Can you please help my friends with their debt and to achieve their dreams?

BertieMeldrew

Jo4 wrote:

That is what I thought, but he reckons a car wash does it better! I know what I would rather do!!

Sorry... but if that is his attitude then he's not too serious about cutting his costs

I think broadband/phone/mobile costs could be greatly reduced. Have they been on this site and read some of the stuff available? Also, if his costs are high due to business are these business calls? If not I'd just suggest using the phone a little less. If so, then why isn't his company footing the bill?

Wedding outfits? Just how many do they go to - and can't they wear things more than once

I also think the car costs are pretty high.

Generally I reckon here is a lot of scope for reductions... but they have to want to achieve them!

BertieMeldrew

CLAPTON wrote:

..lets face it they need another £500 a month.

Take your point but I reckon what they actually need is to spend £500 a month less

lynsayjane

um since noone else mentioned it, the 100+ for holidays and days out can go too, thats a quarter of their deficit gone.

what on earth do they do at easter to save up £36 for it?

the partworks can go aswell, i used to work in a newsagent and those things are a horrendous rip off. not to mention the bain of my old job!

unfortunatly to get debt free they will have to make changes. there are a lot of non-essentials on the list that can go to at least make them break even, after that they just need to increase their income.

calleyw

I am going to be a total and utter B1tch here and at least you can say it is from someone on a forum and not from you :rotfl:

But two things

1) they have to get real and I mean really real. Until the debts are paid they can't even think about i)building there dream house in 2008 or ever ii) and becoming a driving instructor both i) and ii) need to put on hold until the debts are cleared.

2) it is case of slash and burn if they are serious. But as been already noted I don't think they have really had there light bulb moment.

If I get you right they are ireland so some somethings I believe they will not be able to get cheaper etc due to that like gas/electric and car insurance is that right? So I will suggestions as to what can but cut but because of where they live it might not be possible.

INCOME
£2100, after mortgage and rates are paid


MONTHLY OUTGOINGS
£2544.24 after mortgage and rates are paid

Difference £2,100 - £2544.24 = -£444.24 without life assurance policies and him wanting to become a driver instructor.


HOME
Broadband £15
Electric £44 - need to go around turning things off not in use as they can't swap
Gas £4.83 (cooker)
Home & Contents Insurance £27.90 -any chance of getting it cheaper
Home Phone £33.80 (Average of the last 12 months) -need to look at if can't change suppliers or use a pre-carrier for calls then just need to cut out using it
Mobile Phone Bills £67.02 (for both of them, this is the average over the last 6 months)- Need to cut this again go to PAYG if they have it. if the calls are work related work should be paying for them
Oil £75- Every month I know it is expensive but they need to fill up during the summer when it tends to be cheaper. During summer months should hardly use any. I have my heating off since about april/may time
Oil Burner Service £1.67
Sky £18 - freeview if you can get it dump sky
TV License £10.96


INSURANCE
Life Insurance/Endownment Policy £108.45 (this only covers the mortgage on death, pays out about £12,000 in Sept 2008)


EATS & DRINKS
Eating Out £10 (Anniversary, Birthdays, Christmas... , his boss always gives them a meal voucher for 2 at Christmas which can be used any time and has no expiry date)
Groceries £160 (includes toiletries, cleaning, stationery, weekly newspaper, car parking) - I have feeling that food etc is pricey over in both parts of ireland but they need to slash this be it using basic value items. I mean I have just started saving myself over a £1 each time by changing from spreadable butter to basic value butter. Does not sound a lot but it soon mounts up over time on different items. I have a £100 a month budget for food and another £10 for cleaning items


TRANSPORT & TRAVEL
His Car Insurance £25.83
Her Car Insurance £40.24
His Car Maintenence £8.33 (There was a service cover taken out when the vehicle was bought which covers servicing but does not include some things and lasts for another 3 1/2 years)
Her Car Maintenance £41.67 (Includes servicing, tyres, wipers ...)
His Car Tax £9.17
Her Car Tax £11.25
His Car Wash £9.75 (It has to get an MOT wash regularly because of where he works)- Got to go no if and buts
Her Car Wash £4.88- Again got to go.
His Diesel £65
Her Diesel £65- this is for both of them they need to cut all unecessary journeys. I am not suggesting they stay at home all the time. But see really work out if journey is really need.

