Help and advice needed! My debt!

Boltonbwfc

Hi everyone

Posted below is my income and outgoings per month: Can anyone offer any advice on cutting it or re-jigging it! Any advice is grateful and acknowledged. My debt is about £30k (Lloyds x 3, Egg and MBNA) and currently on a DMP with CCCS at £60 a month. I know at the rate its going it will take me for an ever and day to pay it off. Anyone on here with a family of 4 and similar income and expenditure got any further advice?

Outgoings Amount Monthly

Mortgage £ 938.00
Rent £ 0.00
Council Tax £ 105.00
Electricity £ 87.0
Gas £ 64.00
Heating Oil £ 0.00
Water Rates £ 39.00
Telephone £ 25.00
Mobile Phone £ 30.00
TV Licence £ 11.00
Satellite TV £ 0.00
Internet £ 5.00
Buildings Insurance £ 36.00
Contents Insurance £ 0.00
Life Insurance £ 50.00
Groceries £ 350.00
Clothing £ 80.00
Petrol £ 50.00
Car Tax £ 0.00
Car Insurance £ 32.00
Car MOT £ 4.00
Car Maintenance £ 30.00
Car Parking £ 0.00
Other Travel £ 0.00
Childminder/Nursery £ 0.00
Medical/Dental Expenses £ 20.00
Pets Insurance/Vets Bills £ 20.00
Birthdays/Christmas £ 20.00
Holidays £ 0.00
Entertainment £ 20.00
Children’s expenses £ 60.00
Haircuts £ 5.00
Contingency fund £ 30.00
DMP £60.00
Secured Loan £400.00
Other HP commitments £60.00

Income
£2920.00 (2 adults and child benefit inc)

Thank You

BWFC

HBFS

Hi and welcome to DFW!

First up is the shopping bill! £350 is a hell of a lot! Could you not possibly try and drop a label or two on your shopping? Or perhaps buy ingredients and make something to freeze for later?

Possibly put your telephone and internet in one too?

Good luck anyway!

Boltonbwfc

Hi HDFS

I do think that we need to look at the grocery bill and agree that efforts will be needed to save cash in that area. It's telling the kids that's the problem

Thanks.

BWFC

InTheRed

Hi BWFC!

Welcome to DFW. Its always a brave first step to post your SOA, hopefully you will receive lots of encouraging suggestions to reduce expenditure and/or increase income.

So your monthly expenditure is £2,631 (If my maths is correct), so do you have £289 in cash at the end of each month? If not then try to keep a spending diary, which will help you refine your SOA to further attack your debts.

I think your shopping bill of £350 a month is good for a family of 4, this would seen like a reasonable amount.

What is the childrens expenses of £60? Could this be reduced at all? I'm guessing its clubs and activities? Could the childrens activities and clothing allowance be combined and cut?

Internet of £5 per month, please let me know where this is?! I am looking for a new provider for internet and this is mega cheap!

I know its a delicate subject, but could the life insurance be stopped for a while?

Household bills, how big a house do you have and how is it heated, as the electricity seems high. Do you pay monthly amount or do you check readings and inform supplier? It might be worth using USwitch or energy supplier through Quidco the cashback site.

Just a few suggestions, looking forward to reading your progress.

InTheRed x

the_cat

Boltonbwfc wrote: »

Hi everyone

Posted below is my income and outgoings per month: Can anyone offer any advice on cutting it or re-jigging it! Any advice is grateful and acknowledged. My debt is about £30k (Lloyds x 3, Egg and MBNA) and currently on a DMP with CCCS at £60 a month. I know at the rate its going it will take me for an ever and day to pay it off. Anyone on here with a family of 4 and similar income and expenditure got any further advice?

