I need a total money makeover!!

elzie

Hi All,


Its been a while since i posted last and just thought I would put on an updated SOA and see what you amazing peeps can come up with to help me!!

I went back to work in september and managed to negotiate that i would drop £1000 off my salary and reduce my hours to 16 per week, (just two days!) and get the salary pro rata so earning about 4k more a year than other people in my department but I have done my professional exams so thought it was justified to ask for this!

Anyway income at the moment are

Roughly £293 takehome pw Hubby
Me £600 per month - tho this month I have worked an extra 40 hours so should be a nice paypacket for xmas!

£45 per week on average from my second job in pun and £60 per month helping on a stall at the local market on a saturday.

£65.00 roughly tax credits and £115 child benefit

Debts.
£8500 cahoot loan- think this has just increased to a ridiculour 9.1%!!
£4400 virgin mbna card 0% till jan
£3000 egg at 3.9% for 9 months i think
£1400 halifax card- hubbys- dont know rate
£812 egg card. dont know rate on this either.
burtons card- zero- cut up and gone!
new look card- zero- cut up and gone!
Freemans catalogue £0
studio - £0 closed account too!

Had my car written off a couple of weeks agi and just accepted £3500 pay off and as i still owe my nan £2300 on it not sure what to do yet.

Aldo my dear 'rents have just bought a secong house and me and hubs have agreed to do all the work - mainly tarting it up and then resell it and split the profit- 40 % to them and 60% to us- so expecting about at least £10k profit but hopefully more!

so things are a little better than when i posted on my unpaid leave when i was seriously stressing out!

Household expenses are as follows.

Mortgage £668.00 at interest only rate- fixed till next november
re mortgage £255- on a reducing varibale rate over the same 23 years as main mortgage

Water about £30 pm
electric £60 pm but this is becasue i was behind and will go back to £30 pm from jan.
gas up to date with payments and last time had £90 credit so not making any payments at the moment
council tax £113.00 pm- nearly the 2 non payment months- phew!
Insurance with mortgage- this is still being looked at - best quote is still about £200 pm!!- not sure what to do about his
CIS £10 pm childs saving fund.
american life £5.95 per month
N Union £2.98 pm
Cahoot £175 pm
tv licence £10.99 pm
£25 and £20 car insurance
sky £21.00 pm
house insurance £25.00 pm
£40 xmas fund


Think this is it all?

Any ideas gratefully received!

El x

lynzpower

Ok let me see here

Better to put everything monthly- so Ill sort this out for you, so all is clear

Roughly £293 takehome pw Hubby
Me £600 per month - tho this month I have worked an extra 40 hours so should be a nice paypacket for xmas!

600 + 1269.66+ 195 pub + 60 = 2124.66
plus benefits 115+65 = 2304.66

total income 2304.66

Debts.
£8500 cahoot loan- think this has just increased to a ridiculour 9.1%!!
£4400 virgin mbna card 0% till jan
£3000 egg at 3.9% for 9 months i think
£1400 halifax card- hubbys- dont know rate
£812 egg card. dont know rate on this either
2300 nan

TOTAL DEBT 20412

Had my car written off a couple of weeks agi and just accepted £3500 pay off and as i still owe my nan £2300 on it not sure what to do yet.

Aldo my dear 'rents have just bought a secong house and me and hubs have agreed to do all the work - mainly tarting it up and then resell it and split the profit- 40 % to them and 60% to us- so expecting about at least £10k profit but hopefully more!


Household expenses are as follows.

Mortgage £668.00
Water about £30 pm
electric £30 ( but paying spare this month only)
GAS ( what should it be)
council tax £113.00 pm- nearly the 2 non payment months- phew! ( where you will have the 113 to snowball)
Insurance with mortgage- this is still being looked at - best quote is still about £200 pm!!- not sure what to do about his ( wahts this for? )
CIS £10 pm childs saving fund.
american life £5.95 per month ( whats this?)
N Union £2.98 pm (* whats this?)
Cahoot £175 pm
tv licence £10.99 pm
£25 and £20 car insurance
sky £21.00 pm ( do you need this)
house insurance £25.00 pm ( cheapest)
£40 xmas fund

Ok well theres a few things here that suggest a lack of clarity- the layout was a bit jumbled - and there are quote a lot of things missing.

You need to include
phones, landlines
you mention cars- so repairs, mots petrol etc
food
clothes etc

What are you paying off these debts monthly? I see the 175 to cahoot, what about the others?

lynz

elzie

Thanks Lynzpower

This looks much better!

