Sign up and stay connected to your favorite communities.

sign uplog in
79
ArchivedComments are lockedStickied postModerator of r/UKPersonalFinance

Hi all.

I have mentioned bots on a few occasions and we have finally (thanks mostly to the help of the /r/excel mods) got something in place.

What is it?

The bot, /u/Clippy_Office_Asst has one job - to assign incremental flair to users who are proven to be helpful. The idea is to introduce a "reputation" system in UKPF, and show new users who are regular contributers who post consistently useful answers, as opposed to those who have never posted before etc.

How does it work?

Only the OP of any question thread can post the trigger:

!thanks

and the bot will assign the user +£1.

Mods can also add points using a different phrase, useful for throwaways etc.

How can regulars help?

If you post an answer, suggest that OP use the phrase if they think you've helped. Help us to spread the word and make it clear to new posters. I will discuss with the other mods about how we can introduce the concept to new posters (many of whom are throwaways or have never visited our sub before).

79
20

Hey Redditors,

I'm faced with quite the predicament at the moment and could use any kind of advice. I'm 23, and pretty oblivious when it comes to finances, which is how I have ended up in this situation. It's the final straw for me, and I'm really determined to get myself out of this mess and start planning for some sort of future, whatever that may be. Will try to be concise and give as much detail as possible.

So in terms of personal finances, I'm currently near the end range of my planned overdraft of £1500. I took a loan out of £3000 about 6 months ago to help me get out of the overdraft and get back on track. A change to an unpleasant job and a couple of mental breakdowns sent that plan down the drain. As of august, the overdraft will also be reduced to £1000.

I have just landed a dream job of mine. Its still only hospitality but there is a promising future there and organisation, something my previous jobs have lacked. On average, I should earn £1100 a month. Although a little more p/m after the probation period.

My current living situation was meant to last until September but has now been compromised and I'm to move in 4 weeks. I still have to pay this months rent (£600), which will come out of my pay check at the end of this month which is £800. I will only earn about £800 this month as I'll have only been employed there for about 3-4 weeks.

I have nowhere else to move to in terms of family or friends (based in London by the way), but there are plenty of rooms available around my current area at about the same price as my current living situation which is £650 per month.

So, my thinking is that I need to secure some sort of funding to afford a deposit which would proably be up to around £1000, as well as pay for moving my rooms worth of stuff. I need to reduce how far I am into my overdraft so that it falls under the -£1000 limit by August (Currently at -£1400) and I'm assuming that if I actually budget myself properly for once and continue to work, my pay would cover rent for my new place with a little left over that I would be able to save little by little by living under my means.

I'm a little lost though. I'm paying my current loan back at £100 a month, although I have been on time with it, and my credit score is "excellent", according to Experian... But what options do I have here? The thought of getting yet another loan is terrifying, but I don't know how else to secure the funds I need to move. I'm not sure if my bank would consider increasing my overdraft as a short term solution but it would better than taking on more credit.

My brain is getting muddled trying to process this so I hope theres enough information here to give enough perspective on my situation. Hope I don't get judged for my carelessness with money, but am in dire need of some outside wisdom.

14

I had a car insurance with the 'Brightside car insurance' for one year, then I applied again for another year (monthly payment).

Unfortunately my circumstances changed and I had to leave UK, thus I cancelled my car insurance after 2 months of being their customer. Over the phone they didn't tell me that I have to pay any charges (although I asked them twice if there are any).

To add more, I have received a letter from 'Insurance Collections Bureau LTD' asking to make urgent action and pay outstanding amount around 150GBP.

What should I do? Ignore the letter with the threat and amount to be paid or answer and pay? Also, I couldn't find anything on the brightside car insurance policy about the cancellations fees.

Appreciate any help.

14
9

I am employed full time for a Uk company earning 65k/year - 40% tax rate payer. I also have a small business on the side which is starting to make profit and Im looking for the most tax efficient way to take money from the business.

