More going out than coming in :( Advice please

Sarahjane519

My partner got made redundant a few months ago and since then we have been living of his redundancy money. We have managed to make it last, but now we are at the point where we are going to go into the red this month. We are both tearing strips off each other about and both very worried. We are in the lucky position that the house is paid for, but we have loans for cars doing house up ect that total upto around £700 a month and I only earn around that figure and he is currently on a new deal scheme so only on around £60 per week.

Could you please advice us on what we could do :embarasse

Thanks

Sarah

GeorgeUK

First, check the creditcards, loans, HP etc and see if any of them have payment protection insurance on them. If so, this should kick in to cover some of the payments.

Are you claiming all the benefits you are entitled to?

Post up a statement of affairs (SOA) and we'll see if there are any other areas to make savings in.
http://www.makesenseofcards.com/soacalc.html

Sarahjane519

Thank you for the reply


Heres our SOA

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 700
Partners monthly income after tax....... 0
Benefits................................ 245
Other income............................ 0
Total monthly income.................... 945

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 285
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 115
Electricity............................. 40
Gas..................................... 30
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 25
Mobile phone............................ 50
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 30
Groceries etc. ......................... 120
Clothing................................ 0
Petrol/diesel........................... 100
Road tax................................ 15
Car Insurance........................... 60
Car maintenance (including MOT)......... 20
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..................... 11
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 948


Assets
Cash.................................... 0
House value (Gross)..................... 120000
Shares and bonds........................ 0
Car(s).................................. 7000
Other assets............................ 0
Total Assets............................ 127000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 8000.....(285)......11.9
Total secured & HP debts...... 8000......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Lloyds TSB Loan................10120.....181.......9
Lyoyds TSB Loan................2700......101.......9
Total unsecured debts..........12820.....282.......-


Monthly Budget Summary
Total monthly income.................... 945
Expenses (including HP & secured debts). 948
Available for debt repayments........... -3
Monthly UNsecured debt repayments....... 282
Amount short for making debt repayments. -285

Personal Balance Sheet Summary
Total assets (things you own)........... 127,000
Total HP & Secured debt................. -8,000
Total Unsecured debt.................... -12,820
Net Assets.............................. 114,180

mooomin

Sarahjane519 wrote: »

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 700
Partners monthly income after tax....... 0
Benefits................................ 245
Other income............................ 0
Total monthly income.................... 945

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 285 What is this for? If a car can it be sold?
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 115
Electricity............................. 40
Gas..................................... 30
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 25
Mobile phone............................ 50 Cancel landline and renegotiate mobiles. Are you out of contract with them?
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 30 Can be reduced, see Martins Weekly Note for info
Groceries etc. ......................... 120
Clothing................................ 0
Petrol/diesel........................... 100
Road tax................................ 15
Car Insurance........................... 60 Seems high, what kind of car?
Car maintenance (including MOT)......... 20
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..................... 11
Contents insurance...................... 0 You should have contents
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 948


Assets
Cash.................................... 0
House value (Gross)..................... 120000
Shares and bonds........................ 0
Car(s).................................. 7000
Other assets............................ 0
Total Assets............................ 127000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 8000.....(285)......11.9
Total secured & HP debts...... 8000......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Lloyds TSB Loan................10120.....181.......9
Lyoyds TSB Loan................2700......101.......9
Total unsecured debts..........12820.....282.......-


Monthly Budget Summary
Total monthly income.................... 945
Expenses (including HP & secured debts). 948
Available for debt repayments........... -3
Monthly UNsecured debt repayments....... 282
Amount short for making debt repayments. -285

Personal Balance Sheet Summary
Total assets (things you own)........... 127,000
Total HP & Secured debt................. -8,000
Total Unsecured debt.................... -12,820
Net Assets.............................. 114,180

Really have to run to work, but couple of comments above for you.

Well done for posting :T It gets easier from here.

Xx

mooomin

My flatmate is still in the sodding bathroom, so a couple of other ideas

What is hubby doing apart from jobhunting? Check out the Up Your Income board on here for ideas on how he can make extra pennies. It might only be £30 a month, but every little helps!

