My sisters debts, can you help her???

dj0586

Hey guys, youve helped me out with loads of advise and im doing great DF by next March everything going to plan, now my sisters in trouble and she wont listen to her older brother but hopefully she will listen to you guys.

Her SOA looks like this.

She's currlently claiming back £1300 of bank charges.. which should be resolved soon , fingers crossed.!

Her salary - £900
Her OH salary - £0, hoping to bring in some money soon!
Benefits - £320 (just been reduced by not sure what to since we put this together )

Total - £1220

Monthly Outgoings:
Rent - £135.89
Mortgage - £262.64
Council Tax - £116
BUPA - £70 as OH gets quite ill and problems with dd's health
Gas - £30
Electric - £30
TV License - £10.99
Sky £18
Phone - £100 (trying to start up a new business)
Food - £100
Car Insurance - £50.95
Petrol - £40
Life Insurance - £13.29
Contents Insurance £19.39 processing 2 claims atm
Illness/ unemployment ins £13.13 processing a claim atm
American Life insurance £ 5.95 there's a pay out in 2015 (of everything shes paid in) if she doesnt claim
ge capital (2 store cards) - £11.40
Sofa - £39.94 0%
Barclay Loan - £50.29
Halifax £35.01
Credit Card mbna - £56.55
mint cc - £33 got to set up dd
Natwest Loan - £130
TInternet - £30
Phone BT - £25
Mobile (OH) - £50 (used for work)
Dixons - £20 (£100 left to pay - 5 months to go)
OH overdraft fee - £ 5
ME Overdraft fee £ 7.56
Me bank acct fee £13
Mum (cooker) £20
Kids Clubs, ballet, swimming etc £18

Total: £1560.98 not including
anything she owes our parents!

She wants to start paying them (soon) £100pm at least

£1660.98

= - £ 340.98 ( really it should be -£440.98 )



barclay Loan – Balance £1,500 APR 18%?
Wedding/holiday CC – Balance £5,000 APR 0% (not paying anything atm)

Overdraft - £1300 (limit £1,270)
130.00
Credit Cards - mbna - £3700 15%ish 56.55
halifax £1300 15%ish 35.01
mint - £ 370 15%ish 33.00
burtons £ 80
new look £ 60 11.00
topshop £ 30
ikea £ 100
la redoute £ 100
9940
apr's are an guesstimate i'm afraid! but I know most are reasonably high.

so £15,000 ish in debt

Hope you guys can help, why sister dont listen to their brothers i dont know.

Looking forward to responses.

Mizz_Pink

I'm not much help really but those 3 credit cards are high interest so she needs to make those a priority. Can she apply for a long term 0% card and transfer the balances ? She needs to lump the amounts together and pay more which she should be able to do if she isnt paying interest.

Also have a look at the phone/internet, I'm sure I saw a deal with BT where you get phone/internet and something else for £9.99 a month.

Car Ins is quiet high too, unless she has low no claims bonus.

Macduff_3

dj0586 wrote:

Hey guys, youve helped me out with loads of advise and im doing great DF by next March everything going to plan, now my sisters in trouble and she wont listen to her older brother but hopefully she will listen to you guys.

Her SOA looks like this.

She's currlently claiming back £1300 of bank charges.. which should be resolved soon , fingers crossed.!

Her salary - £900
Her OH salary - £0, hoping to bring in some money soon!
Benefits - £320 (just been reduced by not sure what to since we put this together )Is this tax credits or benefits that her OH gets

Total - £1220

Monthly Outgoings:
Rent - £135.89 is this a shared ownership?
Mortgage - £262.64
Council Tax - £116 She may be entitled to 2nd person rebate if OH is not working
BUPA - £70 as OH gets quite ill and problems with dd's healthcan this be reduced at all? has she shopped around?
Gas - £30
Electric - £30
TV License - £10.99
Sky £18 not essential - try freeview
Phone - £100 (trying to start up a new business)This is really high, even for self employed.
Food - £100 For how many people????
Car Insurance - £50.95
Petrol - £40
Life Insurance - £13.29
Contents Insurance £19.39 processing 2 claims atm
Illness/ unemployment ins £13.13 processing a claim atm
American Life insurance £ 5.95 there's a pay out in 2015 (of everything shes paid in) if she doesnt claim
ge capital (2 store cards) - £11.40
Sofa - £39.94 0%
Barclay Loan - £50.29
Halifax £35.01
Credit Card mbna - £56.55
mint cc - £33 got to set up dd
Natwest Loan - £130
TInternet - £30 need a cheaper package here
Phone BT - £25 on top of the other £100?
Mobile (OH) - £50 (used for work) OH not working
Dixons - £20 (£100 left to pay - 5 months to go)
OH overdraft fee - £ 5
ME Overdraft fee £ 7.56
Me bank acct fee £13
Mum (cooker) £20
Kids Clubs, ballet, swimming etc £18

Total: £1560.98 not including
anything she owes our parents!