DEBT REPAYMENTS
LOANS
Her Car £213.54 (0% to Sept. 2008 inclusive, £5552.04 Outstanding)
His Car £143.12 (5.6% APR to Feb. 2011 inclusive, £7871.61 Outstanding)
NIIB Loan £299.88 (7.8% APR to May 2008 inclusive, £6597.36 Outstanding)
NIIB Loan2 £152.50 (10.8% APR to Feb. 2010 inclusive, £6582.50 Outstanding)
Sainsburys Loan £252.39 (6.35% APR to Dec. 2011 inclusive, £16,405.35 Outstanding)

CREDIT CARDS (Paying £283 monthly)
Citi Card £75 (5.9% lob, £1737.39 Outstanding)
Capital One £34 (5.9% lob, £1108.78 Outstanding)
Her Barclaycard Visa £28 (5.9% lob, £1443.49 Outstanding)
Barclaycard Mastercard £61 (5.9% lob, £2047.24 Outstanding)
His Barclaycard Visa £43 (5.9% lob, £1758.46 Outstanding)
American Express Credit Card £42 (2.9% lob, £1371.78 Outstanding)

Any chance of 0% cards to save interest and help them pay if off quicker.

SAVINGS
SAVINGS £10 (They have very little money to fall back on, maybe £500)


PET
Food £15
Vets/Jags £2
Worming Tablets £2


FUN & FROLICS
Cinema Trips & Ink Cartridges for computer £15


BIG ONE OFFS - is everymonth?
Birthdays/Anniversaries/Mothers Day/Fathers Day £20.83 -cut back that is nearly £250 a year on buying presents for others and that does not even included christmas. £10 month should be enough
Holidays/Days Out £104.17 - Need to cut this back to the bone as well. £50 a month should be enough. That is £1250 a year:eek:
Christmas £41.67 -£500 a year on christmas. And they don't even have children. Cut it in half that is £250 and that should buy presents and food unless they have lots of parties.
Easter £3 -£36 a year on easter If they buy for children then bung a £5 for there piggy bank much better than chocolate if they can't stop it altogether. My spend on easter is zero.


CLOTHES, SHOES, ACCESSORIES
Everyday £41.67 -if they are spending this every month they must have loads of clothes. This needs to be cut or stopped for a few months to help them get back on an even keel.
Work £8.33


ODDS & SODS
Chainsaw Engine Oil & Petrol £0.42
Her Hair Cuts £10 -any chance of model nights either free or very cheap
His Hair Cuts £6 -if he keeps his hair short then there can get clippers and cut his hair. As his hair grows really fast he needs it cutting every 4 weeks. So I tend to do it a couple of times then he goes to the barbers. Saves money and clippers have paid for themselves many times over.
Spending Money £40 (£5 each a week)
Lawnmower Petrol £1.25
Her Magazine £0.83 (To do with her illness)
His Magazines £19.06 (Partworks)-got to go just can't afford it
Membership £0.83 (because he is a member he gets reduced car insurance, which is a lot more than the £10 it costs)


I think that is enough food for thought. Is water in with rates as I am sure I saw nothing for water.

All the best. I do wish them luck. But as they do have alot of loans and credit cards they are paying out £1344 a month just on servicing debts :eek: That is more than I earn in a month.

Think of all that lovely money they could have had in the bank. Which would mean they could have their dream home and he could become a driving instructor by now.

Any chance of extra incomes via a second job etc.

Yours


Calley

bikerqueen

Jo4 wrote:

Can anyone get them back to where they are affording their bills every month and still in the black?

Er, if they're not willing to spend less or earn more, then, no.

