SOA & getting on track with new income

[Deleted User]

Given how much you have coming in, don't you think it ridiculous, that it is going to take you over 5 years, to pay off just £8,700?

£8,700 is less than 1/3rd of your annual take home salary.

Luckylucy

rising_from_the_ashes wrote: »

Thanks - few comments below which I hope help

My comments are often made to make people challenge the way they think so they're not meant to be harsh

Comments are

Thank you.

Yes I think I will show him this now and see if that gets through! I really need his support with this as I feel like I am drowning.

Basically the Mum thing was/is a gift from us because she is in quite a vulnerable state with her own finances due to her youngest son. It's not really my place to discuss and I will probably be sick if I go into it anyway it's so stressful. But your right I will sit with OH and MIL as I think this kind of thing is just glossing over the underlying issues. It makes me cringe to think the amount we have spent on groceries and basic essentials.

Hairdresser is gone! Going to scout out a recommended local. Might even see about the university salon I think that is quite cheap.

Mobiles are tied into contracts at £30pm & £32pm :eek: Never really considered this before.

Travel is massive expense trips are at least 220 miles to and from uni per week plus £3 a day each in toll fee's. Then there is the parking fee's if you can't get in the free car park at the uni! Unable to use public transport due to timings needing the children at school and it is actually more expensive by quite a bit! Near on impossible to car share last semester but hoping we have a more matched timetable this one! This should go down dramatically in may as we hit summer hols from uni. There is also the trips for treatment and of course general driving about for shops, visiting family etc..

Childcare costs are cheap for what we use. My work starts at about 4/4.30 in the evening OH picks up kids at 5 ish on his way back from uni, but school finishes at 3.30 so there is after school club to pay for and breakfast club if we have an early start.

We were managing fine on 1 car (other was sitting on the drive with no MOT... It still bloody is!!) Then I started work and needed my own car.

Insurance is expensive as I have no, no claims (No accidents i've just never managed a full years insurance)

I think the contents insurance covers everything for accidental damage. I did it via a comparison site so thought that was a good price :-/ Think I need to have another look!

I spend far too much on gifts and parties for the kids at bday and xmas. This is something I know I need to deal with. Going to start doing what my friend does and the kids take it in turn for a party in alternate years and when they have a party they only get a £10 - £15 present from Mum and Dad because they get so much from the party anyway!

Bedsit Bob, that makes sense. I think that would be the Fridge Freezer and perhaps the washing machine as there is no longer a launderette within about 15 miles from here.

EDIT:
The debt thing is shocking, but please note that I said this level of income has only happened since October, before the 3rd of October it was a hell of a lot less. I've not had this income for years. We didn't calculate for savings or for xmas and birthdays, holidays or emergency funds before then, we couldn't. I am trying to sort it out right now. I want to have it all gone in less than 18 months with a bit of help from this site!

[Deleted User]

Luckylucy wrote: »

Bedsit Bob, that makes sense. I think that would be the Fridge Freezer and perhaps the washing machine as there is no longer a launderette within about 15 miles from here.

So add together the cost of replacing them both, although the chances of them both going at the same time is pretty small.

That's the amount I'd put into an emergency fund.

A quick google found me a Hotpoint Fridge Freezer (from, of all places, John Lewis) for £270, and a Bosch washing machine for £300, so £600 (£50pm for 1 year) should be more than enough.

ETA. If really struggling for cash, you could go to ARGOS and get a fridge freezer for £140, and a washing machine for £150.

[Deleted User]

Luckylucy wrote: »

I want to have it all gone in less than 18 months with a bit of help from this site!

If you can find £500pm, you can have them all gone in 17 months.

£690pm would do it in a year.

moneybuster

Luckylucy wrote: »

It is daft as there is a car and a bike sitting outside that aren't being used and need to be scrapped/sold and I have been going on like a broken record about it for ages. I've gone and got the form for the v5 for the car so it can be scrapped but he still hasn't done it (although he has been quite poorly recently) But I am trying to hold off doing it for him because I don't want to get into the cycle where he just doesn't do anything for himself. I keep harping on about sorting ourselves out and paying off debts and saving for a mortgage but god love him I just don't think he's ready to grow up!

I'm so stressed with it all. I feel sick constantly, Doc has put me on medication and signed me off work (Am back at work now) Until I started to SOA I didn't really have much idea of how much we have going in and out because so much has changed in the last 3 months

The DMP has been in place for about 3 1/2 year it was £100, then on review it went down to £70 because of illness so drop income, then it went down to £40 because he became a student. Then we have got together and he was a student and I was at home, Then I went to college and things stayed the same, then I started work and uni in October and everything has changed.

I was told that we'd not get any tax credits because of student finance, got a job changed our circumstances with Tax credits. Then rang up about student finance and none of it is counted as income.

I am guessing that SDP is the severe disability premium are you claiming as a couple or a single person, as you mention you got together.

Luckylucy

moneybuster wrote: »

I am guessing that SDP is the severe disability premium are you claiming as a couple or a single person, as you mention you got together.

Claiming as a couple as in it is a joint claim but only one of us gets disability if that makes sense.

Luckylucy

Bedsit_Bob wrote: »

If you can find £500pm, you can have them all gone in 17 months.

£690pm would do it in a year.

Thank you. I reckon we could do that in 17 months especially if Mr gets rid of the car and the bike that £600 would cut it down another month as well and save some interest.

