New SOA - can you take a look please

louby40 · 11 July 2017 at 8:51AM

I've just had a new kitchen and have taken on more debt, luckily it's on 0% and should be paid off in 2 years. I'd like to pay it off sooner if I can but want to enjoy life and not be totally scrimping.

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2198
Partners monthly income after tax....... 400 -this is actually rent from my partner house is in my name and he isnt on any of the bills
Benefits................................ 82
Other income............................ 280
Total monthly income.................... 2960

Monthly Expense Details
Mortgage................................ 566
Secured/HP loan repayments.............. 194 car loan has 18 months left to run
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 123
Electricity............................. 44
Gas..................................... 44
Oil..................................... 0
Water rates............................. 29
Telephone (land line)................... 0
Mobile phone............................ 21
TV Licence.............................. 12.12
Satellite/Cable TV...................... 8.99
Internet Services....................... 28.5 this includes landline and broadband
Groceries etc. ......................... 300
Clothing................................ 20
Petrol/diesel........................... 40
Road tax................................ 11
Car Insurance........................... 29
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 8 I've actually already paid this for the year and includes contents
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 15
Entertainment........................... 40
Holiday................................. 0
Emergency fund.......................... 100
Gym..................................... 28
Music................................... 7.5
Total monthly expenses.................. 1689.11

Assets
Cash.................................... 1350
House value (Gross)..................... 185000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 190350

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 96977....(566)......2.55
Hire Purchase (HP) debt ...... 3666.....(194)......9
Total secured & HP debts...... 100643....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Kitchen........................12400.....500.......0
Barclaycard....................700.......50........22 aiming to pay this off by the end of the year
Total unsecured debts..........13100.....550.......

Monthly Budget Summary
Total monthly income.................... 2,960
Expenses (including HP & secured debts). 1,689.11
Available for debt repayments........... 1,270.89
Monthly UNsecured debt repayments....... 550
Amount left after debt repayments....... 720.89

Personal Balance Sheet Summary
Total assets (things you own)........... 190,350
Total HP & Secured debt................. -100,643
Total Unsecured debt.................... -13,100
Net Assets.............................. 76,607

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.[/font]

StopIt · 11 July 2017 at 8:57AM

Is your SOA honest and accurate?

You have £700 on an interest paying CC, yet you say you have £700 free a month.

Either take a hit for a month and pay the CC off in full, or draw up an SOA that is more accurate as paying interest on a debt when you have a surplus to easily cover it doesn't make any sense.

Aside from that, you have one other interest bearing debt, the HP, can that be overpaid too to save interest?

EssexHebridean · 11 July 2017 at 9:48AM

Coments in red as usual...

louby40 wrote: »

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2198
Partners monthly income after tax....... 400 -this is actually rent from my partner house is in my name and he isnt on any of the bills
Benefits................................ 82
Other income............................ 280
Total monthly income.................... 2960

Monthly Expense Details
Mortgage................................ 566
Secured/HP loan repayments.............. 194 car loan has 18 months left to run
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 123
Electricity............................. 44
Gas..................................... 44
Oil..................................... 0
Water rates............................. 29
Telephone (land line)................... 0
Mobile phone............................ 21
TV Licence.............................. 12.12
Satellite/Cable TV...................... 8.99
Internet Services....................... 28.5 this includes landline and broadband
Groceries etc. ......................... 300 This is very high for a family of three -
take a good look at what you're buying and where you're shopping. Meal plan and shop to a list.
Clothing................................ 20
Petrol/diesel........................... 40
Road tax................................ 11
Car Insurance........................... 29
Car maintenance (including MOT)......... 20 Does this really cover everything?
It's not very high when you think about servicing, MOT, tyres and other depreciation
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 8 I've actually already paid this for the year and includes contents So you're now setting that £8 per month aside into an account to save for next year's premium, yes?
Contents insurance...................... 0 Why nothing in here? You need to sort that urgently.
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 You don't buy any presents at all,
ever?
Haircuts................................ 15
Entertainment........................... 40
Holiday................................. 0
Emergency fund.......................... 100 I assume this is the cash shown in cash assets below?
Gym..................................... 28
Music................................... 7.5
Total monthly expenses.................. 1689.11

Assets
Cash.................................... 1350
House value (Gross)..................... 185000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 190350

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 96977....(566)......2.55
Hire Purchase (HP) debt ...... 3666.....(194)......9 Ouch to that rate - is this the car loan?
Total secured & HP debts...... 100643....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Kitchen........................12400.....500.......0
Barclaycard....................700.......50........22 aiming to pay this off by the end of the year End of the year? C'mon - you can do a LOT bvetter than that! That's a horrific interest rate too.
Total unsecured debts..........13100.....550.......

Monthly Budget Summary
Total monthly income.................... 2,960
Expenses (including HP & secured debts). 1,689.11
Available for debt repayments........... 1,270.89
Monthly UNsecured debt repayments....... 550
Amount left after debt repayments....... 720.89 Do you actually have this each month?

Personal Balance Sheet Summary
Total assets (things you own)........... 190,350
Total HP & Secured debt................. -100,643
Total Unsecured debt.................... -13,100
Net Assets.............................. 76,607

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.[/font]

OK all in all that looks good BUT there are things that don't add up - that surplus for one. As StopIt says - it's mad to have that level of surplus but be clocking up interest on a CC every month - and a good lump of interest too. I'd also say if you're aiming to have it cleared by the "end of the year" how is £50 a month paid to it going to do that?

Allowing for that amount of surplus (which equates to £8640 a year, to put things into perspective) I'd suggest you hammer the interest bearing card down first off - pull your belts in while you've got the novelty of the new kitchen that you want to cook in and you can take £100 off that grocery bill easily enough - that clears the card inside a month and still means you've got "spare" money. Once the card is gone that then increases your monthly surplus with the food budget savings to £850.00 a month - so then see if you can Overpay on that HP to get that gone earlier too - you may not be able to without fees though.

If you can't clear the HP then if I were you I'd just get that kitchen card spend gone - it can be cleared inside a year allowing for the £500 you're chucking at it as standard - is that the minimum payment? If so a good trick is to set the monthly DD to that £500 level rather than just "minimum payment" as then the amount doesn't fall over time meaning you make a better impact on the capital AND the extra money doesn't just sit in your bank account to get frittered.

Once you've cleared the debt, start thinking about setting aside a lump each month towards a car replacement in the future to avoid the need for credit then - you will easily have sufficient surplus that you should be able to do this.

Chandelier. · 11 July 2017 at 9:59AM

I agree with what EH says.

There is room to cut from your groceries spend without feeling like your scrimping. Maybe have one week where you only buy minimal requirements and use what's left in cupboard/freezers.

Also in regards to the credit cards, I'd pay the higher interest card first- even if you do this over two months and pay the minimum on the 0% until that is gone.

tallyhoh · 11 July 2017 at 4:32PM

Does your partner supply any other financial help? £400 is very cheap for all inclusive.

EssexHebridean · 11 July 2017 at 5:00PM

tallyhoh wrote: »

Does your partner supply any other financial help? £400 is very cheap for all inclusive.

This is also something that occurred to me if I'm honest, although in this instance it's not actually that far off 50% and if OP earns more I can see that this could balance like that.

New SOA - can you take a look please

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