Where to start

Hunny_247

Hi all,

I have a friend who I think is in quite a bit of trouble money wise, they are coming round tonight for me to go through their finances with them (i'm not a finance person I just have a good set up with my finances/budget sheets etc) it's so bad sometimes they don't have enough for food. it turns out they don't even have a plan so my first step was to do a SOA and see how that turns out and then to go through each line/expenditure and ask the question. 'is this essential to my life' if the answer is yes then to look online and see if we can get it cheaper elsewhere, if the answer is No to ask if they can get rid of it completely. To try build up a proper monthly budget I know there isn't much incoming as they in higher education but I always find if I have a plan I can refer to everything seems to become a little clearer.

Do you think this is a good starting point?? or would you do something else? -I have said I will be extremely honest and will tell them what I would do (I expect to have some fightback and a difficult convo but if someone wants my help I always try to be honest!)

Thanks in advance!

p.s sorry if this is in the wrong area!!
p.p.s I know they don't want to go down the IVA, DMP route but I said well once there is a plan you will be able to see clearly what the best route is.

~Beanie~

That sounds like the best place to start to me, learning why they don't have enough money for food is always good! As long as their income is more that their (essential) outgoings then there is no reason why a good budget shouldn't be a benefit.

rockm87

Hi!
and good for you offering a helping hand, I think sometimes people struggle with these things alone and it really doesnt get them anywhere.

Getting things in writing and a proper budget together is a great first step.

best of luck!

National_Debtline

Hi Hunny


It's great for your friend that they can count on your support. Anyone can do a budget, but two heads are definitely better than one in this kind of scenario. Putting some figures down on paper is definitely the way to start.


On that note, I'm just going to plug our brand new fact sheet "Budgeting and saving" - it's intended as a beginner's guide:


https://www.nationaldebtline.org/EW/factsheets/Pages/Budgetingandsaving/Default.aspx


Good luck


Dennis
@natdebtline

Hunny_247

So turned out to be a bit worse then I was led to believe if they continued on the current repayment schedule the debt free date was going to be 2029 :eek:

Anyway I went through all the finances and wrote it all down so we could see what was going out when, what was left to pay and when the DFD was. I gave some advice and said what I would do, I also said she had to get on this site ASAP!! especially this forum. I will send her the link to the budget advice as well.

But now it is all down to her, as always I will support but there is only so much I can do

Thank you for your replies and help