SOA - go for it!
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Mimi_Arc_en_ciel
Posts: 4,831 Forumite
Hi everyone,
I'm in debt to the tune of £11k. I have the funds to pay these debts off however as my debts are 0% that money is sitting in a bank account earning me interest until I need to pay it back. I am making the monthly minimum repayments so I am not being charged.
So back to the SOA - Its been a while since I did an SOA check so thought I'd do one to make sure I'm on top of things. Few comments beside each bit
The "annual" bills (Car insurance for example) - I've paid these in full, I then put what would be the monthly payments into a high interest account until they are due.
Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1898.4 inc maintainence / Tax Credits
Total monthly income.................... 1898.4
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 92
Electricity............................. 25
Gas..................................... 27 - I have a coal fire, costs below
Oil..................................... 0
Water rates............................. 29.45
Telephone (land line)................... 23.76 inc BB
Mobile phone............................ 22.55 for me and DD1
TV Licence.............................. 12.37
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 20
Petrol/diesel........................... 130
Road tax................................ 15
Car Insurance........................... 27.06
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0 free prescriptions / medical card
Pet insurance/vet bills................. 0
Buildings insurance..................... 13.56 inc contents
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 45
Haircuts................................ 0 as and when, a friend does all 3 for a fiver
Entertainment........................... 0
Holiday................................. 40
Emergency fund.......................... 55
CC...................................... 136.01 I put this in a high interest account, the minimum payments for the cards come of this. MBDA repayment is £27, Virgin is around £50.
My Savings.............................. 100
DD2 Savings............................. 34.53
DD1 Savings............................. 48.34
Boiler Service.......................... 4.58
Coal.................................... 43
Brownies................................ 6
Swimming................................ 22
Horse .................................. 421 (Luxury I know! this is stabling, insurance, feed, shoes, everything)
School Trips............................ 10
New car................................. 100
Total monthly expenses.................. 1733.21
Unsecured Debts
Description....................Debt......Monthly...APR
Virgin Credit Card.............5212......0.........0
MBNA...........................2637......0.........0
Parents........................3000......50........0
Total unsecured debts..........10849.....50........-
Monthly Budget Summary
Total monthly income.................... 1,898.4
Expenses (including HP & secured debts). 1,733.21
Available for debt repayments........... 165.19
Monthly UNsecured debt repayments....... 50 (Remember the other repayments are already included above)
Amount left after debt repayments....... 115.19
Personal Balance Sheet Summary
Total Unsecured debt.................... -10,849
Net Assets.............................. -10,849
Other than the horse (:o) does my SOA look ok?
(before anyone mentions it, Yes I know I am in a good position, It's taken me around 8 years to be in this position after my ex left me with a debt of £35k so I know how hard it can be, I am checking I am keeping on top of things so that I don't end up in the position I was in previously. Those struggling with debt and working their way out of it, keep going!!! you're doing great!
)
I'm in debt to the tune of £11k. I have the funds to pay these debts off however as my debts are 0% that money is sitting in a bank account earning me interest until I need to pay it back. I am making the monthly minimum repayments so I am not being charged.
So back to the SOA - Its been a while since I did an SOA check so thought I'd do one to make sure I'm on top of things. Few comments beside each bit
The "annual" bills (Car insurance for example) - I've paid these in full, I then put what would be the monthly payments into a high interest account until they are due.
Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1898.4 inc maintainence / Tax Credits
Total monthly income.................... 1898.4
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 92
Electricity............................. 25
Gas..................................... 27 - I have a coal fire, costs below
Oil..................................... 0
Water rates............................. 29.45
Telephone (land line)................... 23.76 inc BB
Mobile phone............................ 22.55 for me and DD1
TV Licence.............................. 12.37
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 20
Petrol/diesel........................... 130
Road tax................................ 15
Car Insurance........................... 27.06
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0 free prescriptions / medical card
Pet insurance/vet bills................. 0
Buildings insurance..................... 13.56 inc contents
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 45
Haircuts................................ 0 as and when, a friend does all 3 for a fiver
Entertainment........................... 0
Holiday................................. 40
Emergency fund.......................... 55
CC...................................... 136.01 I put this in a high interest account, the minimum payments for the cards come of this. MBDA repayment is £27, Virgin is around £50.
