Best way forward?

thebritishbloke

solvencyseeker wrote: »

Thanks folks!

We have reduced Son 1's contribution to £200 because we really want him to save and move out and start an independent life (as does he). He has mental health issues but has been coping really well.

I get a lift to and from work from a colleague for £3 a day - (the £60 other cost) which is by far the cheapest option.

Petrol cost is for OH's commute. We think twice about getting in the car/going anywhere for any other purpose.

Moblile costs are for me and 1 son. Stupildly high and a bad decision - we will reduce these asap (imminently - got letters this weekend offering better deals).

Motorbike is son 2's only method of transport. We live rurally and this has enabled him to get a part time job and not rely on us financially.

We are with TalkTalk for our landline/broadband. Our options here are limited as we live rurally (no cable) and have found other providers service very unreliable.

£500 for 4 adults (1 who does manual labour and one who is still growing - both need a lot of calories) and 2 dogs is not unreasonable. We cook from scratch (including bread), and buy all groceries, toileties and cleaning stuff as cheap as possible.

2 days a week we are all out from early until late and we employ dog walker for those 2 days (£20). Not every month but there are other months where we have dog related costs. I would never leave them for hours as I am a responsible owner.

Can anyone advise on the question I posted?

Why is your TalkTalk bill so high every month?

I'd disagree with your reasoning for spending so much on groceries for 4 people. The "One who is still growing" is 18, he should eat as much as a normal adult should eat. I'm still shocked at how you spend £500 a month between 4 people and 2 dogs, especially if you're making as much from scratch as you can. I know food can be expensive, but I live on my own and spend about £40 a month on food and toiletries, I don't rely on eating tesco basics either, always have 3 meals a day with meat in them (and I don't skimp on the portions! haha).

How early/late is leaving early and coming back late? If it's 8-6, it's not really ridiculous to leave them alone for that long twice a week. A lot of people who work 9-5 will leave their dogs 5 days a week for that long. So long as they have enough food, water and a way outside, they'd be fine.

Pretty difficult situation really, as you don't seem to have much of an option to save.

I know this is a pretty far fetched option, but living rurally seems to be costing you a lot in commuting costs etc. I thought you must be living in the city paying £900 a month in rent. Any chance of moving closer to where your OH works? Or would that actually increase rent costs?

OH has just got a 0% CC - for balance transfers for 26 months (for purchases for 15 months) with £3,200 limit. I think the best use is to balance transfer as much as we can from the CC costing the most interest?

Is this the question you want answering? Yes, move as much debt across from the highest interest cards to it as you can.

GettingOrganised

Hi solvencyseeker, just wanted to pass on my support. I am also very new to all this, had my LBM at the end of January. What you're planning with your overdrafts and credit cards sounds like a good idea to me. Just as others have said, you just need to make sure you only use your new overdraft and credit card as a way to pay off the debts interest free - don't be tempted to add to them.

It feels very slow progress at the beginning, but, if you're anything like me, just the fact that we are facing our debts and getting further into the black and not the red, is fantastic.

With regards to your SOA, apart from the phones, which you're going to address, I can't see anything else which is glaringly obvious, I think your going in the right direction. I've finally managed to change to a sim only contract this month and this has reduced the bill by £17.50 per month - I can't wait to update this on my direct debit list!

[Deleted User]

solvencyseeker wrote: »

Statement of Affairs and Personal Balance Sheet
Household Information[/B]
Number of adults in household........... 4
Number of children in household.........
Number of cars owned.................... 1

Monthly Income Details

Monthly income after tax................ 1648.3
Partners monthly income after tax....... 1758.07
Benefits................................ 82
Other income............................ 200
Total monthly income.................... 3688.37

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 895
Management charge (leasehold property).. 0
Council tax............................. 160.45 - This seems high. If over 10 months, swapping to 12 months will reduce it to £133-70.
Electricity............................. 72 - This seems high. Check comparison sites.
Gas..................................... 96 - This seems high. Check comparison sites.
Oil..................................... 0
Water rates............................. 15.28
Telephone (land line)................... 32.82
Mobile phone............................ 58 - How many phones?
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 500 - This is over £16-50 per day, which is :eek: . You should be able to knock a couple of hundred off it.
Clothing................................ 20
Petrol/diesel........................... 275
Road tax................................ 16.5
Car Insurance........................... 16.83
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 60
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 20
Buildings insurance..................... 0
Contents insurance...................... 8.75
Life assurance ......................... 19.68
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 12
Entertainment........................... 20
Holiday................................. 0 - Not even days out?
Emergency fund.......................... 20
Bank Charges............................ 20 - What's this for?
Dog walker.............................. 80
Motorbike insurance..................... 77.65 - I take it this is your son's bike. Does he pay the insurance, or do you?
Motorbike finance....................... 61.78 - I take it this is your son's bike. Does he pay the finance, or do you?
Total monthly expenses.................. 2679.86

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 1000

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Overdraft 1....................945.......0.........20
Overdraft 2....................2000......0.........0
Credit Card 1..................11177.4...285.......18.9
Loan...........................10137.....372.......14.9
Credit Card 2..................7347.5....165.......18.9
Total unsecured debts..........31606.9...822.......-

Monthly Budget Summary
Total monthly income.................... 3,688.37
Expenses (including HP & secured debts). 2,679.86
Available for debt repayments........... 1,008.51

Monthly UNsecured debt repayments....... 822
Amount left after debt repayments....... 186.51
Personal Balance Sheet Summary
Total assets (things you own)........... 1,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -31,606.9
Net Assets.............................. -30,606.9
Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

I'm guessing you don't actually have £186-51 left, each month?

solvencyseeker

Thanks for your replies.

