Managing two wages

bextas

Hi there,
I am just after some advice. My partner and I have around £20k in debt. He is paid weekly and I am paid monthly. The monthly wage pays the rent and some other bigger bills but the weekly wages just seem to come and go and I am not very good at managing it. We have bills each month like sky, mobiles, utilities but I just pay them as and when they become urgent. We are not paying anything back towards are debt and I just want to turn this around and become debt free but I feel a bit lost. We earn £2,400 between us and have around £400 spare cash each month to pay the debt however some of this I would like to save so we can start thinking about having a family. Any hints or suggestions would be very gratefully received. I am also in debt with the council tax and this is really worrying me as I know this is a prioirty debt but we owe like £1200 for the full 10 months of council tax and we don't have that extra cash at all to just pay it off in one go.
Thanks
Bex

ellesbellesxxx

Hi there.
What I would recommend is filling in a SOA (Sticky on Debt free wannabe page) This will help us identify areas to cut back/save money. Also, you need to work out how much bills are each month and set up a special account just for bills. This way, you can put in exactly what money you need to cover bills - out of monthly wages for example - and then weekly wages can be set aside for food and debts.
I think you can ask for your council tax to be spread over 12 months instead of 10... have you discussed paying it back to them in installments?

[Deleted User]

Here's the link: http://www.makesenseofcards.com/soacalc.html

Press the Make sense formatting option at the end of the SOA when you're done and paste it here.

D9

bextas

[tt]Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1310
Partners monthly income after tax....... 1135
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2445
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 100
Rent.................................... 650
Management charge (leasehold property).. 0
Council tax............................. 200
Electricity............................. 25
Gas..................................... 0
Oil..................................... 0
Water rates............................. 50
Telephone (land line)................... 0
Mobile phone............................ 80
TV Licence.............................. 15
Satellite/Cable TV...................... 80
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 20
Petrol/diesel........................... 150
Road tax................................ 25
Car Insurance........................... 35
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 40
Childcare/nursery....................... 0
Other child related expenses............ 150
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 20
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 100
Total monthly expenses.................. 2060

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

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 1800.....(100)......0
Total secured & HP debts...... 1800......-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Total Debts....................200002....0.........0
Total unsecured debts..........200002....0.........-

Monthly Budget Summary
Total monthly income.................... 2,445
Expenses (including HP & secured debts). 2,060
Available for debt repayments........... 385
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 385
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -1,800
Total Unsecured debt.................... -200,002
Net Assets.............................. -201,802
[/tt]

barbiedoll

I haven't got time to look at your SOA (will do later!) but my OH gets paid weekly and I get paid monthly. I pay all of the direct debits from a separate account and his weekly wage pays for the shopping, petrol and odds and ends, like DS pocket money, haircuts, milk and bread during the week etc etc. I couldn't do without his weekly money now, I find it so much easier to budget with it.

ellesbellesxxx

Posts



[tt]Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1310
Partners monthly income after tax....... 1135
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2445
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 100
Rent.................................... 650
Management charge (leasehold property).. 0
Council tax............................. 200
Electricity............................. 25
Gas..................................... 0
Oil..................................... 0
Water rates............................. 50
Telephone (land line)................... 0
Mobile phone............................ 80
TV Licence.............................. 15
Satellite/Cable TV...................... 80
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 20
Petrol/diesel........................... 150
Road tax................................ 25
Car Insurance........................... 35
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 40
Childcare/nursery....................... 0
Other child related expenses............ 150
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 20
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 100
Total monthly expenses.................. 2060

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

Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 1800.....(100)......0
Total secured & HP debts...... 1800......-.........-
Unsecured Debts
Description....................Debt......Monthly.. .APR
Total Debts....................200002....0.........0
Total unsecured debts..........200002....0.........-


Monthly income after tax................ 1310
Partners monthly income after tax....... 1135
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2445
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 100
Rent.................................... 650
Management charge (leasehold property).. 0
Council tax............................. 200
Electricity............................. 25 - really?
Gas..................................... 0
Oil..................................... 0
Water rates............................. 50 - Take showers not baths, use quick wash on washing machine.
Telephone (land line)................... 0
Mobile phone............................ 80 WOAH! Way too much! Call mobile phone company drop tariffs soonest! If not in contract, PAYG.
TV Licence.............................. 15
Satellite/Cable TV...................... 80 - drop to basic package - do you NEED this?
Internet Services....................... 0
Groceries etc. ......................... 200 - could you cut this? Drop brands, use recipe ideas on here.
Clothing................................ 20
Petrol/diesel........................... 150
Road tax................................ 25
Car Insurance........................... 35 - have you shopped around?
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 40
Childcare/nursery....................... 0
Other child related expenses............ 150 - ?
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 20
Buildings insurance..................... 0 - covered by rent?
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10
Entertainment........................... 50 - could cut this and find fun free things to do...vouchers for eating out etc.
Holiday................................. 0
Emergency fund.......................... 100 - where is this going if you have no cash?
Total monthly expenses.................. 2060

