Short term, cash flow issue!

AngelPie78

Heya,


I started this thread [it's under Budgeting and called "Budgeting Service?" - I can't link to it cos I'm a new member] thinking I needed some help with budgeting, but apparently I need a cash injection and to manage my debt instead and you guys are the ones who know everything

Please does anyone have any advice?

If you want a quick catch up, the crux of the matter is that I keep getting into a really bad cycle of bad money management. I am a student and can't seem to get out of the cycle before I get my next student loan (paid into my account quarterly) and so I end up repaying debt from my student loan, rather than using the student loan to pay for things in advance. As a result, I then don't have enough money to pay for my essentials and borrow or don't pay bills and the cycle starts again.

I'm not even thinking about my debt as I feel that it is more important to get my essentials paid for first. Once the cycle is broken, then I can manage my money better and start chipping away at the debt.

Any advice is appreciated...

TIA x

kitkat34

Hi Angel
welcome to the board they are a very nice bunch here who provide good advice sometimes its tough to take but remember they are only trying to help.
Ive read your other post and looked at your SOA it would be great if you could post a copy on this thread so everyone can take a look.
Just a few quick notes from me you cannot afford the holiday so you need to give up on that idea, you did mention your mum might loan you the money to go on the holiday I would ask her if she can give you the loan to help sort yourself out making sure she can afford to do this over a long term accepting a small amount for payment each month.
Then you need to look at everything your paying and cut it back as much as possible and live on as little until you get back on track.
You need to look into your water rates 76.88 is very high that's 768.80 over 10 months!
also you've got your landline down as costing the same 76.88 per month that's far too high
Can you look at getting rid of your car I know its hard but it will save you 250 per month you cant really afford to run it.
hope some of that helps or gives some ideas
kat

AngelPie78

Here is the [edited] SOA:

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 3 (2 youngest half the time)
Number of cars owned.................... 0

Monthly Income Details
Average monthly income after tax....... 2465.76
comprised:
Student loans: £11,519.12 paid in 3 payments Sep/Jan/Apr
Tax Credits: weekly £165
Child Benefit: four weekly £130
Housing benefit: fortnightly £300

Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2465.76

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 925
Management charge (leasehold property).. 0
Council tax............................. 0 (am a student)
Electricity/Gas..........................144.34
Oil..................................... 0
Water rates............................. 76.88 (includes debt from last year)
Telephone (land line)................... 67.88 (suggested to stop paying as in contract, and switch to TalkTalk)
Mobile phone............................ 40 (as above)
TV Licence.............................. 12.55
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 250
Clothing................................ 10
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 55
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 20
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Debt 2.................................. 10
Debt 1.................................. 10
Simply Be............................... 10
Very.................................... 25
Dog food................................ 25
Footall club............................ 7.5
Bus Pass................................ 66
Spotify................................. 0
Total monthly expenses.................. 2257.3


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Council Tax....................175.......10........0
Childminder....................1080......10........0
Friend.........................1000......10........0
Scottish Power.................1000......0.........0
Uni............................390.......0.........0
T-mobile.......................416.97....0.........0
Three..........................889.51....0.........0
Shakespeares...................3490.42...0.........0
Orange.........................1475.5....0.........0
HMRC (Tax Credits ove..........13337.7...0.........0
HMRC (NI)......................175.05....0.........0
HMRC (Self Assessment..........495.32....0.........0
EDF............................1476.5....0.........0
Scotcall.......................1631.61...0.........0
Apex 2.........................3773.76...0.........0
Apex 1.........................1005.8....0.........0
BT.............................460.96....0.........0
Housing Benefit Overp..........1072.85...0.........0
CARS...........................136.52....0.........0
Childminder....................760.8.....0.........0
Lowell.........................56.67.....0.........0
Moorcroft......................200.06....0.........0
Total unsecured debts..........34501.....30........-


Monthly Budget Summary
Total monthly income.................... 2,465.76
Expenses (including HP & secured debts). 1,824.152
Available for debt repayments........... 641.31
Monthly UNsecured debt repayments....... 30
Amount left after debt repayments....... 611.31

Personal Balance Sheet Summary
Total assets (things you own)........... 400
Total HP & Secured debt................. -0
Total Unsecured debt.................... -34,501
Net Assets.............................. -34,101

AngelPie78

kitkat34 wrote: »

Hi Angel
welcome to the board they are a very nice bunch here who provide good advice sometimes its tough to take but remember they are only trying to help.
Ive read your other post and looked at your SOA it would be great if you could post a copy on this thread so everyone can take a look.
Just a few quick notes from me you cannot afford the holiday so you need to give up on that idea, you did mention your mum might loan you the money to go on the holiday I would ask her if she can give you the loan to help sort yourself out making sure she can afford to do this over a long term accepting a small amount for payment each month.
Then you need to look at everything your paying and cut it back as much as possible and live on as little until you get back on track.
You need to look into your water rates 76.88 is very high that's 768.80 over 10 months!
also you've got your landline down as costing the same 76.88 per month that's far too high
Can you look at getting rid of your car I know its hard but it will save you 250 per month you cant really afford to run it.
hope some of that helps or gives some ideas
kat

The water rates include the debt from last year. As I am a student and my daughter is part home-schooled, we are home a LOT so our utilities are really high. The house is all open plan downstairs too. Have had the fire on all day as it's freezing in here...

