Newbie - where can I save money?

tomhann187_2

Hi all

My partner and I are desperate to be rid of our debt as soon as possible. It's not really unmanageable but we just want to clear it quickly so our wages can go on us and not lending companies!

I've done my SOA which is detailed below. If anyone can give any tips or advice that would be great.

With regards to our gas and electric, we now live in an all-electric house that we pay £80pcm DD for but still owe about £350 gas and £380 electric from a previous property that we are paying over 12 months (we SERIOUSLY underpaid by accident for 12 months - no bills were sent to us and it was our first ever house so we had no idea how much we should be spending!). The Sainsburys CC is at 0% until the end of August and one overdraft is 0% too as it's a student account.

We have £1300 coming to us in the next couple of months that we're going to use to pay off debts - if anyone has any idea where's best to put this money that would be fab. Is it worth paying NPower off to close our old gas account (I don't think we pay interest on this debt)?

Thanks in advance

Hannah )

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................ 1100
Partners monthly income after tax....... 900
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2000

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 211
Rent.................................... 630
Management charge (leasehold property).. 0
Council tax............................. 101
Electricity............................. 119
Gas..................................... 31
Oil..................................... 0
Water rates............................. 22
Telephone (land line)................... 18
Mobile phone............................ 30
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 26
Groceries etc. ......................... 300
Clothing................................ 10
Petrol/diesel........................... 100
Road tax................................ 10
Car Insurance........................... 42
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 30
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 15
Buildings insurance..................... 0
Contents insurance...................... 18
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 5
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1795


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0
Total Assets............................ 6000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 8600.....(211)......4.75
Total secured & HP debts...... 8600......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Sainsburys Credit Car..........1031......23........0
Lloyds Overdraft...............850.......50........0
Lloyds Overdraft 2.............1100......40........19.89
Total unsecured debts..........2981......113.......-


Monthly Budget Summary
Total monthly income.................... 2,000
Expenses (including HP & secured debts). 1,795
Available for debt repayments........... 205
Monthly UNsecured debt repayments....... 113
Amount left after debt repayments....... 92

Personal Balance Sheet Summary
Total assets (things you own)........... 6,000
Total HP & Secured debt................. -8,600
Total Unsecured debt.................... -2,981
Net Assets.............................. -5,581

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

saffronflowers

tomhann187 wrote: »

Hi all

My partner and I are desperate to be rid of our debt as soon as possible. It's not really unmanageable but we just want to clear it quickly so our wages can go on us and not lending companies!

I've done my SOA which is detailed below. If anyone can give any tips or advice that would be great.

With regards to our gas and electric, we now live in an all-electric house that we pay £80pcm DD for but still owe about £350 gas and £380 electric from a previous property that we are paying over 12 months (we SERIOUSLY underpaid by accident for 12 months - no bills were sent to us and it was our first ever house so we had no idea how much we should be spending!). The Sainsburys CC is at 0% until the end of August and one overdraft is 0% too as it's a student account.

We have £1300 coming to us in the next couple of months that we're going to use to pay off debts - if anyone has any idea where's best to put this money that would be fab. Is it worth paying NPower off to close our old gas account (I don't think we pay interest on this debt)?

Thanks in advance

Hannah )

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................ 1100
Partners monthly income after tax....... 900
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2000

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 211
Rent.................................... 630
Management charge (leasehold property).. 0
Council tax............................. 101
Electricity............................. 119
Gas..................................... 31
Oil..................................... 0
Water rates............................. 22
Telephone (land line)................... 18
Mobile phone............................ 30
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 26
Groceries etc. ......................... 300 This is massive for two, menu plan and spending diary here
Clothing................................ 10
Petrol/diesel........................... 100
Road tax................................ 10
Car Insurance........................... 42
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 30
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0?? always saving a bit just in case
Pet insurance/vet bills................. 15
Buildings insurance..................... 0
Contents insurance...................... 18
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 5
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1795


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0
Total Assets............................ 6000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 8600.....(211)......4.75
Total secured & HP debts...... 8600......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Sainsburys Credit Car..........1031......23........0
Lloyds Overdraft...............850.......50........0
Lloyds Overdraft 2.............1100......40........19.89
Total unsecured debts..........2981......113.......-


Monthly Budget Summary
Total monthly income.................... 2,000
Expenses (including HP & secured debts). 1,795
Available for debt repayments........... 205
Monthly UNsecured debt repayments....... 113
Amount left after debt repayments....... 92

Personal Balance Sheet Summary
Total assets (things you own)........... 6,000
Total HP & Secured debt................. -8,600
Total Unsecured debt.................... -2,981
Net Assets.............................. -5,581

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

The most glaring is the amount of money you spend of food, you should be able to comfortable be able to feed two for £160 maximum, as stated above menu plan keep a list of what you have in freezer and fridge and utilise those bits and pieces at least once a week, as far as the monies coming I would service the ones that charge the highest amount of interest and work it out with a snowball calculator

HTH

SFx

tomhann187_2

Hi Saffronflowers - thanks for the reply.

