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  • FIRST POST
    • Jbsufcx
    • By Jbsufcx 31st Jul 18, 8:26 PM
    • 4Posts
    • 1Thanks
    Jbsufcx
    Outgoings more than income
    • #1
    • 31st Jul 18, 8:26 PM
    Outgoings more than income 31st Jul 18 at 8:26 PM
    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
Page 1
    • Ms Chocaholic
    • By Ms Chocaholic 31st Jul 18, 8:30 PM
    • 9,770 Posts
    • 59,135 Thanks
    Ms Chocaholic
    • #2
    • 31st Jul 18, 8:30 PM
    • #2
    • 31st Jul 18, 8:30 PM
    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?
    Thrifty Till 50 Then Spend Till The End

    You can please some of the people some of the time, all of the people some of the time, some of the people all of the time but you can never please all of the people all of the time
    • haras_nosirrah
    • By haras_nosirrah 31st Jul 18, 8:30 PM
    • 1,631 Posts
    • 2,899 Thanks
    haras_nosirrah
    • #3
    • 31st Jul 18, 8:30 PM
    • #3
    • 31st Jul 18, 8:30 PM
    Is it possible for you to get another part time job to make full time hours?
    • Jbsufcx
    • By Jbsufcx 31st Jul 18, 8:36 PM
    • 4 Posts
    • 1 Thanks
    Jbsufcx
    • #4
    • 31st Jul 18, 8:36 PM
    • #4
    • 31st Jul 18, 8:36 PM
    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
    • By Jbsufcx 31st Jul 18, 8:37 PM
    • 4 Posts
    • 1 Thanks
    Jbsufcx
    • #5
    • 31st Jul 18, 8:37 PM
    • #5
    • 31st Jul 18, 8:37 PM
    Council tax - £130 a month
    • MovingForwards
    • By MovingForwards 31st Jul 18, 8:46 PM
    • 422 Posts
    • 511 Thanks
    MovingForwards
    • #6
    • 31st Jul 18, 8:46 PM
    • #6
    • 31st Jul 18, 8:46 PM
    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
    • By Jbsufcx 31st Jul 18, 9:00 PM
    • 4 Posts
    • 1 Thanks
    Jbsufcx
    • #7
    • 31st Jul 18, 9:00 PM
    • #7
    • 31st Jul 18, 9:00 PM
    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
    • By Smellyonion 31st Jul 18, 9:08 PM
    • 136 Posts
    • 86 Thanks
    Smellyonion
    • #8
    • 31st Jul 18, 9:08 PM
    • #8
    • 31st Jul 18, 9:08 PM
    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
    • By datlex 31st Jul 18, 9:10 PM
    • 1,860 Posts
    • 1,847 Thanks
    datlex
    • #9
    • 31st Jul 18, 9:10 PM
    • #9
    • 31st Jul 18, 9:10 PM
    You may need to give up your car temporarily.
    • JayRitchie
    • By JayRitchie 31st Jul 18, 9:17 PM
    • 43 Posts
    • 51 Thanks
    JayRitchie
    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
    • By enthusiasticsaver 31st Jul 18, 9:25 PM
    • 7,405 Posts
    • 16,351 Thanks
    enthusiasticsaver
    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.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • venison
    • By venison 31st Jul 18, 9:33 PM
    • 2,618 Posts
    • 3,004 Thanks
    venison
    Unless you absolutely need a car as others have said at £160 per week to run it you should get rid for now, that would more than sort your budget shortfall out.
    Do you own the car outright? is it worth much? Maybe by selling it you could reduce your rent arrears?

    Good luck
    Looking forward to 2019 after a terrible 2018...onwards and upwards
    • Mnd
    • By Mnd 1st Aug 18, 10:48 AM
    • 841 Posts
    • 1,025 Thanks
    Mnd
    Yes, it does seem that you can't cut back much except the car, so you do need to up your income somehow as others have suggested
    • kazwookie
    • By kazwookie 1st Aug 18, 11:17 AM
    • 10,167 Posts
    • 125,659 Thanks
    kazwookie
    Can your wife get an evening job, when you are at home to look after the children?

    Can you wife work from home a few hours a day, when the children are sleeping?

    Look at all out goings and see what can be cut or put a very details break down up on this site, and the lovely folk can offer advise. ~ the car they have already done.

    Can you up your hours where you do work to 40?
    Sun, Sea
    Slinky is back on!
    • Tropically
    • By Tropically 1st Aug 18, 1:18 PM
    • 310 Posts
    • 1,057 Thanks
    Tropically
    My calculation of your income: £1,387.50/month = £346.88/week
    Car: £345.50/month

    You spend the first week of each month paying for your Audi, not your young child, your pregnant partner or your incoming infant. Not your rent arrears, council tax arrears or other debt. Those all have to be squeezed out of the other three weeks per month. The car should really go.
    Last edited by Tropically; 01-08-2018 at 2:14 PM.
    Mortgage started at £318,000 in June 2016. Original MF - 2041
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    • lindens
    • By lindens 1st Aug 18, 1:31 PM
    • 2,237 Posts
    • 7,100 Thanks
    lindens
    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
    Originally posted by Jbsufcx
    you cant afford this. get a ford focus for a couple of years
    You're not your * could have not of * Debt not dept *
    • sourcrates
    • By sourcrates 1st Aug 18, 4:09 PM
    • 15,913 Posts
    • 14,983 Thanks
    sourcrates
    Unfortunately, once bambino`s start to appear, young men have to endure a very Sharpe learning curve, out go the fast cars, in comes the cheap family hatch, i had to do it, most people have to do it, you will have to do it too.

    Can you give us more details on the historic debts you have, who you are paying, are you using a debt charity, direct payment to a creditor, or a debt management company ?


    Either way, you can get that £200 a month significantly reduced.
    Last edited by sourcrates; 01-08-2018 at 4:30 PM.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
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    • ididntgetwhereiamtoday
    • By ididntgetwhereiamtoday 1st Aug 18, 4:18 PM
    • 1,209 Posts
    • 939 Thanks
    ididntgetwhereiamtoday
    you cant afford this. get a ford focus for a couple of years
    Originally posted by lindens
    Or a matiz. Something as small and cheap as possible to run.
    If I were in that position, I would seriously consider bankruptcy and wipe the slate clean.
    I didn't get where i am today by not reading moneysavingexpert.com
    • indesisiv
    • By indesisiv 2nd Aug 18, 1:19 PM
    • 6,234 Posts
    • 20,444 Thanks
    indesisiv
    Gas and electric at £40 a month each seems high to me too.
    But without a doubt as other have said the car needs to go (210 a year on tax) if you had a different car you could save that for a start!
    “Time is intended to be spent, not saved” - Alfred Wainwright
    • Hopeless Case
    • By Hopeless Case 6th Aug 18, 5:55 PM
    • 888 Posts
    • 5,347 Thanks
    Hopeless Case
    My calculation of your income: £1,387.50/month = £346.88/week
    Car: £345.50/month


    You spend the first week of each month paying for your Audi, not your young child, your pregnant partner or your incoming infant. Not your rent arrears, council tax arrears or other debt. Those all have to be squeezed out of the other three weeks per month. The car should really go.
    Originally posted by Tropically
    That seems quite a lot for 20 hours a week, especially for a new starter, but not knowing how qualified you are of course
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