Roughly £293 takehome pw Hubby
Me £600 per month

600 + 1269.66+ 195 pub + 60 = 2124.66
plus benefits 115+65 = 2304.66

total income 2304.66

Debts.
£8500 cahoot loan- think this has just increased to a ridiculour 9.1%!!
£4400 virgin mbna card 0% till jan
£3000 egg at 3.9% for 9 months i think
£1400 halifax card- hubbys- dont know rate
£812 egg card. dont know rate on this either
2300 nan

TOTAL DEBT 20412

Had my car written off a couple of weeks ago and just accepted £3500 pay off and as i still owe my nan £2300 on it not sure what to do yet.

Aldo my dear 'rents have just bought a secong house and me and hubs have agreed to do all the work - mainly tarting it up and then resell it and split the profit- 40 % to them and 60% to us- so expecting about at least £10k profit but hopefully more!


Household expenses are as follows.

Mortgage £668.00 + £255 re mortgage!
Water about £30 pm
electric £30 ( but paying spare this month only)
GAS £30.00
council tax £113.00 pm- nearly the 2 non payment months- phew! ( where you will have the 113 to snowball)
Insurance with mortgage- this is still being looked at - best quote is still about £200 pm!!- not sure what to do about his ( mortgage protection, upon death and accident etc)
CIS £10 pm childs saving fund.
american life £5.95 per month ( well woman cancer policy get full money back if no claim made over term.
N Union £2.98 pm (accident insurance policy for hubby.)
Cahoot £175 pm
tv licence £10.99 pm
£25 and £20 car insurance
sky £21.00 pm ( do you need this) yes this is my only indulgence! dont go out ever!
house insurance £25.00 pm ( just switched this back to halifax as £10 cheaper per month than hsbc)
£40 xmas fund

Ok well theres a few things here that suggest a lack of clarity- the layout was a bit jumbled - and there are quote a lot of things missing.

You need to include
phones, landlines £14.99 broadband talk talk and roughly £20 per month phone also talktalk. Both mobile payg and top up roughly £10 per month each but use tips from pub for this which also average about £25 per week but cant rely on this...
you mention cars- repairs mots etc- i work extra hours at the pub when need to pay this off.
food - about £60 per week including baby milk and nappies etc for 4 of us.
clothes dont buy clothes unless i get a cash injection eg overtime or bought as presents- go to nct sales for kids but kept all baby clothes from 1st child so no spend on baby and in laws spoil eldest one rotten with all the fads she wants..

What are you paying off these debts monthly? I see the 175 to cahoot, what about the others? - i pay £5.95 i think to mbna by direct debit, £25.00 to egg and just switched the £3000 to mint- sorry not egg! as first posted so no repayment made yet. pay about £30 to halifax too.

lynzpower

Ok lets look again then

Roughly £293 takehome pw Hubby
Me £600 per month

600 + 1269.66+ 195 pub + 60 = 2124.66
plus benefits 115+65 = 2304.66

total income 2304.66

Debts.
£8500 cahoot loan- think this has just increased to a ridiculour 9.1%!!
£4400 virgin mbna card 0% till jan
£3000 egg at 3.9% for 9 months i think
£1400 halifax card- hubbys- dont know rate
£812 egg card. dont know rate on this either
2300 nan

TOTAL DEBT 20412

Mortgage £668.00
£255 re mortgage! ( is this a secured loan you mean?)
Water about £30 pm
electric £30 ( but paying spare this month only)
GAS £30.00
council tax £113.00 pm- nearly the 2 non payment months- phew! ( where you will have the 113 to snowball)
Insurance with mortgage- this is still being looked at - best quote is still about £200 pm!!- not sure what to do about his ( mortgage protection, upon death and accident etc) ( I have a polict which is 32 pcm with standard life, im a smoker as well so I have no idea why you are getting such high quotes!!)
CIS £10 pm childs saving fund.
american life £5.95 per month ( well woman cancer policy get full money back if no claim made over term. ( term expires?)
N Union £2.98 pm (accident insurance policy for hubby.)
Cahoot £175 pm
tv licence £10.99 pm
£25 car insurance 1
£20 car insurance 2
sky £21.00 pm ( do you need this) yes this is my only indulgence! dont go out ever!
house insurance £25.00 pm ( just switched this back to halifax as £10 cheaper per month than hsbc)
£40 xmas fund
talk talk broadband 14.99
talk talk phone 20.00
mobile top up 20pcm
repairs & mots - HOW MUCH ARE THEY PER YEAR ON 2 cars? to set a budget you HAVE to put the money aside.
food 260 a month
clothes again, you need to set a budget, even if its just for shoes/ nct/ charity shops , the money has to come from somewhere-
mbna 5..25
25 mint
egg 150 (Ill guess you need top ay about 150 min as mines 1k and my min is 45pcm)

Expenditure inc debt repayments 1957.16

this should leave you with 346.84 left over every single month to pay off debt with. Do you have this? (Although This doesnt take into account paying off your nan? )

I sense the thing you need to do is to start a spending diary.

