1st Post - Help Needed

barbarawright

HappyMJ wrote: »

Thanks....

Council Tax. It is very high. I have never heard of a flat being so high what Band is it? £1470 per year for a flat sounds like it's Band D. Flat's are always Band A or at best Band B especially considering the rent you are paying. You need to appeal it. You'll need to visit the VOA and go through the appeals process. Never mind that you are the tenant you have the right to appeal. My house is a 3 bedroom recent new build and it was Band C but I have appealed it down to Band B and it wasn't hard at all and I pay more rent than you. It's brought my council tax down from £132 per month down to £115 per month. Then with paying 12 months and getting single person discount it came down again to £72 per month.

New build or not the value is the same. If anything a new build is smaller and therefore cheaper.

I'm guessing you don't live in London! I live in a Victorian house divided into 4 flats which are in 4 different council tax bands - A, B, C and D (studio, one-bedroom, one-bedroom with garden, two bedroom).

hedgesparrow

You have done a brave thing coming here and telling everyone so they can help you. I know that must have been difficult. Does your girlfriend know about your debt? She might not understand why you don't want to save up for a holiday etc if she doesn't know about your debt. I think you should tell her about it if you haven't already. I would also explain the problems left behind from your old relationship and let her know you would always want to save her from being in the same situation.

Because you are a bloke the good news is - yes you can probably get away without buying clothes for a while. If you do need anything you could ask for it as Christmas presents. I think it is great that your parents know about your debt - they probably won't mind being asked for "useful" presents. I'm sure you know that that debt is the most important - because your parents could lose everything if you don't pay their mortgage. Bad news is as a guy is that you can't really avoid haircuts unless you like the long hair look or a willing to let your girlfriend give you a buzz cut. Neither of these options may be suitable in your job!

The £45 for sat TV seems the most obvious cut you can make. Have you considered getting a joint account just for bills? My husband and I did this when we first moved in together. It made it easier than one person having all the pressure of paying everything. We both put the same amount into a joint account that the rent, council tax, water, leccy, gas, phone came out of direct debit. If we didn't have enough in there one month - TV license or something - we would both put in a bit extra. If we had cash left over - it could be saved up for a one off bill that was coming up or spent on house improvements.

I will stop this long post now! Good luck and keep letting us know what your plans are.

foxgloves

Once your phone contract is up, you can cut it right back. There are tariffs out there for 15 a month....a saving of 25 straight away. Sky is probably a luxury you can't afford. It sounds harsh but I guess everyone on here offering suggestions has been through or going through the debt-busting process themselves so suggestions are generally made from experience. I do agree with a previous post that absolutely everything has to be budgetted for. Before my partner & I discovered budgetting & started getting our finances back on track, this was one of our biggest mistakes as we never allowed anything for things like car servicing, car tax, essential clothing, repair bills, etc, and so when they arose, we'd usually have to stick the expense straight on credit cards or overdraft. When absolutely ALL your essential outgoings have been identified, shop around to see where you can cut them back. Then add it all up again. Allow a realistic amount for groceries. The amount you have left is what you have to reduce debts. If you choose to spend it on non-essentials, just bear in mind that this will extend the period you are in debt. We're all different, but I know I'd rather have a big frugal blitz so that debts don't drag too far into the future hampering longer-term plans. I wish you luck with this. You need to develop a habit of not spending anything you don't need to spend. We are thankfully down to our last bit of loan now. It can be done. There are people on here who have worked wonders. Oh, and could you cut back on your energy costs? Be as frugal with power as possible, as 100 a month sounds high for a modern flat. We have an old semi and current payments are about 65. Used to be a lot higher, but you can cut down a lot once you start looking at it. Best wishes with it all.

Hibee07

DawnW wrote: »

Not being funny, but can't your partner get a job? If she wants to redecorate the flat, go on holidays etc, is there a reason why you should have to pay for it all?

My Partner does have a job, i would be paying half of everything.

Hibee07

Ok, little update.

This weekend im having a look at my expenses and i have taken alot of good advice from here already. I was paying nearly 80 pound for sky tv, phone and broadband and have already cut this back to 40 by downgrading my package.

Next im onto the gas and electric to see if i can reduce this further also.

My council tax will reduce next year as im sure i missed one payment this year and thats why it is dearer, also any savings from this in jan/feb will go towards debt payments.

I am planing a talk with my partner about halfing all household bills also rather than the 400 a month she gives me as i think this may work out less than half the house outgoings per month.

Any other advice is welcome.

