2nd Attempt at SOA please advise

fishfinger1

The car finance is in my partners name we have totally separate accounts. No joint accounts at all. £22000 of the debt is mine which needs getting under control

fishfinger1

The amount we get back is roughly £900 every April

triple_choc_chip

getmore4less wrote: »

not that simple.

2.16% pm is in fact an apr of 29.23%
http://www.stoozing.com/calculator/apr-rate-converter.php

Thanks, I'm even more pleased to be debt free now, they were costing me even more than I thought!:o

triple_choc_chip

getmore4less wrote: »

You can't run a car for an employer on 9p a mile(tax rebate on the first 10k miles £900) as the string of debts for maintenance insurance etc. shows.

9p won't even cover the fuel.

this job is not earning the level you think it is while subsidising the employer

I seem to remember one of the early episodes of Martins show where he helped a couple see that they would actually save money if the woman didn't work because all the expenses outweighed her income. They were just on the treadmill and had never considered all her effort was for nothing (financially).

HappyMJ

fishfinger1 wrote: »

The car finance is in my partners name we have totally separate accounts. No joint accounts at all. £22000 of the debt is mine which needs getting under control

Assuming your figures are correct then the annual cost of owning and running your car is at least £6,219.

If your partner does 10,000 miles in a year (40 miles/day) that's costing 62 pence per mile (£25/day). That is very high. Most employers will only give 45p/mile back to the employee for business mileage incurred in a privately owned car. £900 a year is next to nothing (14%) compared to your actual running costs of £6,219.

Is it possible for your partner to get a company car in exchange for a drop in salary?

If your partner is on minimum wage (care worker) £50/day it's not worth owning a running a car at all. You will be paying out most of what you earn which makes it pointless even working in the first place.

triple_choc_chip

fishfinger1 wrote: »

The amount we get back is roughly £900 every April

Seems a lot as a lump sum and is probably well received but break it down and then consider if it's a fair sum. Add up the vehicle licence fee, insurance, service, mot, and fuel used for work miles. Add to this an average repair or cost of a set of tyres and divide by 52 weeks. If your total is over £17.31 she's paying for the privilege to go to work.

When you've worked out the difference take this away from the salary and consider if it's still worth the effort - it may even be below minimum wage.

Also, most employers re-imburse expenses one month in arrears. Not only is her employer not paying anything but she is having to wait a whole year to get a portion of the expenditure back from hmrc and is therefore in arrears for 11 months with costs involved such as credit card interest. In fact add some of that interest to the other overheads for an even more realistic weekly cost.

fishfinger1

enthusiasticsaver wrote: »

Your best option with the credit cards if you don't have a 0% balance transfer option is to approach the ones you are in arrears with and see if you can come to an arrangement or if they will freeze the interest.


You do have a lot of credit card debt so as someone else asked do you have anything to sell and how has it got so high? The debts in proportion to your income are quite high so you may have to consider a DMP. Which ones are up to date and which ones are yours and which belong to your OH?

whats the best way to approach them? can it be done by email

fishfinger1

triple_choc_chip wrote: »

Seems a lot as a lump sum and is probably well received but break it down and then consider if it's a fair sum. Add up the vehicle licence fee, insurance, service, mot, and fuel used for work miles. Add to this an average repair or cost of a set of tyres and divide by 52 weeks. If your total is over £17.31 she's paying for the privilege to go to work.

When you've worked out the difference take this away from the salary and consider if it's still worth the effort - it may even be below minimum wage.

Also, most employers re-imburse expenses one month in arrears. Not only is her employer not paying anything but she is having to wait a whole year to get a portion of the expenditure back from hmrc and is therefore in arrears for 11 months with costs involved such as credit card interest. In fact add some of that interest to the other overheads for an even more realistic weekly cost.

ive never looked at it like that before, what an eye opener, the problem I have is she is so reluctant to change jobs as shes been doing it for around 6 years, we will probably have more money if she just quits working from the looks of it

getmore4less

fishfinger1 wrote: »

ive never looked at it like that before, what an eye opener, the problem I have is she is so reluctant to change jobs as shes been doing it for around 6 years, we will probably have more money if she just quits working from the looks of it

she does not have to quit just get a job with a company that pays for the use of your own car.


Qre they at least paying the travel time between the care jobs or is she doing that for free as well as subsidising the transport costs?

HappyMJ

fishfinger1 wrote: »

whats the best way to approach them? can it be done by email

You can but I've found several creditors that just do not respond.

Email is also not secure so you're best not putting personal information in an email.

Using Royal Mail with proof of posting would be best.

Whatever you do never speak to them.