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  • FIRST POST
    • jenrm
    • By jenrm 18th Mar 17, 1:44 PM
    • 10Posts
    • 5Thanks
    jenrm
    living on bare minimum to pay off car loan
    • #1
    • 18th Mar 17, 1:44 PM
    living on bare minimum to pay off car loan 18th Mar 17 at 1:44 PM
    Statement of Affairs and Personal Balance Sheet

    Monthly Income Details
    Income from Employment (after tax). . . . . . . . . . . . . . . . . . . . . . . 2,677.00
    Income from Self Employment (before tax). . . . . . . . . . . . . . . . . . . . 0.00
    State Pension . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Private Pension / Annuity Payout. . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Benefits (Inc. Child Benefit/Tax Credits & Income Support). . . . . . . . . . . 0.00
    Income From Savings & Investments . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Gifts From Family / Friends . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00

    Monthly Expense Details

    In Your Home

    Mobile phones . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.50
    TV licence. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.12
    Internet. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.00
    Home phone. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.00
    Cleaning products/Cleaner . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.70
    Garden maintenance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Household maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Oil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Electricity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.00
    Gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32.00
    Water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38.90
    Council tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94.00
    Overdraft cost. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Bank account fee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Home insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.85
    Mortgage/Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 344.32
    Plumbing/Boiler cover . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24.07
    Mortgage life insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42.62
    Mortgage payment protection . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Life insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Food and household shopping . . . . . . . . . . . . . . . . . . . . . . . . . . 287.00
    Drinks for home . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00

    Motoring & Public Transport

    Petrol/Diesel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.00
    Parking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Car tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Car insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.17
    Car maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.00
    Rail/Buses/Taxis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Breakdown cover . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00

    Debt Repayments

    Credit card repayments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105.00
    Hire purchase repayments. . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Personal loan repayments. . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Car loan repayments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 700.00

    Savings & Investments

    Pension payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Buying shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Cash ISAs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Lump sum saving . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Regular saving. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200.00
    holiday saving. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00

    Family

    Pet food. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.00
    School trips. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    School meals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Pocket money. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Nappies/Baby extras . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Laundry/Dry cleaning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.00
    Children's travel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Baby-sitting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Childcare/Playgroups. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Pet insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Travel insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Union subscriptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.25

    Entertainment

    Satellite/Digital TV. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Family days out . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Cinema/Theatre trips. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Books/Music/Films/Computers . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Big days out. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Shopping for fun. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Pet costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Hobbies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    IT/Computing (antivirus, etc) . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    DVD rental. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Drinking out. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Eating out. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00

    Clothes, Health & Beauty

    Complementary therapies . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Optical bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Haircuts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.00
    Dentistry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.00
    Beauty treatments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.00
    Healthcare cash plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Dental insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Private medical insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Fitness/Sports/Gym. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24.00
    Work clothes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.00
    New children's clothes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    New clothes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.00

    Education & Courses

    University tuition fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.00
    School fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Your courses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00

    Big One-Offs

    Funeral expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Wedding expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Sofa/Kitchen/TV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Birthdays . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.00
    Winter holiday. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Summer holiday. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208.00
    Christmas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60.00

    Odds & Sods

    Newspapers and magazines. . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Tax & NI Provisions (self-employed only). . . . . . . . . . . . . . . . . . . . 0.00
    Regular charity donations . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Meals at work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Smokes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
    Coffees/Sandwiches/Snacks . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00


    Total monthly income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,677.00


    Total monthly expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,678.50


    Last edited by jenrm; 18-03-2017 at 2:03 PM. Reason: Oh No, I initially only entered my weekly food spend. I've had to reduce my monthly car loan repayments to compensate.
Page 1
    • ani*fan
    • By ani*fan 18th Mar 17, 2:24 PM
    • 1,499 Posts
    • 3,683 Thanks
    ani*fan
    • #2
    • 18th Mar 17, 2:24 PM
    • #2
    • 18th Mar 17, 2:24 PM
    How much is your car loan for and when are you trying to pay it off by?

    Looks like an interesting challenge.
    If you know you have enough, you're rich.
    • moneyfacts
    • By moneyfacts 18th Mar 17, 5:29 PM
    • 67 Posts
    • 117 Thanks
    moneyfacts
    • #3
    • 18th Mar 17, 5:29 PM
    • #3
    • 18th Mar 17, 5:29 PM
    If you can't afford the car payments can't you sell the car or give it back. It always looks slightly worrying when ones car payment is significantly more than rent/mortgage
    • tallyhoh
    • By tallyhoh 18th Mar 17, 6:27 PM
    • 2,091 Posts
    • 2,139 Thanks
    tallyhoh
    • #4
    • 18th Mar 17, 6:27 PM
    • #4
    • 18th Mar 17, 6:27 PM
    Do you really need a car, you don't spend much on petrol.
    Tallyhoh!