Ive seen from a google search that a wage around 8k i should take from the business, with the rest taken as dividends - BUT, I think thats to take advantage of the non-taxable personal limit. I obviously have already used this from my employment.

Therefore, in my case, should I pay myself no salary from the business but just take dividends? Is this even allowed?

Thanks

4

Do not use Purple Bricks. Do not not use their preferred lawyers PPL Premier Property Lawyers. I'm having an awfull experience with my buyer having sold through PB's and him and his buyer both using PPL. It's a shockingly poor set up with mishap after mishap, and awful coms the whole way through. My lawyer equally as frsutrated. I only now checked out reviews on them on Trust Pilot and there are nealry daily appalling reviews. Do not even except an offer from a buyer selling via Purple Bricks. My selling agent and my purchase agent in agreement to avoid at all costs.

https://uk.trustpilot.com/review/premierpropertylawyers.com?languages=en&stars=1

33

A little background. I currently earn £63k and my partner £23k, both of us late twenties. We are looking at buying our first house soon once we have an £80k deposit. We plan on having our first child in a couple of years and then hopefully a second a couple of years later.

We are struggling to decide what our budget should be. Let me use two properties as an example. First, a £300k cottage at around 600sq feet, 2 small double bedrooms in a lovely area (although no off-street parking). It also comes with planning permission granted for a downstairs extension which we’d want to do either before we move in or sometime during our first year. We could see ourselves living here for 4/5 years until we have two young children and would have to move for more space.

Second, a 1,000 sq foot semi detached £400k house in a nice area, not as desirable as the cottage but off street parking & garage with three bedrooms, ensuite etc. We would be able to live here a lot longer than 5 years. This particular house was a new build in 2014 where it sold for £260k!

The issue we are having is that we want to make the most financially sensible decision. For the 400k house we’d be looking at £1,300 a month mortgage payments (at current interest rates) but this could obviously rise. I am happy to contribute more than my partner, as necessary, due to my larger income. However, would have less money left over each month for holidays, investments, etc. We could also go for a 30 year term instead of 25 year too.

Should we buy a cheaper property for the space we currently only need or go more expensive but be able to stay there for a long time?

Thank you

2

Hi, I'm a 19 years old and I am going to be resitting Math and English GCSE this year at college.

I wanted to know if a 4 or 5 pass grade is enough to get a job with an employer or going to University?

I'm mostly interested in doing an IT apprenticeship or job after passing them later on.

Any advice or help will be much appreciated, Thanks.

8

We're looking to buy a house in the medium term, and I've recently gotten a new job which will allow me to save a lot more money.

I'm finding it hard to find information around whether we can both open a LISA to contribute towards buying the same house?

If we could both open one, I would want be contributing to both - is this an ok thing to do? Are there any rules I need to be aware of?

3

In about 2 months I'm going to be moving into a house with my GF of approx 3 years. We are looking to open a joint account to cover rent, bills, consumables etc. and wondering what kind of account would be best for that?

Is it worth opening a new current account to try and get "switching" bonuses or should I convert one of my current accounts into a joint account?

As a bit of background, my GF works as a therapist at the local hospital while I will be starting working as a junior doctor at another hospital nearby. She has been working for a year and has some savings while I am almost completely broke after 6 years at med school.

Any advice would be appreciated. I've only recently started to try and wrap my head around finances and stuff.

2

As title says, is it worth it?I am 39 years old. I have 3 years work visa. Good thing is my employer is contributing 5%. I would love to get visa extension but I may or may not be granted. I can opt out of pension plan if I want. Would it be worth to get gpp or I would be better off opting out and invest that in sip or in some mutual fund?

2
2

Hey r/PF!

I'm in a bit of a pickle and I could really use some advice because I'm getting super anxious about my current financial situation. I got made redundant from my previous job due to the shop closing down, which was fine seeing as I hated that job anyway. It also fit in nicely because the lease to my apartment was up, and so I've moved back in with my parents.

I managed to go back to an old job, but this is only part time at the moment and will be full time from September. My parents are now moving to Norfolk and I was meant to be moving in with my friend / boss in August, but my plans have kind of gone awry due to some emergency vet bills that have pretty much blown all of my savings.

