Advice on SOA & a few questions please

Drawingaline

I think it depends what you want from life cover. We went through an independent broker and we have two life policies and a critical illness (unfortunately not unemployment which would have been so handy this year!) We pay £45 a month total for all of these. Our life insurance cover doesn't decrease with the mortgage which I believe a lot of the lower price covers do.

Regarding putting money aside you have a few options. Open up some savings accounts named xmas, holiday etc and transfer the money across on payday, or use a budgeting tool like YNAB which keeps the money in your account but you allocate it all into a budget you have set on a website/app. So you look at the budget to see where your money is allocated. I used to do the former which worked to an extent, I now use YNAB and I love it! For the first time I actually have money set aside for car maintenance, gifts and haircuts.

squiggle123

Thank you drawing a line. That is really cheap. Amazing. Do you mind me asking who your cover is with? This is definitely something we need to change so thank you everyone who has highlighted it. Given me the jump start I need.

The savings accounts would probably be a good starting point for us. Do you literally just open 5 savings accounts with your bank?? Is this is even possible?

squiggle123

And well done on having some money set aside for those things! That is my aim.

ViolaLass

squiggle123 wrote: »

They are all high and similar, I did look at this a few months ago but I don't have the info to hand right now. Why do you ask? Would it be useful if so I can check later

If they are all the same then it doesn't matter. If not, you should be tackling the one with the highest rate first. For example, if the 'gift' is interest free then your determination to keep paying it back now, rather than, say, in a year's time, is costing you.

tallyhoh

squiggle123 wrote: »

Re: life insurance, no particular reason. It is life and critical illness cover for both of us. We have no pre existing medical conditions. We took it out when we took out the mortgage as I think the broker waved the fees. It is something I had thought about re assessing but don't have the confidence to do it online without taking advice to make sure we have a decent cover.
Would you say that is particularlying high then?

Well mine is £8.25 a month but no critical illness cover, might be worth doing a comparison

squiggle123

Viola lass yes it is but I really don't want to go back on wgat we agreed even though I know they wouldnt mind. I think if the others arent paid off as quickly as I anticipate then I may re negotiate to a cheaper repayment.

Wow tallyhoh that is cheap. Did you arrange yourself or through a broker?

Many thanks

cms-help

£7.22 with Aviva for £150k of life assurance. We don't have critical illness cover due to employment packages, generous sickness benefits/pensions/death-in-service etc.

squiggle123

Wow cms-help. So it seems we should def be able to arrange something cheaper.

enthusiasticsaver

You should be focusing on highest interest charging debt rather than focusing on size. Overdrafts are usually the most expensive unless your credit card is a high rate? What rate do you pay on the loan and credit card? Your overdrafts look like you are paying around 22%.

tori.k

I think you may want to re-jig your SOA Budget if your still maxing out you overdraft each month once your budget is accurate and your not adding to the debt then use then snowball https://www.whatsthecost.com/snowball.aspx the excess income.