I know the £300pcm (£75pw) seems a lot - here's how it breaks down: £50pw on food, £12pw on pet food (as low as we can get it with one large dog and two cats), and £10-15pw on cleaning products, toilet rolls, toiletries, vitamin supplements (essential), cat litter, dog treats/chews and stationary/stickers (funny one I know, I work with learning disordered children and give them pencils, stickers etc as bribes to talk to me!).

Off to look at what a Snowball calculator is now ... !

Ive_A_Horse_Outside

Could sell the 6k car maybe and get a 1k run around and use the 5k to pay down debt

[Deleted User]

With regards to our gas and electric, we now live in an all-electric house that we pay £80pcm DD for but still owe about £350 gas and £380 electric from a previous property that we are paying over 12 months (we SERIOUSLY underpaid by accident for 12 months - no bills were sent to us and it was our first ever house so we had no idea how much we should be spending!). The Sainsburys CC is at 0% until the end of August and one overdraft is 0% too as it's a student account.

We have £1300 coming to us in the next couple of months that we're going to use to pay off debts - if anyone has any idea where's best to put this money that would be fab. Is it worth paying NPower off to close our old gas account (I don't think we pay interest on this debt)?

Thanks in advance

Hannah )

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 1100
Partners monthly income after tax....... 900
Total monthly income.................... 2000

Monthly Expense Details
Secured/HP loan repayments.............. 211
Rent.................................... 630
Council tax............................. 101 (Are you paying this over 10 months? if so can you switch to 12, or during your 2 months Ctax free overpay the same amount towards debt. Also, if one (or both) of you is a full-time student you should get a discount (or if both of you are, then then you shouldn't be paying it, just get confirmation sent from your Uni to the council)
Electricity............................. 119 (does this include your arrears? Either way check that you are on the cheapest tariff for your area/usage for where you are living now - use comparison sites, and cashback sites)
Gas..................................... 31 (is all this arrears)
Water rates............................. 22
Telephone (land line)................... 18
Mobile phone............................ 30 (is this for one or two? if you are still in contract drop a tariff, if you are out of contract go SIM only, or PAYG - should be able to get a couple of hundred anytime anynetwork mins and unlimited texts for around £10/month)
TV Licence.............................. 12
Internet Services....................... 26 (see if you can get cheaper if you combine with home phone)
Groceries etc. ......................... 300 (this you can probably shave a little off, even including all that you have listed - drop brands, meal plan, batch cook - check the old style board for more advice)
Clothing................................ 10
Petrol/diesel........................... 100 (are all trips essential? Would public transport be cheaper?)
Road tax................................ 10
Car Insurance........................... 42 (check comparison sites at renewal)
Car maintenance (including MOT)......... 25
Other travel............................ 30 (what's this? could you get cheaper - weeklt, monthly/season ticket, walk or cycle all or part way?)
Pet insurance/vet bills................. 15 (check comparison sites)
Contents insurance...................... 18 (comparison sites)

Presents (birthday, christmas etc)...... 20
Haircuts................................ 5
Entertainment........................... 20
Total monthly expenses.................. 1795


Assets
Car(s).................................. 6000
Total Assets............................ 6000


Secured & HP Debts
Description....................Debt......Monthly...APR
Secured Debt.................. 8600.....(211)......4.75
Total secured & HP debts...... 8600......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Sainsburys Credit Car..........1031......23........0
Lloyds Overdraft...............850.......50........0
Lloyds Overdraft 2.............1100......40........19.89
Total unsecured debts..........2981......113.......-


Monthly Budget Summary
Total monthly income.................... 2,000
Expenses (including HP & secured debts). 1,795
Available for debt repayments........... 205
Monthly UNsecured debt repayments....... 113
Amount left after debt repayments....... 92

Personal Balance Sheet Summary
Total assets (things you own)........... 6,000
Total HP & Secured debt................. -8,600
Total Unsecured debt.................... -2,981
Net Assets.............................. -5,581

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

Hi, I have made some comments above, hopefully some of them will be usefull for you.

As for your debts - always pay and additional payments (above the minimum) towards the debt that's costing you the most. So, from what you have above, that would be the Lloyds overdraft 2 - I would pay your £92 monthly surplus, plus and savings you manage to make from your SOA towards this until your £1300 comes through - then pay it off completly.

