Sorting out the finances

mercer_2

Hi,

Me and my partner have been struggling for a bit since she lost her job and we've got two young children, one is two the other is five months. I work on commission and get a low wage and with sales not doing well I'm not getting a low wage. I'm wondering if you guys could help us out if I give you a list of all our income and out going.

I get paid roughly £1,230 a month depending on commision - that's including commission btw. I'm getting about £23 per week from working tax credit. My partner gets £103 a week for child tax credit and then £132 once per month.

Our monthly bills are:

* Rent - £425

* Council Tax - £95 (spread over 12 months)

* Car Loan - £267 (recently changed car to diesel for better MPG)

* Car Insurance - £92 (first time on my own insurance so no claims bonus yet)

* Mobile Phone Bills x 2 phones - £80

* Credit Card - £20

* Store Card - £20

* Bank Loan - £90

* Over draft charge - £25

That's our usual out goings monthly, don't think I have missed anything off. Water charge is included in the rent.

We are paying British Gas some money off as twice they have messed up our accounts. We need to pay them £52 for the next two months (already made two payments) which is to clear off a old bill they didn't invoice right for a entire year! We've got to pay them another £53 for last months electricity, already paid half. Though they have messed up the gas bill which I'm sure is wrong as it's coming to £378 for 4 months use!

I also have a weekly payment of £13.44 with Brighthouse for some applicances and use £20 a week fuel, though this might go down since getting the diesel. We spend £55 a week shopping on food and about £30 for baby stuff i.e nappies and baby food etc.

Can anyone help us with our tight situation?

Thanks

Tixy

Hi

Can you complete the full statement of affairs calculator? It will make sure you budget for all costs, inclding items you don't pay each month (eg budget 1/12 of your annual cost for things like road tax, car servicing etc etc) and will split your debt repayments from your living costs. Hopefully with that information it should be easier for you and us to understand your financial situation and offer advice http://www.makesenseofcards.com/soacalc.html

mercer_2

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.................... 1
Monthly Income Details
Monthly income after tax................ 1230
Partners monthly income after tax....... 0
Benefits................................ 677.59
Other income............................ 0
Total monthly income.................... 1907.59
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 267
Rent.................................... 425
Management charge (leasehold property).. 0
Council tax............................. 95
Electricity............................. 52
Gas..................................... 30
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 80
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 368.05
Clothing................................ 0
Petrol/diesel........................... 86.6
Road tax................................ 0
Car Insurance........................... 92
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 ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1495.65

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
Hire Purchase (HP) debt ...... 15000....(267)......0
Total secured & HP debts...... 15000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
loan...........................0.........95........0
credit card....................0.........20........0
store card.....................0.........20........0
overdraft charge...............0.........25........0
Total unsecured debts..........0.........160.......-

Monthly Budget Summary
Total monthly income.................... 1,907.59
Expenses (including HP & secured debts). 1,495.65
Available for debt repayments........... 411.94
Monthly UNsecured debt repayments....... 160
Amount left after debt repayments....... 251.94
Personal Balance Sheet Summary
Total assets (things you own)........... 6,000
Total HP & Secured debt................. -15,000
Total Unsecured debt.................... -0
Net Assets.............................. -9,000
Created using the SOA calculator at .
Reproduced on Moneysavingexpert with permission, using IE browser.

Tixy

Hi

Well at the moment it shows you have £250 a month spare after making what I assume are your minimum payments. It sound like you don't have that amount so you need to look through your expenses for other things you buy that you have not included. It might also be a really good idea to keep a spending diary for a couple of months where you write down everything you spend (even down to 50p on something)

mercer wrote: »

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.................... 1
Monthly Income Details
Monthly income after tax................ 1230
Partners monthly income after tax....... 0
Benefits................................ 677.59 have you checked you are getting all you can?
Other income............................ 0
Total monthly income.................... 1907.59
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 267
Rent.................................... 425
Management charge (leasehold property).. 0
Council tax............................. 95
Electricity............................. 52 have you checked if you are with the cheapest supplier/best tariff? have you tried to reduce your usage?
Gas..................................... 30 as elec
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 80 have you contacted your providers to see if they will let your drop to a lower tariff? how soon until you are out of contract?
TV Licence.............................. 0 don't you have this?
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 368.05 This is quite high for a family of 4, have a look at the tips and challenges on the oldstyle board for trying to reduce this. Should think you'll be able to get to £250 with some practise.
Clothing................................ 0 never anything for the children at all?
Petrol/diesel........................... 86.6
Road tax................................ 0 is your car exempt?
Car Insurance........................... 92 this is high, do you shop around at renewal time?
Car maintenance (including MOT)......... 0 what do you spend on MOTs, servicing, new tyres etc over a year?
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0 never anything? no classes, no activities?
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0 do you not have this?
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 what do you spend over the year in total? put 1/12 of that figure in
Haircuts................................ 0 as above budget something here unless you do these yourself
Entertainment........................... 0 is this realistic with a family?
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1495.65