Assets
Cash.................................... 0 - but you are putting in 100 a month?
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0 - need to put something here.
Other assets............................ 0
Total Assets............................ 0

Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 1800.....(100)......0
Total secured & HP debts...... 1800......-.........-
Unsecured Debts
Description....................Debt......Monthly.. .APR
Total Debts....................200002....0.........0 - you need to break this down...cards/loans etc and put APRs so you can work out what you need to pay off first
Isn't it 20k not 200k you have debt?! (It says here 200k!)
Total unsecured debts..........200002....0.........-

ellesbellesxxx

Oops didn't mean to paste that twice

[Deleted User]

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................ 1310
Partners monthly income after tax....... 1135
Total monthly income.................... 2445

Monthly Expense Details
Secured/HP loan repayments.............. 100
Rent.................................... 650
Council tax............................. 200 (This seems very high - are you in arrears? Can you spread the payment over 12 months instead of the usual 10)
Electricity............................. 25
Water rates............................. 50 (seems high? Are you metered - if so perhapse you need to be more careful with usage)
Mobile phone............................ 80 (Very high, if stuck in contract drop a tariff if possible, if out of contract go SIM only or PAYG)
TV Licence.............................. 15 (12.37)
Satellite/Cable TV...................... 80 (Again, very high - if stuck in contract drop to basic package, if out of contract cancel and go freeview)
Internet Services....................... 0 (I assume this is included above)
Groceries etc. ......................... 200
Clothing................................ 20
Petrol/diesel........................... 150
Road tax................................ 25
Car Insurance........................... 35
Car maintenance (including MOT)......... 30
Other travel............................ 40 (What's this? can you get it cheaper by getting monthly, weekly or season ticket?)
Childcare/nursery....................... 0
Other child related expenses............ 150 (No children noted above - is this mainenance, or are there kinds in the house?)
Pet insurance/vet bills................. 20
Contents insurance...................... 10
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10
Entertainment........................... 50
Emergency fund.......................... 100
Total monthly expenses.................. 2060

Assets
Cash.................................... 0 (Where's the savings from your emergency fund?)
Car(s).................................. 0 (Car value should be here)
Total Assets............................ 0

Secured & HP Debts
Description....................Debt......Monthly...APR
Hire Purchase (HP) debt ...... 1800.....(100)......0 (What's the APR?)
Total secured & HP debts...... 1800......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Total Debts....................200002....0.........0
Total unsecured debts..........200002....0......... (Is this acurate? more than 200,000 in unsecured debt? - Also, what's the APR?)

Monthly Budget Summary
Total monthly income.................... 2,445
Expenses (including HP & secured debts). 2,060
Available for debt repayments........... 385
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 385
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -1,800
Total Unsecured debt.................... -200,002
Net Assets.............................. -201,802

Hi,

I I have made some comments above. Please check the APR's of debts and amounts owed.

Also, now you should check the dates that all your bills need to be paid by - whether DD or Standing order, or however else you pay them.

HTH

D9

bottleofred

Hi bextas,

Totally agree with ellesbelles advice and would also add taking advantage of bogofs when shopping, batch cooking and freezing some things for later in the week/month. The mobile phone and sky bills are also excessive.

Good luck

Red

~Beanie~

bextas wrote: »

Council tax............................. 200 - Does this include arrears?

Mobile phone............................ 80 - Very high, can you reduce?

Satellite/Cable TV...................... 80 - This is very high, can you reduce the package?

Other child related expenses............ 150 - What is this for?

Emergency fund.......................... 100 - Where does this go?

[/tt]

Just a couple of thoughts above. What are the child related expenses if you don't have any children? If you are saving £100 into an emergency fund then shouldn't this be showing as a cash asset? If you aren't saving it then where does it go?

Can you set up direct debits for your utilities / phones / sky instead of waiting until they becme urgent? That would definately help you budget better.

And as for the £400 that you should have spare but never do, you could try keeping a spending diary where you write down every penny that you spend, that will soon show you where your money is going!

custardy

barbiedoll wrote: »

I haven't got time to look at your SOA (will do later!) but my OH gets paid weekly and I get paid monthly. I pay all of the direct debits from a separate account and his weekly wage pays for the shopping, petrol and odds and ends, like DS pocket money, haircuts, milk and bread during the week etc etc. I couldn't do without his weekly money now, I find it so much easier to budget with it.

thats what we did when i was weekly and she was monthly