Rearranging my budget. Looking for some opinions

wdamci

Just wanting your opinions on a matter.
Basicly I have £760 worth of debt. Not a lot but will take me a few months to pay off. Not a problem and is already organised.
However my lift to work is changing shifts (don’t know when, just know its soon) therefore I wont be able to get a lift every day. I can get the train in but its nearly double the costs

This is my SOA as of next month

Incoming - 1030

Outgoings
Mortgage – 200 (160 without arrears)
Ctax – 98 (75 without arrears)
Phone – 30
Internet – 40
TV – 9
Elect – 60
Travel – 60 (lift to work)

Total - 370

Debts
Mortgage arrears – 120 (paying 40 a month)
Dad – 330 ( no agreement yet)
Ctax – 315 (last years tax = 120 for 2 months) (this years 1 month behind = 75)
Friends 80 (got to pay this month)

I do not have food in this as ive been mainly eating at my mum and dads for a while. I have just cleared a debt which has freed off a lot of money.

My plans for the future (later this year or next year) were to get a motorbike for commuting and fun. However with my lift changing shifts I would rather get it sooner rather than later although it is not a necessity as I can get the train.

My dad has already agreed to once I pass my motorbike test to get finance for me to get myself a motorbike. This is because I am blacklisted and do not get credit anywhere. (Which is a good thing)
Anyways for me to pass my test I first have to save up £600. I cannot do this until I pay off my debt which means it will probably be Oct/Nov minimum before I manage this.

What I want to do now is get a loan to pay off my existing debt, Pay for motorbike test and get a bike etc. After I do that this is what I aim for my budget to be like

Outgoings
Mortgage – 160
Ctax – 75
Phone – 30
Internet – 40
TV – 9
Electricity – 60
Mum – 100 (Chip in for shopping with her)
Insurance – 50 (prob cheaper but based on one quote)
Loan – 100
Total – 624

This leaves £412
Out of this

Petrol £100
Savings £80 – Want to put money by for a rainy day.
Fags £60
Work meals £10

This leaves some money spare for the occasional drink or meal etc


What do you guys think? Does it sound reasonable? Im not very good at budgeting which is why I want a second opinion.

calleyw

Over all not bad but a couple things jump out at me

£40 for the internet who are using. You should be able to get this down to about £15 a month.

£60 a month of fags. Sorry but you really know in your heart of hearts this has to go. I know easier said then done.

Phone is that landline or mobile. I only pay £11 a month line rental. My internet and phone bill come to less than the £30 a month you are paying just for a phone.

Quick question do you smell by any chance :rotfl: As you don't have water rates down.

£100 is that just food shopping. You should be able to cut this right back as I spend a £100 a month on two hungry adults.

Also your electric is high. Do have arrears or a pre-paid meter. If you have the latter try these people. https://www.ebico.co.uk as they charge the same no matter how you pay.

Is you place only one bedroom. If not then look in to getting a lodger even if it is for say 6 months or so so that you can clear all your debts and then get a bit of money put away in savings.

With the savings you cna snowball and clear the debts quicker.

All the best.


Yours


Calley

wdamci

calleyw wrote:

Over all not bad but a couple things jump out at me

£40 for the internet who are using. You should be able to get this down to about £15 a month.
[Its for a 4mb connection on cable. Would have to get a bt landline installed before i get any other deals. Its the only cable company in my area

£60 a month of fags. Sorry but you really know in your heart of hearts this has to go. I know easier said then done.
I know. I did stop but started again last month. I do aim to stop soon

Phone is that landline or mobile. I only pay £11 a month line rental. My internet and phone bill come to less than the £30 a month you are paying just for a phone.
Its a mobile contract with 3. Its my house phone and mobile in one 12 months left on this contract

Quick question do you smell by any chance :rotfl: As you don't have water rates down.
Only after jogging. :rotfl: Water rates are included in Ctax

£100 is that just food shopping. You should be able to cut this right back as I spend a £100 a month on two hungry adults.
This is chipping in with my mum and dad as i get my dinner at their house. Want to give them that little bit extra seeing as they have helped me out a lot over the last few troublesome years

Is you place only one bedroom. If not then look in to getting a lodger even if it is for say 6 months or so so that you can clear all your debts and then get a bit of money put away in savings.
One bedroom unfortunately. I make great company for myself though

With the savings you cna snowball and clear the debts quicker.

All the best.


