Budgeting help please

whyowhy_2

Hello everyone.

I went through a very messy divorce a couple of years ago, and to cut a long story short am now saddled with an very daunting level of credit card debt. I have been juggling credit cards but am no longer able go get favourable balance transfer rates which has forced to face up to the mess that I am in. I called the National Debt Line and they advised me to set-up a DMP.

However, I recently had a heart-to-heart with my parents and they have offered to lend me £17k, the bulk of their pension fund, to pay off the bulk of my credit cards debts. I have always been good with money, had no debt beyond my mortgage before the breakup and have always been a provider. I feel awful about the situation - but there you go. I tried to look at every aspect of my spending - and reckon that I can repay them £250pm, allowing myself and my son a few luxuries - a camping trip in the summer, a small birthday and christmas present for my boy, an occasional drink at the pub etc. This would mean that they would be paid off in 68 months (a little under 6 years).

Having read some of the posts on this board has really put my own problems in perspective. My job is secure, and my salary will only rise. I have a loan that is due to be paid off in 30 months - which will free up £160pm - and I hope to pay off my parents quicker than that.

My budget is below - any feedback would be appreciate. Am I missing anything?

Incomings:

Lodgers 730
Salary 2276
Total 3006


Outgoings

Mortgage 1185.9
Council Tax 149
Power 107
Water 33
TV Licence 12
Virgin Media 50
Mobile 35
Loan repayment 160
Child Maint 240
Insurance 45
Groceries 400
Prof fees 23
Car insurance 24
Car Maintenance 25
Car tax 19
Public transport 15
Cat 25
Clothes 20
Smokes 60
Petrol 25
Camping 30
Presents 10
Entertainments 40
Denrist 15
Total 2747.9


Remaining 258.1

Firewalker

Hi there,

I am not good when it ocmes to cutting small amounts here and there but... Do you really spend £400 per month on groceries? How many is this for? I am assuming one since there is a line for child maintenance. If you are on your own you can eat really well spending about £150 - £200 (max). This will free another £200 to be repaying your parents.

Firewalker

Hannah_10

https://forums.moneysavingexpert.com/discussion/107280

The link above is to a post about SOA's (statements of affairs). We tend to like to see them in a set format, the one from make sense of cards. There is a link in that post. It would help you get better and more broadminded feedback.

whyowhy_2

Firewalker wrote: »

Hi there,

I am not good when it ocmes to cutting small amounts here and there but... Do you really spend £400 per month on groceries? How many is this for? I am assuming one since there is a line for child maintenance. If you are on your own you can eat really well spending about £150 - £200 (max). This will free another £200 to be repaying your parents.

Firewalker

My son stays with me 3 days a week, and half the school holidays - (6 1/2 weeks a year)

Still he is only 4 and really so should be cheap to feed. I am no cook - but I guess it's time I learnt.

whyowhy_2

Hannah_10 wrote: »

https://forums.moneysavingexpert.com/discussion/107280

The link above is to a post about SOA's (statements of affairs). We tend to like to see them in a set format, the one from make sense of cards. There is a link in that post. It would help you get better and more broadminded feedback.

OK here it is:

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0.5
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2276
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 730
Total monthly income.................... 3006

Monthly Expense Details
Mortgage................................ 1186
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 149
Electricity............................. 107
Gas..................................... 0
Oil..................................... 0
Water rates............................. 33
Telephone (land line)................... 0
Mobile phone............................ 30
TV Licence.............................. 12
Satellite/Cable TV...................... 50
Internet Services....................... 0
Groceries etc. ......................... 400
Clothing................................ 20
Petrol/diesel........................... 25
Road tax................................ 19
Car Insurance........................... 26
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 15
Childcare/nursery....................... 0
Other child related expenses............ 240
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 10
Buildings insurance..................... 20
Contents insurance...................... 25
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 6
Entertainment........................... 40
Holiday................................. 30
Emergency fund.......................... 20
(Unnamed monthly expense)............... 0
Professional / Union fees............... 23
Total monthly expenses.................. 2536


Assets
Cash.................................... 0
House value (Gross)..................... 300000
Shares and bonds........................ 0
Car(s).................................. 500
Other assets............................ 0
Total Assets............................ 300500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 207749...(1186).....6.85
Total secured & HP debts...... 207749....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
First Direct Loan..............4346......158.......8.9
Loan to parents................17715.....250.......0
Total unsecured debts..........22061.....408.......-


