New here - can someone look at my budget and debt plan?

rubysoho

We have a few debts, for various reasons, partly bad budgeting and partly no choice due to lack of income (health).

We have a loan due to finish in 6 years - we are paying this and just forgetting about it, as it is fixed etc.

We have 2 credit cards - one has £3.6k and one has £500.

We have a catalogue - about £2k - alot of that balance is interest free, not due to start paying (but need to pay by then or interest will be added) til November.

We have an OD - up to its limit of £4.6k.

I am hoping no one judges us based on this/income etc. but would like some opinions on our budget please. If that is okay? Just whether you think this is feasible, and any other suggestions. We can't transfer cards, remortgage etc. as credit rating not good atm.

Action – COMING IN
Amount
Date
Salary
2,318.41

Salary
750

Child Benefit
81.20

Parent loan
70

Parent loan
35

TOTAL
3254.61



Action – GOING OUT - BILLS
Amount
Date
Mortgage
746.77

Gas/Electric
124

Council Tax
99

Water
27.78

TV Licence
12.37

Home Insurance
59.68

Life Insurance
54.56

Union
13.95

TV/Phone/Broadband
48

Car Insurance
58

Mobile phones
75.91

Lenses
17

Bank account
12



Action – GOING OUT - DEBT
Amount
Date
Loan
432.15

Catalogues
100.00

Credit card
12.60

Credit Card
82.59

Overdraft Interest
50



Action – GOING OUT - LIVING
Amount
Date
Food
250

Petrol
200

Parking
40

Spending
250



Totals
Amount
Date
Bills
1349.02

Debt
677.34

Living
740

Coming In
3254.61

Going out
2766.36

Left over
488.25

Save/extras
200

EXTRA OFF DEBT
288.25



I was thinking about paying the extra off the credit card, thinking that would mean in 12months it would be clear. Then to pay that £388 off the overdraft, which would clear that in another year. All the while paying as much extra as we can (cutting back on spending and food as much as posisble) off the catalogues so we get those cleared asap.

Am I missing something here, but it seems manageable. But we haven't managed to sort ourselves out yet!

Also does anyone know what the liklihood is off the credit card reducing the interest if I offer to pay off a big chunk each month with the view to it being paid off in a year?

Thank you!

WASHER

[QUOTE=
Action – COMING IN
Amount
Date
Salary
2,318.41

Salary
750

Child Benefit
81.20

Parent loan
70

Parent loan
35

TOTAL
3254.61



Action – GOING OUT - BILLS
Amount
Date
Mortgage
746.77

Gas/Electric
124 - this is high

Council Tax
99

Water
27.78

TV Licence
12.37

Home Insurance
59.68 - This is really really high

Life Insurance
54.56 - Again very high

Union
13.95

TV/Phone/Broadband
48 - Very high each month

Car Insurance
58 - High each month

Mobile phones
75.91 -:eek: Far far too high each month

Lenses
17

Bank account
12



Action – GOING OUT - DEBT
Amount
Date
Loan
432.15

Catalogues
100.00

Credit card
12.60

Credit Card
82.59

Overdraft Interest
50



Action – GOING OUT - LIVING
Amount
Date
Food
250

Petrol
200

Parking
40

Spending - What are you spending this on?
250



Totals
Amount
Date
Bills
1349.02

Debt
677.34

Living
740

Coming In
3254.61

Going out
2766.36

Left over
488.25

Save/extras - Do you have any saved?
200

EXTRA OFF DEBT
288.25



Thank you![/QUOTE]


Well done for posting your income and outgoings. You have some very very high outgoings each month for Home insurance etc, you should take a look at comparison websites.

You can always ask to have the interest frozen, whether they do or not, well basically thats up to them.

Do you have arrears with Gas and Electricity, it seems to be a tad high.

May I ask why does your parents give you money each month, have you loaned them money?

WASHER.x.

MFWannabe

rubysoho wrote: »

We have a few debts, for various reasons, partly bad budgeting and partly no choice due to lack of income (health).

We have a loan due to finish in 6 years - we are paying this and just forgetting about it, as it is fixed etc.

We have 2 credit cards - one has £3.6k and one has £500.

We have a catalogue - about £2k - alot of that balance is interest free, not due to start paying (but need to pay by then or interest will be added) til November.

We have an OD - up to its limit of £4.6k.

I am hoping no one judges us based on this/income etc. but would like some opinions on our budget please. If that is okay? Just whether you think this is feasible, and any other suggestions. We can't transfer cards, remortgage etc. as credit rating not good atm.

Action – COMING IN
Amount
Date
Salary
2,318.41

Salary
750

Child Benefit
81.20

Parent loan
70 - Why are parents lending money?

Parent loan
35 - Why are parents lending money?

