. Hmmm. Ditch the phone insurance, and can your Dad give you a break from paying him back for the time being, until you get back on your feet properly? That at least would leave you back into the position of more coming in that going out.

cKITTY · 7 October 2016 at 10:27PM

Thanks Guys ,

I am planning to get rid of the TV as soon as I am able to , its all tied in till next month , I tried to reduce the package but the cost was the same. So will cancel to basic package asap, I need internet for work as often have to work from home and I am also at uni.

I guessed haircuts and presents ....I usually just scrabble together money for these

The Very are interest free .... but the Tesco and Virgin I pay lots of interes on , I am not sure tho how to find out what that is in % ...I know that I am only paying off £20 a month ...so I am just not reducing it at all.

The other income is maintenance , and its an agreed amount .....Its not what he should be paying , but to be honest I got fed up with arguing with him.

Insurance is buildings and contents also , the clothing is just what I have spent in last month on kids shoes ....they grow fast.

2nd mobile is for my son , he is 16 . I will look for a sim only deal now.

chevalier · 7 October 2016 at 11:13PM

How long has this agreed amount been paid by your OH. If more than a year then at the very least it should go up by inflation. If he cuts up rough about it then remind them it is the kids that miss out. good luck with sorting it.
chev

[Deleted User] · 8 October 2016 at 9:28AM

cKITTY wrote: »

Household Information
Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 850
Partners monthly income after tax....... 0
Benefits................................ 805
Other income............................ 600
Total monthly income.................... 2121[/b]

Monthly Expense Details
Mortgage................................ 525
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 115 - Is this over 10 months? If so, switching to 12 months will reduce it to £95-83.
Electricity............................. 111 - This is £1332 pa. :eek: Check comparison sites, and try to cut back/avoid waste.
Gas..................................... with the electric
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 0
Mobile phone............................ 73 (one ends this month , other tied in till sept 17)

TV Licence.............................. 12
Satellite/Cable TV...................... 75 (tied in till November 16) - Get rid completely in November. That £900 pa will make a big difference, when put to your debts.
Internet Services....................... 0
Groceries etc. ......................... 250 - This is a lot for just 3 people. You should be able to reduce by at least £50.
Clothing................................ 50 - Every month?
Petrol/diesel........................... 100
Road tax................................ 12
Car Insurance........................... 45
Car maintenance (including MOT)......... 0 - Nothing, ever?
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0 - Nothing?
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 24
Contents insurance...................... 0 - You need this. Costs ~ £10 pm.
Life assurance ......................... 24
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 50
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0 - You need something in here, especially with you being a home owner.
Total monthly expenses.................. 1481

Assets
Cash.................................... 0
House value (Gross)..................... 160000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 164000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 106931...(525)......0
Total secured & HP debts...... 106931....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
TESCO CC.......................3986......88........0
VIRGIN CC......................2128......64........0
VERY 1.........................2993......150.......0
OVERDRAFT .....................5000......77........0
NEXT ..........................1463......88........0
VERY 2.........................2848......100.......0
Total unsecured debts..........18418.....567.......-

Monthly Budget Summary
Total monthly income.................... 2,121
Expenses (including HP & secured debts). 1,481
Available for debt repayments........... 640
Monthly UNsecured debt repayments....... 567
Amount left after debt repayments....... 73

Personal Balance Sheet Summary
Total assets (things you own)........... 164,000
Total HP & Secured debt................. -106,931
Total Unsecured debt.................... -18,418
Net Assets.............................. 38,651

Comments in red.

Are all you debts really at 0%?

[Deleted User] · 8 October 2016 at 9:35AM

cKITTY wrote: »

I need internet for work as often have to work from home and I am also at uni.

If home internet is a job requirement, approach your employer with regard to them paying some/all of it.

Failing that, investigate whether a tax allowance is available, on the grounds it is an employment necessity.

PasturesNew · 8 October 2016 at 9:53AM

I've never had anywhere near as much money as you, but rent/basic bills have been the same, so here's what stands out to me as "a lot":

cKITTY wrote: »

Electricity............................. 111
Water rates............................. 30
Satellite/Cable TV...................... 75 (tied in till November 16)
Groceries etc. ......................... 250
Clothing................................ 50
Presents (birthday, christmas etc)...... 50
Haircuts................................ 50

Do you need the lights on all the time? Look at what you're doing and how you can cut back. What are you using electricity for that can be cut back?

Wash fewer times, minimise water usage, think about all the water you're using.

Get rid of that in November.

Don't eat as much, cut out unnecessary luxuries, analyse/compare/question the price of everything you buy and if you need it/can buy it cheaper.

You've probably got enough clothes by now!

Presents are over-generous.

Cut down, wait longer, find out how to get it cheaper (different place, have dry cuts not wet/blowdry).

Smodlet · 8 October 2016 at 11:51AM

Hi and welcome. Most of it has already been said but have you looked into the possibility of getting free solar panels? These could save a huge chunk off your electricity bill, especially if you often work from home as you will be there during the day. Just a thought.

Dobbibill · 8 October 2016 at 3:25PM

PPs have pretty much covered everything I would say.

You should be able to find the APR for your CCs on the statements.

Switch your council tax to 12 months if it's currently paid over 10.

Look at switching energy providers. There may be a cashback incentive available for that too.

Ring your mobile phone company, it doesn't matter if it's tied in, you can still ask them about reducing the costs. Be assertive about it being too expensive and ask them to talk you through your options. They are normally able to offer a few options.

Ditch the satellite next month. I've just gone to frees@t and wish I had done it years ago.

You should be able to shave a bit off the groceries too.

Buildings insurance is high, even if it does cover the contents too.
Check TCB & Qu1dco when your renewal is due. Same applies for car insurance too. I managed to get over £65 cashback on my B&C cover.

Haircuts are high - does it really cost you this much. Get a dry cut, change hairdressers, try a local college.

You really do need something in for Car Maintenance and an Emergency Fund.

Speak to your Dad and maybe half his payments for the moment. How much longer will you need to be paying him? Does it end anytime soon?

All the best

Any help welcome

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