Expenditure questions - SKY/Internet/mobile phones

[Sully]

I am preparing for my first annual review and am interested in people’s opinions, though I understand that expenditure is specific to people's circumstances. Probably like most people, we had never had to do a budget before and found it really difficult the first time round. Our main problem is that our IP exaggerated a lot of our utility bills but the problem now is that these are now an accurate figure of the bills and there is nothing spare!

Sky
Well this is an interesting one that will probably provoke different opinions. My opinion at the beginning was fair enough it is a ‘luxury’ item and if we wanted it we would have to use overtime (no overtime available for either of us, and no option of a second job for either of us). However, my opinion has changed completely on this. There is no ‘social’ budget whatsoever – this has to come out of the already very very tight food budget and you can’t go on holidays or have money for Xmas and birthdays so basically you can’t do much – so I definetley don’t see Sky tv as a treat I see it as the only thing to keep me sane! Sorry not wanting to sound pathetic or a complete tv addict but I have turned out so many invites out that people are now saying I am boring and not fun to be around anymore which is upsetting but we just can't afford it.

Internet
Another absolutely essential expenditure, my partner has to do research on the internet in the evenings/weekend for his job - without it he would be risking his job. We currently pay this with our phone bill, but our IP wouldn’t match our current monthly direct debit amount for both the phone and internet saying that the internet was not officially allowed. We are on the BT option most suitable to us and couldn’t get a better deal (had a bad experience with Talk Talk).

Mobile phones
Mobile phones are again absolutely essential in our jobs and life but this was another one that came under Miscellaneous (a £50.00 budget for over £250.00’s worth of stuff!). We honesty do not see this expenditure as a luxury because they are essential to both of our jobs (though not appropriate for our places of work to pay for them), so can this be budgeted for appropriately and if so, how much do people think is acceptable?

I still have lots more queries about different expenditure items but will send them separately so it isn't one big essay!
Thanks very much, Sully

[accgroup]

It will be interesting to see what other forum users, particularly the IPs, think are reasonable amounts of expenditure in these areas. My own views are:

Sky

Basic package £21pm. I have known creditors to insist that Sky be cancelled and replaced with a Freeview box.

Internet

Basic package £18pm, although most contracts seem to be tied in with the telephone.

Mobile phones

Reasonable contracts are available from £25/£30. Any higher and I would query. Sorry, but if a mobile is essential for work, work should pay for it.

I have recently reviewed a case where the mobile phone direct debit was averaging over £300pm!

Andrew Wilkinson
Insolvency Practitioner


AccumaGroup - A large insolvency practitioner service based in Manchester.
www.accumagroup.com

[MelanieGiles]

My views may be somewhat controversial, but here goes:-

Sky TV - I do not feel that this is luxury. Most homes have either Sky or Cable TV these days, and there are few comforts left to people in voluntary arrangmements to motivate them to work hard to fund their payments. A basic package should therefore be more than acceptable, and perhaps the films and sports add ons could be included from the miscellaneous budget.

Internet - is an essential expense these days, and creditors very rarely question this. Obviously make sure that the most cost effective package is found.

Mobile phone - I basically ask my clients what they spend. I do not think it is our job as IPs to dictate expenditure levels in any category, if the creditors wish to make those judgements this is therefore between debtor and creditors.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Oliver]

Hello Sully

I don't feel that any of your claimed expenditures are particularily unreasonable and feel we have had many similar cases go through.

Sky, can be quite contentious but we are still finding that creditors are currently allowing this expense. I also agree with you that because social expenditure is not included in an IVA it is not unreasonable to have a Sky package although you may find that the creditors query it if you have an all signing all dancing package which costs in excess of £60-70 per month.

I have never experienced a creditor querying an internet budget. This costs c£10 per month or less with some providers so can't imagine why anyone would have a problem with this expense, especially as you claim it is needed for your Partners work.

Two mobile phones at £250 does seem a lot of money although if you can prove that you need these within the course of your employment then it would be in the interests of the creditors in the long run to allow this. Perhaps I would have recommended shopping around for a cheaper provider though as £125 each per month does sound fairly high.

However, despite this, it is ultimately down to your creditors to stipulate your personal expenses and really you shouldn't have agreed to the IVA if you felt it was unaffordable. However, I am not judging you as I know how much pressure people are under at this time and often people will agree to unrealistic budgets with the best will in the world of trying to stick to them.

Outline your concerns to your IP and see if you can free up some room for these costs.

Have either of you had any pay increases which you could claim to offset by the increased mobile costs?


Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[RedDevil]

Hi Sully,

The way I see it is that if you or a member of your family needs the internet for professional or educational purposes then you should not be denied this by your IP. The internet is essential these days but as far as Sky is concerned I think not. You can get a combined broadband, anytime call package and line rental for around £25-£30 per month. It sounds to me that your IP is now squeezing you for every last pound you have! As far as mobile phones are concerned the most cost effective contracts are around £30-£35 per month per adult family member. Forget about the cash backs as especially with the small internet based mobile phone companies. My wife and I were due one each recently but the company www.3videomobiles.co.uk of Porthcawl in South Wales ceased trading just before ours were due! The owner Jason B is now driving around in a brand new Aston
Martin DB7!! How the other dishonest half live. You need cheering up but don't worry as someone else will come along a give some sound adice on what is and what is not allowable on the expenditure when in an IVA. Melanie would certainly know.

Best wishes

RedDevil [:)]

[charlottie]

Hi
We were allowed basic Sky (£21) our internet (£19) and our phone contracts (2 x £30) we were told that if we wanted to spend more than this on any of these it would have to come out of our food/clothing/contingency budget. So we stuck to these but recently changed to the whole sky package with Sky £26 phone £5 and free broadband so we're saving on the phone and the internet(although you still need BT landline £11pm). We're now approaching the end of our 2nd year. It's funny how you start shopping round for deals when your money is so restricted.
Good luck with your review.
Lotte

Lotte

[Sully]

Hello and thank you all very much for your comments which I will take on board and discuss with my partner. Just to clarify - our combined mobile phone bill is no more than £70.00 per month - the £250.00 I was referring to was the Miscellaneous costs where the budget is only £50.00.
Thanks very much, Sully

[hallway]

Hi im allowed £20 for sky,£20 internet,£30 for 2 mobiles(got a great deal with 3 mobile)£480 for food (2adults and 2 teenagers), £120 for clothes,£30 for pets,only been in iva for few months but so far managing ok, we save £15 month out of misccell in credit union so this should cover xmas, its all about shopping around and forward planning it seems.

[ray_a]

Noticed the £15.00 saving for Christmas a great idea but after the fiasco with one of the Christmas based companies going down last Christmas is your scheme save?

I get Sainsbury's savings stamps and put money on an Asda Christmas savings card.

I feel that is safe!

[zoe]

Hi
Just something to thing about.
We have Sky TV and get their broadband for £5 per month!
We have never had a problem with the broadband and is much better than the service we used to get for £30 per month with BT.
Z
x

Zoe
x
Keep your chin up - everything happens for a reason!
View my blog http://zoes.blogs.iva.co.uk/

[poppy]

Hi, in my budget I have £15 allowance for landline and internet and £40 a month for my mobile phone.