Moglet

I'd agree with talking to your girlfriend about splitting the bills more evenly although are your incomes comparable? At the moment it would appear you are shouldering the lion's share of the bills but if you earn twice or three times what she does, then it's probably fair.

mum2one

Hibee07 wrote: »

hey everyone,

This is my first post here asking for your help. I have been reading for a few weeks now and decided to post and see where you can help, as i feel things are getting tighter and tighter for me each month.

Im finding i can't enjoy the lifestyle i'd like too, and with my girlfriend recently moving in she is constantly wanting to modify the flat and also go on holidays in the future, yet i have no way of seeing this happening with my current finances.

Below is my SOA, with certain parts explained, please help:

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1250
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 400 (Partners Rent)
Total monthly income.................... 1650

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 317.5 (*see specific question below)
Rent.................................... 540
Management charge (leasehold property).. 0
Council tax............................. 147 - look at whether your in the right band, also whether there is any arrears
Electricity............................. 50 - did notice you set there direct paymets, but try to recduce useage, simple things, like charging a laptop, mobile phones etc - charge them in the room that your in, that way your keep an eye on them, charged pull them out, turn lights off in unused rooms, don't leave items on standby. Just simple but every penny helps.
Gas..................................... 50 - check useage if its gas central heating, knock 5 mins off start and end time, check its not heating the house while your both at work
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 15
Mobile phone............................ 50 - appriciate your tierd into contract, when out look at sim nly deal
TV Licence.............................. 12.37
Satellite/Cable TV...................... 45 - high - can you reduce your package, tie more in
Internet Services....................... 15m - ditto
Groceries etc. .........................80 Clothing................................20 Petrol/diesel........................... 50
Road tax................................ 20
Car Insurance........................... 45 - at renewal shop around
Car maintenance (including MOT)......... 0 - you've not alocated anything here,
Car parking............................. 0 - work may be free parking, but socialising?
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0 - surely you need medicaition sometime during the year - would say put £12 by a month
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 42
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1398.87
added £80 for groceries, £20 for car tax, £20 for clothing)

New total - £1518


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 1500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 42000....(317.5)....6 (* see question below)
Total secured & HP debts...... 42000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................1600......49........7.9
Credit Card....................500.......25........13.9
Total unsecured debts..........2100......74........-


Monthly Budget Summary
Total monthly income.................... 1,650
Expenses (including HP & secured debts). 1,398.87
Available for debt repayments........... 251.13
Monthly UNsecured debt repayments....... 74
Amount left after debt repayments....... 177.13
new total left £57.13

Personal Balance Sheet Summary
Total assets (things you own)........... 1,500
Total HP & Secured debt................. -42,000
Total Unsecured debt.................... -2,100
Net Assets.............................. -42,600

.[/i]

* This debt is actually to my parent, as when i split up from an ex i brought with me two loans which she left me with. My dad then offered to consolodate and secure them against his home in his name if i agreed to pay the mortgage on it, which i accepted as it meant monthly payments halfing.

1 other problem i have is my ex also has a loan and mortgage she pays and i have nothing to do with yet my name is on the loan from our time together. The bank will not let her re-do the loan in just her name. So on my credit history it shows this also.

HELP!!!!

I've just added in £20 for raod tax, £20 for clothing, and £80 for groceries (though that does seem a bit low).

I've just put some thoughts - no offence etc is meant, just sme things to ponder for the short term.

In one way - its a good SOA as even with my additions you are still in positive of £57 per month

The main thing - I would suggest instead of your gf paying the £400, look at whether it woulkd be more pratical to split the bills,

Obviously with your name still tied to youir ex you do need to keep a check on your credit file as to whether payments are being mossed, do you know how much longer the items with yourt name have got to go?

I appricate a lot your tied into with contracts, but make sure you know when the contract is due to finish and a month before start researching new, espically internet, telephone, cable etc - see if you can tie in together
Mobile - look at sim only

I would also suggest keep a notebok as a spending diary, then note everything you spend ofr a month, and compare to the SOA, as there maybe money being spent and you don't realise.

You've taken the hardest step by putting an SOA up, but good luck with it xx`

dancingfairy

You say you are part way through a contract on your mobile - have you thought about seeing if you can reduce the package at all? sometimes you can downgrade a level or 2 even if you can cancel completely.
Your budget is quite tight so for holidays etc you're going to need to try and scrip and save where possible or look for other ways of earning the cash necessary ie ebay/car boots / bit of overtime etc.
One other thing - you should get 2 free council tax months? depending on when you moved into your flat so these could make a dent in the credit card bill - the sooner you can get shot of it the better.
df

Sassers

Hi there - just wanted to add if you are cutting down such as utilities, earn a bit of extra cash back by going through a cashback website such as Quidco. Every little helps as they say...
Sassers x