A new partner and new start in life. New SOA...

Pixie5740

Have you shown your SOA to your partner so that she can appreciate the predicament you are in.

It's fair enough that the child support is going toward support her and her ex's child, which you both seem to acknowledge. Has she given any thought as to what will happen when the child support, tax credits and child benefits dry up. Can she realistically expect to get a job that pays her the same net amount each month or will she be expecting you to support her?

Money is a very emotive subject and I can see why it causes so many arguments but the bottom line is that you can't afford this current lifestyle and your debts. Really you should be living together because you want to live together, not because it should save you money in the long run.

Using your credit card to pay for everything and then just making the minimum payments each month is financial suicide. Destroy the credit card! Is the fact that everything goes on this credit card the reason you won't shop at Aldi?

The job offer sounds like a good idea but will it really cost you almost £25 a day in travel? That sounds like a lot, could it be reduced using a season ticket?

Would you be able to take the job and still do whatever it is you do for other clients freelance?

2014NewStart

asparagus1968 wrote: »

hi, think communication as well as the money may be an issue.so,
in three years when child support stops, the partner will expect you to support him/her? why would they not get a job themselves?
I'd definitely keep hold of your house, just in case you need it.


The SOA is muddling to me. Do you keep your two finances totally separate, and you just contribute the food and council tax?
If OH income doesn't "go in the pot" you may as well just do a SOA as if you are a lodger, just put your income, and the £83+£325 as your "rent" ,may make it easier to see the wood for the trees.


Have you tried speaking to a debt charity at all?
are you continuing to use the credit cards to meet the shortfall every month?

A job...no chance she tried working as a cleaner at the Holiday Inn Express a few years ago to get some more spending money and gave that up after a few months. If she has no spending money I'm sure she'll get a job. She can earn around MW as she has no skills or experience.

Agreed. Edited to show the contribution only.

Yes I have spoken to a debt charity and they gave me advice on how to avoid the bailiff. I also have a very old council tax debt which has gone to the bailiffs.

Yes I continue to use the 0% on purchases credit card. The groceries and the legal fees go on that so it increases by at least £625 per month. It's the only way I have to make sure I have the money to spend on the minimum repayments.

2014NewStart

Pixie5740 wrote: »

Have you shown your SOA to your partner so that she can appreciate the predicament you are in.

It's fair enough that the child support is going toward support her and her ex's child, which you both seem to acknowledge. Has she given any thought as to what will happen when the child support, tax credits and child benefits dry up. Can she realistically expect to get a job that pays her the same net amount each month or will she be expecting you to support her?

Money is a very emotive subject and I can see why it causes so many arguments but the bottom line is that you can't afford this current lifestyle and your debts. Really you should be living together because you want to live together, not because it should save you money in the long run.

Using your credit card to pay for everything and then just making the minimum payments each month is financial suicide. Destroy the credit card! Is the fact that everything goes on this credit card the reason you won't shop at Aldi?

The job offer sounds like a good idea but will it really cost you almost £25 a day in travel? That sounds like a lot, could it be reduced using a season ticket?

Would you be able to take the job and still do whatever it is you do for other clients freelance?

Season ticket. Yes buying a 1 month season ticket would cost £280 and save £3.32 per day based on using it 20 days in the month. I use taxi's for the journey to/from the station £3.50 each way. Buses around here don't for some reason go to the station. They go to town a half mile away from the station and they aren't that much cheaper and generally don't run so early in the morning or so late in the evening.

I could possibly keep one or two of the freelance jobs. I really need to think about it.

HappyMJ

FireWyrm wrote: »

Since you and I seem to read the same blogs...this is more than that..it's a raving hair on fire emergency.

OP, you cant afford this. In a year, you will be £6000 underwater and sinking fast. Short of winning the lottery, I dont see how your finances are in the least sustainable even in the short term. I would be hyperventilating after just a few months, let alone years.

Wouldn't they by paying the minimum repayment's reduce the debt by £10,000? The debt amounts look like they are at 0 percent. If they then go further into debt by £6,000 they'd owe £4,000 less after a year.