She wants to start paying them (soon) £100pm at least not a priority

£1660.98

= - £ 340.98 ( really it should be -£440.98 )



barclay Loan – Balance £1,500 APR 18%?
Wedding/holiday CC – Balance £5,000 APR 0% (not paying anything atm)

Overdraft - £1300 (limit £1,270)
130.00
Credit Cards - mbna - £3700 15%ish 56.55
halifax £1300 15%ish 35.01
mint - £ 370 15%ish 33.00
burtons £ 80
new look £ 60 11.00
topshop £ 30
ikea £ 100
la redoute £ 100
9940
apr's are an guesstimate i'm afraid! but I know most are reasonably high.

so £15,000 ish in debt

Hope you guys can help, why sister dont listen to their brothers i dont know.

Looking forward to responses.

Hope this helps - there is a lot of things that can be changed.

Who is setting up the business? Your sister or her OH?

MrsTinks

Her salary - £900
Her OH salary - £0, hoping to bring in some money soon!
Benefits - £320 (just been reduced by not sure what to since we put this together )

Total - £1220

Monthly Outgoings:
Rent - £135.89 rent AND a mortgage? I'm confused...
Mortgage - £262.64
Council Tax - £116 Are you eligible for any discounts etc?
BUPA - £70 as OH gets quite ill and problems with dd's healthbearing in mind health problems I would leave this running for the time being
Gas - £30 Check if you can get it cheaper
Electric - £30 Check if you can get it cheaper
TV License - £10.99
Sky £18 Sorry but this is a luxury... if you can then cancel
Phone - £100 (trying to start up a new business) Surely even business lines can be supplied cheaper than this??? However at least this should be paid for out of the business accounts against tax etc
Food - £100 per month or per week? if per month then WELL DONE! Pop over to OS board for recipe tips on how to make some very tasty and cheap meals
Car Insurance - £50.95 even if you don't have much no claims then try shopping around for this... it's very high even for someone with little no-claims
Petrol - £40 Make sure you get either Tesco clubcard points or nectar points when you fill up (if the petrol price is the same)
Life Insurance - £13.29
Contents Insurance £19.39 processing 2 claims atm
Illness/ unemployment ins £13.13 processing a claim atm
American Life insurance £ 5.95 there's a pay out in 2015 (of everything shes paid in) if she doesnt claim I had a similar policy which I could cash in earlier than it's official end date, check if you can do the same to release the money
ge capital (2 store cards) - £11.40
Sofa - £39.94 0%
Barclay Loan - £50.29
Halifax £35.01
Credit Card mbna - £56.55
mint cc - £33 got to set up dd
Natwest Loan - £130
TInternet - £30
Phone BT - £25in addition to the £100 above? can't you use ONE line for now until the business can justify a seperate line?
Mobile (OH) - £50 (used for work) PAYG? Easymobile has a great offer on at the moment... even if you only use it for outgoing calls
Dixons - £20 (£100 left to pay - 5 months to go)
OH overdraft fee - £ 5
ME Overdraft fee £ 7.56
Me bank acct fee £13 Fee for what?
Mum (cooker) £20
Kids Clubs, ballet, swimming etc £18

Total: £1560.98 not including
anything she owes our parents!

She wants to start paying them (soon) £100pm at least

£1660.98

= - £ 340.98 ( really it should be -£440.98 )



barclay Loan – Balance £1,500 APR 18%?
Wedding/holiday CC – Balance £5,000 APR 0% (not paying anything atm)

Overdraft - £1300 (limit £1,270)
130.00
Credit Cards - mbna - £3700 15%ish 56.55
halifax £1300 15%ish 35.01
mint - £ 370 15%ish 33.00
burtons £ 80
new look £ 60 11.00
topshop £ 30
ikea £ 100
la redoute £ 100
9940
apr's are an guesstimate i'm afraid! but I know most are reasonably high.

so £15,000 ish in debt

I would consider contacting your creditors and asking for them to freeze interest on your debts for now.
Can your income be increased? Extra hours, second job? How soon can OH return to work? Even stacking shelves in Tesco is an option!
I'm sure there are loads more that I haven't thought off so peeps get on with posting

lynzpower

It does look like a shared ownership property to me - having got one myself

the suggestion Ive got is could she come here herself and explain things. a bit more.

