Big life decision

IndiJonesi

@EssexHebridean do you get the midgies over on the islands in the Summer?  

EssexHebridean

IndiJonesi said:

@EssexHebridean do you get the midgies over on the islands in the Summer?  

We've only ever been across at the very beginning or end of midge season - but yes, they do definitely arrive. The beauty of the islands is that as a general rule it's windy - still days are the exception rather than the rule - and midges don't like wind! They drive you barmy though don't they! 

PM22

I am going to Cumbria on 01/06 for 3 days but I don't feel brave enough to move there as I can't be sure I'll get a job
so I'm probably going to stay here for a few more years.

I have done my budget with Step Change and they basically said there isn't even enough for token payments.
What will happen next? I don't have time to call them....

enthusiasticsaver

Presumably you will have to default on the debts and they will probably sell them on.  I doubt they will proceed with any action assuming they are all unsecured though.  If I were in your position I would just write to them telling them the situation and leave it in their hands.  If things improve you can contact them to make arrangements or they will fall off your record in 6 years. FWIW I think you are doing the right thing staying put until you can be sure you can find work in any new place you move to. 

Sncjw

Could you post your statement of affairs on here see if we can help you with your budget. It concerns me when you said you don't have enough for token payments. What about is something happens and you need money to pay for it? 

EssexHebridean

I'd second the suggestion for posting an SOA - the link is in my signature to one of the calculators we recommend, if that helps. We can take a look, see if we can identify any savings that can be made that you have been missed, and better suggest ways forward for you when we can see what position you're working from. 

Moving away doesn't need to be completely disregarded as an idea, just put on a list of "things to do one day, but not quite yet". The time in between gives you a great opportunity to get your financial house in order, and also to start considering different areas, visiting, and really learning what places you think you might be interesting in living one day are like. 

PM22

My SOA basically goes like this for myself and son, 18, currently working for £90 a week supporting himself and taking A levels

Income 1825 + 21 per week child benefit 

Mortgage 565
Rates (variable, ex LA flat, cheapest flat in this town at the time of buying) currently 39 per month 
Council tax 111
Gas 89
Electricity 75
water 12.89 southern water 
water 13.08 thames water 
broadband 33
o2 mobile phone 42
Boiler insurance 33 (think I'm repaying from last years missed payments) 
tv licence 40 (repaying missed payments)
food 52 per week
diesel 35 per week to get to work and supermarket only
car insurance 40 
Prescription PPC 10.49
pet insurance 15
course fees 201.25 until December 


Luxury: contact lenses 27 per month (I know, I know) = 1723.71

Yearly 
MOT
Servicing/repair old car 12 years old ?
car tax 20 per year
Registration/CPD dental nursing 158 per year just to be able to work, not paid by the employer
Emergency fund?

EssexHebridean

PM22 said:

My SOA basically goes like this for myself and son, 18, currently working for £90 a week supporting himself and taking A levels

Income 1825 + 21 per week child benefit 

Mortgage 565
Rates (variable, ex LA flat, cheapest flat in this town at the time of buying) currently 39 per month 
Council tax 111
Gas 89
Electricity 75
water 12.89 southern water 
water 13.08 thames water 
broadband 33
o2 mobile phone 42
Boiler insurance 33 (think I'm repaying from last years missed payments) 
tv licence 40 (repaying missed payments)
food 52 per week
diesel 35 per week to get to work and supermarket only
car insurance 40 
Prescription PPC 10.49
pet insurance 15
course fees 201.25 until December 


Luxury: contact lenses 27 per month (I know, I know) = 1723.71

Yearly 
MOT
Servicing/repair old car 12 years old ?
car tax 20 per year
Registration/CPD dental nursing 158 per year just to be able to work, not paid by the employer
Emergency fund?

By "Rates" you mean service charge I assume?
Your combination of broadband and mobile is definitely pricey - you could do better on both. Have a look and see when either are out of contract, and then make a diary note to call up a month before the end of the contract on the mobile and ask to be switched to the cheapest SIM only deal - if it's more than around £10 a month tops, tell them you're leaving as you can do better. with the broadband, you should be able to get around £25 a month for a fast fibre connection - less if you're happier with slower speeds. Easiest thing on that is probably just to switch when your contract ends as it will be less time consuming in most cases than haggling
How much more to do you have to repay on the TV license - ie when will it return to the standard £13.37 (I think that's current?) 
Have you shopped around on the contacts to see if you can get them cheaper? If it's disposables, can you switch to using them every second day to make a batch last longer, or is it cheaper to buy in more bulk if you can come up with the cash to do so? Check out buying via TopCashBack or Quidco too. 

On the annual costs - you do budget and put these aside, I hope? 

By my reckoning you should have around £400 - £500 a month spare from what you have listed in your monthly expenses above.  Flagged as incorrect - I missed that some of the amounts listed were weekly spends! However, you're not listing savings for presents, clothing, haircuts, home contents insurance (do you pay this monthly or annually? If you could manage to pay annually it would be cheaper overall - same with the car insurance - those are both things to start saving some of your surplus towards. You've got nothing on that list to cover entertainment either - or any other expenses associated with your son - although fair play to him for working and supporting himself like that. I'm pretty sure others will point out things that have been missed, too.

You definitely need an emergency fund too - something else to budget. 

If I were you I'd play with the SOA calculator linked from my signature and start seeing what you might be able to put into savings, how you can save for things like insurances upfront, and also that will help to prompt anything else you might have forgotten to add in the calculation you've done above. 

PM22

Hi,

Thanks for your reply. 

The broadband is still in contract - can I still change it? 

The TV licence will return to £13.37 in 3 months....may get rid if son goes to uni as I never watch tv

Contact lenses are cheapest monthlies you can buy as special prescription and dailies are more expensive...I only need them as I can't wear glasses and a visor at work 

Rates are the service charge but doesn't usually go over £39 per month 

The mobile is cheapest as it was a bipolar purchase iPhone 13 or something so paying for the phone and contract> I regret it deeply 

Monthly income is 1916, bills as listed above are 1723. I suppose StepChange added on all the yearly bits and they have said I don't have enough for token payments but I don't know what will happen next....

Soundgirlrocks

EssexHebridean said:

food 52 per week
diesel 35 per week to get to work and supermarket only

By my reckoning you should have around £400 - £500 a month spare from what you have listed in your monthly expenses above. 

I did the maths and I think EssexHebridean missed these as weekly costs

By my calculations you have £151.29 a month for emergency fund / yearly bills that will increase to £177.92 once the TV licence is up to date.

Are the course fee for your son? 
What's the distance  to / from work? would cycling be an option? - getting rid of the car would save £180 a month plus the annual costs