£30 til payday again and sick with worry!

Sakina

I'm a long time lurker here and sick of being in debt and with so little money it's so hard to see any light at the end of the tunnel! Right now I feel completely at my wits end after discovering last night we've got about £30 to last until next Tuesday which is pay day I can't afford my next prescription and as I suffer from severe depression I am so worried about having to skip some tablets to try to make them last! I worry so much about that slightest thing so this is making everything 10 times worse.

My situation is that my OH and I have good jobs, combined income of about £2700 after tax per month. I've been off work with depression for the last 4 months on full pay. We have an interest only mortgage which is currently about £400 pcm and a car loan of £370 pcm. He has a credit card debt of £2k and I have one of £800 over 2 cards. We are not in arrears on anything and utility bills, council tax etc are paid up so on the surface of things we are doing ok. We used to be a lot worse off, we had lodgers who managed to push our gas/electric bill to £340 pcm - a year later now their gone we now have it down to £116 pcm as we're both so careful with fuel costs.

Thing is with our essential outgoings we have a food budget of £50 per week, which I am struggling with a lot. We never go out. OH often works all over the country and petrol costs are about £300 pcm and unavoidable. Thus every month we end up with so little money with 10 days/a week to go til pay day and I just don't know how to cope. I'm always getting bank charges and admin fees for payments being returned although they go out a few days later.

I know a solution is to rearrange payment dates to coincide with pay days and I have done this for most but my depression makes it very hard for me to pick up the phone and deal with these things. Also I have a total phobia about opening post (dating back from when we were really struggling and had council tax arrears etc) and often don't know about these charges til I check my online banking. Needless to say both OH and I are at our overdraft limits.

I feel really stupid always getting into the same situation every month and am always tempted to get a payday loan or something but know what a bad idea it would be and it's not like this is a one off as it happens every month. I know I need to get some strength and actually DEAL with things instead of hiding my post and hoping it will go away but it really is terrifying to me and I couldn't possibly make any more payments at the moment anyway. We got married less than a month ago - a really low budget affair - and I feel terrible that I'm meant to be a responsible adult and at 26 still can't manage my own finances I was so proud to get my own home at 21 but now we have no fridge freezer, broken dishwasher, no hall floor or downstairs loo as all need replacing/building work and have been like that for nearly 2 years cos we just can't get the money together to do it or replace those appliances!

Sorry to whine and I know my problems are so insignificant compared to a lot of people but I can't stop worrying about it all and it's driving me crazy!

ILW

It appears that your mortgage and car loan together with petrol come to around £1000pm and your income is £2700pm. Where is it all going?

Wobblydeb

ILW wrote: »

It appears that your mortgage and car loan together with petrol come to around £1000pm and your income is £2700pm. Where is it all going?

I would agree with this question, and suggest a SOA is needed. I don't know where there is one to link to ...... hopefully one of the more experienced posters will be along soon to help!

Plus - does OH not get some of the fuel cost back as work expenses?

**Amy**

Hi

Well done for posting xxx

I think you need to do a Statement of Affairs: http://www.makesenseofcards.com/soacalc.html and that way both you and people on here can see what is going in and out. There might be some bits that you could cut down on etc.

With regards to your prescription, you need to get these, I know its a pain, but if you dont, you will worry even more.

Once you have done your SOA I would suggest starting a spending diary, for both you and your OH. This helped me and I didnt realise how much I was spending on lunches and hot chocolates!

I really think the SOA is the way forward at the moment.



xxxx

[Deleted User]

Here's the link for the Statement of Affairs - it would help people to give you the best advice if you could post one:

http://www.makesenseofcards.com/soacalc.html

Londonboy_3

Agree with the other two posts here - looks to be lots of room left in your budget - at least 700 quid a month -after all the things you note in your post.

The car loan is big so I assume this either an expensive car or a short loan. If the former can you downsize to a cheap, small diesel to get some cash in to pay off some/ all of the loan and save on petrol costs?

Looks to me that this can be easily sorted out.

MFWannabe

Hi
Welcome to the board. Firstly take a deep breath; you have come to exactly the right place to get advice.
Now you need to post an soa using the one on www.makesenseofcards.com then we will have a much better picture of all your incomings and outgoings
Looking at the above your car loan sounds a huge amount!! How much longer will you be paying this? Would it be possible to sell it and get something a lot cheaper?

Sakina

Here's my statement of accounts - sorry I don't know the rates of interest at which things like mortgage are paid or car loan I pay all household bills OH does those ones.

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.................... 2

Monthly Income Details
Monthly income after tax................ 1100
Partners monthly income after tax....... 1600
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2700

Monthly Expense Details
Mortgage................................ 400
Secured/HP loan repayments.............. 367 (car loan finishes Nov 2012 when we will own the car)
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 180
Electricity............................. 60
Gas..................................... 56
Oil..................................... 0
Water rates............................. 40 (inc sewerage)
Telephone (land line)................... 25
Mobile phone............................ 40 (for both contracts)
TV Licence.............................. 20
Satellite/Cable TV...................... 60
Internet Services....................... 15
Groceries etc. ......................... 600 (includes cigarettes)
Clothing................................ 10
Petrol/diesel........................... 350
Road tax................................ 30
Car Insurance........................... 70 (both cars)
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 140 (6 prescriptions pm plus over counter medicine I also have to take)
Pet insurance/vet bills................. 17
Buildings insurance..................... 20
Contents insurance...................... 20
Life assurance ......................... 0
Other insurance......................... 147 (BUPA cover OH has through work he won't cancel it as I see a consultant 4 times a year on it and have several medical problems - I have suggested we cancel!)
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 10
Holiday................................. 0
Emergency fund.......................... 50 (goes into a savings acct I can and usually take from when overdraft limit hit and use as end of month cash)
Total monthly expenses.................. 2757


