181k in Debt - Need Help

Mumoffourkids

Are you really putting away £1400 a month for tax each and every month. That seems like a lot of money.

daniellemaire

Mumoffourkids said:

Are you really putting away £1400 a month for tax each and every month. That seems like a lot of money.

My partner is still paying off his tax.  He has £1300 (i think) to pay end of Jan and then a tax bill in January - so he's only just started putting £350 a week away, which will just about cover the bills.

Sarahwithlove

daniellemaire said:

Mumoffourkids said:

Are you really putting away £1400 a month for tax each and every month. That seems like a lot of money.

My partner is still paying off his tax.  He has £1300 (i think) to pay end of Jan and then a tax bill in January - so he's only just started putting £350 a week away, which will just about cover the bills.

If he is putting away 350 per week that's a lot more than his tax bills will be. 10 weeks would take him to £3500 and that only takes you to August. Maybe sit down and work out roughly how much he needs by January and then round it up to be sure and divide it by number of weeks left. Because based on current budget you aren't making ends meet to putting away 350 a week is too much 

joedenise

Why are you paying a monthly fee for Experian?  You can get your credit score free these days!

Your mobile phones are extremely expensive as are your water rates.  It is probably worth looking into a water meter as it will likely be much cheaper.

Why is your TV licence so high?  I pay £13.20 a month so even if you've only just started paying for this year's licence it shouldn't be more than £26.40 (as you have to pay first year over 6 months).

You are doing really well if your groceries really are only £100 a month!  Are you sure about this figure, it seems very low for 2 people.

Mumoffourkids

daniellemaire said:

Mumoffourkids said:

Are you really putting away £1400 a month for tax each and every month. That seems like a lot of money.

My partner is still paying off his tax.  He has £1300 (i think) to pay end of Jan and then a tax bill in January - so he's only just started putting £350 a week away, which will just about cover the bills.

I did reply to your question earlier about tax. If he has similar profits each year, then he should pay half his tax in January and half in July. I think you said earlier that his tax bill due in July was around £1400. 

So if his profits for 2019/2020 are the same as the previous year, at the end of January he should have to pay roughly the same amount so £1400. If say his profits are increased and the tax due is actually £3000 for 2019/2020, then the amount due at the end of January will be £3000 - the two payments on account so far, so £2800, so £200 owed for 2019/2020. Then on top of this, he will pay half of the tax due for 2020/2021 which is estimated at £1500. I hope this helps.

daniellemaire

UPDATE - just logged back in for the first time in YEARS. 

I've made BIG progress, we ended up on UC and in a DMP with Step Change and worked away at all of our debts. 
I sent affordability complaints to everyone and got THOUSANDS returned, and have been putting money away to do settlement offers with the remaining debts.  Also sold our car that was on finance and bought a car outright for £1900, and have just budgetted really well ever since. 

We also now have TWO children!! 

Debt total (minus mortgage) is £31,819.85... with the mortgage it's £148,026.63 - so we've paid a lot off!!  We have had to add debt to get into better financial situations, but everything gets paid off regularly and we're certainty working hard to be debt free (minus mortgage) by the end of 2026 which is our overall goal. 

I'm now back to work after having babies and my partner is self employed so we'll be able to put much more away per month as of May  

Highlanddream

You have been busy, well done you ! Fantastic news. Life does throw curve balls doesn't it.