quick question are household expenses split 50 50 when doing a SAO

stu12345_2

when doing a financial plan for creditors, are household bills and running costs split 50 50. for a couple living together., regardless  of they earn different amounts
eg by standard sharing and  contribution rules to show creditors what you can afford to pay back if any.

and if one partner has a car in their name and runs it  and say pays etc insurance bill in one name only ,but both use it  , are those car expenses split 50 50 as well.

EssexHebridean

This could really have gone onto your previous thread I think - might have been easier to keep everything in one place?

if this relates to your wife’s new situation in relation to her DMP, then any SOA she is doing in relation that that should show her outgoing exactly as they are - that will then be effective in showing that she has no surplus available to make payments, no?

If it was to be a household SOA for budgeting purposes, then it needs to include all your income, and all your outgoings, as a household.

stu12345_2

was reading debt camel site tonight. it suggests 2 methods.

one  way is the split the expenditure method is to divide all  shared bills via a simple  5050 split , eg gas, rent, food, council tax, then work out partners individual bills eg her/his clothes, haircuts , taxis, petrol, hobbies and add them on to give grand total.

or do it based on income eg if one earns more than the other, work out the ratio of how much each earns, the use that ratio to work out how much  you should pay to the shared  household bills.( but add on personal expenses at the full amount though)

debt camel suggests that dmp creditors don't like the split the expenditure in half  method , they want to use the income ratios method
.

but the income ratio method split does not take into account if the other partner currently has large amount of debts as well., thus it would not be accurate unless you were prepared to state partners debts or income, which you  don't have to give out in a DMP to creditors

sourcrates

Stu, 
In the end, forget SOA`s, your digging far too deep into things.

The usual course of events is this, go to DCA website, register for an account, click on "make payment offer" enter what you want to pay, job done....next.

It requires no more thinking than that.

Rob5342

I just did what Sourcrates says. I sat down with my wife and worked out a budget for ourselves, and then just told all the creditors what the amount we had decided on.was. 

stu12345_2

Rob5342 said:

I just did what Sourcrates says. I sat down with my wife and worked out a budget for ourselves, and then just told all the creditors what the amount we had decided on.was. 

hi Rob, how did you divide up your incomes into how much to pay creditors.

yes wife and  I currently do what you said,  make a standing order, when our incomes were exactly equal.cos we had the same jobs for the same employer.

but as I said, I now earn 4 times what my wife earns.

Floss

Stu, when I first set up my DMP I split the total available by the percentage of each creditor as part of the total debt.

For example, total debt £30k, amount available £120. Debt A £8k, debt B £7k, debt C £9k, debt D £6k. Debt A is 26.67% so £32.04, debt B is 23.33% so £27.96, debt C is 30% so £36 and debt D is 20% so £24.

stu12345_2

Floss said:

Stu, when I first set up my DMP I split the total available by the percentage of each creditor as part of the total debt.

For example, total debt £30k, amount available £120. Debt A £8k, debt B £7k, debt C £9k, debt D £6k. Debt A is 26.67% so £32.04, debt B is 23.33% so £27.96, debt C is 30% so £36 and debt D is 20% so £24.

 I get that bit, the bit I was asking which 
ls the  fairest method to work out how much one partner should pay to their debts when they earn far less than their partner.

eg split Household bills 5050 or do it by the ratio of earnings compared to the higher earner, thus 

 the lower earner who then only pays little to the house upkeep, thus has more money to put to their debts or rather than a straight 50 50 split for household bills method which would mean they have less money left over to put towards their debts

Martico

I've been following your threads, but not commented yet. I get your anxiety, and hope you get through it all. And love your desire to get things right for you.
On the relationship splits re income/debt: honestly, that is something for the two of you to discuss together and work out between yourselves to get to the best solution for the both of you. I suspect there's no "one size fits all" answer, it'll be something you'll need to work out between the two of you

Rob5342

How things are split is a very personal thing and is something you need to work out for yourselves. Some people are happy to lump all their money together and pay for things as necessary, some people like to keep the money for themselves. It will also depend how the debts were accrued, people might want to treat debts accrued jointly to debts on it both of you already had.

Forget about the creditors or any rules, just decide between yourselves what you want to pay and where it will be coming from. Then just tell try creditors what they'll be getting.

stu12345_2

thanks Rob, I know folk always say ignore creditors rules. its just I read debt camel website alot, very useful. and it states if you have a partner move in with you  or  currently live with them and contribute their wages to the household.

then you have to now work out how much they earn  and your earnings and now work out your new amount to pay to your debts.

it has numerous folk asking similar questions and  sarah from debt camel states now you will have to work things out if you are no longer living on your own and paying back debts.