No Spare Money to repay

FreshStart76

EssexHebridean wrote: »

OK - comments in red, as usual



There ARE savings you can make there - I do sympathise with your concerns about your health but is there a balance that can be found at all do you think? Your current income is currently very low indeed. How many hours is your job currently?

The bottom line is that the high as a proportion of income rent and that car are killing you. That car is costing you £179 a month including fuel - and my guess is that in spite of saying you're putting aside money for its maintenance, my guess is you're not as cash assets = zero. That's a recipe for disaster when it needs MoT or servicing. I'd look into whether it's at all practical to do your work travel by public transport to be honest.

I'd suggest work on slashing that food bill, ditch spotify - I'm not going to say netflix as well as you do need some form of entertainment. Check that everything else you're paying is on the best deal possible as well - that can at least get you to the point of balancing the books in terms of routine living expenses. Then I'm guessing that others are going to say either a DRO or a DMP is appropriate for dealing with the debts - that's not my area though so will leave that bit to others.

Thank you.
Your comments make sense.
I live in a rural community so public transport is poor and actually very expensive.
The Netflix and spotify is more for my daughter than me. But yes they have to go but i will keep the national trust otherwise i will never go out.

FreshStart76

[“
My SOA
Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1 Do you definitely need the car? Is it a "can't get by without it" or a "nice to have"?
I LIVE IN A RURAL COMMUNITY AND ALTHOUGH I CAN WALK TO WORK OTHER AMMENITIES ARE NOT CLOSE BY, ALSO I NEED TO GET TO MY PARENTS AND MY DAUGHTER AT UNI AND THAT IS WHY THE FUEL IS HIGH. (LESS THANN THE TRAIN AND BUSES)

Monthly Income Details
Monthly income after tax................ 962.78 Can this be boosted in any way? second job, or even things like online surveys in your spare time for a few extra pennies each week?
i=I WILL LOOK INTO THE SURVEYS I USED TO WORK 12.5 HOURS A DAY BUT I MADE MYSELF VERY UNWELL SO CUT IT BACK TO A NORMAL 9-5 I HAVE BEEN THINKING ABOUT A SECOND JOB AGAIN BUT ITS A RURAL AREA SO PROBABLY WOULD INVOLVE TRAVEL AND SO AGAIN MORE FUEL
Partners monthly income after tax....... 0
Benefits................................ 133 You've checked this is all you are entitled to? YES THIS IS MY FIRST PAYMENT FROM UNIVERSAL CREDIT DUE THIS MONTH
Other income............................ 0
Total monthly income.................... 1095.78

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 535 OK - this is killing you - I'm not going to say "you need to decrease your rent" as that may not be practical - but you need to INCREASE your income to make the rent more like a third, than a half, of what you have coming in
I KMNOW BUT THIS IS NOT EVEN PRIVATE RENT THIS IS A HOUSING ASSOCIATION PROPERTY ITS CRAZY AMMOUNT BUT I DONT SEE HOW TO CHANGE IT. I WANT TO TRY AND SWAP PERHSAPS TO ANOTHER AREA BUT THEN HAVE THE CONCERN OF FUEL TO WORK ETC. BUT UNTIL IM UPTO DATE ON THE RENT I AM UNABLE TO GO ON THE SWAP LIST OR DOWNSIZE. CURRENTLY 2 BED FLAT, BUT THEN MY DAUGHTER STILL COMES HOME IN THE HOLIDAYS AND SUMMER.
Management charge (leasehold property).. 0
Council tax............................. 87 Single person discount applied, spread over 12 months rather than 10?
THIS IS WITH THE DISCOUNT AND OVER 12 MONTHS
Electricity............................. 35 Use price comparison sites to make sure that this and the gas are the best tariff for you - I'm guessing both - but certainly the electric - can be reduced.
YES THIS IS ONE OF MY NEXT TASKS,
TRYING TO FIND MY CURRENT CHARGES PER UNIT ETC IS NOT EASY, THE GAS IS DD BUT THE ELCTRIC IS ON A KEY METER.
Gas..................................... 35
Oil..................................... 0
Water rates............................. 35 is this metered? If not check your supplier to see if they offer an assessed bill for a person living alone.
THIS IS ON A METER
Telephone (land line)................... 0
Mobile phone............................ 6
TV Licence.............................. 12.95
Satellite/Cable TV...................... 0
Internet Services....................... 34 Does this include landline? Are you on the best deal you can get?
THIS IS LANDLINE AND BROADBAND
Groceries etc. ......................... 200 You can slash this dramatically - certainly take a third off it, and possibly even halve it
OK YES BUDGET BETTER WHEN FOOD SHOPPING AND TRY AND FIND CHEAPER ALTERNATIVES JUST LOCAL SHOPS ARE A BIT PRICEY.
Clothing................................ 10
Petrol/diesel........................... 100 Read Martin's guide on the main site to driving economically, and also make sure you shop around for the best priced fuel, and combine journeys where you can. never drive somewhere that is easy and practical to walk to.
FUEL LOCALLY IS EXTREMELY EXPENSIVE IN COMPARISON TO TRAVELLING SAY 10 MILES, I TRY TO ONLY FILL UP ONCE A MONTH SOMEWHERE CHEAPER, AND THEN JUST TOP UP LOCALY
Road tax................................ 13.56
Car Insurance........................... 45.8 Why so high? Have you been through the comparison sites to check you're on the best deal?
THIS WAS MY CHEAPIST OPTION AT THE TIME, INCLUDES BREAKDOWN COVER WHICH IN MY OLD BANGER AND BEING IN A RURAL AREA IS MUCH NEEDED I THINK
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 9
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0 You need something here - it's a massive false economy not to have this. I know you think you have nothing of value - but if you got home tonight to find the whole lot had gone, everything, you'd think differently.
YES I KNOW JUST ANOTHER EXPENSE THOUGH
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0 You need to find a way of getting something in here.
Netflix................................. 5.99
Spotify................................. 14.99 This has to go - you can't afford it. Switch to the free option and put up with the ads!
GOING
National Trust ......................... 6
Total monthly expenses.................. 1225.29


