newbie -my soa please help

paybacktime2008

From the price of the car tax and insurance i would say it might be time to look at a different model of car.

Fire_Fox

I find it helpful to think of any items I could sell or non-essential outgoings as costing 30% more than their worth (chosen that cos it's your most expensive debt). So if your car is worth £300 then think of it as worth another £100 cos that is what they are actually costing you in interest payments while it is sat in the garage. Then I decide if I am still willing to pay for something at the higher price, often I am not!!

I have also found it helpful to write my budget out in different categories - urgent, important, urgent AND important. Top of the list is obviously your rent, council tax etc., middle of the list is the non-essentials that mean the most to you, and lower down comes the other things you are spending on. Start at the top allocating money and once you have run out ... it may mean you cancel your TV package completely or it may mean you stop getting a takeaway (just examples, it's up to you).

In terms of learning to drive, calculate the expected number of lessons, driving tests, cost of each and cost of running a second car for a year and then add interest as above. Then see if you can get a lift (offer to pay the petrol), bus or taxi home from work on dark or late nights or cycle home in the summer, and calculate the cost over a year. You may be shocked at how much cheaper it would be not to learn to drive.

TotallyBroke

ickletezza wrote: »

here is my soa

Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 2 one sorn in garage costing us nothing
Monthly Income Details
Monthly income after tax................ 1215
Partners monthly income after tax....... 1320
Benefits................................ 150
Other income............................ 0
Total monthly income.................... 2685
Monthly Expense Details
Rent.................................... 410
Council tax............................. 103 i have checked this it is the right band Is it paid over 10 months or 12.
Electricity............................. 50with scottish power dual fuel both prepayment
Gas..................................... 70wouldnt surprise me if it was more then this its like £5 everyday sometimes otherwise its freezing. Prepayment meters are more expensive to run. But I'm not sure if you would b able to put in anormal meter or if the landlord would have to do it
Telephone (land line)................... 11
Mobile phone............................ 85 Mine and partners contracts they wont reduce ive asked When are the contracts up.
TV Licence.............................. 12
Satellite/Cable TV...................... 45about to remove movies and sports
Internet Services....................... 25cant add to sky no bt landline may ask to reduce package tho
Groceries etc. ......................... 500as of pay day will be doing a meal planner and budgeting hoping to get this halved
Clothing................................ 30 You will have to stop this as you can't cut back anywhere else
Petrol/diesel........................... 50this is 1 car run a really tight schedule so this is a need
Road tax................................ 18220 a year 1 car
Car Insurance........................... 88 partner is 24 only been driving about 4 years. due for renewal soon been quoted 510 a year so this will be reduced
Car maintenance (including MOT)......... 10mot gets paid from overtime money from stocktake once a year
Other travel............................ 5
Other child related expenses............ 40for clubs, dinners Depending on the age, but the clubs will have to stop (or they fund themselves) no dinners give pack lunch
Medical (prescriptions, dentist etc).... 7
Pet insurance/vet bills................. 1
Presents (birthday, christmas etc)...... 30this is brthdays for everyone divided over the year not including xmas You need to include something in for christmas as well. Look at what it cost you last year and divide it by 12
Emergency fund.......................... 50 You can't have an emergency fund at the moment. Pay it off your debts or put it away to pay for christmas
Total monthly expenses.................. 1669

Assets
Car(s).................................. 4000
Total Assets............................ 4000

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly.. .APR
loan...........................11000.....259...... .8.6 15 months down from 68
loan...........................2000......99....... .29.9 over 2 years about 20 months left
loan...........................10000.....261...... .9.0 nearly 2 years in 0ut of 5
littlewoods....................950.......60....... .0
next...........................200.......30....... .0
edge...........................725.......17....... .0
credit card....................1426......50........15.9 and killing me
Total unsecured debts..........26301.....776.......-

Monthly Budget Summary
Total monthly income.................... 2,685
Expenses (including HP & secured debts). 1,669
Available for debt repayments........... 1,016
Monthly UNsecured debt repayments....... 776
Amount left after debt repayments....... 240

Should give you a better idea now

thanks everyone

You still have the £240 spare, have you worked out where that is going. You have to stop spending it. In 12 months time by cutting right back you could be left with just 2 debts and a better standard of living including having the driving lessons. But you both have to commit to it.

Pollycat

Hi
A number of people have asked you where the 'spare' £240 per month goes.

I think you really need to keep a diary of the pennies you spend on stuff like newspapers, sausage rolls :rolleyes: , greetings cards etc.

I always used to wonder why our spending was so high, but I now keep a record of EVERYTHING I spend, you'll be surprised at how much just 'disappears' over the course of a month.

TotallyBroke

Hi how are you doing.

Have you made any progress