Join Quidco and use it when you get new insurance, phone contracts etc. It's a cashback site and is money for nothing!

Sell things on Ebay - I made £100 in two weeks recently with stuff I wasn't going to use. In my case, it paid for concert tickets, but maybe doing this could pay your council tax one month and take the edge off.

Are you managing to spend £120 per month for two of you on groceries? If not, check out the OldStyle board for moneysaving ideas in terms of food.

Really must dash and batter flatmate now. Good luck again!

fairybird30

I would also check with your local council to see if you are eligable for any countil tax benefit as you are on a low income.

And definately reduce your mobiles and phone and internet package if possible.

TotallyBroke

Sarahjane519 wrote: »

Thank you for the reply


Heres our SOA

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 700
Partners monthly income after tax....... 0
Benefits................................ 245
Other income............................ 0
Total monthly income.................... 945

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 285
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 115
Electricity............................. 40
Gas..................................... 30
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 25 Drop this to basic line rental only do not make calls from this
Mobile phone............................ 50 Ring and reduce the tariffs on these. They will usually drop you down by £5 no problem but haggle and see if you can get better.
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 30 This is high, see if it cheaper to add to your phone line provider
Groceries etc. ......................... 120 This can really be dropped down with careful planning
Clothing................................ 0
Petrol/diesel........................... 100 Could you consider looking into car sharing for work
Road tax................................ 15
Car Insurance........................... 60 This is really high £720 for the year. Time for a differnt car
Car maintenance (including MOT)......... 20
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..................... 11
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 Will you not be buying anything this year?
Haircuts................................ 0
Entertainment........................... 0 No entertainment!!
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 948


Assets
Cash.................................... 0
House value (Gross)..................... 120000
Shares and bonds........................ 0
Car(s).................................. 7000
Other assets............................ 0
Total Assets............................ 127000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 8000.....(285)......11.9
Total secured & HP debts...... 8000......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Lloyds TSB Loan................10120.....181.......9
Lyoyds TSB Loan................2700......101.......9
Total unsecured debts..........12820.....282.......-


Monthly Budget Summary
Total monthly income.................... 945
Expenses (including HP & secured debts). 948
Available for debt repayments........... -3
Monthly UNsecured debt repayments....... 282
Amount short for making debt repayments. -285

Personal Balance Sheet Summary
Total assets (things you own)........... 127,000
Total HP & Secured debt................. -8,000
Total Unsecured debt.................... -12,820
Net Assets.............................. 114,180

When it comes to cutting down your groceries don't just think of the food think of the cleaning products. You can get so many cheaper alternatives that are just as good. Cheap white vinegar for example will do all the glass in your home. Look in your cupboards, fridge and freezer and see what meals can be made. Then plan what you want for next week and only buy what you need. Look outside the box as well you can put foods together that you may not normally (look at the chefs putting chilli and chocolate together). Pasta is great for adding to all the leftovers in the fridge or just with tomato and cheese. Good Luck

Sarahjane519

Thanks for the replies.

We don't buy brand name food ect any more. We also have 2 dogs and a cat to feed as well, so we try and manage on £30 A week for all of us. The car insurance is actually £10 per week sorry. We rang up BT last week and they put us on the lowest tafiff. Internet wise we are stuck for another 12 months

The HP is the car and we owe more on it than it is worth and we need do need it

It really is making me ill All we do is constantly argue. The reason for the loans was to buy his dad out of the house. Is there anyway we can put all the loans together at a lower rate?

Thanks

Sarah

fairybird30

Even if you do consolidate without some serious cutbacks you still wont be able to meet the payments, a debt management plan may be more appropriate, where you agree with creditors to accept reduced payments for a period. There are loads of non-profit making organistions that can help you with this.

view

£40 is still quite a lot for car insurance a month. Did you run it over a few price comparison websites? Also, next time you go to renew, ensure you check prices first, then process it all via a cash back website. Good luck x

Sarahjane519

Would the citizens advice be able to help?

Thank you again

Sarah