Outgoings more than income

Jbsufcx · 31 July 2018 at 8:26PM

Hello, I am 23 years old and private rent with my partner who is expecting a bay and we have a little girl who is nearly 2.
I have just started working 20 hours a week and have applied for universal credit to help with living costs. However I have done a calculator and my outgoings are £127 a month more than my total income.
I am full with worry of what to do next as my partner can't help for obvious reasons it is fully down to me to cover all costs.
A breakdown is as follows:

Monthly

Rent - £550 a month + £100 agreed arreas repayment (balance currently stands at £3,000.) So total £650 a month

Car Insurance - £228 a month
Car fuel - £100 a month
Car tax - £17.50 a month

Debt creditor repyaments - £200 a month (Mostly loans ect when i was young and totally destroyed my credit rating and was told ths only way to improve is to pay them off. Some are mandantory council tax arreas debts )

Gas - £40 a month
Electric - £40 a month
Tv licence - £25 a month
Water rates - £34 a month
Broadband - £30 a month
Phone contract - £30 a month

Food shop - £120 a month

I think I have got all of my outgoings but it just just relentless and I can't manage it.
Any help would be greatly appreciated. Thanks

Ms_Chocaholic · 31 July 2018 at 8:30PM

Is the car insurance cost - £228 pcm correct? It seems a lot.

When does your phone contract end - £30 pcm seems excessive, I pay £10 on a SIM only plan.

Water rates - can you get a meter installed and cut the cost of this by about £10 pcm (I pay £18 pcm for 2 adults).

Is your gas/electric in credit?

You haven't put anything down for Council Tax.

Also you need to add on child benefit as an income. Is the older child yours too?

haras_nosirrah · 31 July 2018 at 8:30PM

Is it possible for you to get another part time job to make full time hours?

Jbsufcx · 31 July 2018 at 8:36PM

Yes car insurance is correct £288 pcm.. I have 3 points and no NCD maybe thats why it is so high

Water rates is including arreas so that is the minimum I can pay

Jbsufcx · 31 July 2018 at 8:37PM

Council tax - £130 a month

MovingForwards · 31 July 2018 at 8:46PM

Tv licence is just under £13 pm unless this is your first one? Do you have cable/sky? Or is it freeview / netflix you have?

Broadband shop around as I am sure you could trim that down.

When your car ins is due for renewal shop around, a lot, maybe pop into a local broker and see what they can find for you.

Do you drive to work? If so how far from home do you work and what kind of hours do you do. May be cheaper by bus/train/cycle and put the car on the back burner til you are more stable.

Companies are starting to advertise for xmas staff, see if you can secure some seasonal work.

Supermarkets tend to offer parttime jobs for 8, 12, 16 hours pw.

You need to find a way to earn a bit more money.

Breakdown your debt payments as you may be able to get them lower. Also with the water if you explain your circumstances they should reduce the payment. You may even be able to apply for a grant to pay off the debt and give you a clean slate.

Jbsufcx · 31 July 2018 at 9:00PM

It is a 2.0 litre audi a4
Maybe the insurance group is way too high. Im going to run a few quotes on cheaper lower engine cars to ser what prices come back

Smellyonion · 31 July 2018 at 9:08PM

2.7k on car insurance a year is huge. Add your petrol and road tax, you're at over 4k a year in maintaining that vehicle and that doesnt include any servicing, depreciation etc.

You have only just started working 20 hours a week? So what did you need the car for?

datlex · 31 July 2018 at 9:10PM

You may need to give up your car temporarily.

JayRitchie · 31 July 2018 at 9:17PM

I don't think you can afford to run that car - and probably any car for a while. Do you need one to work 20 hours a week? Any reason you don't work full time?

enthusiasticsaver · 31 July 2018 at 9:25PM

The car is definitely too high powered for someone of your age and the insurance is too high. If you can give up the car that will help or sell it and buy a much smaller engine car which will be lower insurance. No way can you afford that insurance. Getting a 2nd job is essential as 20 hours is only part time. Borrowing money will not help you so I would stop paying the creditors. You could ring stepchange or just default and tell your creditors you cannot repay the debts. Yes it will destroy your credit record for 6 years but it is already destroyed and taking further debt out will make things worse.

Priority debts are rent, council tax, utilities and food. Nothing else. Any unsecured debt will have to take what is left after you have reduced everything else to the bare minimum. Ideally if you can do without a car that will help further.

Outgoings more than income

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