Outgoings Amount Monthly

Mortgage £ 938.00
Rent £ 0.00
Council Tax £ 105.00 OVER 10 MONTHS OR 12?
Electricity £ 87.0 THIS IS HUGE! DOES IT INCLUDE ARREARS?
Gas £ 64.00 Ditto
Heating Oil £ 0.00
Water Rates £ 39.00 Again, 10 months or 12?
Telephone £ 25.00
Mobile Phone £ 30.00 Are you tied to a contract? Go PAYG or reduce if poss
TV Licence £ 11.00
Satellite TV £ 0.00
Internet £ 5.00
Buildings Insurance £ 36.00 Seems a lot to me
Contents Insurance £ 0.00 Not something I would risk going without
Life Insurance £ 50.00 Ouch! Is this the cheapest you can get?
Groceries £ 350.00 This can def be reduced by at least £100 per month
Look on Old Style Board for some ideas to
Clothing £ 80.00 Every month? Thats nearly £1K per year. Needs
cutting back I'm afraid
Petrol £ 50.00
Car Tax £ 0.00 Needs to be included as you have to have this
Car Insurance £ 32.00 Cheapest you can get? Bought thru Quidco?
Car MOT £ 4.00
Car Maintenance £ 30.00
Car Parking £ 0.00
Other Travel £ 0.00
Childminder/Nursery £ 0.00
Medical/Dental Expenses £ 20.00 Do you get full value out of this?
Pets Insurance/Vets Bills £ 20.00 Cheapest?
Birthdays/Christmas £ 20.00
Holidays £ 0.00
Entertainment £ 20.00
Children’s expenses £ 60.00 What is this for?
Haircuts £ 5.00
Contingency fund £ 30.00
DMP £60.00
Secured Loan £400.00
Other HP commitments £60.00

Income
£2920.00 (2 adults and child benefit inc) Are you both working? Any poss of extra income? 2nd jobs/ ebaying/ overtime etc

Thank You

BWFC

Hi and welcome
Have added a few pointers to get you started.

tyllwyd

Looking at your expenditure, it doesn't seem unreasonable (although the life insurance is high - it might be worth shopping around to check that you have appropriate cover and whether there is a better deal anywhere). Also you don't seem to have included anything for car tax?

As the previous poster said, there is quite a gap between the expenditure you've written down and your income - what is that money allocated to?

Boltonbwfc

Hi ITR

The children's amount is school bus fare and dinners. £3.00 a day over a month. The £5 a month internet provider is combined with my mobile contract on Orange dolphin. Once this as run out in May next year I will be looking for a new provider myself and not re-newing my mobile contract.

I have considered stopping my life insurance for a while but with such a big mortgage I am a bit wary! Would they put this on hold or would I need to get a new one from somewhere? any suggestions for insurances?

We have changed electric and gas prividers and are currently on NPower but would like to move to Scottish Power but unfortunately I would have to pay them what I oew to make a clean break.

The amount we spend on groceries is difficult as I know we could make some cuts and this does ned looking at.

I have also thought of suspending my pension at work but don't know if this would be beneficuial in the long run? Any advice?

I suppose I feel worse because Christmas is around the corner _pale_

Thanks ITR

BWFC

mrsspendalot

You can definitely cut your food bill. I have a family of 5 and spend no more than £200 a month on food and cleaning products. Some weeks with careful meal planning I have managed to shop for £30-35. Pop over to the oldstyle board for some tips on reducing your food bill.

You could also reduce your clothing bill a bit. I budget £50 a month for 5 but don't always spend it. I shop in Matalan for most things which is fantastic value.

Your life insurance is extremely high. Check out legal and general through quidco. They are offering £80 cashback at the moment I think, and me and hubby got insured through them for £8.06 per month for both of us.

Boltonbwfc

tyllwyd wrote: »

Looking at your expenditure, it doesn't seem unreasonable (although the life insurance is high - it might be worth shopping around to check that you have appropriate cover and whether there is a better deal anywhere). Also you don't seem to have included anything for car tax?

As the previous poster said, there is quite a gap between the expenditure you've written down and your income - what is that money allocated to?

I don't pay car tax because my car tax is bought through a disabled Aunts mobility allowance who I drive to hospital appointments, etc.

Sorry Tyll I don't understand the end bit of your post about the gap (I have mental block at present )

mrsspendalot

I think tyllwyd means that your income comes to £2920 and your expenditure comes to £2631 (as someone else calculated) so you have some money 'spare' each month. Is that money actually spare or is it getting spent on something?

InTheRed

Hi BWFC,

The Gap is the difference between the income of £2920 - £2,631(Total of monthly expenditure = £289 of cash in pocket at the end of each month.

I guess this is not the case, wish it were in mine:o . Its probably useful to keep a notebook with all those other spends in cash in! I know when I start to analyse my bank statement and add up all those cash machine withdrawls!!!
I'm still the same though.....

Definately worth investigating spreading water and council tax over 12 months rather than 10 though. Good cash saving there, I'm sure they will try to fob you off (they did with me) that their systems are set up for 10 monthly payments.

I was going to susggest Legal and General through Quidco, but Mrs Spendalot is sooo quick!

InTheRed x