Ready to face the music

lynzpower

Best of british Lemon Tree!!

Lemon_Tree

I have read some postings about stopping PPI, i have always been too terrified to take a loan etc without it (alway seem to work for unstable companies). I have been looking on the boards to find out where a discussion has been about whether i should cancel some/all of them. Would be greatful if anyone could tell me.
thanks
Lem

Chortle_2

generally the guys on here suggest cancelling PPI. It is incredibly expensive, and often quite hard to claim on anyway. Perhaps if you're concerned about job security, you could cancel it, and pay the same amount into a savings account each month? That way the money is there if you do need it for a while, and if you don't, you can use it to pay off the debt early/treat yourself!
ALternatively, I'd look into a general income protection policy. I've got PHI (permanent health insurance) which has been a godsend - pays a % of my salary for as long as I cannot work due to illness. Obviously income protection/PHI policies pay out a lot more than individual PPI policies do, as they're based on a % of your income, rather than the amount you owe - they're often quite a bit cheaper than several PPI policies on top of one another as well!

Lemon_Tree

Well finally here is my statement of affairs
Income 1657
Luncheon Vouchers 20

total income 1677

Expenses
House:
Mortgage 365
Mortgage Insurances 61
House Insurance 17
Electricity 35
Water 12
TV Licence 11
Council Tax 65
Phone Bill 17
Housekeeping 80 under April grocery challenge
Total House: 663

Car
Car Loan 212
Car Protection 25
Car Insurance 23
Car Tax/Insurance 25
Car Fuel average 130
Total car 415

Other
RNLI 3
Broadband 18
Christmas savings24
Birthday savings 10
pocket money 18
overdraft interest 9
total others 82

Cards/loans
Flexible loan 200
credit card 20
loan 322
computer loan 20
total debt finance 562

total expenses 1722

deficit 45

ok, putting it down on paper is a bit of a shock but it proves what i was thinking that my outgoings are more than my income. Bit of a problem there.
Usually, i try and make things balance by reducing budgetted housekeeping or petrol but now i accept that i have to be realistic and that's what i have been this time.

I am grateful for any comments/ ideas.
thanks
Lem

Feej_2

Hi Lem,
CAR is obviously making a big hole in your income at £415 pcm - are you tied into the car loan or could you sell, repay and buy something cheaper? From your fuel costs you do a high mileage and need something reliable but that should be achievable at a lower cost.

Ona different tack, could you increase your income? With your skills, what about looking for agency work which you could do at home? A friend used to do freelance bookkeeping as a sideline - would something in that area be possible?

I'll keep thinking...

All the best,

Feej

moxie_2

Yes I agree the car is expensive. I've had to come to the sorry conclusion that I have to sell mine, it's going on Wednesday. As well as giving me some ready cash, no more car insurance, petrol, servicing and MOT costs - I even have to pay to keep it outside on the street. But I live in London where public transport is good (usually), I realise you may not be in that position.

Lemon_Tree

Hi Feej
Car isn't worth the loan, but need a reliable one because of mileage, plus it's very economical. I am both trying to find a new full time job nearer home and also am trying to get some freelance work. I have one job but it's only once a year so i don't include it.
I shall look into the agency work idea as well.
Lem

Murtle

Ebay stuff you don't want? Why have you got car insurance and car tax/insurance? and what is Car Protection 25?? can you get rid of this one??

Here's a link for another snowball calculator

http://www.geocities.com/schizeckinosy/Snowball.html

M

x

good luck, it's not so bad once it's written down cause now you don't have to store it in your head, so you can use the extra energy to knock it down!!

BobProperty

What's the "mortgage insurances"? At £61 a month when the mortgage is £365 that's a lot of insurance.

Lemon_Tree

Ok
the car insurance is the payment protection on it, i guess i ment car tax and service (thinking of too many things at once). The mortgage protections are critical illness, life insurance and redundancy protection.
i have put some stuff already on ebay, and have some more, was just going to wait for one of their discount listing days, but not sure whether i should do it straight away.
Moxie, i live about 30 miles from work so the only other way to get there would be by train and until i have to pay parking at work( which is currently free) it's not going to be any cheaper than getting there by car. but it may get to the stage where i have to use the train.
Lem