New DFW - assistance required purlease!!

rhino_lady

Hi all,

I am a brand newby so be gentle with me! I have just completed my SOA and have pasted it in below for your perusal/amusement.

We currently have very little disposable income each month and I have reviewed our expenses many times - I am struggling for new ideas now and would appreciate any suggestions.

I would desperately love to be debt (inc mortgage!) free and this seems to be the place to do it! Although with 2 teenagers and a toddler to satsify it may be a struggle for a while.

Our main outgoings after mortgage & cars is nursery (£402 pcm) which will stop/reduce next september when my toddler goes to school.

I am currently looking at car options - we have one on PCP coming to an end in April 2010 (currently £265 pcm) and another that still has 3 yrs to run (£254 pcm) which I am considering terminating early and selling vehicle then buying smaller, cheaper one.

Both teenagers (step-sons) have now left full time education & have part time jobs so I am hoping they will start to pay their own mobile phone bills soon which would help a lot.

I also stupidly forgot to renew my tax credit claim which I am now doing (worth about £30 pcm) - not sure whether they will back date to April but I will try for it!

We currently have £2000 in savings but this is all committed to paying off on off holiday in May 2010. We have no other savings at all.

We do not go out often (maybe once every 6 months) due to shortage of cash and do not buy new clothes - these were all going on credit cards which are now consolidated in our unsecured loans.

I am hoping to get a fair amount on EBay this week but am a little unsure what I should be putting any earnings towards!

Any ideas much appreciated!


Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1860
Partners monthly income after tax....... 1474
Benefits................................ 80
Other income............................ 0
Total monthly income.................... 3414

Monthly Expense Details
Mortgage................................ 700.80
Secured/HP loan repayments.............. 519.80
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 113
Electricity............................. 36
Gas..................................... 70
Oil..................................... 0
Water rates............................. 32.1
Telephone (land line)................... 14.99
Mobile phone............................ 122
TV Licence.............................. 11.95
Satellite/Cable TV...................... 40.5
Internet Services....................... 17
Groceries etc. ......................... 300
Clothing................................ 30
Petrol/diesel........................... 140
Road tax................................ 11
Car Insurance........................... 61.41
Car maintenance (including MOT)......... 41.67
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 402.5
Other child related expenses............ 10
Medical (prescriptions, dentist etc).... 42.81
Pet insurance/vet bills................. 6.67
Buildings insurance..................... 10
Contents insurance...................... 10
Life assurance ......................... 80.56
Other insurance......................... 4.99
Presents (birthday, christmas etc)...... 74
Haircuts................................ 0
Entertainment........................... 66.99
Holiday................................. 100
Emergency fund.......................... 0
Bank Account Fee........................ 15
Window Cleaning......................... 8
Total monthly expenses.................. 3093.74

Assets
Cash.................................... 2000
House value (Gross)..................... 170000
Shares and bonds........................ 0
Car(s).................................. 21000
Other assets............................ 0
Total Assets............................ 193000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 135000...(700.8)....5.6
Hire Purchase (HP) debt ...... 13290.6..(254.1)....10.5
HP.............................10050....(265.7)....8.9
Total secured & HP debts...... 158340.6..-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................18828.....156.......7.9
Partner's Loan.................6122.4....102.......8.27
Total unsecured debts..........24950.4...258.......-

Monthly Budget Summary
Total monthly income.................... 3,414
Expenses (including HP & secured debts). 3,093.74
Available for debt repayments........... 320.26
Monthly UNsecured debt repayments....... 258
Amount left after debt repayments....... 62.26

Personal Balance Sheet Summary
Total assets (things you own)........... 193,000
Total HP & Secured debt................. -158,340.6
Total Unsecured debt.................... -24,950.4
Net Assets.............................. 9,709

honeybear_2

Hi & welcome Rhino Lady

People who know a lot more than me on these things will be along at some point & pick out lots of bits of your SOA, but in the meantime what really leaps out for me is the mobile costs :eek: & the window cleaning.
I know you've mentioned getting the step-sons to pay their own mobile bills so I'd push that as much as you can - it will help you & they need to learn financial responsibility too. Do they contribute in any other way, financially or cleaning/gardening etc?
And I'd say until you're feeling more financially sound, bin the window cleaning.

