Income/Expenditure breakdown

[Meg888]

I have to do a summary of inc/exp for a debt management company. My house was repossessed 2 yrs ago, and this company is acting on behalf of my then lender to see whether or not I can pay the balance.

When my house was gone, I moved in with my partner into his house and basically share the bills and living expenses with him. I have no assets and my wages, (I'm not a high earner) are paid into his bank. I also have a 14 daughter, who is not my partner's.

On top of the usual rent/utility payments/fuel costs etc. are there any other amounts I am entitled to put down i.e. a monthly clothes allowance - things like that? Thanks in advance.

[TheNovice]

you can put clothes, as well 'gift money' i.e birthdays and Xmas. Remember to include any insurances you may have (life/possessions etc) as well as a daily living allowance (lunch/fares etc) and of course your weekly shopping bill.

[Meg888]

Thanks Novice. Am I allowed to include for things like lottery & wine, any other form of social life? Ha, I know it sounds like I'm taking the proverbial, but it's what lots of people spend their money on isn't it?

[rowanwitch]

Remember things like health costs prescriptions, glasses dentist costs
Costs incurred for work travel, lunches

Private travel don't push it but no one queried £20 per month when I had to do it

A small amount for clothes as you work you should be allowed a bit for things like working wardrobe tights etc I found £25 a month was accepted without question with inflation I'd try £35 now make sure you put clothes for work only

A small amount for personal grooming six reasonable hair cuts a year but not colours about £15 a month as £30 is a reasonable price for a cut/blow dry every other month plus a few essential toiletries essential in the workplace (if your employer has a dress code include a copy with your statement as evidence of the standards expected)

personal insurance if you have it

Not lottery or wine per se but try putting a small amount say £30 per month for social activities they may discount it they may not or show it as support for your daughters social activity as well

Mobile phone only at a level that would cover emergency and essential use you are unlikely to get much allowed and certainly not new phones or upgrades neither will they be happy if you are paying for a phone for your daughter other than a basic £10 a week payg type for emergencies

Its a matter of thinking how can I apportion all my income in such a way as it looks like I would be placed in genuine hardship if I had to pay anyone extra rather than showing you have luxuries that can be pruned back to free up money towards the debt

The key phrase is placed into a situation of hardship that doesn't mean losing luxuries but being denied necessities

[Meg888]

Thanks Rowan that's great stuff. I have the use of a car, basically it was my partner's and he got a company one so no longer had a use for it, so I took on the payments of it. The finance is in his name but I pay it. I live 25 miles from my work & daughter's school, so it is essential. I also have to attend regular hospital/school appointments for my daughter as she has mild special needs. Other than road tax am I allowed to put an amount in for car maintenance? thanks again for great advice.

[themas]

Start by asking yourself whether you ever have any money left at the end of the month. If the answer is yes & it happens fairly often, then it is reasonable for at least that amount to be paid to the creditor.

Then - whether the answer is yes or no - you need to work out what you spend your money on. Some things you obviously put down - whatever you give your partner as a contribution to rent, utilities etc.; whatever you spend on food & other housekeeping items, including a sensible amount on alcohol; travel costs including everything you spend yourself on the car (finance cost, road tax, fuel, MoT, servicing, insurance if you pay them all); expenditure for your daughter including for her reasonable social life; all the other items mentioned in previous posts. This may end up with you not having any money available for the creditor, in which case you put forward a nominal payment offer - e.g. £1 per month.

[Meg888]

Thanks Themas - my total income consists of my wages & child benefit. I do not get any maintenance for my daughter (I personally chose not to pursue this when I split with my ex, and still don't wish to). I have also been told I may be entitled to some sort of disability benefit for my daughter; would this (if I got it) and the child benefit be taken into account? If not, should I deduct the amount of outgoings spent on my daughter?

[themas]

I take it you are referring to Disability Living Allowance for your daughter. If she got this it is her benefit, not yours. However, it is quite usual for it to be shown on a family income & expenditure statement as part of the income, with the same amount shown on the expenditure side simply noted as disability expenses for your daughter. This should not be queried by any reputable creditor or agent.

The child benefit is a bit different because it is paid to the parent and treated as an ordinary part of the household income. In other words, it contributes towards things such as clothes, social life, gifts etc. for your daughter. So it should be shown as part of the relevant expenses items & not separately identified.

[cathfromsaron]

i sympathise, and the company should be earning their fee by helping you with this!

cath x