Have made some notes in my other post:

* stop paying Virgin Media as I can't cancel the contract. Same with O2 - switch to TalkTalk and Ozmio

* get daughter to pay for spotify

* sell holiday

* mum would have put it on her credit card so she hasn't got the cash to lend me. I think she would have put the holiday on there as my daughter is really poorly at the moment (and I'm not doing too well) and she could really do with the holiday.

* car is pretty much gone anyway as I can't afford to tax or insure it.

There were a few other things too, like stop paying the debt to my friends, get rid of the pets (NO), don't give the kids decent birthdays (NO), get ex to pay towards son's football (HE WON'T), sell old clothes (YEP)


Thanks for the welcome, am trying to be open-minded. Am a stubborn thing, so trying to listen and relax more when on here and not bite people's heads off .

x

McKneff

your gas and electricity are horrendously high, they should be way, way lower than that. Are you paying a debt there too.


Water rates, can you get a meter.


You say 'landline' do you mean landline including internet package, can you down grade this a bit.

AngelPie78

McKneff wrote: »

your gas and electricity are horrendously high, they should be way, way lower than that. Are you paying a debt there too.


Water rates, can you get a meter.


You say 'landline' do you mean landline including internet package, can you down grade this a bit.

Hiya, I don't know why they are so high? My usage is £40-£50 per week according to Scottish Power. I haven't actually paid anything to them as they took until December to sort my account out [I moved in in April last year] I guess that probably is including some debt then, but I did ask to just pay my usage until I sorted myself out...

I am metered, as far as i know.

Can't downgrade Virgin Media, I've tried. The only option is to stop paying but only if this doesn't effect the address in any way as this is a rented house.

AngelPie78

Ok have checked with Scottish Power and I currently owe £1299.06 which is from 1st May 2013 til 7th Feb 2014. I haven't paid anything to them as yet.

So that's £144.34 per month. So a bit cheaper than I thought - will edit the SOA. x

kitkat34

I know how you feel I joined this board for the first time in 2007 with only £20000 of debt had I took on board all the advise then and actually worked hard I wouldn't be sitting here with now £67000. In the last 3 years my partner and I have reduced the debt by just over 14000 (yes at worst our debt was £81489 got that figure etched into my head never to go there again) I also lost my job a couple of years ago and due to my son disability have been unable to get a job that allows me to fit around him.
We pay very little to our debts £131 every month all we can afford and its going to take forever to pay back but I have finally learned to live within a budget well most months but its been a hard 3 years of learning.
see your not alone there are people who are a lot worse of believe it or not but you need to face facts this is not a short term cash flow problem and it will get bigger if you don't cut everything and start now.
You say the car is more or less gone so get rid and redo your SOA and youll see the changes infront of you.
Do you have no money at all???
you need to plan out the next few months when moneys coming in and when its going out. If you list exactly how much you have and when money comes in and when it goes out im sure we can all advise on how to shuffle some bills about so that you can get by.
Remember things like water and council tax don't get paid this month or next so that will help a bit
what exactly do you receive each month child tax credits, child benefit any other benefits and when will they all be coming in?
As much info as you can give the more we can help
Kat

AngelPie78

Hey Kat,

I think everything you asked for is now on the SOA, as I've just been editing the same form as we go.

Have about had it with this forum. I tried using it last year [under a different name] and I'm sure the attitude of most of the people who responded to my posts contributed to my breakdown.

I think I'm just about getting to the same situation now.

People think they know you when they don't and I'm getting fed up on no-one listening to me.

Ok, I'm a badly managed, badly planned, shopaholic who is apparently trying to live well beyond my means and got myself into a mess. I am trying to get myself sorted and, as an absolute, last resort, I come on here [like an idiot] and foolishly ask for help.

Anyway, if you want to try to help me then the short term problem, which is the one which is worrying ME more is the fact that I have every little money coming in until I get my next student loan payment on the 28th April. I would like [notice the word - LIKE] to get to that point having paid for my essential bills and not being behind on too much. Anything I am behind on then needs to be paid out of the loan and thus causes problem for the following four months. This is the cycle that I have been in for the last two years.

The problem for me is exactly as above. Not the fact that I have huge debt and need to worry about the long term problems. Until I can get through the next few months, I simply do not want to worry about anything after that. I am more than happy to create a budget plan and stick to it if I know that the money is there and can be paid.

I would really like there to be a person who can help me budget and prioritise when things don't go to plan, but apparently [see my other post] I am asking for far too much. I have applied to use thinkmoney, but have, again, been slated [see other post] because according to some people, I have issues with mobile phones and therefore I am lost cause.

For reference, I will not be giving up my dogs or my children's birthday treats. I am pretty much happy to compromise on everything else.

If you want to help me then help me and ask questions, please do not assume you know me and start slagging me off. That is neither helpful nor appreciated.

x

double_mummy

please go and get some proper free advice from stepchange 08001381111

kitkat34

I find your reply to my help very rude I was just trying to show you that we are all in need of help from time to time I was trying to be nice and by the way your problem is much bigger than just the next few weeks, you have huge debt now 34000 in debt and being advised to declare yourself bankrupt is a problem you should be worried about by not paying it doesn't stop it being a problem.
I and probably the many others that might or might have answered your post were trying to help so heres what I say to your only problem that you think you have you've got no money and need money well no ones going to give you a handout cant help anymore because when i do advise you don't like the answer, i really don't what to be mean but you need to wake up before it is too late.
oh and by the way I never slagged you off but I cant help someone who doesn't want help