I also owe £600 on a credit card. So my question is: is there even a slim possibility that I would be able to move in with my friend, or am I forced to move with my parents to the middle of nowhere?

At the moment, due to part time hours, I earn about £600 per month. I need to have around £1200 for the start up costs of moving in with my friend (that includes the referencing checks, the deposit and first months rent) which is all due on the 24th August.

I have £100 left in savings. My best friend is lending me £500. I need to save £600 in 2 months (I get paid on the 26th of each month) which would all be well and good, but I'm flying to Finland in five days for a week and a half and also have a festival in August which will really cut down my working hours, which are minimal anyway, and I can't cancel either of them because they're non-refundable. These were both booked / paid for before I landed in this mess.

Shall I just scrap the whole moving in idea and pay the money towards the credit card and just suck it up and move to Norfolk? I don't have any other family around here that I could move into and all of my friends still live with their parents, so I can't stay with any of them.

I don't owe any money apart from the £600. I don't have an overdraft or any other loans to pay back or anything. Should I perhaps look into getting a loan to help pay the start up fees / pay off the credit card and then just focus on paying that back monthly?

Thanks!

2

I have a default on an old account (a student overdraft), it has been fully satisfied and is a few years old, however as I have recently been trying to get a mortgage I have only recently been looking into it and a few things do not add up.

According to my credit report it seems as though the account was defaulted about a month after I had set up an agreement with the bank to pay back the money, but I remember the bank telling me the account had already been defaulted when I called them up to arrange paying back the overdraft after receiving a letter from them.

Is this allowed/standard practice? Obviously this is causing massive problems and stress for me with regards to a mortgage and making it nearly impossible.

Any help or advice is massively appreciated, thanks.

2
8

Hi all,

First time post in here...

I'm 26 and am in a situation where I've managed to save £30k through living at home outside of London.

Salary

My salary is around £40k a year with bonuses etc which I realise isn't too bad for my age.

Savings

At the minute I've got £3k in a Vanguard S&S ISA and making regular £200 a month contributions.

I'm paying in 8% of my Salary to my pension and my employer is paying in 12%.

I'm saving about £1300 a month.

Situation

I'm not planning on buying a house for the next 3-5 years probably and want to understand what I can do to maximise the money that I've got.

Is it better to up my contributions to my Vanguard account? Or set up a Help to Buy / LISA (slightly reluctant for the LISA in case I end up getting a buy-to-let).

Any advice is welcome and very much appreciated!!

5

I work for a large telecoms company, I've been here 10 years and in a few months time I will be being made redundant. My severance is not going to amount to much maybe 3 months wage (just under 7K) my Wife also works here but has been here less time and may well get a months worth ( 1.2K) Here's where i'm really stuck.

We have been paying off debts on a voluntary plan happily for the last few years and are 3 years into our 5 year plan, its £100 a month and we have never had a problem managing it. I also have a loan that totals 150 a month that i've been running on repeat for about 6 years now (i know its stupid the interest is damn near 100% but my credit is trash) We retook out the loan a few months before we found out we were being made redundant, it was affordable and meant i could fix up my car and continue working without getting a new car on HP. so in total there's 250 that needs paying out for two years. 6K total.

So here's where i'm stuck.

Option 1 - We both get new jobs and use the money as savings.

Option 2 - We both get new jobs and go for a mortgage and try and get a cheap house, problem here is our credit as mentioned above is trash. Realistically we will chip away at that money til its all gone.

Option 3 - Invest - I know nothing about investing i'd need to find a guy and I imagine this isn't enough capital to see any huge returns?

Option 4 (the one i'm considering most) Using the money to try to start my own business. I don't know whats out there to help me, despite my poor credit I have a pretty decent head for business and a decent work ethic, my idea is pretty strong and has a pretty high startup but low day to day cost with a fairly high return. It's been a dream to pay my own way but holy shit where do you even start lol

Option 5 - Fu**ItALL - Blow it on a family holiday and create some memories before going back to the grind stone.