But well done for taking the step of posting on here

Nargleblast

Hello Rhino lady.

Some ideas - get rid of the satellite service and get a Freeview box. Certainly you can do something about mobile phone costs. Petrol/diesel sounds high, rethink use of car - try to do more than one errand on a trip, don't use car for short trips round the corner if you can avoid it. Groceries - not bad for 5 people, but try proper butchers shops and markets for meat, likewise greengrocers rather than supermarkets. If there's an Aldi or Lidl near you, check them out. Try dropping a brand in supermarkets i.e. own brand instead of big name brand, works for some things. Bank account fee - consider appealing against that or changing banks. Presents fund - try ebay/freecycle/charity shops/car boots for present shopping.

david_hellier

Hi and welcome to the site,

You are in safe hands. Thanks for the SOA. Before we can help more can you clarify: what the HP payment is for?, what is your overdraft limit and what is your current bank balance.

Thanks

rhino_lady

Thanks, Nargleblast.

Yes, I have been working hard on grocery bills - menu planning, buying items on special offer etc. but I am sure there is more I can do here.

We are tied into mobile contracts, otherwise I would switch to pay as you go as I hardly use mine now.

Am in running battle with husband re satellite tv - we are a rugby (league) family and the only entertainment we really have is Sky Sports. The season is off between Nov and March so I plan to cancel this channel for these months (saving £18 pcm) until I can find a better alternative.

I am also going to cancel my gym membership which I don't use (£20 pcm) when the contract ends in Nov 09, but husband and step-son use theirs 4-5 times per week so would not want to cancel that.

Thanks again. It is nice to get someone else's view on things!

Good luck!

rhino_lady

Hi all and thanks for the speedy responses!

The HP payments are for our 2 cars - £265 pcm for one which ends in April 2010, £254 for the other which still has 3 yrs to run.

We have a total overdraft limit (inc reserve) of £1,250 and current balance is £2,584.44 in credit - should have £90 left after outgoings this month (unless something unforeseen crops up which is more than likely with 3 kids).

Savings (Barclays Openplan account - no interest) stand at £2,594.04 but they will be used to pay off holiday in May 10.

chalkie99

I think I would be writing on a piece of paper:

Unsecured debts £25,000

Cars £21,000

Then I would stick that up on the wall so I would keep seeing it!

Numpty_Monkey

rhino_lady wrote: »

Hi all,


Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1860
Partners monthly income after tax....... 1474
Benefits................................ 80
Other income............................ 0
Total monthly income.................... 3414

Monthly Expense Details
Mortgage................................ 700.80
Secured/HP loan repayments.............. 519.80
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 113
Electricity............................. 36 check you are on the best tarrif use comparrison sites and cashback sites
Gas..................................... 70 as above, turn the heating down and the thermostat on the the boiler
Oil..................................... 0
Water rates............................. 32.1
Telephone (land line)................... 14.99 look at getting a bundle package
Mobile phone............................ 122:eek: your step sons need to contribute to these, look at cancelling or getting cheaper contracts best still PAYG
TV Licence.............................. 11.95
Satellite/Cable TV...................... 40.5 reduce package or go to freeview
Internet Services....................... 17 as phone
Groceries etc. ......................... 300 try the drop a brand challange
Clothing................................ 30
Petrol/diesel........................... 140 Check Martins article http://www.moneysavingexpert.com/travel/cheaper-fuel
Road tax................................ 11
Car Insurance........................... 61.41 use comparison sites and cashback sites
Car maintenance (including MOT)......... 41.67 use concil MOT centres
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 402.5 do you get childcare vouchers?
Other child related expenses............ 10
Medical (prescriptions, dentist etc).... 42.81 look at prepaid certificate
Pet insurance/vet bills................. 6.67
Buildings insurance..................... 10
Contents insurance...................... 10
Life assurance ......................... 80.56 as car insurance
Other insurance......................... 4.99
Presents (birthday, christmas etc)...... 74 reduce this
Haircuts................................ 0
Entertainment........................... 66.99
Holiday................................. 100
Emergency fund.......................... 0 need something in here
Bank Account Fee........................ 15 do you benefit from this fee
Window Cleaning......................... 8:o
Total monthly expenses.................. 3093.74