    Stopped Smoking October 2000. Saved £21,840 so far!
    • jenrm
    • By jenrm 18th Mar 17, 8:51 PM
    • 10 Posts
    • 5 Thanks
    jenrm
    • #5
    • 18th Mar 17, 8:51 PM
    • #5
    • 18th Mar 17, 8:51 PM
    I actually only took out the loan (£11,000) in January this year and it is over a five year period, but it is just one of a number of debts e.g.: 2 x credit cards with the 0% promotional rate expiring March 2018 and a mortgage. I figured that I would pay off the loan first in 1/5 the time then focus on getting rid of the credit cards on which I owe £11,500 then I can think about reducing my mortgage. I am 58 and still have £77,000 to pay off there . I am an essential car driver for work so need a reliable car.

    I was considering taking out another 0% credit card to pay off as much of the loan as I can get credit for but this seems like just stacking debt which I've done for years.
    • fatbelly
    • By fatbelly 18th Mar 17, 9:52 PM
    • 11,645 Posts
    • 8,779 Thanks
    fatbelly
    • #6
    • 18th Mar 17, 9:52 PM
    • #6
    • 18th Mar 17, 9:52 PM
    There are some red lights flashing here.

    You are 58, have 22k unsecured debt plus 77k owing on the mortgage.

    The 11k car loan appears to be costing you 42k over the 60 months. That's an apr of over 100% so you might want to check that.

    You have just put 11k into a depreciating asset - the car

    On the positive side your budget allows you to save £200 per month (How much have you saved?) and £208 per month towards a summer holiday.

    Is the mortgage on a repayment basis? When does it complete?
    • Fireflyaway
    • By Fireflyaway 18th Mar 17, 9:59 PM
    • 1,356 Posts
    • 1,377 Thanks
    Fireflyaway
    • #7
    • 18th Mar 17, 9:59 PM
    • #7
    • 18th Mar 17, 9:59 PM
    Can you negotiate to sell the car and pay back the difference or do anything at all to get out the agreement? Exchange with the dealer for a cheaper car ? An expensive / new car doesn't always equal reliability. My car is 12 years old. Has never given me one single issue in the 7 years I've had it and I have no repayments. Value is probably £500 but its worth a lot more to me.
    • jenrm
    • By jenrm 18th Mar 17, 10:24 PM
    • 10 Posts
    • 5 Thanks
    jenrm
    • #8
    • 18th Mar 17, 10:24 PM
    • #8
    • 18th Mar 17, 10:24 PM
    Thank you for your replies. If I were to pay off the car over the 5 years of the contract, my monthly repayments would be £219.48 and I would pay a total of £2,168 interest. It's because I need to pay it off much sooner, that I've pared back all my other living expenses so I can afford £700/mnth. As you can probably tell, I am new to budgeting so the £200/month saving is more of an aspiration at the moment although I really need to stick to it as I'll have no emergency fund without it.
    You are right though, I do need to sell the car and get a much cheaper one, as hard as it is to admit it.
    My mortgage is on a repayment basis but doesn't complete for almost 20 years. I need to pay it off within 10 years so I can retire before I expire.
    Last edited by jenrm; 18-03-2017 at 10:35 PM. Reason: for addition
    • Money maker
    • By Money maker 18th Mar 17, 10:53 PM
    • 4,862 Posts
    • 11,096 Thanks
    Money maker
    • #9
    • 18th Mar 17, 10:53 PM
    • #9
    • 18th Mar 17, 10:53 PM
    Are you living on your own? Your food and household shopping seems very high for a single person.
    Please do not quote spam as this enables it to 'live on' once the spam post is removed.

    If you quote me, don't forget the capital 'M'

    Declutterers of the world - unite!
    • jenrm
    • By jenrm 18th Mar 17, 10:59 PM
    • 10 Posts
    • 5 Thanks
    jenrm
    I am on my own. I do worry about my food bills but up to now, I've struggled to compromise on buying quality meat and veg. I do cook all meals from scratch and take lunch to work to cut down on costs.

    How much do others spend on their weekly grocery shop?
    • determined new ms
    • By determined new ms 19th Mar 17, 5:52 AM
    • 6,609 Posts
    • 38,118 Thanks
    determined new ms
    To give you an idea I spend between £130-180 pm for 2 adults and an almost 4 year old. We eat well, but I do buy a lot of yellow sticker meat and freeze to keep the costs low (i know what times the sm's around here do their reductions). We typically will have a treat day - yesterday we made sushi and today we have steaks. There have been a lot of discussions on the old style board about budgets for 1 person and typically the range can be £80-120, obviously there are extremes at either end
    DF as at 30/12/16
    Wombling '16 £287.33 Roadkill £28.25
    Wombling YTD £2982.2/Roadkill £8.63
    SFDs Oct 13/15 CC saved £2372.50
    • Cumbria lass
    • By Cumbria lass 19th Mar 17, 7:32 AM
    • 906 Posts
    • 4,610 Thanks
    Cumbria lass
    I live alone and ibudget £120 for food but rarely spend it all . I batch cook quite a lot and never waste anything .
    Nov 2017 CC1 £3329 CC2 £600

    Debt Free Nov 2019: earlier if I have my way
    • tallyhoh
    • By tallyhoh 19th Mar 17, 8:29 AM
    • 2,091 Posts
    • 2,139 Thanks
    tallyhoh
    My last months grocery/household bill was £190 for 2 adults, includes cooking for 35/40 people once a week at soup kitchen.
    Tallyhoh!