Option 6 some combination of one or all of the above?

A little background - we are both in our 30's, no kids/pets or commitments beyond the 250 a month. I don't want to start over at 30 and ideally would like to start to build for some kind of future. Just don't know where to start. We made bad decisions when we were students and got ripped off by a dodgy finance company, we are just starting to get clear of all of the debt that was wracked up. Always the way, there was light at the end of the tunnel, then it caved in.

1

Sorry for the simple question but this has confused me of late. My wife contributes to the bills and is not dependent on my income = not dependent? What if she isn't in work but is still contributing? Still not dependent?

I assume if she's relying on me to pay the bills, it would be classed as dependent? She's actually doing the second but I'm not sure how to class this appropriately

1
1

Hi,

I’m doing my car insurance for my first year of driving with 1 years no claims. When I’m doing an quote search every insurance company popping up has a £3000 compulsory excess. How would this affect me if I were to have an accident? I’ve also set my voluntary excess to £500

1
comment
3

Hello all,

I may be changing my job soon and the topic of holidays has come up with HR. I thought I accrued 25holidays per year at a rate of 2.08 per month. However, I thought I accrued 2.08 per month as long as I was employed in that month, the person I'm dealing with seems to be saying I don't get any holidays for July.

Has anyone got a clue around this subject and could help me understand how this generally works?

Thank you!

4

Hello Everyone,

I am building an app where I can scan receipts I get from shops/ restaurants etc. and instead of seeing my spending like "£15 in Tesco (Categorised as groceries)" I see "£15 in Tesco on water, burgers, rice, duct tape etc.".
For me, it is more interesting to see what takes the biggest part of my budget and not necessarily where I buy stuff.
What do you think? Would the app like this work for you?

1

Hi all,

from previous threads here, the consensus seemed to be that you should get your hands on all possible credit, utilising 30% or less. That was in essence doing the best you could in terms of dealing with credit.

I've now hit a snag with this where I need to shift some minor debt of 1000GBP which I can clear right now, but wish to do a balance transfer in order to let it decline further in value. Unfortunately, with a bunch of the offers available, I'm not eligible due to already having a credit cards with most of these banks.

The above seems to suggest it isn't the best idea to fill up on as much credit as possible, so what is the best approach? Just grab it when you need it?

1
1

So I visited the bank about 2 months regarding starting up a joint acc and the lady said I should think about a credit card and gave some info.

I wasn't thinking about credit cards but I decided to apply for one there and then just cos why not.

I haven't used it yet... it's not even signed at the back. Ive changed my mind I don't want it.

For reference I'm registered with Lloyds and I'm f20

1

I already have a S&S ISA with HL, so I decided to open up my LISA with them too, I know they're not the cheapest, but I like the service they offer.

I opened my LISA today with a £4K lump sum. I've been contemplating what to do with this cash. Realistically, I'd be looking to buy in about 5-10 years, probably on the higher end. This isn't a particularly long time so I guess I should go for something with lower risk.

I'd like to know what general strategies you would recommend. Put it all in bonds? Use a global tracker? Something generally well diversified? I'd be interested to hear.

6

I'm looking to take out a loan from my bank (Nationwide) to buy my first motorcycle. From what I've budgeted, I shouldn't need more than £3000. However, if I take a £3000 loan over two years, the interest rate would be 10.7% meaning I'd pay an extra £330 on top of the loan.

If I instead take a £5000 loan, the interest rate drops to 4.5% and I only pay £230 on top of the loan. From what I can see there doesn't seem to be a charge for overpaying on your loan although your monthly repayments won't change.

Is it worth taking the £5000 loan and dealing with the higher monthly repayments for a lower total fee or is there something I'm missing?

1

Hi everyone,

I have an intelligent investor ISA account, mainly because I want a mix of funds and single stocks (otherwise I’d have gone the vanguard isa route).

