Help my daughter please?

downshifted

My daughter has just gone through her SOA with me. She will try to get her utility bills down, and she will start planning her food budget (we came to the £300 per month figure by just adding up the Sainsbury spend on her bank account!). Any other ideas please? The savings are an inheritance from her gran which she does not wish to touch and she needs her car. The rent is really £700 per month but her lodger pays £400. Note - there is no room for fun in the budget and she is 26 and single! Also, the reason for doing this is that she does not get paid until 30/6 and she only has £19 in the bank (all dds go out early in the month)!


Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household.........
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1396
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1396

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 300
Management charge (leasehold property).. 0
Council tax............................. 137
Electricity............................. 27
Gas..................................... 67
Oil..................................... 0
Water rates............................. 19
Telephone (land line)................... 55
Mobile phone............................ 40
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 300
Clothing................................ 0
Petrol/diesel........................... 50
Road tax................................ 12
Car Insurance........................... 27
Car maintenance (including MOT)......... 13
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 12
Buildings insurance..................... 0
Contents insurance...................... 18
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 18
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1157

Assets
Cash.................................... 5000
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2500
Other assets............................ 0
Total Assets............................ 7500
No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................2101......48........6.9
Nat West.......................2874......64........1.3
(Unnamed debt).................1443......32........
Total unsecured debts..........6418......144.......


Monthly Budget Summary
Total monthly income.................... 1,396
Expenses (including HP & secured debts). 1,157
Available for debt repayments........... 239
Monthly UNsecured debt repayments....... 144
Amount left after debt repayments....... 95

Personal Balance Sheet Summary
Total assets (things you own)........... 7,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -6,418
Net Assets.............................. 1,082

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

mdeebee

I think that I would use the £5000 to pay off the debt. Would your daughter's grandmother want her to carry this debt? When the remainder of the debt has been paid off, your daughter can save up the money and do with it what she wishes.

Hope my penny worth helps.

Nottoobadyet

downshifted wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household.........
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1396
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1396

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 300
Management charge (leasehold property).. 0
Council tax............................. 137 Does her lodger pay part? if her lodger is a student, does she get the single persons 25% discount?
Electricity............................. 27
Gas..................................... 67
Oil..................................... 0
Water rates............................. 19
Telephone (land line)................... 55
Mobile phone............................ 40 This is huge for one phone, especially if she's paying £55 for the landline. Have her reduce her package if she can or go PayG
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 300 Well, theres the fun budget! she can easily save £200 a month here, what on earth is she buying?
Clothing................................ 0
Petrol/diesel........................... 50
Road tax................................ 12
Car Insurance........................... 27
Car maintenance (including MOT)......... 13
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 12
Buildings insurance..................... 0
Contents insurance...................... 18
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50 £600 a year is high, can she reduce?
Haircuts................................ 18
Entertainment........................... 0 she can easily budget some here once food is cut back.
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1157

Assets
Cash.................................... 5000 Im sure you kw it doesnt make sense to have savings when you have debt, but I understand if she doesnt want to spend her grans money on it
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2500
Other assets............................ 0
Total Assets............................ 7500
No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................2101......48........6.9
Nat West.......................2874......64........1.3
(Unnamed debt).................1443......32........
Total unsecured debts..........6418......144.......


Monthly Budget Summary
Total monthly income.................... 1,396
Expenses (including HP & secured debts). 1,157
Available for debt repayments........... 239
Monthly UNsecured debt repayments....... 144
Amount left after debt repayments....... 95 Does she really have this at the end of the month? Doesnt sound like it - a spending diary might be in order.

Personal Balance Sheet Summary
Total assets (things you own)........... 7,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -6,418
Net Assets.............................. 1,082

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

Some ideas from me, sounds like she shouldnt have too much of a problem once she gets her ducks in a line.

drewdrop

Hi, I think that she should use the savings to clear the majority of debt asap - just wasted money on interest otherwise - if she follows the SOA advice she will soon be able to save it again, good luck

Follow the snowball link to see how much she would save by doing this

Primula

Hi there
Dont really have any other advice other than what's been offered already. Landline & mobile def look to reduce, and of course food. Good luck to your daughter and how nice she has been able to come to you for advice and not worrying alone.
P

Poosmate

downshifted wrote: »

My daughter has just gone through her SOA with me. She will try to get her utility bills down, and she will start planning her food budget (we came to the £300 per month figure by just adding up the Sainsbury spend on her bank account!). Any other ideas please? The savings are an inheritance from her gran which she does not wish to touch and she needs her car. The rent is really £700 per month but her lodger pays £400. Note - there is no room for fun in the budget and she is 26 and single! Also, the reason for doing this is that she does not get paid until 30/6 and she only has £19 in the bank (all dds go out early in the month)!


Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household.........
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1396
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1396

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 300
Management charge (leasehold property).. 0
Council tax............................. 137
Electricity............................. 27
Gas..................................... 67 This is high! Does she have gas fired lighting and appliances? Is she paying arrears? if not do a meter reading, she may have £100's in credit!
Oil..................................... 0
Water rates............................. 19
Telephone (land line)................... 55 Seems high, is she on a package where she can get free calls after 7pm? I'm with BT @ £16 pcm and call family after 7pm - I don't call mobiles unless I absolutely have to.
Mobile phone............................ 40 Contract? Can she reduce? Or go PAYG?
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 300 Even if she's feeding the lodger this can be reduced by at least £100
Clothing................................ 0 There should be something in here even if it's just £10 pcm
Petrol/diesel........................... 50
Road tax................................ 12
Car Insurance........................... 27
Car maintenance (including MOT)......... 13
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 12
Buildings insurance..................... 0
Contents insurance...................... 18
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50 Can this be reduced? Either don't spend so much on each or reduce the circle of people she buys for.
Haircuts................................ 18
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0 Again, there should be something in here, even if it's only £10 pcm
Total monthly expenses.................. 1157

Assets
Cash.................................... 5000
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2500 Could she downgrade and release some of the capital in this, even if only £500 to pay off the debt with the highest interest rate?
Other assets............................ 0
Total Assets............................ 7500
No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................2101......48........6.9
Nat West.......................2874......64........1.3 Is this the monthly rate?
(Unnamed debt).................1443......32........ Can you find the APR for this?
Total unsecured debts..........6418......144.......


Monthly Budget Summary
Total monthly income.................... 1,396
Expenses (including HP & secured debts). 1,157
Available for debt repayments........... 239
Monthly UNsecured debt repayments....... 144
Amount left after debt repayments....... 95 That's good news. She could do with starting a spending diary if she's only got £19 left to see where this cash is going and if she can cut back on any little impulsive spends.

Personal Balance Sheet Summary
Total assets (things you own)........... 7,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -6,418
Net Assets.............................. 1,082

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

Hi and well done to your daughter for seeking help/advice off you.

I've put some comments in red, hope they help some.

I understand about the inheritance. I have some cash from my mom and would rather go through the pain and learning process of becoming debt free than use the money she gave me. To me, gifted cash is not normal cash and even if you wipe out your debts and save the same amount - it's just not that special gift. I'm sentimental like that and I guess many will advise to use the "savings" to wipe out most of the debt.

Yes, she'd be over £100 better off each month and could be debt free within a year if she budgetted better (i.e. reduced gas, food, phones and presents) but will she learn anything from being able to almost wipe out her debt just like that?

I know too that it's difficult trying to remain in control of household expenses with a lodger. I've had a couple and it's so difficult when they leave their pc's and tv's and light's on all night, use your lady things instead of buying their own! - very frustrating. One of my lodgers used half a toilet roll overnight!!! What on earth did he do with it - urgh! Don't even think about answering!

Anyway, hope some of that helps and good luck to your daughter.

Poo

Poosmate

Nottoobadyet wrote: »

Some ideas from me, sounds like she shouldnt have too much of a problem once she gets her ducks in a line.

:rotfl::rotfl::rotfl: Loving that saying! Did you make it up yourself?

Poo

mdeebee

Poosmate wrote: »

:rotfl::rotfl::rotfl: Loving that saying! Did you make it up yourself?

Poo

I love it too. In this part of Yorkshire we say "ducks in a row".

nanto3girls

I'm from Barnsley, and have never heard the saying Ducks in a row.

Hope your daughter gets sorted downshifted.

mdeebee

Spooky!

You must be from the posh bit! LOL.

DVardysShadow

downshifted wrote: »

The savings are an inheritance from her gran which she does not wish to touch.

There is absolutely no sense in having savings earning 3% pa and debt paying 1.3% pm [= 16%pa]. She is paying 13% [£650 a year] just to keep the inheritance in the bank. OK, your APR's are not too clear, but you need to look at them and work the figures for yourself.