Pixie5740

2014NewStart wrote: »

Season ticket. Yes buying a 1 month season ticket would cost £280 and save £3.32 per day based on using it 20 days in the month. I use taxi's for the journey to/from the station £3.50 each way. Buses around here don't for some reason go to the station. They go to town a half mile away from the station and they aren't that much cheaper and generally don't run so early in the morning or so late in the evening.

I could possibly keep one or two of the freelance jobs. I really need to think about it.

Some employers offer an interest free loan to buy an annual season ticket and then just deduct 1/12th of the cost from the employee's salary each month. That's maybe a benefit you could negotiate if you decide to take this job. It probably would hurt asking for an extra £1k or £2k on top of their initial salary offer. Know your worth and all that.

What about cycling to and from the train station rather than getting taxis?

If you decide to stay self-employed is there any way you can boost your income? Do you charge the market rate for your skills or could you charge more? Can you find new clients?

I noticed that the £600 gross rental income is included on the SOA when you're going to have to pay income tax on this so your current income is probably less than indicated on your SOA.

asparagus1968

another thought- what about "downsizing" the house you own?
value of house £145000, sell up, pay debts of £41000, buy a property with what's left, that you can rent out.
(and move back into when oh won't get a job in 3 years...)


the job offer sounds promising-if you cannot drive, and public transport is so expensive, if cycling isn't an option, what about a moped? very cheap to run.
Or advertise to see if someone travels that way anyway and you could pay them to take you along?

bsms1147

Selling your house would be an extreme fix, but unless you can balance your incomings and outgoings, it might end up there.

Not sure if your SOA is up to date since you corrected it;

Council tax............................. 166 (should this be halved?)
Telephone (land line)................... 30 (does partner pay for this?)
Water rates............................. 25 (does partner pay for this?)
TV Licence.............................. 13 (does partner pay for this?)
Satellite/Cable TV...................... 33 (does partner pay for this?)

If these changes should be made to the SOA, then your outgoings (excluding debts) are up to £184 less than £1327, so £1143.

Income is £1880 which leaves £737 for debt repayments.

Now I'm hoping that this is a more reflective summary.

Monthly Budget Summary
Total monthly income.................... 1,880
Expenses (including HP & secured debts). 1,143
Available for debt repayments........... 737
Monthly UNsecured debt repayments....... 865.1
Amount short for making debt repayments. -128.1

~

You still have a shortfall, so you need to save at least that £128.10 a month, though more as you mentioned there are things that are unaccounted for.

The only things that I can really pick out are the following;
- if you can get your grocery spend closer to £225 (aim for £50 a week as a start, which should be easily doable and there is plenty of advice on the DFW and OS boards to do that and more)
- if you cut out new clothing
- reduce your entertainment spend by half, look for free/cheap/special offers etc.

You could save ~£140 a month (~£1700 a year) and get your SOA back into a positive balance in the process.

I would also consider cutting out the holiday spend completely to save £800 a year.

~

At a push, and if you make sacrifices such as this, you could be debt-free in around 6 years. If the legal expenses stop next year, and if you use some/all your emergency savings in the meantime against debts, you could do it in 4.

It won't be easy, but it is possible.

2014NewStart

I put £200 as my partners contribution to the household expenses so if I halved the council tax and removed what she pays for I'd have to remove the £200 figure as well. My income is £1,080 plus £600.

There is another problem...she claims tax credits as a single person and refuses to contact HMRC. I think she's scared she'll lose the money. If she lost the tax credits because I moved in I'm sure she'll want me to give what she lost to her. Would HMRC have any comeback against me to repay the money? I'm not on the claim.

The council knows we live together and have stopped the 25% SPD.

[Deleted User]

2014NewStart wrote: »

If she lost the tax credits because I moved in I'm sure she'll want me to give what she lost to her.

No offence intended, but your partner sounds very mercenary.

Would HMRC have any comeback against me to repay the money? I'm not on the claim.

No they wouldn't.

Your partner is the one claiming, and she's the one would be (indeed already is) making a false claim, by failing to notify a change in circumstances.

asparagus1968

so OH is fraudulently claiming benefits?