I also feel you may be slighly over insured- take advice on a good quality policy that will cover all of you for all the eventualities, instead of multiple policies.

Snaggles

The insurance with the mortgage is VERY high - are you sure this isn't including some kind of income protection policy or permanent health insurance (this is probably about what you would expect to pay for that sort of thing). Life insurance is very cheap these days, and critical illness is not normally much either (ours is £19 per month for life and critical illness - neither of us smokes, but we both have relatives who have died prematurely of cancer, which has bumped it up slightly).

elzie

Mortgage £668.00
£255 re mortgage! ( no this is an additional mortgage as my dad lent me £35000 as a deposit and HSBC set this up as an additional mortgage on the same 23 year terms.
Water about £30 pm
electric £30 ( but paying spare this month only)
GAS £30.00
council tax £113.00 pm- nearly the 2 non payment months- phew! ( where you will have the 113 to snowball)
Insurance with mortgage- this is still being looked at - best quote is still about £200 pm!!- not sure what to do about his ( mortgage protection, upon death and accident etc) ( I have a polict which is 32 pcm with standard life, im a smoker as well so I have no idea why you are getting such high quotes!!)
CIS £10 pm childs saving fund.
american life £5.95 per month ( well woman cancer policy get full money back if no claim made over term. ( about another 10 years- should i just cancel? lot of female cancer in my family so thought it was worthwhile when i took it out?
N Union £2.98 pm (accident insurance policy for hubby.)
Cahoot £175 pm
tv licence £10.99 pm
£25 car insurance 1
£20 car insurance 2
sky £21.00 pm ( do you need this) yes this is my only indulgence! dont go out ever!
house insurance £25.00 pm ( just switched this back to halifax as £10 cheaper per month than hsbc)
£40 xmas fund
talk talk broadband 14.99
talk talk phone 20.00
mobile top up 20pcm
repairs & mots - HOW MUCH ARE THEY PER YEAR ON 2 cars? to set a budget you HAVE to put the money aside/ I think they are about £200 ayear for both cars? Got lots of friends in the trade who repair cheap so this is an estimate.
food 260 a month
clothes again £10 per month at the most.
mbna 5..25
25 mint
egg 150 (Ill guess you need top ay about 150 min as mines 1k and my min is 45pcm)

Expenditure inc debt repayments 1957.16

this should leave you with 346.84 left over every single month to pay off debt with. Do you have this? (Although This doesnt take into account paying off your nan? )
Not repaying my nan at the moment - still deciding what to do about getting another car and this new house...

I sense the thing you need to do is to start a spending diary. I am definetly going to start one of these from tomorrow.

I also feel you may be slighly over insured- take advice on a good quality policy that will cover all of you for all the eventualities, instead of multiple policies.[/QUOTE]

Who should i get advice from? an independent financial advisor? or who? I agree that i am way over insured.... its so expensive and yes snaggles it is an income protection policy, and repayment protection and life insurance etc- sorry so vague- kids been here ill all day and just starting to wind down!

beanielou

Your insurance at £200 pm is eye watering.
I have a disability which loads my premiums & i dont pay anything like this.

bikerqueen

Have I missed car tax?

elzie

yep car tax missed off too- so thats one more expense to add to the list!

Who should i be seeing then to sort out my mortgage insurance? An IFA?

david_hellier

Hi, according to my calcs you have £53.30 per week to spend on food or anything else. You are not in a position to save, so stop. I have assumed starting 5% payback on the cards. Assuming 3% is pretty pointless as the debt will never go down. You need to maintain the level of repayment, never the minimum. I note you are paying high insurance and also life insurance? What would happen if you cancelled the big one; what's it for?

I suggest you contact CCCS with these figures. You will need a DMP to reduce your monthly payments to increase your food money.

Good luck, the figures are as follows:

income weekly monthly
self 600.00
partner 293.00
market 60.00
pub 45.00
tc 65.00
cb 115.00



total 338.00 840.00 divide by 4.33
£193.85

£531.85 total weekly income

spend weekly monthly
rent/mortgage 668.00
council tax 94.17
elec 60.00
gas
water 30.00
secured loans 255.00
TV licence 10.99
fines
insurance 200.00
life 5.95
n union 2.98
cahoot 175.00
car ins 1 25.00
car ins 2 20.00
sky 21.00
house ins 25.00
virgin 220.00
egg 150.00
halifax 70.00
egg 2 40.60










total 0.00 2073.69 divide by 4.33
£478.54

£478.54 total weekly spend

Start= income - spend = £53.30 per week

david_hellier

Update. I started this earlier this evening and have only just posted. I note no other car costs. I suggest you repost a clean SOA. With everything.