Yours


Calley

Thanks for the input, but dont think theres a lot i can change there. Possibly the internet if i cut the speed but i use it a lot and the service is excellent

Also the electricity is a card meter with some arrears. Once arrears are paid i will possibly change supplier and pay by direct debit

calleyw

wdamci wrote:

Thanks for the input, but dont think theres a lot i can change there. Possibly the internet if i cut the speed but i use it a lot and the service is excellent

Unless you do lots if downloading there is no need to have 4mb speed I have 2mb with two computers on it at the same time browsing. And it is rarely slow. As browsing the web does not take up much bandwidth as web pages are very small in size compared to a video clip.

Why not call up the provider and tell them you need to cut your bills. I did this with my ISP as I am with Telewest and they knocked £6 a month for 3 months and then £3 a month after that for ever. I also use another carrier for my calls only using telewest at weekends.

Don't want to appear to be rude but there is scope just depends on how much you want to get rid of your debt and live with your means.

Yours

Calley

calleyw

PS I know you want to do the right thing with your parents and all. But at the moment you can't really afford to be that generous. And if you are paying your parents money for food would it not be better to buy your own for the time being.

As would save you anything up to £50 a month. Which could help you pay off your debts quicker and then you can start to be a little more generous after wards.

And I sure if you parents are anything like mine they don't mind having you around for meals. As long as you do the washing up. And when my mum ask me to buy something for her like milk to bread I don't let her pay. Well maybe every 4th of 5th time just to keep her happy.


Yours


Calley

wdamci

I understand what you are saying.
I know i can get my internet down to £20 if i cut back to 1mb which is a possibility i may do. I play games over the net and like the faster speed.

At the minute i will have the debts cleared in 3-4 months no problem. Everythings already arranged for this. But the situation may change soon.

Im looking forward to getting a motorbike in the future once my debt is paid off and i save up for the test. But if the person i get a lift to work changes shifts in the next couple of weeks (She is changing shifts just dont know when) then my travel goes up to £120 for a zonecard and one stupid bus that doesnt take zonecard.
This has got me thinking it might be better to rearange my finances and get one sooner. And to be honest i quite like the idea but when i explain it to my dad i want to make sure that i have accounted for everything and that it is a reasonable budget to go by. I think it is but im not exactly the ideal person to judge this.

wdamci

calleyw wrote:

PS I know you want to do the right thing with your parents and all. But at the moment you can't really afford to be that generous. And if you are paying your parents money for food would it not be better to buy your own for the time being.

As would save you anything up to £50 a month. Which could help you pay off your debts quicker and then you can start to be a little more generous after wards.

And I sure if you parents are anything like mine they don't mind having you around for meals. As long as you do the washing up. And when my mum ask me to buy something for her like milk to bread I don't let her pay. Well maybe every 4th of 5th time just to keep her happy.


Yours


Calley

They dont even know im going to offer this yet. Its just a thought at the moment.

wdamci

Sorry for the double posts. I don’t think I made my first post clear

I have a dmp and it is going well. However it is due to change a bit because I will soon no longer be able to get a lift to work and will have to go by public transport which costs more.

The original plan was to clear my debt then save and do my motorbike test. My dad has agreed to get me finance for a bike once I pass so I have my own transport which I do need for work.
Now with my lift changing shifts soon I think it might be a better idea to incorperate my debt and the bike test and a bike into the one loan and get the bike sooner. This way I will have my own transport sooner.

What I want to know is if the budget I have designed for this looks reasonable. Personally I think it is because I will have to get my own transport sooner or later anyway as I need it for work. (cant do overtime when it is expected) Ive only got away with it so far because the work know.s I used to have a lot of debt. They know once I clear it I will have my own transport

This is what the new plan would be like

Incoming 1036

Outgoings
Mortgage – 160
Ctax – 75
Phone – 30
Internet – 40 (can cut to 20)
TV – 9
Electricity – 60
Mum – 100 (Chip in for shopping with her)
Insurance – 50 (prob cheaper but based on one quote)
Loan – 100
Total – 624

This leaves £412
Out of this

Petrol £100
Savings £80 – Want to put money by for a rainy day.
Fags £60
Work meals £10

This leaves some money spare

sparklymessygirl

Hi there,

Just a quick thought here - wanted to point you in the direction of
http://www.liftshare.org for liftsharing.



Sparkly

wdamci

Thats handy.
There is someone nearby going the same direction. Thanks for the link:beer:

Would still like some opininions on the new plan though. To be honest it has got me excited that i could have my bike sooner than i thought.

blownalot

Hi
Apparently the banks have a list of what they believe everyone should be able to live on in a month. Both Debt Free Direct and Payplan have referred to this "document" when I have been talking to them about an IVA. Has anyone actually seen a copy of it or know where it can be found please?
Thanks
Blownalot