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 250
Other assets............................ 0
Total Assets............................ 250

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly.. .APR
HB Overpayment.................1052.42...1.........0
Wessex Water...................671.44....1.........0
Student Loan...................643.86....1.........0
Co Tax 18......................1756.21...1.........0
Co Tax (Old)...................445.29....1.........0
PDL............................690.53....1........ .0
PDL............................89........1........ .0
PDL............................31.9......1........ .0
PDL............................600.......1........ .0
Rent...........................1095.62...25....... .0
Gas............................73.78.....1........ .0
Old Mobile Bill................190.41....1.........0
Subscription...................58.41.....1........ .0
Old Overdraft..................1587.68...1.........0
Credit Card....................406.93....1.........0
Total unsecured debts..........9393.48...39........-


Monthly Budget Summary
Total monthly income.................... 1,095.78
Expenses (including HP & secured debts). 1,225.29
Available for debt repayments........... -129.51
Monthly UNsecured debt repayments....... 39
Amount short for making debt repayments. -168.51

Personal Balance Sheet Summary
Total assets (things you own)........... 250
Total HP & Secured debt................. -0
Total Unsecured debt.................... -9,393.48
Net Assets.............................. -9,143.48

Just to Add although she doesn't technically live with me i have a daughter at uni and do still have to help out as Maintenance loan just doesn't cover it. The problem is, you're helping her out with borrowed money that you can't pay back - I'm afraid it's time for her top get a job.

Some of the debs are old but having gone through it all i have added any that i have received letters from in the last year. There are others that i have had nothing from but i don't know what i have and haven't paid!! Im going on the assumption if i have had nothing in over a year then leave it.


The Only way forward i can see is to get a second job which i not really want yo do as i was previously working long hours but was so ill all the time. Only just starting to feel slightly better i know some of it is down to the stress of the debt.
Originally posted by FreshStart76
”There ARE savings you can make there - I do sympathise with your concerns about your health but is there a balance that can be found at all do you think? Your current income is currently very low indeed. How many hours is your job currently? 7.5 HOURS A DAY

The bottom line is that the high as a proportion of income rent and that car are killing you. That car is costing you £179 a month including fuel - and my guess is that in spite of saying you're putting aside money for its maintenance, my guess is you're not as cash assets = zero. That's a recipe for disaster when it needs MoT or servicing. I'd look into whether it's at all practical to do your work travel by public transport to be honest.

I'd suggest work on slashing that food bill, ditch spotify - I'm not going to say netflix as well as you do need some form of entertainment. Check that everything else you're paying is on the best deal possible as well - that can at least get you to the point of balancing the books in terms of routine living expenses. Then I'm guessing that others are going to say either a DRO or a DMP is appropriate for dealing with the debts - that's not my area though so will leave that bit to others.
TODAY 10:53 AM

FreshStart76

Thank you all for your advice i am taking it all on board and seeing where i can cut back have spoken to debt change and they have talked through and got my outgoiongs down to minus £31
Still not enough to cover my monthly outgoings though.
i need to read through the follow up advice they have given me and what to do next.
but in honesty it doesnt make sense to me im trying to get my head around it and stay calm.

