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

Jo4

calleyw wrote:

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? Yes 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 She is forever switching lights and things of after him although he is improving.
Gas £4.83 (cooker)
Home & Contents Insurance £27.90 -any chance of getting it cheaper They have shopped a round and this was the cheapest, although I mentioned Tesco home insurance to them, as they are offering half price home insurance at the moment, and it came in under £200, a saving of approximately £135 a year!
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 They are going to try and cut this.
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 I explained this one a few responses up.
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 Summer is when they fill up and believe me they do not have it on any more than they need to. BTW they say that this bill is usually about £850 but with the way the price of oil is going it is hard to put an exact figure on it.
Oil Burner Service £1.67
Sky £18 - freeview if you can get it dump sky Cannot get freeview
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 They are going to try really hard to cut this back.


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. They normally only go to work, appointments, visit family and friends who live 10 -15 miles away.


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. With the amount they owe they would rather have a steady relationship.



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 Again this is expected of them.
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: They are considering using half of this amount for debt repayments.
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. They do not have any parties but again this is expected of them. They are going to try to make some cutbacks this year as they have been buying in the sales and doing pigsback clicks to get free vouchers. (They do listen to some things I tell them)
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. There are 12 children who expect eggs and an adult who expects a gift. There is 5 adults who expect cards.


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. They are going to try and cut this one back.
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 This is half the price she used to pay!!
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. She is going to suggest this one to him.
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 Nearly finished.
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. There is no water bill over here yet!

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. He now thinks he might be able to get another £100 a month.

Yours


Calley

THANKS for all the suggestions, I think progress is being made!

Jo4

CLAPTON wrote:

you're doing a great job for your friend

take home half £625 a week ....

THANKS! According to the instructor he was talking to, they would both be working in the same area, his take home would be more than that.

BertieMeldrew

Please don't misunderstand this but all I hear are excuses which convinces me that your friends definitely AREN'T committed to this effort. However, one thing I must say... a friend like you is worth your weight in gold.

Jo4 wrote:

They are considering... 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.

This is crazy... if these are business-related calls then he should either (a) not make them if his company won't facilitate it or (b) claim back the costs or(c) leave his own mobile at home and just take his Company one to work. Working for a company like that no wonder he wants to change jobs (why do people let their employers walk all over them?)

Jo4 wrote:

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.

So what? I always fail to understand women who won't wear the same things again and again... I certainly can't understand blokes like that. Options... say no to some of these invites (how many do they actually get). Also, the women should remember... when they go to a wedding nobody is interested in what they look like... everyone is looking at the bride "Where there's a will there's a way"

Jo4 wrote:

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.

As I said earlier your male friend just isn't committed to this, is he.

Suggestion... have your female friend dump him and set up with you (only joking )

bikerqueen

if you have huge debts and you want to do something about it, then people have to realise you cant be as generous as you were. 12 kids and an adult who "expect" things will just have to be told. I think your friends are stuffed until they have a genuine lightbulb moment, where they realise they cannot go on like this if they want to get debt free.

Epiphone

Sorry to sound so blunt but they sound a right pair of !!!!less idiots. From what youv'e posted they're not serious about getting out of debt at all. All that money on clothes and car washes every month? Ridiculous!

It sounds like your very kind efforts could be put to better use elsewhere.

calleyw

bikerqueen wrote:

if you have huge debts and you want to do something about it, then people have to realise you cant be as generous as you were. 12 kids and an adult who "expect" things will just have to be told. I think your friends are stuffed until they have a genuine lightbulb moment, where they realise they cannot go on like this if they want to get debt free.

I have to agree with Bikerqueen on this. They have allowed other people to expect it.

Unless they are very close family why are they buying easter eggs for 12 children.

My answer is tough it is there money and no one has a right to tell them they must buy people presents. If I thought that people expected big expensive pressies. You know what they would get nothing and I mean that nothing at all. I will not be dictated to by people like that.

They will just have to tell people that they need to cut back as they have specific goals. As I said before they paying out over £1K a month on just servicing debts alone. If they did not have these debts then they would not have to work so hard and long.

I know some things are hard. But I am amazed at the figures for things like electric. Up until about 2 months ago I was home all day. And my electric bill never came to anything like £44 a month. I put aside £45 a month for 12 months to cover electric/gas/water so £15 each month for each. In the summer granted there is little gas to be paid. And pay when the bill comes in. I take monthly readings so there is little surprise when I get the bill as I know roughly what it will be.

My last water bill for water for 6 months which is metered was £73 for two of us. My last phone bill had 20p in calls because we use another provider. That is often about £6 every 3 months. Not sure what happened last month as it was £6 for the entire month. That is my husband keep ringing job agencies.

Mobiles why unless he is away for days one end does he need to keep phoning from his own people. If I was him I would refuse to use my own mobile tell them if it work related it has to be on the works mobile. Lots of companies I know make you pay for private calls but all business ones the company pays for.

I do wish them all the best. But do believe that they are not there with their light bulb moment.

Yours


Calley

Jo4

THANKS for all the responses! She has offered to clean the cars he said no, she can clean her own but he is still taking his to the car wash. They have agreed to make some amendments to the bills and have reduced them to where they are overspending about £230 in the month. They intend to make the difference by working even more and they are almost certain that they are not going to put the house up until 2009. Although as I said to them they just need to keep monitoring the situation.

I really do hope things improve for them.

calleyw

Jo4 wrote:

I really do hope things improve for them.

So do I but they have a long way to go.


Yours


Calley

soolin

Just on the driving instructor bit, my OH qualified earlier this year but chose not to start as an instructor as he found a better paid job. He was working on approx £30k a year for 50 hours a week before expenses. That is the London rate, outside of London the earning will be less.

Talking to the other guys they said it can be hard as they actually spend quite a bit of time off the road. If a learner clips the tyres when parking (and believe me they do regularly) that might mean a lost hour waiting in a tyre place for a repair or replacement. Small knocks need to be sorted out, again losing time (an instructor is unlikely to want to leave little dents and bangs showing on the car).

If you are an independent driver then obviously every little repair will leave you without a car for as long as a day and therefore with no income. If you work for a school then you can quite often borrow a different car quite quickly and maybe only lose a few hours pay.

Soo

seven-day-weekend

I don't see that this couple are prepared to alter their lifestyle (won't give up the car washes, clothes, or presents!) and until they are prepared to do so either the 'dream' will have to be put on hold or they will get into even more debt.