That is our council tax divided by 12. No option but to pay it.

We are members of MSE Energy Saving Club. Currently we are in defecit (after the winter) hopefully will balance out after the summer.

Mobile phones are x 2 contracts and will go off the list asap (couple of months hopefully)

Don't agree on the groceries. This includes dog food, toiletries and cleaning products for 4 adults and 2 dogs. Adults who do manual work do need more calories. As do 18 year old males who are 6ft plus and still growing.

Haven't had a holiday or day out in at least 5 years (apart from visits to Uni inerviews with son recently).

Bank charges are the interest on the overdraft and the £6 per month charge.

We pay for sons motorbike only on the basis that he puts away money from his part time job for Uni costs (swings and roundabouts?). If he didn't have the bike he couldn't get to his job.

We do want to move to a cheaper area, once sons are settled, which is why I am desperate not to go onto a IVA/DMP. That would scupper our chances of moving?

[Deleted User]

solvencyseeker wrote: »

If he didn't have the bike he couldn't get to his job.

The bike is costing roughly £140pm, plus fuel and servicing.

Would it not be cheaper, for him to get a travel season ticket instead?

solvencyseeker

Bedsit_Bob wrote: »

I'm guessing you don't actually have £186-51 left, each month?

No, we had more than that last month. This month we've had a big car maintenance bill but I'm trying to claw that back by selling stuff.


There is no public transport option. The choice was driving lessons and a car or the motorbike, or to continue giving him lifts all the time. The cost will go down - first year of insurance is always the most painful.


He does pay for the fuel out of his wages and I would make him contribute to the other costs if I wasn't worried about Uni expenses (mind you if he doesn't pull his finger out and finish his coursework he won't be going).

Tixy

In terms of your question on credit card interest rates increasing - this does happen but you are always given notice and the option to opt out of a rate rise, which means the debt stays at the same rate but you can no longer use the card for new purchases.

An IVA would make it hard to rent elsewhere.
A DMP probably would not affect your ability to rent somewhere new. A rental credit check only looks at public information (bankruptcy, IVA, CCJs etc), they wouldn't see the defaults that you would likely get as a result on being on a DMP. The only risk would be a creditor taking court action and obtaining a CCJ whilst you were on a DMP (that is rare).

However for a DMP to be suitable for you then your SoA would need to show you couldn't afford minimum debt repayments based on your income and a reasonable expenditure. At the moment your SoA suggests you can afford repayments and have £180odd left a month. You probably need to continue tweaking the SoA as you realise what other expenses you have not budgeted for.

Its always worth seeing if you can drop your grocery spend at all. Even if you can only drop £10 a week off your outgoings it is still an extra £40 a month towards debts.
This link may help you find some areas you could reduce a little -
http://www.moneysavingexpert.com/shopping/cheap-supermarket-shopping?_ga=1.250996934.1500758169.1393580775

solvencyseeker

Thank you Tixy it is reassuring to know that they can't increase the interest on the existing debt.

I referred to a DMP/IVA as we did consider those options last year, but knew that OH was about to be promoted/get higher wage so hung on. He's been on the higher wage since January (and we had a bit of a "weyhey" couple of months) but since have knuckled down to sort out the debt.

It has really helped posting on here and getting advice and encouragement.

maganan

Uhh and you've reduced your debt by £750+ so hold that thought take a big breath and down shift your shopping one item at a time etc and enjoy your younger sons independence as a levels start and finish and let him enjoy being out and eating out with friends (he'll always have fresh bread etcetera at home) but try not to fuss about "cooking" for him when he gets in he's probably only saying yes please cos he doesn't want to offend if you weren't in he'd happily raid the bread bin etc I know easier said than done but they're not babies, you've done a fab job already, if you love them let them go they'll come back!..............and by then it'll be grandchildren and you'll be debt free able to spoil them then give em back anyway..........or maybe that's just my dream!!!!! #wanabemadwoman
You're doing great and heading in the right direction

Good luck

Kate x

thebritishbloke

solvencyseeker wrote: »

No, we had more than that last month. This month we've had a big car maintenance bill but I'm trying to claw that back by selling stuff.


There is no public transport option. The choice was driving lessons and a car or the motorbike, or to continue giving him lifts all the time. The cost will go down - first year of insurance is always the most painful.


He does pay for the fuel out of his wages and I would make him contribute to the other costs if I wasn't worried about Uni expenses (mind you if he doesn't pull his finger out and finish his coursework he won't be going).

The cost of being a student is completely over exaggerated.

I'm a student, I hold up a part-time job working for my university. I pay for my own car, £500 a month in rent, travelling up and down the country to visit family every couple of weeks and still live comfortably.

So long as he gets a job at uni, even if it's for one day a week, and doesn't blow all his money on nights out, he won't have a problem.