My plan is to place the bulk of my money (around 80k) in some kind of tracker and the rest (around 10k) in single stocks.

My question is - all of my research has pointed me to the vanguard s&p500 tracker VOO or its fund equivalent.

Everyone here seems to love the LS100 fund and I guess I’m wondering why based on previous 10 year returns vs VOO?

Are tax/exchange rates taken into account when favouring LS100 over VOO?

Is it just the diversification that drives people to it?

I’m wondering what people’s opinions are about this as I’m quite impressed at the performance of VOO as a set and forget style tracker.

6

[savings] Have sold a house and will be looking to buy another probably next year. Some of the equity will be going into PBs and an ISA but that will leave about £100,000 left to be invested. My partner and I are both basic rate tax payers.

Anyone in a similar position with any tips on what savings accounts we should be investigating?

5

Should you take as much loan as you can during your university years?

My average salary is in the range of £40k-£80k depending on experience. I am earning £25k on my 3rd university year placement. If I plan on doing masters then it might be worth because I'd never pay it off if my salary increase gradually.

I was thinking of taking the money invest in either index funds or put into LISA for my future property.

What are your opinions?

4

The Situation

Sadly, my friend's Dad has been diagnosed with terminal cancer and while he's in good form for the time being, my friend is understandably keen to help his Dad get everything in order for the inevitable.

The Estate

I had a brief chat with my mate last night and the good news is, his Dad's estate isn't that complicated. It basically consists of:

  • A pension of around £100K. I think it's just a bog-standard workplace pension scheme.
  • A couple of bank accounts, assume a maximum of an additional £25K.
  • Quite a lot of personal possessions, some valuable music memorabilia.

His house is rented, not owned/mortgaged.

The Plan

The estate is to be split evenly amongst his four kids. His personal effects will be given to them as-is rather than having to be sold first, from what I understand.

My friend is likely to have quite an active role in proceedings as he's viewed as the most responsible of the four children. He's already been made 100% beneficiary of the pension and his Dad is trusting him to split it equally.

Questions

  1. Am I right in thinking that there should be no inheritance tax to pay, due to the value of the estate?
  2. Would it be more straightforward to make each child a 25% beneficiary of the pension?
  3. Should my friend get Power of Attorney for his Dad?
  4. A will for an estate like this is reasonably straightforward, isn't it? Am I right in thinking that we could probably get a template online and then have it witnessed at a solicitors?
  5. It would be best to specify a trusted executor who doesn't benefit from the estate, wouldn't it?
  6. Any other advice/recommendations for the situation?
Community Details

40.8k

Subscribers

624

Online

Discuss, learn and request help on how to obtain, budget, protect, save and invest your pounds and pence. A UK-centric personal finance subreddit.

Create Post

Discord

Discuss your pounds and pence in realtime, join the UKPF Discord!

Reputation system

If you post and a response helps you, please reply to their comment with

!thanks

you will see a number by commenter's names - this is the number of times they've been thanked for their comments.

Only the thread poster and mods can use the !thanks command

r/UKPersonalFinance Rules

1.
R1: Be Nice, Civil Discourse, Don't Pass Judgement
2.
R2: No low effort self-promotion or referral codes
3.
R3: Read our Wiki & sidebar first
4.
R4: Tag your posts
5.
R5: No discussion of matched betting
6.
R6: Discussion should be on topic and in-depth
7.
R7: No trolling, low effort content, bots or memes
8.
R8: No politics
9.
R9: No market or exchange-rate timing questions
10.
R10: No discussion of illegal activities

Important Info

This subreddit is not a source of regulated financial advice, posters may not be qualified in any way.

Treat any information, recommendations or "advice" that you read here with caution and always do your own research.

For financial advice, consider seeking out a professional. You can use the following sites to help:

www.findanadviser.org

www.unbiased.co.uk

www.vouchedfor.co.uk

Debt problems?

Speak to StepChange, a debt-management charity, and/or Citizens Advice

Cookies help us deliver our Services. By using our Services or clicking I agree, you agree to our use of cookies. Learn More.