WhenIam64

Have you agreement to pay the Council Tax arrears at £1 pm?

EssexHebridean

Freshstart it looks to me like you are being paid below minimum wage - full time money for someone the sort of age you must be should be quite a lot higher than this.

The contents insurance can be had for under £10 per month which I know feels a lot right now but the alternative, should the worst happen, is unthinkable. Remember this isn't just your stuff you're gambling with here, it's your daughter's, as well.

If you are brutal with your food shopping - use Aldi/Lidl for everything, buy basic brand everything, cooking everything from scratch, plan meals around what's cheapest on Pick of the Week/Super Six etc, as well as binning both spotify AND netflix, making any savings you can on your utilities (including the water which unless you are in the South west can almost certainly reduce a lot) I reckon you can get your figures to break even, which is at least a start.

The car insurance - go back through the comparison sites again now, and get quotes without the breakdown cover. Then look at getting that standalone. Our 11 year old Citroen C3 has full UK cover on it through AXA this year for under £60 for the year - that includes extras you may not need, but regardless is cheaper than you'll get through the insurance. There are cheaper options out there than that as well! Even if you can't cancel the current policy mid year at least it will tell you how muich you can save going forwards.

One good thing - as you are a prepayment meter for the gas at least your monthly costs for that will drop now the warmer weather is here - at the moment focus on putting a small amount of credit on there each month to build up ready for next winter, and work on reducing your electricity use - keep things you're not using turned off, don't have lights on in rooms you're not using, think about setting a shower timer if you have an electric shower (this things chew through power!) Again the lighte evenings help with using less power.

FreshStart76

Yes i am in the south West so not sure how i can reduce my water bills. but will try.
But i have managed to reduce my broadband to now just £21/mnt so thats a saving already.
Next stop to try and get a better deal on my utilities.
With regards to car Insurance i do not know why it is so high, i have never claimed and have 10+ years of NCB.
Someone told me thats its because i have a bad credit rating. (the thought process being that i am more likely to try and claim for whip lash etc to get money) which i found shocking.
I have not as yet made any agreements to pay back my arrears except my rent. but will be sending out letters to everyone offering £1 just trying to increase my spare money a month. or actually find some.
But for only day 2 of pulling my head out of the sand i have acheived something so today is a good day.

EssexHebridean

You certainly have - well done, that't a great start!

On the water, congratulations for living in the most expensive part of the UK! There is a guide to reducing use on the main MSE site I believe - also try things like flushing the loo only when "needed" (there is a little rhyme you may have heard that starts with "If it's yellow let it mellow..." ) making sure you always do a full load of washing, wash clothes when they need it not after every wear in all cases - so undies washed every time, a lightly worn t-shirt of shirt may be a second day, and trousers etc will usually do several wears. Again when doing washing up run half a bowl of properly hot water then wash things in the right order - glasses, cutlery, crockery, then pots and pans. Limiting shower time helps for water use as well as power. I bet other people can think of more ideas too!

enthusiasticsaver

Looking at that soa and reading your updates I would say that cutting back on groceries and cancelling Spotify is the way to go for now but I cannot honestly see how you could go for a DMP as you obviously have no leeway. I would say a DRO would be better unless there is a likelihood of your income rising. A swap to a cheaper rental property and maybe a less rural one so you can get rid of the car would help when your arrears are up to date. I am not sure how many of those debts would be covered by the DRO though. I don't think the council tax, housing benefit overpayment or rent arrears would be.

Could you try claiming back from the payday loan companies?

enthusiasticsaver

Your salary looks to be below minimum wage for 9 to 5. Also I have not heard of insurance companies checking credit rating and charging more for insurance for those with poor credit scores. That is indeed shocking if true.

sourcrates

Hi,

You appear to be the perfect candidate for a debt relief order, they are designed for people in your situation, why struggle on unnecessarily ?

As long as you are :

Not a homeowner

Debts of 20k or less

Have a car worth less than £1000

No assets over £1000

Have £50 or less left at month end after all essentials have been paid (not including debt repayments).

You will qualify, all your debts are eligible debts for a DRO, once approved, there is a 12 month monotorium period, during which you make no payment, after this, if your situation has not improved, your qualifying debts will be written off.