Jo4

CLAPTON wrote:

first of all congradulations on a very detailed SoA.

questions

how much will a driving instructor make and how much does he make now?

wihin their current jobs (presumably both work) can they increase their income i.e. overtime, parttime evening or weekend work?..lets face it they need another £500 a month.

what is the value of their house and how much is the mortgage?

THANK-YOU about the SOA. I have tried my best with this one but I have came up against a brick wall, that is why I persuaded them to let me ask the helpful people on here!

He has been talking to a local driving instructor who reckons he could make about £400 more a week than he is already making.

They both work a lot of hours, especially him, he leaves home at 4:30am and usually isn't home until 9pm. They both say they are working as hard as they can and could not take on any more work, they have already increased their hours to have the income they have.

They have about £90,000 equity in their house. The mortgage is due to be finished in just over 2 years, then they will be mortgage clear before taking on the new mortgage for their dream home.

Jo4

kaz250 wrote:

Should have pointed out that if you look at my signature you wil see that I have helped 4 friends get out of their debt as well as myself!

Well done and keep up the Good work... My observation stems from the fact that i will feel very uncomfortable sharing such information with a friend.
Wish u every success

Thank you! They said they knew they could trust me with anything.

Jo4

BertieMeldrew wrote:

Sorry... but if that is his attitude then he's not too serious about cutting his costs

I think broadband/phone/mobile costs could be greatly reduced. Have they been on this site and read some of the stuff available? Also, if his costs are high due to business are these business calls? If not I'd just suggest using the phone a little less. If so, then why isn't his company footing the bill?

Wedding outfits? Just how many do they go to - and can't they wear things more than once

I also think the car costs are pretty high.

Generally I reckon here is a lot of scope for reductions... but they have to want to achieve them!

They are considering changing their broadband but who is cheaper? They say their home telephone bill should come down shortly to about £20 - £25 a month. Mobile bills have been reduced and they only use them when need be. He has a company mobile phone but there is only certain numbers he can call from it, the rest he has to call from his own. In order to get the other numbers added he has to get the bosses son to add them and he has not been available lately.

They do wear things more than once but the weddings they have been invited to are all posh dos and it is the same ring of friends.

They do want to get out of this debt desperately but he is leaving her to sort all the bills. She has shown him the spreadsheets I have done showing how much extra they need weekly, monthly and annually but the problem isn't going away and I want to help them to get out of this but I just don't know how.

Jo4

lynsayjane wrote:

um since noone else mentioned it, the 100+ for holidays and days out can go too, thats a quarter of their deficit gone.

what on earth do they do at easter to save up £36 for it?

the partworks can go aswell, i used to work in a newsagent and those things are a horrendous rip off. not to mention the bain of my old job!

unfortunatly to get debt free they will have to make changes. there are a lot of non-essentials on the list that can go to at least make them break even, after that they just need to increase their income.

They reckon since they work hard they need some enjoyment although they are considering using half of the for their shortfall, some progress perhaps?!?

Eggs, cards and presents that are expected of them, they are in a really awkward position about this.

He has nearly finished collecting the partworks so then £13.98 of this amount will go per month.

CLAPTON

you're doing a great job for your friend but there is a little air of unreality about this all.

i would have thought the way to do this is
a. reduce spending so they are living within their income.
b. once they have established that it would seem reasonable to consider remortaging to transfer the debt and so reduce the interest paid. But only once they have reduced their spending to below their income.


I know little about driving instructors but where i live you pay about 20 - 25 per hour tuition. so work a 10 hour day and hope you can fill every slot (doubtful in my view at least for the first few years) then you can make say 1250 gross a week (although you would be breaking the EU working time directive but no matter)...overheads must be quite high, the car itself (need to replace each year), insurance must be high, franshise probably etc. etc. less tax and NI etc at best
take home half £625 a week ....what does he earn now ? unless hes earning peanuts now i see no way he can be 400 a week better off as a driving instructor....but maybe we have one or two on the board who might have a better view?