I also suggest that the kids activities could go as well, its not forever, but its another saving

missk_ensington

Don't get it, whats the OH doing? If he's ill, he should be claiming benefits/DLA/Sick pay whatever he might be entitled to. If he's working (as the phone suggests) is he working for free? What's he doing?

dj0586

ok, had a quick chat with sis and her answers so far are

OH is setting up a business, he gets paid now and then, but nothing regular or guaranteed, so anything he does make is a bonus. He works full time on it, which is why the phone bill is so much. The other phone bill bit is the line retal i believe (Her OH gave me these details)



The internet is a lot as they are in the sticks and it's the only realiable connection they can get... it should go down when they get a bt tower near them or something like that. As you can tell i'm no IT expert.

Doesnt want to cancel dd's swimming as she was on the waiting list for 3 years! and the £18 includes Every club in the leisure centre, so a right bargain! She is an only child and she needs this. I agree the exercise is important

the £5000 wedding money my dad is paying for atm, and he has been bugging sis to pay him ANY amount as she was meant to be paying £200 pm and this stopped back in november , i think shes feeling guilty about this.

Im going to try and get her to sign up herself so any more feedback would be great.

lynzpower

Hi there again DJ

Im wondering has you sister taken on board any of the suggestions we have made?

One thing I do suggest on this £50 phone calls bit- is this an inclusive package. Or are they mobile calls from the land line? You might want to ask if theres an inclusive package that might work out cheaper on the telephones board, theres some cracking deals on there.

I wonder, could the hubby get a part time job. If the pay from the own business is only just taking off and is effectively putting the family into greater debt, then surely maximising income is a better idea. If shes in the sticks, sure not ideal, but if theres even one day a week somewhere its better than nothing.

The bank account fee for a "free" interst free OD is pants. Get rid. Ive got a £800 OD with lloyds and the interest never costs me more than a tenner a month as standard. However, Im moving onto Alliance & Leicester- which matches the OD at 0%. Im happy to refer her if she wants, which means I get an extra £25 for doing it as will she. If shes claiming charges back then she should have a parachute account opened in any case in case they close her account IYSWIM

Anyway, do let me know

MrsTinks

If hubby is trying to start a business then hand on heart this is the wrong time to do it... You have debts that need paying and you have bills coming in. Starting a business is NOT cheap and it's NOT easy and it takes time to pay for it self. I'm sorry but he really needs to think about getting a proper job until ends meet and the business can pay for it self. If he suffers from stress then starting your own business is NOT something I'd recommend. There is no guaranteed income and NO sick or holiday pay...

Debt_Free_Chick

dj0586 wrote:

= - £ 340.98 ( really it should be -£440.98 )

They either need to increase their income or reduce their spending. I know that sounds obvious, but that really is their only choice. Their basic bills, ignoring any debt repayments, eat up almost all the income - so getting those bills down has to be the priority.

The total phone & internet costs are far too high. Can she tell us exactly what the arrangements are? I hope he hasn't bothered with a BT business line :eek: If so, get rid and just put in a second residential line. The only difference is ... if there's a fault on the line, Business customers take priority when an engineer is allocated to fix the problem. However, if there were a problem with the business line, then it looks like he has two other options - the residential line and the mobile.

Also, register at 18866.com so that phone calls only cost 4p.

Internet, even broadband, should be do-able for much less than £30 per month. I don't understand the point about a reliable connection .... all internet services come down the BT landline. Even with BT you can get the internet for less than £30 .... I rather suspect they've bought some mega service (8mb?) which they probably don't need, in reality. This really needs more research.

I think he needs to take a cold, hard look at the business. I hope he's keeping accounts so he can evaluate whether the income he earns is good enough, compared to the costs of running the business. He should look at the situation for his business year, to date - is he making a profit?

Also, I assume he's a sole trader - so every time he's paid he MUST save something to pay his tax bill when he gets it. It's very, very difficult to negotiate with the Inland Revenue over unpaid tax :eek:

I agree with tine that you need to be able to support yourself, whilst starting a business. This means that you need savings equivalent to approximately 6 months of outgoings - so you can continue to live for 6 months, whilst the business is up & running.

How long has been trying to start this business?

As for BUPA .... they really need to think whether this is absolutely necessary. Is the NHS treatment so bad? Are they paying for necessity or for convenience?

At the moment, she has no chance of paying anything back to your parents. She needs to cut her bills by £300-odd .... not increase them by £100.

Agree with the other suggestion ... get her to post on here so she can answer our questions directly and give us some more information. You're doing a great job :T but a direct discussion with her would simply be more efficient.

Regards - HTH