help cutting back

sarah111_2

Hi money savers,

I have been advised to come on this forum to see if you help me make some savings.

I am self emplyed part time around my 2 children so my money can be up and down.

We need to get rid of the debt so we are wanting to sell both cars after xmass clear the debt and start again BUT i don't want to get into this situation again with no assets to clear it off, also our mortgage is looking like it will increase by £300.

Thank sarah

sarah111_2

This mite help lol


Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 330
Partners monthly income after tax....... 1278
Benefits................................ 134
Other income............................ 0
Total monthly income.................... 1742

Monthly Expense Details
Mortgage................................ 687
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 137
Electricity............................. 71
Gas..................................... 43
Oil..................................... 0
Water rates............................. 23
Telephone (land line)................... 12
Mobile phone............................ 25
TV Licence.............................. 12
Satellite/Cable TV...................... 35
Internet Services....................... 0
Groceries etc. ......................... 250
Clothing................................ 0
Petrol/diesel........................... 100
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 21
Other insurance......................... 29
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1445


Assets
Cash.................................... 400
House value (Gross)..................... 190000
Shares and bonds........................ 0
Car(s).................................. 12500
Other assets............................ 0
Total Assets............................ 202900


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 164......(687)......2.5
Total secured & HP debts...... 164.......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
cred 1.........................3600......100.......0
cred 2.........................1700......25........0
Total unsecured debts..........5300......125.......-


Monthly Budget Summary
Total monthly income.................... 1,742
Expenses (including HP & secured debts). 1,445
Available for debt repayments........... 297
Monthly UNsecured debt repayments....... 125
Amount left after debt repayments....... 172

Personal Balance Sheet Summary
Total assets (things you own)........... 202,900
Total HP & Secured debt................. -164
Total Unsecured debt.................... -5,300
Net Assets.............................. 197,436

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

jojododd

hi there

Didnt want to read an run. I cant give any advice but, Im sure somebody will be along shortly that can help.

Good luck with your debt free journey.

Jojo

RAS

sarah111 wrote: »

This might help lol


Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 330
Partners monthly income after tax....... 1278
Benefits................................ 134
Other income............................ 0
Total monthly income.................... 1742

Monthly Expense Details
Mortgage................................ 687
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 137
Electricity............................. 71 - this is very high. Can you try and reduce it?
Gas..................................... 43
Oil..................................... 0
Water rates............................. 23
Telephone (land line)................... 12
Mobile phone............................ 25
TV Licence.............................. 12
Satellite/Cable TV...................... 35 -this needs to go
Internet Services....................... 0
Groceries etc. ......................... 250
Clothing................................ 0 - you need something in here
Petrol/diesel........................... 100 - assume that you have already paid the taxc and insurance for the year?
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0 - never go out?
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0 - you need this
Contents insurance...................... 0 and you need this
Life assurance ......................... 21
Other insurance......................... 29
Presents (birthday, christmas etc)...... 0 - you need to busdget tfor this
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1445


Assets
Cash.................................... 400
House value (Gross)..................... 190000
Shares and bonds........................ 0
Car(s).................................. 12500
Other assets............................ 0
Total Assets............................ 202900


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 164......(687)......2.5
Total secured & HP debts...... 164.......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
cred 1.........................3600......100.......0
cred 2.........................1700......25........0
Total unsecured debts..........5300......125.......-


Monthly Budget Summary
Total monthly income.................... 1,742
Expenses (including HP & secured debts). 1,445
Available for debt repayments........... 297
Monthly UNsecured debt repayments....... 125
Amount left after debt repayments....... 172

Personal Balance Sheet Summary
Total assets (things you own)........... 202,900
Total HP & Secured debt................. -164
Total Unsecured debt.................... -5,300
Net Assets.............................. 197,436

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

What are the APRs on the cards? If they are 0% deals, when do those end?

isy1011

It seems quite tight. The big thing that jumps out is that your mortgage is high compared to your income already without any increase.

is the self-employment option really working out if that is the income you are getting. If you were childminding for instance you would earn far more than that.

sarah111_2

thank you for getting back to me so quick.