My Savings.............................. 100
DD2 Savings............................. 34.53
DD1 Savings............................. 48.34
Boiler Service.......................... 4.58
Coal.................................... 43
Brownies................................ 6
Swimming................................ 22
Horse .................................. 421 (Luxury I know! this is stabling, insurance, feed, shoes, everything)
School Trips............................ 10
New car................................. 100
Total monthly expenses.................. 1733.21
Unsecured Debts
Description....................Debt......Monthly...APR
Virgin Credit Card.............5212......0.........0
MBNA...........................2637......0.........0
Parents........................3000......50........0
Total unsecured debts..........10849.....50........-
Monthly Budget Summary
Total monthly income.................... 1,898.4
Expenses (including HP & secured debts). 1,733.21
Available for debt repayments........... 165.19
Monthly UNsecured debt repayments....... 50 (Remember the other repayments are already included above)
Amount left after debt repayments....... 115.19
Personal Balance Sheet Summary
Total Unsecured debt.................... -10,849
Net Assets.............................. -10,849
Other than the horse (:o) does my SOA look ok?
(before anyone mentions it, Yes I know I am in a good position, It's taken me around 8 years to be in this position after my ex left me with a debt of £35k so I know how hard it can be, I am checking I am keeping on top of things so that I don't end up in the position I was in previously. Those struggling with debt and working their way out of it, keep going!!! you're doing great!
) 0
Comments
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I couldn't see any rent or mortgage on there?0
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Why are you paying buildings insurance with no asset to insure against?
You should probably look at life insurance with 2 dependants
You haven't listed your savings (unless you've deleted some lines from the SOA) given you have an EF amount and savings amount you put away each month.
It's a bit difficult to comment properly without knowing about the property/rent/mortgage as personally I wouldn't be paying over £400 on a horse unless my mortgage was paid off for security.0 -
I don't have a mortgage/rent - I own my house outright. Savings - there's around £10k in various high interest accounts. I didn't put house price down, I'm nor sure what it's worth as I've done work to it (which is what the CC was used for)
Life insurance is something I'm working on
Horse - he's a new addition for this year. Me and both the girls ride and it worked out cheaper to buy than to keep having lessons.0 -
Why anyone who owns a house outright and has £10k of savings would want to have £8k of credit card debt is beyond me. But anyway, you're posting on a board for people who would like advice on being debt free. If you want to be debt free, pay off the credit cards. Simple.0
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That does seem to be the obvious answer0
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Because there are different types of debt. Whilst it's a 0% debt I'm not paying any interest on it, the money is sat in a bank earning 5%. If I were to lose my job tomorrow then obviously I wouldn't have much in savings left because I'd pay the debt off first and like I said I want to check that I'm thinking/doing it the right way so I don't end up back in the scenario I was 8/9 years ago.
I know it's the DFW board, doesn't mean that I can't ask for advice regarding spenditure. I've posted on the savings board about moving the debt repayment money around to get for Max interest because I thought that was the relevant board for that, the DFW is, and has always been, the best one for SOA's. This board helped me an immense amount 8 years ago when my ex walked out leaving me in loads of debt with a newborn and a tumor, advice doesn't stop just because a debt is 'manageable' - circumstances change, so whilst I might seem to be OK now that doesn't always mean that will always be to case and checking things doesn't hurt0 -
I'm not sure what advice you're after. Yes, you've done great with your finances. Yes, you're in a wonderful position. You therefore have 2 options - keep doing what you're doing and let the credit card debt sit there, or pay it off and keep saving every month.
I know which one I'd do, though I don't own a house outright, have £10k of savings nor own a horse. So it's easy for me to choose.0 -
Hi Mimi - you're absolutely fine to post on here for people to cast an eye over your SOA -
and well done for the position you find yourself in.
I'll put my comments in green for a change as you've used red within the SOAMimi_Arc_en_ciel wrote: »
Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1898.4 inc maintainence / Tax Credits
Total monthly income.................... 1898.4
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 92 Single person discount applied I take it?
Electricity............................. 25 Just keen an eye on your tariff to make sure you're on the best one.
Gas..................................... 27 - I have a coal fire, costs below If your fire will also burn wood then think about keeping an eye for useful bits of wood when you're out riding and going back to collect later
Oil..................................... 0
Water rates............................. 29.45
Telephone (land line)................... 23.76 inc BB Have you checked this is the best deal you can get?