    Stopped Smoking October 2000. Saved £21,840 so far!
    • jenrm
    • By jenrm 19th Mar 17, 10:44 AM
    • 10 Posts
    • 5 Thanks
    jenrm
    Thank you, your replies have been helpful in highlighting how much work I have to do to get my spending in check.
    So my immediate challenge is to halve my grocery bill. I've been a proud supporter of my local food assembly for organic veg and buy all of my meat on-line from an organic farm but from now on, organic produce is out unless I grow it, shoot it or catch it myself.

    Determine... What is road kill??? Hopefully not what I'm imagining.
    • Sharon87
    • By Sharon87 19th Mar 17, 10:59 AM
    • 3,507 Posts
    • 2,976 Thanks
    Sharon87
    My sister and brother in law only eat organic meat, but they don't eat meat every day, maybe a couple times a week. So if you really want to continue with the organic meat, maybe cut down the meat and have other things instead? You tried your local butchers? Sometimes they can be good value.

    I spend around £120-£130 a month on food by myself, I used to spend a lot more, so it can be done. People on this board probably think this is a lot still, but this includes most work lunches (when bought from a supermarket anyway, I don't include Pret/food stalls.etc in that).

    University tuition fees - are these for your kids or for you? If it's for your kids are they getting the tuition fee loan?

    £20/month on dentistry? Seems a lot, was it because of a procedure or is that just regular checks ups/hygienists?
    • jenrm
    • By jenrm 19th Mar 17, 11:19 AM
    • 10 Posts
    • 5 Thanks
    jenrm
    I am still paying off my student loan because I went back to uni as a mature student.
    I use a private dentist and the £20/month is just for check ups and the hygienist. I know I would save going NHS but I trust the dentist and I can get appointments when I want them.

    I will check out my local butcher. I used to buy from a farm shop and they gave me chicken and beef bones for free. If I develop a relationship with a butcher in town, maybe he'll do the same. I'll be able to go to discount shops like Poundland at the same time instead if relying on supermarket prices for essential cleaning stuff.
    • PasturesNew
    • By PasturesNew 19th Mar 17, 11:28 AM
    • 60,993 Posts
    • 356,264 Thanks
    PasturesNew
    These stood out:

    Food and household shopping . . . . . . . . . . . . . . 287.00
    Regular saving. . . . . . . . . . . . . . . . . . . . . . 200.00
    Birthdays . . . . . . . . . . . . . . . . . . . . . . . . 50.00
    Summer holiday. . . . . . . . . . . . . . . . . . . . . . 208.00
    Christmas . . . . . . . . . . . . . . . . . . . . . . . . 60.00


    Food can be halved.
    There's no such thing as "savings" when you're in debt. Savings start once debt is £0.
    £600/year on birthdays???
    £2500/year on holidays??????
    £720/year on Christmas???

    Cut all that birthday/holiday/Christmas stuff.... don't save .... halve your food and you've got £660/month floating around spent on "unnecessary nonsense".

    • jenrm
    • By jenrm 19th Mar 17, 11:54 AM
    • 10 Posts
    • 5 Thanks
    jenrm
    Gulp The savings are to build up an emergency fund. The holiday amount appears frivolous I know but it is a visit abroad to visit my Mum, so essential and I've looked for the cheapest flights and accommodation.
    I agree that the amount I spend on birthday presents and Christmas is excessive and will definitely cut down, at least by half.
    thanks again for all your input. I've been living like an ostrich when it comes to spending and debt but time is no longer on my side.
    • datlex
    • By datlex 19th Mar 17, 12:38 PM
    • 1,455 Posts
    • 1,236 Thanks
    datlex
    If you are single do you have children who have moved out? Otherwise why do you need life insurance for your mortgage?
    Also how often have you used the plumbing/boiler cover? Can you shop around for a better deal on that?
    • enthusiasticsaver
    • By enthusiasticsaver 19th Mar 17, 12:45 PM
    • 4,851 Posts
    • 9,171 Thanks
    enthusiasticsaver
    Do you have any dependants? From the sound of it you don't so I am wondering why you are paying around £500 for life insurance each year.

    I understand if your mum lives abroad needing flights to visit her but at £2500 those are expensive and you are fast approaching retirement still with debt and mortgage outstanding so I question if you can afford this.

    What is your long term plan if you need mortgage paid off in 10 years? Do you intend to downsize and sell because unless you have a repayment vehicle in place paying off £77k in 10 years is going to be tricky.

    What is your pension situation?

    I would reduce the groceries, birthdays, holiday and Christmas categories.
    1 week to go until early retirement. Debt free and mortgage free.

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
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