Assets
Cash.................................... 0
House value (Gross)..................... 287500
Shares and bonds........................ 8000 (OH's work share scheme - can't take from until it matures)
Car(s).................................. 9000
Other assets............................ 3500
Total Assets............................ 308000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 200000...(400)......0
Hire Purchase (HP) debt ...... 16000....(367)......0
Total secured & HP debts...... 216000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................2000......34........0
Mint...........................500.......12........0
Capital One....................300.......7.........0
Total unsecured debts..........2800......53........-


Monthly Budget Summary
Total monthly income.................... 2,700
Expenses (including HP & secured debts). 2,757
Available for debt repayments........... -57
Monthly UNsecured debt repayments....... 53
Amount short for making debt repayments. -110

Personal Balance Sheet Summary
Total assets (things you own)........... 308,000
Total HP & Secured debt................. -216,000
Total Unsecured debt.................... -2,800
Net Assets.............................. 89,200

dreamdreamer

Mortgage - £400
Car Loan - £370
Utilites - £116
Food - £220
Petrol - £300
Credit Card Repayments - £???

The only essential bill not on the list is Council Tax, at presumably somewhere around £100-£180. Even at the top end of that - your essentials add up to £1586. You have a £1100 surplus - where on earth is all that money going every month? You need to trawl through your bank statements and do a realistic SOA on what you're spending it on, and if you can't work it out because it's a lot of CASH being spent, then do a spending diary.


I TOTALLY understand the phone phobia - I hate the things, total social phobia about them. Could your OH help you with this side of things and rearrange DD's to come out directly after payday? At least then what's left is YOURS, and that makes it much easier to budget.

Try not to panic, you have enough money to make ends meet, you just need some advice to help organize and budget!

Edited - too late, SOA up - you're quick!

Sharon87

£600 for groceries! Even if it includes cigarettes that is WAY too much. What do you buy? Do you cook from scratch? You should get this down to £200 a month or less before cigarettes. How much do you both smoke? Can you cut down?

Also Gas/Electric is very high, check to see if you can get a cheaper deal using a comparison website - then go through a cashback site to switch.

You need to make up £110 a month, if you're strict with groceries this shouldn't be too complicated

**Amy**

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.................... 2

Monthly Income Details
Monthly income after tax................ 1100
Partners monthly income after tax....... 1600
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2700

Monthly Expense Details
Mortgage................................ 400
Secured/HP loan repayments.............. 367 (car loan finishes Nov 2012 when we will own the car)
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 180
Electricity............................. 60 These look high, try shopping around for elec and gas
Gas..................................... 56
Oil..................................... 0
Water rates............................. 40 (inc sewerage)
Telephone (land line)................... 25
Mobile phone............................ 40 (for both contracts)
TV Licence.............................. 20
Satellite/Cable TV...................... 60 This is high, try basic package (£20 I think?)
Internet Services....................... 15
Groceries etc. ......................... 600 (includes cigarettes) This is far too high for 2 of you. Food for me and my partner (and his 2 children at the weekend) is around £200-£250. I know it includes Cigarettes, but you need to cut down!
Clothing................................ 10
Petrol/diesel........................... 350
Road tax................................ 30
Car Insurance........................... 70 (both cars)
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 140 (6 prescriptions pm plus over counter medicine I also have to take) Is there no way the doctor can combine prescriptions? Speak to doctor about possible financial help?
Pet insurance/vet bills................. 17
Buildings insurance..................... 20
Contents insurance...................... 20
Life assurance ......................... 0
Other insurance......................... 147 (BUPA cover OH has through work he won't cancel it as I see a consultant 4 times a year on it and have several medical problems - I have suggested we cancel!)
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 10
Holiday................................. 0
Emergency fund.......................... 50 (goes into a savings acct I can and usually take from when overdraft limit hit and use as end of month cash) I would say you dont need this for now, you need to concentrate on sorting out your finances so that you dont feel the need to dip into it, if that makes sense?
Total monthly expenses.................. 2757


Assets
Cash.................................... 0
House value (Gross)..................... 287500
Shares and bonds........................ 8000 (OH's work share scheme - can't take from until it matures)
Car(s).................................. 9000
Other assets............................ 3500
Total Assets............................ 308000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 200000...(400)......0
Hire Purchase (HP) debt ...... 16000....(367)......0
Total secured & HP debts...... 216000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................2000......34........0
Mint...........................500.......12........0
Capital One....................300.......7.........0
Total unsecured debts..........2800......53........-


Monthly Budget Summary
Total monthly income.................... 2,700
Expenses (including HP & secured debts). 2,757
Available for debt repayments........... -57
Monthly UNsecured debt repayments....... 53
Amount short for making debt repayments. -110

Personal Balance Sheet Summary
Total assets (things you own)........... 308,000
Total HP & Secured debt................. -216,000
Total Unsecured debt.................... -2,800
Net Assets.............................. 89,200[/QUOTE]


***

I would say the cuts above, most notably your groceries, your satellite TV, your gas and electricity would make things a lot easier for you money wise.

Could you speak to the hire company and maybe lower the repayments for a short time? Or possibly sell the car and get a cheaper alternative?

I think once you have made the above changes you will feel like you have some breathing space. You also need to do a spending diary or things that you pay out for but dont realise.

Hope this helps a bit?

xxxxx