Mobile phone............................ 22.55 for me and DD1 nice work! :T
TV Licence.............................. 12.37
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 20
Petrol/diesel........................... 130 Keep an eye on driving economically and maximising journeys as this is evidently quite high mileage - try to avoid jumping in the car just to pop for a pint of milk, for example.
Road tax................................ 15 You set aside money for this and pay annually I presume?
Car Insurance........................... 27.06 You set aside money for this and pay annually I presume? usual rules apply with running through the comparison sites each year
Car maintenance (including MOT)......... 30 You do actually put this aside I take it?
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0 free prescriptions / medical card
Pet insurance/vet bills................. 0
Buildings insurance..................... 13.56 inc contents
Contents insurance...................... 0
Life assurance ......................... 0 I'd seriously consider this in spite of the house being paid off - with 2 children it's a bit of reassurance
Other insurance......................... 0
Presents (birthday, christmas etc)...... 45
Haircuts................................ 0 as and when, a friend does all 3 for a fiver
Entertainment........................... 0
Holiday................................. 40
Emergency fund.......................... 55
CC...................................... 136.01 I put this in a high interest account, the minimum payments for the cards come of this. MBDA repayment is £27, Virgin is around £50.
My Savings.............................. 100
DD2 Savings............................. 34.53
DD1 Savings............................. 48.34
Boiler Service.......................... 4.58
Coal.................................... 43
Brownies................................ 6
Swimming................................ 22
Horse .................................. 421 (Luxury I know! this is stabling, insurance, feed, shoes, everything)
School Trips............................ 10
New car................................. 100
Total monthly expenses.................. 1733.21
Unsecured Debts
Description....................Debt......Monthly...APR
Virgin Credit Card.............5212......0.........0
MBNA...........................2637......0.........0
Parents........................3000......50........0
Total unsecured debts..........10849.....50........-
Monthly Budget Summary
Total monthly income.................... 1,898.4
Expenses (including HP & secured debts). 1,733.21
Available for debt repayments........... 165.19
Monthly UNsecured debt repayments....... 50 (Remember the other repayments are already included above)
Amount left after debt repayments....... 115.19
Personal Balance Sheet Summary
Total Unsecured debt.................... -10,849
Net Assets.............................. -10,849
Other than the horse (:o) does my SOA look ok?
(before anyone mentions it, Yes I know I am in a good position, It's taken me around 8 years to be in this position after my ex left me with a debt of £35k so I know how hard it can be, I am checking I am keeping on top of things so that I don't end up in the position I was in previously. Those struggling with debt and working their way out of it, keep going!!! you're doing great!)
Aside from a few odds and ends that looks pretty solid. Personally I think with your income AND two children to think about I'd want to know that the debt figure - even at 0% - was a bit less of a percentage of annual income than that - I'm pretty risk averse on such things though.
One trick you may want to employ - set your CC payments at a level a bit above the minimum - then rather than the sum paid dropping each month as the capital balance falls, it stays the same, meaning a) you make slightly more impact each month as time goes on, as a percentage of outstanding balance and b) You don't gain the amount that the minimum payment has dropped by without accounting it. Otherwise as the payments drop that's £20 or so a month that will be sitting in your account unallocated and liable for frittering? It also of course leaves you a bit less to pay off when the 0% period ends, which in term means if for any reason you can't get accepted for a new deal, it's not so much of an impact on savings.🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00
Balance as at 31/12/23 = £112,000.00SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0 -
Potbellypig wrote: »I'm not sure what advice you're after. Yes, you've done great with your finances. Yes, you're in a wonderful position. You therefore have 2 options - keep doing what you're doing and let the credit card debt sit there, or pay it off and keep saving every month.
I know which one I'd do, though I don't own a house outright, have £10k of savings nor own a horse. So it's easy for me to choose.
In fairness the OP has explained several times that she was simply after people to cast an eye over her SOA to make sure it looked reasonable - it's easy for odds and ends to creep onto spending over time if you're in her position in life - so it's a sensible idea to review spending and budgets from time to time.🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00
Balance as at 31/12/23 = £112,000.00SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0 -
It looks like you're doing a good job on your SOA at the moment. Obviously, the horse is a big luxury, but you know that.
My question is: how old are your children?
At the moment you set aside savings for them, but what about pocket money? You're putting aside £10 a month for school trips, but this may rise (trips in secondary school are often hundreds of pounds).
And - a biggy - you don't detail how much of your income is maintenance and tax credits, but what are your plans for when this comes to an end?0
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