Drop in salary, and i was doing so well!

Nickynoo1

Hi Guys,

I'm gutted. I was doing so well with reducing my debt.  It was around 8.5k on c/c's at the beginning of the year and is now down to 6.5k.  I was hoping to keep on paying 500 per month and have it cleared by the end of next year.

A big problem has now come my way.  I have been getting a promotion in the summer months which boosted my income by about £400 per month from March - December.   This is now going to stop as the opportunity just isnt there anymore.  My basic income will reduce to £1300 ish per month, I may even not have a job in the new year with my current company.

I've just taken on a part time bar job to ease the blow in the future, and have worked out by being extremely tight, scrimping and scraping, I can on the lower salary pay off £300 per month (with help from bar money).

Problem is I dont know if I've been too tight with the budget.  Not sure if it's doable yet.  I'm starting a spending diary this week to find out.

Trouble is I've cut the boring bills down as low as they can go, so no flexibility there.

Here's the SOA

Mortgage 477.00
Ins 8.89
council tax 58.00
water 17.35
Gas -Elec 36.00
NTL 50.00
Plumbing cover 5.92
inc Elec cover
T.V. licence 10.49
Dogs trust 10.00
level term 18.46
Endownment 73.9
Pension 57.08
savins plan 21.66
(small endow)
car stuff mot etc 46.00
ISA 50.00

Total £940.75

x-mas/b'days 10
Going out 30
smokes 60
weekly spends 40
mobile 5
petrol 25
food 40

Total £210

H.P Loan 0% 47
mbna 0% 5
Barclaycard 0% 65

Total 117

Grand total £1267

Income
main job 1300
bar job 200
total 1500

Leaves another £233 for c/cards, if budget is doable

Another thing I was wondering about is should I just pay minimum on c/cards and put extra cash in the savings account just in case the worst happens, or pay off as much debt as possible while I can.


Your thoughts appreciated

Nickynoo1

System

If that was my list, and this is just at a brief glance, I would be waving goodbye to NTL and stopping smoking.

There's another £110 for you.

If you really don't want to get rid of NTL you could still cut down the package you are on. Looking at it, I guess you have Sky Sports 1,2 and 3 etc.

I have Sky Digital and next month will cut the sports out altogether.

With the other things it's difficult to say - only you know your exact circumstances. But those two above stuck out big time and would be the two I hit first.

zcaprd7

Dogs Trust?

Plumbing/electricity cover - is it possible to self insure i.e. save the cash and use it to pay for any repairs - or in your case use it to pay off debt?

Savings - is it possible to freeze payments on these until the debt is clear - at the moment you've spent on your cards to put into savings!

As Daveboy says give up NTL and smoking and you won't need the second job - I know what I would do - mind you work in a pub and get passive smokes for free!

Have you looked at switching your mortgage (maybe even take some equity out and pay off the debt?)

Nickynoo1

Thanks for replying,

NTL includes the family pack T.V, phone and internet. I managed to get £10 per month off just by asking. If it was to go I couldn't come on here and as I'll be staying in a lot the T.V is pretty essential, especially as I live on my own.

I know the smoking has to stop. I tried at the beggining of the year but failed. I'm building myself up to try again but I know that at the moment I will buy cigs so have to actor them in for now.

The mortgage has just been switched. I was paying £545 per month! It's 80,000 repayment so quite a good deal. Not really keen on increasing this.

I will think about phoning the pru to take payment holiday on the big endownment. Depends if I have to make up any missed payments. The small one is due to mature next year so I'd like to keep that one going.

The plumbing/elec cover. I did phone to cancel this a few months ago and they offered it at half price so I kept it. I thought it was a good deal. Mmm maybe it will have to go after all. Only claimed once anyhow.

Thanks for the suggestions so far. Lots to think about. Particulary the smoking lark!!

Any more ideas anyone??

Nickynoo

Spendless

The food bill Nickynoo. How many for? Could this be reduced? Good tips on marriage?relationship board and moneysavingoldsyle.

Nickynoo1

spendless,
food is for 1. £40 per month. Just £10 per week for everything. I don't know if that can be reduced anymore. Yesterday I spent £37.34 and I've got 30 dinners lined up. I still need to buy bread and milk next week.

Actually i might take this as a challenge next month when I go shopping again to se if i can reduce it by say a third.

thanks spendless

Woby_Tide

people reducing the amount they spend on food yet won't cut down on smoking


*smashes head against wall repeatedly*

it's willpower, thats all, just put the advert of clogged arteries on repeat and stop, it'll cut down the amount you need to eat too

Spendless

Sorry Nickynoo1 thought it was £40 a week.
Whilst i see and understand what you're all saying about smoking, tobacco is a drug and must be difficult to give up and no I am not a smoker and never have been.

Woby_Tide

I know it's a drug, just sometimes I think people aren't really willing to give up regardless what they say. I managed to quit from 30/40 a day to nothing over about 6 months. Would still have a couple in the morning at first but eventually cut those out. Hardest bit is when socialising smoky atmosphere but eventually I now find smoke makes me feel ill in laces now and have to move. i just find it difficult that people sacrifice things like food(and debts) in favour of smoking. Beggars belief personally

Spendless

I hear what you're saying. As you managed to do it successfully what about doing a thread about quitting with your tips and advice. Not sure where you'd put it but there is a loose weight thread going on I waana board

Woby_Tide

1. Smoke 60 cigarettes in 16 hours
2. Quit