Monthly Budget Summary
Total monthly income.................... 3,006
Expenses (including HP & secured debts). 2,536
Available for debt repayments........... 470
Monthly UNsecured debt repayments....... 408
Amount left after debt repayments....... 62

Personal Balance Sheet Summary
Total assets (things you own)........... 300,500
Total HP & Secured debt................. -207,749
Total Unsecured debt.................... -22,061
Net Assets.............................. 70,690

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

scaredy_cat

whyowhy wrote: »

OK here it is:

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0.5
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2276
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 730
Total monthly income.................... 3006

Monthly Expense Details
Mortgage................................ 1186
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 149
Electricity............................. 107 - this i very high, look into switching to a cheaper supplier, use a cashback site like quidco
Gas..................................... 0
Oil..................................... 0
Water rates............................. 33
Telephone (land line)................... 0
Mobile phone............................ 30
TV Licence.............................. 12
Satellite/Cable TV...................... 50 - can you get a cheaper deal?
Internet Services....................... 0
Groceries etc. ......................... 400 -this is high for 1 adult child, use a spending diary and make a weekly meal plan?
Clothing................................ 20
Petrol/diesel........................... 25
Road tax................................ 19
Car Insurance........................... 26
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 15
Childcare/nursery....................... 0
Other child related expenses............ 240
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 10
Buildings insurance..................... 20 - perhaps look for a cheaper deal with another ins company - again through quidco for cashback
Contents insurance...................... 25 - as above
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 6
Entertainment........................... 40
Holiday................................. 30
Emergency fund.......................... 20
(Unnamed monthly expense)............... 0
Professional / Union fees............... 23
Total monthly expenses.................. 2536


Assets
Cash.................................... 0
House value (Gross)..................... 300000
Shares and bonds........................ 0
Car(s).................................. 500
Other assets............................ 0
Total Assets............................ 300500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 207749...(1186).....6.85
Total secured & HP debts...... 207749....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
First Direct Loan..............4346......158.......8.9
Loan to parents................17715.....250.......0
Total unsecured debts..........22061.....408.......-


Monthly Budget Summary
Total monthly income.................... 3,006
Expenses (including HP & secured debts). 2,536
Available for debt repayments........... 470
Monthly UNsecured debt repayments....... 408
Amount left after debt repayments....... 62

Personal Balance Sheet Summary
Total assets (things you own)........... 300,500
Total HP & Secured debt................. -207,749
Total Unsecured debt.................... -22,061
Net Assets.............................. 70,690

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

there are a few suggestions, i have amassed £75 cashback using quidco to buy things and compare ins for car and home.

whyowhy_2

Thanks for the feedback. Unfortunately I am tied into a contract with Virgin Media - but will move to Freeview or Freesat when the contract finishes. The £107 is for electricity and gas, and is for a 5 bed house for me, my child and 3 lodgers. Is this really a lot? I have asked my friends and it seems about average. I recently switched suppliers - so know I am on the cheapest tariff.

Does anyone have any helpful resources for tasty and nutritious recipes on a budget?
I am feeding my cat expensive Science Plan dried cat food. Does anyone know of any cheaper alternatives?

scaredy_cat

have a look on the Old Style Saving board for cheap meals, one mser has done this site - http://www.cheap-family-recipes.org.uk/

scaredy_cat

you say you have 3 lodgers, are they paying the going rate for incl bills? you may need to look at that.

whyowhy_2

scaredy_cat wrote: »

you say you have 3 lodgers, are they paying the going rate for incl bills? you may need to look at that.

Excellant point. I've looked around and they are underpaying. They are such nice people to live with and I am a big softy. Still - I shall speak to them and look at increasing their rents when their current agreements finish in Jan.

HappyMJ

whyowhy wrote: »

I am feeding my cat expensive Science Plan dried cat food. Does anyone know of any cheaper alternatives?

Yep, Tesco Cat Crunchies with Salmon, Trout, Tuna & Shrimp (1Kg) @ 97 pence....but I wouldn't feed my cat that.

Science Plan is good stuff as long as it's cheap. The last bag I got was a 2kg bag from PetsatHome for £7. Also try petsupermarket. As long as you spend over £29 it's free delivery.