TOTAL
3254.61



Action – GOING OUT - BILLS
Amount
Date
Mortgage
746.77

Gas/Electric
124 - This seems high; check comparison sites to see if you can get cheaper

Council Tax
99

Water
27.78

TV Licence
12.37

Home Insurance
59.68 - This seems high; check comparison sites to see if you can get cheaper

Life Insurance
54.56 - This seems high; check comparison sites to see if you can get cheaper

Union
13.95

TV/Phone/Broadband
48

Car Insurance
58

Mobile phones
75.91 - this is high; drop to lower tarrifs or go payg

Lenses
17

Bank account
12 - Is this bank charges for your bank account? If so change to one you don't pay for


Action – GOING OUT - DEBT
Amount
Date
Loan
432.15

Catalogues
100.00

Credit card
12.60

Credit Card
82.59

Overdraft Interest
50



Action – GOING OUT - LIVING
Amount
Date
Food
250

Petrol
200

Parking
40

Spending
250 - What is this actually spent on?



Totals
Amount
Date
Bills
1349.02

Debt
677.34

Living
740

Coming In
3254.61

Going out
2766.36

Left over
488.25

Save/extras
200 - do you actually save this?
EXTRA OFF DEBT
288.25



I was thinking about paying the extra off the credit card, thinking that would mean in 12months it would be clear. Then to pay that £388 off the overdraft, which would clear that in another year. All the while paying as much extra as we can (cutting back on spending and food as much as posisble) off the catalogues so we get those cleared asap.

Am I missing something here, but it seems manageable. But we haven't managed to sort ourselves out yet! - Do you really have money left over each month? If not then try keeping a spending diary to see exactly where you are spending money

Also does anyone know what the liklihood is off the credit card reducing the interest if I offer to pay off a big chunk each month with the view to it being paid off in a year?

Thank you!

Hi
I've made some comments above where you could make some cutbacks. You would be better to use the soa calculator on www.makesenseofcards.com as this accounts for all incomings and outgoings and is very easy for everyone here to read.

rubysoho

Thanks guys. Really appreciate the responses.

I know our insurances are high. Life insurance is high because my partner is diabetic, that covers both of us, and I am in a high risk job for stress, which bumps it up. House insurance, we had a few claims over the last two years (leaky roof, small fire) but I can't change home insurance because they are currently covering us for some legal expenses, which could take 4 years. Car insurance - this is seriously the cheapest we could get, my partner is diabetic and under 30, but has 10 years no claims, but that is the cheapest we were offered.

TV - I didn't think this was too high, I need big broadband for my work, and we have a large package TV (the only channels we watch are only available on the bigger package) but I did haggle them down alot. However, we are in a years contract for this, so can't change.

Mobiles, this is for both myself and my partner - and I agree, a total extravagence, but we are tied in to a 2 year contract so no give there either.

Yes - we loaned a parent money, otherwise they would have lost their home. So part of our loan isn't ours iykwim? Not ideal, but we were the only ones that could help.

Can't change bank accounts either as I have a 4.5k overdraft with it. Otherwise I would. However, that £12 gets us free mobile phone cover (saving over £6 a month) free Greenflag cover (saving us the £36 we were paying with the AA) and various other discounts which we do use.

Gas and electric - this was a switch, but I did think it was high, we used to pay alot more with British Gas. I guess it is high because we have an old house, with little insulation and a young baby, so we have the heating on in the winter ALOT! Sometimes all night, when baby was born. How do I use the comparison sites to see if I can get this changed. I suspect we will probably owe them though, because of the long winter we have had.


Spending - the £250 is for both me and my partner, and our baby. It is what we use for everything we need that isn't budgeted - so haircuts, clothes (we buy very few), window cleaner, trips to soft play etc. We sometimes don't spend all of it, and are going to start pulling back to save more of it. We don't go out, and don't drink or smoke, but we do need to start factoring in a night out, for a cheap meal or something once a month, just for our sanity.

We don't manage to save anything at the minute, or pay any extra off debt, because we haven't been trying tbh. We are hoping that sticking to this plan, will help. Out of the £200 we need to pay for nursery and baby classes, but most months we should be able to save £100 of that.

Our plan is on payday to buy 5 £50 supermarket gift cards, so that we stick to that budget each week, put £50 in 5 envelopes for spending, and £40 in 5 envelopes for petrol. As we have to stop using our cash cards, because we don't budget properly when we do. Alot of our extra spending is food - shopping and takeaways, which has totally stopped now.

Is this still a realistic budget?

Thank you so much!

pennypusher

Hi I suggest you fill in a statement of affairs so that people can get a clearer idea of your income and expenditure each month and then you will get lots more help.

Clarie_2

Hi, can I please echo the request for the SoA? it would be really helpful. Also, what are the aprs and minimum payments of your cards loans and overdraft?

Well done on posting and asking for advice!
Clarie