Assets
Cash.................................... 2000
House value (Gross)..................... 170000
Shares and bonds........................ 0
Car(s).................................. 21000
Other assets............................ 0
Total Assets............................ 193000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 135000...(700.8)....5.6
Hire Purchase (HP) debt ...... 13290.6..(254.1)....10.5
HP.............................10050....(265.7)....8.9
Total secured & HP debts...... 158340.6..-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................18828.....156.......7.9
Partner's Loan.................6122.4....102.......8.27
Total unsecured debts..........24950.4...258.......-

Monthly Budget Summary
Total monthly income.................... 3,414
Expenses (including HP & secured debts). 3,093.74
Available for debt repayments........... 320.26
Monthly UNsecured debt repayments....... 258
Amount left after debt repayments....... 62.26 Keep a spending diary

Personal Balance Sheet Summary
Total assets (things you own)........... 193,000
Total HP & Secured debt................. -158,340.6
Total Unsecured debt.................... -24,950.4
Net Assets.............................. 9,709

Hi rhino lady:hello:
I've left a few coments , you at the moment have a surplus:T but I bet you don't:o
Keep a spending diary to find where that money goes to, list eveything you buy its amazing what it shows after a few weeks.
How about geting the step sons to clean the windows, they have t earn there keep;)
Insurance and utilies use Martins articles they explain it better:cool:
Look at getting a bundle package for phone and internet I pay about £20 amonth for both
or get it with sky/virgin as a 3in 1 package, signup for the minimum package ;)you can always add on:cool:

Bank fee are you getting the benefit of paying £180 a year they give you lots of stuff for "free":rolleyes: that you can get cheaper

If you do anyonlineshopping use cashback sites :T like TopCashBack, Quidco, GetPoundsBack, FatCheese.... there are lots example Alliance and Liecter bank accout £45 cashback and a £100 bonus thats on TCB at the moment :cool:

Welcome to MSE world you'll love it:A

Ames

rhino_lady wrote: »

Hi all,



Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1860
Partners monthly income after tax....... 1474
Benefits................................ 80
Other income............................ 0
Total monthly income.................... 3414