As for your arrears of gas electric it might be worth also either overpaying on these with the excess of the cash you have coming to you, once the other higher cost debt's cleared. (and your £92 surplus + additional £40 you will no longer be paying towards the Lloyds o/d 2)

And as all but one of the rest are on 0%, you should find out what the interest rate on the Sainsbury's CC will be at the end of the 0%? (and once your higher cost/priority debts are cleared start saving to pay a chunk of this off before the 0% ends - keep it in a savings account earning interesst until the end of the 0% though)

Are you allowed to make penalty free overpayments on the secured debt?

When will the second overdraft stop being free? And what interest rate/fee will be charged on it then?

HTH

JasX

tomhann187 wrote: »

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................ 1100
Partners monthly income after tax....... 900
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2000

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 211
Rent.................................... 630
Management charge (leasehold property).. 0
Council tax............................. 101 Can you pay over 12 months rather than 10, works in your favour
Electricity............................. 119 Astronomical! if this does not include arrears urgently check out why you are using so much!
Gas..................................... 31 Also fairly high, especially given your high electric bill, expect one to be moderately high due to the cold weather atm but not both and certainly not this much, check useage and use comparison sites (assuming you'll be able to reduce consumption )
Oil..................................... 0
Water rates............................. 22
Telephone (land line)................... 18
Mobile phone............................ 30
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 26
Does this includde TV? you seem to be on a very expensive package (aim for £10pm lower if you can combine with phone/TV)
Groceries etc. ......................... 300 also VERY high, look for ways to reduce / be more efficient / buy less overpriced stuff
Clothing................................ 10
Petrol/diesel........................... 100 are all trips necessary?
Road tax................................ 10
Car Insurance........................... 42
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 30 what is this?
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 15 urgh
Buildings insurance..................... 0
Contents insurance...................... 18 did you shop around? seems a bit high
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 5
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1795


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 6000 do you really need such a flash car? this is where a very large slice of your net income is going, just be aware
Other assets............................ 0
Total Assets............................ 6000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 8600.....(211)......4.75
Total secured & HP debts...... 8600......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Sainsburys Credit Car..........1031......23........0
Lloyds Overdraft...............850.......50........0
Lloyds Overdraft 2.............1100......40........19.89
Total unsecured debts..........2981......113.......-


Monthly Budget Summary
Total monthly income.................... 2,000
Expenses (including HP & secured debts). 1,795
Available for debt repayments........... 205
Monthly UNsecured debt repayments....... 113
Amount left after debt repayments....... 92

Personal Balance Sheet Summary
Total assets (things you own)........... 6,000
Total HP & Secured debt................. -8,600
Total Unsecured debt.................... -2,981
Net Assets.............................. -5,581

comments included, seems to be alot of areas for follow up / potential savings

foxgloves

Agree groceries is the key thing to cut here. Monthly menu planning, batch cooking, freezing, making packed lunches, shopping around....all the usual stuff, could cut this right back, I think, even with the pets.

ellesbellesxxx

Def throw the money at the debt with highest APR - so the Lloyds overdraft. once that has cleared, you will befreeing up money to clear other debts. Car idea a good one!

tomhann187_2

Dear all

thanks so much for all the useful tips and advice.

I'll definitely try and cut down on the food shopping money. Have been having a good look around the forums and I'm going to try and bulk buy certain things when I can go to Makro and do more batch cooking (making 8 portions of Chilli later today in fact!).

With regards to the car and travel, I am on the road for most of my work so need a reliable car. I am considering other options though,such as planning my home-visits better so I make less single trips. The £30 extra travel is a monthly bus pass for my partner to get to work. We live 7 miles away in a rural location so cant really cut here. I also have a bad habit of driving my dog to the woods for his daily walk; I'll try and walk the local National Trust footpaths more which I can access straight from my house.

Thanks again for all your advice - sorry I haven't been able to reply to you all individually.

Superbiatch

I know you say you are all electric, but so am i. Have you tried a smart meter on your high usage appliances to see where savings can be made?

I have a megaflow water tank which uses a fortune and all electric panel heaters. I manage to keep my bills below £50 even in winter. Might require a bit of re-adjusment but I reckon you can get your DD costs down and it will pay your arrears a bit quicker

Essentialtravelwithsarah

How do you guys manage to get your gas & electric so cheap?

We are paying of no arrears yet i am spending £30-£40 per week on GAS and £15 per week on Electric??
Gas goes up to £45 in winter.

Is this because we are on pay as you go meters? We chose this option as we saw it as 1 less monthly bill we have to save for and make sure we pay on time to avoid debt! If it can be less then halfed i would be amazed and deffiantly switch over to monthly payments.

Sorry to intrude on your thread just been reading through.

With food shopping i too agree there - we are a family of 5 ( 2 are in nappys and 1 is on baby milk and baby food! ) and we have 1 family cat - we are spending around £60 per week for our large shop then between £30-£40 in the week on odd bits from the local shops

x