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
Hire Purchase (HP) debt ...... 15000....(267)......0 is this secured on the car? is the £15k the amount you borrowed or the amount outstanding? how long until its paid off?
Total secured & HP debts...... 15000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
loan...........................0.........95........0 what apr, what balance, how long until paid?
credit card....................0.........20........0 what apr, what balance, what credit limit?
store card.....................0.........20........0 apr? balance?
overdraft charge...............0.........25........0 whats the balance on this just before payday?
Total unsecured debts..........0.........160.......-

Monthly Budget Summary
Total monthly income.................... 1,907.59
Expenses (including HP & secured debts). 1,495.65
Available for debt repayments........... 411.94
Monthly UNsecured debt repayments....... 160
Amount left after debt repayments....... 251.94 If you did have this spare then use it to pay off your highest APR debts first.
Personal Balance Sheet Summary
Total assets (things you own)........... 6,000
Total HP & Secured debt................. -15,000
Total Unsecured debt.................... -0
Net Assets.............................. -9,000
Created using the SOA calculator at .
Reproduced on Moneysavingexpert with permission, using IE browser.

Hi, some comments on your figures above, I think you need to look through again to work out where the money is being spent and therefore whether you can meet your debt repayments each month without reusing credit.

bexster1975

Hi mercer

You will need to look again at your SOA as you have missed loads out.

Is TV licence, water rates included in your rent?

You need amounts for car tax, car upkeep, presents, haircuts, clothing, entertainment, holidays. Do you not have buildings and contents cover? You really need an emergency fund, even if only a couple of hundred to begin with.

The grocery challenge will help you save money on shopping- I think with work you could take well over £100 off that based on what others on this site can do with a family of 4.

Car insurance, gas and electricity all seem high, check price comparison sites to see if you can save.

Lots of much more experienced people will be along shortly to try to help. Best of luck

bexster:)

mercer_2

To answer some questions:

Haven't checked benefits. Currently getting working tax credits and child tax credits, are we missing something?

Haven't checked electricity or gas, will investigate.

My phone contract is up in July and will be reducing down to £20 per month. My partners is up in Sept but we can reduce the tariff on that too. We only use them for texting and internet TBH.

Yes TV licence, I didn't put that as we pay quarterly. Though I guess that will be £13.33 a month or something like that.

Food shopping etc is £55 a week food for us two and the 2 year old daughter the rest is nappies and food.

Clothing don't always spent monthly, average I'd say about £20 maybe?

Road tax I've just had a new car which is already taxed but that's £71 for 6 months which would be £11.83.

My insurance is high as first time insuring in my own name and I have NCB. I tried all the comparsion sites and that was the cheapest.

Car maintenance I would say a year about £300 maybe which is £25 per month.

Children we go to the park etc just remembered my partner takes them to a few classes which are £2 a time, she goes a few times a week though some are free some are not.

We don't have contents insurance.

Christmas, B-Day etc about £400 so £33.33.

£15k on the car I've literally taken out last week. I'm not sure if secured or unsecured, probably unsecured. Four years until it is paid off.

Loan is abuot 21% APR got 4 years left I think.

Credit Card is about 31% with Capital One balance is about £460 limit £500.

Store Card I don't know APR limit is £400 balance is about £320.

Overdraft balance is just under £2,500 limit is £2,500.

Bexster, water rate is included in the rent Insurance I got recently and was form the Meerkat site and best of all the big three comparsion sites I went on.

jayphe

If you pop everything back in the SOA calculator it'll be easier to read.

I got £1000 contents insurance on my rental place for around £60 quid per year through Macbeth Scott/Lakes Insurance, which was the cheapest I could find by a long way, they're terrible at advertising the product though, I got a leaflet from the letting agent.

I'd double check with your partner on the clothing spend as well, £240 per year is quite low for a family of 4 (SOA says 2 adults, 2 children) especially if your sales job needs you to look smart.