Monthly Expense Details
Mortgage................................ 700.80
Secured/HP loan repayments.............. 519.80
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 113
Electricity............................. 36
Gas..................................... 70 This seems high to me, although I've never lived in a place that has gas. Keep the thermostat down, try putting on a jumper before the heating, and make sure you're not heating rooms that aren't used. Or using the heating in summer when you don't need it.
Oil..................................... 0
Water rates............................. 32.1
Telephone (land line)................... 14.99
Mobile phone............................ 122 Ouch! These need cutting when they can be.
TV Licence.............................. 11.95
Satellite/Cable TV...................... 40.5 I understand what you mean about it being your only entertainment, maybe you could phone and threaten to leave and get a better deal? Cancelling the sports (or maybe the whole lot?) when the rugby's not on is a good idea.
Internet Services....................... 17 I pay a tenner, so I'm sure you can get this down, maybe look into sky's package where you get all three in a bundle.
Groceries etc. ......................... 300
Clothing................................ 30 Charity shops/ebay/freecycle for you, hubby and toddler - teenagers can buy their own.
Petrol/diesel........................... 140
Road tax................................ 11
Car Insurance........................... 61.41
Car maintenance (including MOT)......... 41.67
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 402.5
Other child related expenses............ 10
Medical (prescriptions, dentist etc).... 42.81 What's this for? would a pre pay certificate help?
Pet insurance/vet bills................. 6.67
Buildings insurance..................... 10
Contents insurance...................... 10
Life assurance ......................... 80.56 Again, not something I've ever had to pay for but going by other people's SOA's this seems really high, shop around for the best deal.
Other insurance......................... 4.99 What's this for?
Presents (birthday, christmas etc)...... 74 Ouch! Kids only for most of the family will help, and try making things rather than buying, something that's had thought into it is more important (to most people) than something bought in a mad panic in December.
Haircuts................................ 0 Really nothing?
Entertainment........................... 66.99 What's this for?
Holiday................................. 100 Can you really afford a holiday?
Emergency fund.......................... 0
Bank Account Fee........................ 15 What benefits do you get for this, is it really worth it? Change to a free account.
Window Cleaning......................... 8
Total monthly expenses.................. 3093.74

Assets
Cash.................................... 2000
House value (Gross)..................... 170000
Shares and bonds........................ 0
Car(s).................................. 21000
Other assets............................ 0
Total Assets............................ 193000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 135000...(700.8)....5.6
Hire Purchase (HP) debt ...... 13290.6..(254.1)....10.5
HP.............................10050....(265.7)....8.9
Total secured & HP debts...... 158340.6..-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................18828.....156.......7.9
Partner's Loan.................6122.4....102.......8.27
Total unsecured debts..........24950.4...258.......-

Monthly Budget Summary
Total monthly income.................... 3,414
Expenses (including HP & secured debts). 3,093.74
Available for debt repayments........... 320.26
Monthly UNsecured debt repayments....... 258
Amount left after debt repayments....... 62.26

Personal Balance Sheet Summary
Total assets (things you own)........... 193,000
Total HP & Secured debt................. -158,340.6
Total Unsecured debt.................... -24,950.4
Net Assets.............................. 9,709

It's not all bad, you've got a surplus, and that's due to get a lot bigger in the next few months.

If the teenagers have left education, then why are they only working part time? Are they looking for full time work? Time for them to join the grown up world and start paying their own ways, including board. It'll be in their best interests long term, as well as helping you short term.

There are plenty of ways to cut down, and then start attacking the debts.

Ames

Cross posted with Numpty, who said everything I did!

david_hellier

Hi,

Thanks for the further info.

I'm afraid you are sailing a bit close to the wind, but things should improve with some serious cutbacks the others will suggest.

According to my figures you have £158.44 per week to spend on food, entertainment or anything else. This excludes any saving for a holiday. so that must stop until things improve. In fact you should reconsider going on holiday at all until things improve.

I suggest you write this amount in a little note book (a spending diary) on a Monday and deduct spending as you go through the week. Try to get to the end of the week with some over. This can be saved or carried forward to the next week.

Mobiles and life ins seem v high. Sats got to go.

Good luck, the figures:

incomeweeklymonthly
self1860.00
partner1474.00
benefits80.00
total0.003414.00
divide by 4.33 £ 788.45 £ 788.45 total weekly income
spendweeklymonthly
rent/mortgage700.80
council tax113.00
elec36.00
gas70.00
water32.10
secured loans519.80
TV licence11.95
fines0.00
landline14.99
mobs122.00
other ins4.99
sat40.50
internet17.00
petrol140.00
road tax11.00
car ins61.41
car maint41.67
childcare402.50
pet ins6.67
build ins10.00
cont ins10.00
life80.56
account fee15.00
windows8.00
loan156.00
loan 2102.00
total0.002727.94
divide by 4.33
£ 630.01 £ 630.01 total weekly spend
Start= income - spend = £ 158.44 per week