I am going to look at his DMP with him tonight and sort out what we are going to do. I've found some good places to cut and having a mooch around the old style boards to get some ideas to dramatically cut down the groceries.

Also sorted out a emergency fund account and put some money in to open it and going to dig out my contents insurance docs and see what I am actually getting covered for the amount I am spending on it!

Also cancelled the cinema trip with his sister and nephew this week, said can we go to the park instead. Looking around at some of the challenges too that look quite good.

Sorry for the confusion in the first SOA.

hettiecarro

I'm still a bit confused here. You say that you don't want to take the sky package away from OH because he is at home all day - then that he picks the kids up on his way home from uni??


Without meaning to be harsh, I think the biggest problem you face is getting your OH to accept what is going on. Sounds as though he has got into a mess in the past if he is on a DMP - but hasn't learnt from it.
You're not his mother - your his partner and you'll do him no favours by shielding him from all the discomfort of dealing with these issues.


I speak from experience here. I tried for about 3 years to deal with debt problems alone without it affecting my OH - He was still using the best brands of things while I was literally going without. In the end it led to a massive blow up and only when he finally saw what I was saying did we make real progress.


Keep posting. We are not being judgemental - just honest - and sometimes a shove from others is not bad motivation for picking yourself up by your bootstrings and facing reality. YOU have had your lightbulb moment - now you need him to have his too.
Good luck

mixmastermike

£400 a week on benefits? When you are both *able* to work? Scandalous! And a holiday in Korea?
Sorry, but I'm paying around £1500/month in tax/NI and we can't even afford a holiday in Bognor this year

Luckylucy

A few tweaks of the SOA and I have completely changed it around! I am really surprised. This is what we are going to do. This means we can pay the £437pm off the debt plus the £600 from the car and bike.

To clear up confusion with cars. We've ended up with 3 because we bought one together, which is now sat on the drive as it has been for god knows how long as it has no MOT or Tax and isnt worth fixing but the log book is missing. OH has "been too poorly" to fill in the form and lick the envelope... *sigh*

We upgraded car so then had two, still waiting to get other car shifted. I started work but I work crazy shifts, no option of public transport so needed my own car. We tried just using the 1 car (other sat on drive not able to be used) but it was impossible to get Children to school and Nursery as not public transport accessible. OH tried walking the 8 miles to nursery and back to drop little one off but was then out of action for nearly a week. Taxi's are expensive £6 each way! £24 a day is almost as much as the kid's fee!

OH can cook and is a better cook than me but only ever cooks Jacket Potato's, Spag bol or Lasange. I don't think he would eat anything else apart from Weeto's if I didn't prepare food! This has got to change I can't cope trying to manage it all on my own.

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.................... 2 Scrap the car and sell the bike

Monthly Income Details
Monthly income after tax................ 512.85
Partners monthly income after tax....... 0
Benefits................................ 1726.05
Other income............................ 173.33
Total monthly income.................... 2412.23

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 404.17
Management charge (leasehold property).. 22.36
Council tax............................. 0
Electricity............................. 51
Gas..................................... 29
Oil..................................... 0
Water rates............................. 70
Telephone (land line)................... 0
Mobile phone............................ 62
TV Licence.............................. 13
Satellite/Cable TV...................... 59.9 Cut this right down to entertainment+ no HD, No Movies or Sports, basic phone & BB
Internet Services....................... 0
Groceries etc. ......................... 216.66 £50 a week. I know this is possible when I was alone with DD1 I fed us on about £15 a week!
Clothing................................ 50 More 2nd hand! Drop hints to friend with daughter slightly older than DD for cast offs and outgrown uniform
Petrol/diesel........................... 216.66 Try to not fill at local station and make it closer to uni where it is cheaper fuel
Road tax................................ 17.08
Car Insurance........................... 111.66 So close to 1 yr no claims, and just turned 25. Should go down! OH will have 3 yrs no claims end of policy
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 86.66 Buy advance toll pass to save 10%?
Childcare/nursery....................... 303.33 Should go down by 1/3 in September as youngest starts school full time
Other child related expenses............ 15 Trips and things
Medical (prescriptions, dentist etc).... 10 Forgot about the dentist
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 22 Can't seem to get this cheaper with the big old tree in the neighbours garden
Life assurance ......................... 3.99
Other insurance......................... 21.97 Still working on this! Think It will be cheaper to get a higher cost policy with AD than paying for all these different ones
Presents (birthday, christmas etc)...... 30 Time to get crafty
Haircuts................................ 10
Entertainment........................... 25
Holiday................................. 25
Emergency fund.......................... 50
Total monthly expenses.................. 1976.44


Assets
Cash.................................... 600 Selling Car and Bike
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2500 This is just the 2 cars we use
Other assets............................ 0
Total Assets............................ 3100

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Credit Union...................1200......95.33........3
DMP............................7000......40........0
DEBTS TO SERVICE...............1500......0.........0
Total unsecured debts..........9700......135.33........-


Monthly Budget Summary
Total monthly income.................... 2,412.23
Expenses (including HP & secured debts). 1,976.44
Available for debt repayments........... 435.79
Monthly UNsecured debt repayments....... 135.33
Amount left after debt repayments....... 300.46

Personal Balance Sheet Summary
Total assets (things you own)........... 3,100
Total HP & Secured debt................. -0
Total Unsecured debt.................... -9,700
Net Assets.............................. -6,600

Created using the SOA calculator at
Reproduced on Moneysavingexpert with permission, using other browser.