I have paid all the insurance upfront - but will need to budget for when they come around again.

I am hoping I have sorted the gas and electricity problem as have changed providers and now got a combi boiler on gas so that should bring it down.

I have to say I cant remember the last time I brought cloths for myself or partner. my mum gets my eldest sons cloths from primark when he needs them and my youngest has his hand me downs.

We never go out (very sad I know)

my partners work does a christmas saving scheme so we will do that for next year.

both the credit card or on 0% for 16 months, just taken them out last month.


Being self employed does seam the best option, both my kids are very young, we don't get any help with child care. when I went back to work after having my first I was only taking home £20 per week after taking away child care cost.

I have only just started the business and I am seeing an increase in money coming in every week. one week I can take over £200 but on others only £70.

Niv

Just looked over your SOA and from what I can see, you will be fine once the cars are sold.

Once you sell the cars you will have no fuel bill so saving £100 and no unsecured debt billed saving you £125 and you already have a surplus of £172.

To save more though see below:

Electric should be going down (according to you), to bring this down further do you have energy saving light bulbs?

You should be able to bring your food shopping down a bit - think batch cooking - very cheap and easy.

Once the cars are sold and you have paid your debts off you should have around £5k left. This could be put in a savings account and give you a smidge over £10pm in interest with the benefit of it being accessable for emergances.

*Ensure you have filled the SOA in fully as anything you have missed will get you back in debt.*

dancingfairy

Hi - the biggest problem is going to be your mortgage - it already seems big compared to your income and if it's going to go up by another 300 pounds a month that's not good.
What's the plan with the cars - sure you are going to sell them but how are you going to buy new ones or are you both going to rely on public transport?
Can you look at doing something in the evenings when your partner is home presumably? even if you did something like avon or delivered some of the newspapers locally it would help out as things are so tight for you.
I would also consider the mortgage carefully - are you on a good deal? is it worth taking a penalty in order to get a better deal? can you go interest ony for a while if you are on repayment? Obviously repayment is better but things are very tight at the moment for you.
df

sarah111_2

We will have to buy one car with the money left over. My partner can walk to work but I am a mobile beauty therapist so I need a car to earn money, I will be opening my home salon next year so that should help bring the fuel bill down a bit.

I do have some energy saving bulbs but not all are
, will get that sorted.

I will have a good think about our food bill and the way I cook, I shop at costco and aldi at the mo.



With my job I work when ever anyone wants me day, evening, sat & sun. My partner works shift so getting and evening job will be imposable and I earn so much more an hour doing what I do.

I used to do Usbourn books but that was a complete wast of time and around were I live there are so many others selling everything else.

We are on a very good deal at the moment our mortgage 2.5% tracker. we were paying a loan back of £313 per month but just finished that this month. YAY

We would never get a mortgage again our income has droped by over half since we took it out.

RAS

Go round the house and find all those things plugged in that are not being used. Stuff on adaptors still pulls aboput 10% of the power even when turned off at the switch.

pennypusher

Hi these are my ideas to help you make save some money. Have a look at the mortgages item on here by Martin and see his recommendations or go to see an Independent Broker who will check 'whole of market' mortgages so that you can see which is best for you.

Check and see if you are entitled to Child Tax Credit and Working Tax credit and Child Benefit.

Check on the comparison sites and see if your Gas and Electricity is the best deal you can get. Don't forget to allow plenty this year as it is so cold and your bill will go up!!! Change your mobiles to payg or get rid of them!

Get rid of satellite and go freeview. Put an amount in for Car Tax, Car Insurance and maintenance (tyres, battery, mot, service etc).

Get Buildings and contents insurance by a comparison site. Also budget for hair cuts, and presents. Last but not least budget for treats for yourself and family otherwise you'll go mad!!!!

Definitely get rid of the cars and get a cheap runaround. Do some research and see what sort of car you can get that's cheap, runs on air and needs no repairs ever!!!!! Well we can hope. Failing that get one with easy to get cheap spare parts. Hope these ideas help.