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  • FIRST POST
    • oggie1978
    • By oggie1978 15th Oct 16, 8:28 PM
    • 4Posts
    • 1Thanks
    oggie1978
    Help with SOA
    • #1
    • 15th Oct 16, 8:28 PM
    Help with SOA 15th Oct 16 at 8:28 PM
    Hi

    Long term lurker first time poster. We are currently managing to meet minimum debt repayments and are trying to overpay as much as we can to become debt free asap. Any pointers on the attached SOA would be lovely please

    Number of adults in household........... 2
    Number of children in household......... 3
    Number of cars owned.................... 2

    Monthly Income Details
    Monthly income after tax................ 2500
    Partners monthly income after tax....... 1750
    Benefits................................ 192.4
    Other income............................ 0
    Total monthly income.................... 4442.4

    Monthly Expense Details
    Mortgage................................ 1049
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 156 (over 12 months already)
    Electricity............................. 51
    Gas..................................... 0 (no gas where we live)
    Oil..................................... 60
    Water rates............................. 56 (this has just increased to cover an underpayment, was £39)
    Telephone (land line)................... 55 (This is landline, internet)
    Mobile phone............................ 0 (Work phones paid by employers)
    TV Licence.............................. 12.12
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 450
    Clothing................................ 25
    Petrol/diesel........................... 280
    Road tax................................ 35.86
    Car Insurance........................... 42
    Car maintenance (including MOT)......... 42
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 12
    Pet insurance/vet bills................. 44.5
    Buildings insurance..................... 6.5
    Contents insurance...................... 6
    Life assurance ......................... 124.93 (history of genetic cancer plus incl. mortgage cover plus lump sum of £150,000)
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 75
    Haircuts................................ 24
    Entertainment........................... 10
    Holiday................................. 165
    Emergency fund.......................... 0
    Total monthly expenses.................. 2781.91



    Assets

    Cash.................................... 1000
    House value (Gross)..................... 320000
    Shares and bonds........................ 0
    Car(s).................................. 4000
    Other assets............................ 0
    Total Assets............................ 325000



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 222849...(1049).....3.12 (Fixed for another 4 years)
    Total secured & HP debts...... 222849....-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Loan...........................15932.....353...... .9.9
    Loan...........................17772.....356...... .7.9
    Credit card....................8145......88........0
    Credit card....................10137.....233.......0
    Total unsecured debts..........51986.....1030......-



    Monthly Budget Summary

    Total monthly income.................... 4,442.4
    Expenses (including HP & secured debts). 2,781.91
    Available for debt repayments........... 1,660.49
    Monthly UNsecured debt repayments....... 1,030
    Amount left after debt repayments....... 630.49
    This is fairly accurate as to the amount we have left to overpay debts with or covers unexpected costs without using the emergency fund, ie full exhaust replaced on car in the last couple of months)

    Personal Balance Sheet Summary
    Total assets (things you own)........... 325,000
    Total HP & Secured debt................. -222,849
    Total Unsecured debt.................... -51,986
    Net Assets.............................. 50,165
Page 1
    • Karonher
    • By Karonher 15th Oct 16, 8:42 PM
    • 331 Posts
    • 1,760 Thanks
    Karonher
    • #2
    • 15th Oct 16, 8:42 PM
    • #2
    • 15th Oct 16, 8:42 PM
    There are only a couple of areas that seem as if they can be cut.

    Food is quite high even for 5 - could you cut back a bit on brands and do you already shop at Lidl or Aldi.

    Petrol is also high - is there an option to cut back, even if it means allowing extra time to get everyone where they need to be.

    Can you cut down on insurance- I dont mean cancel but shop around for lower rates. Your largest one is costing you £1500 a year.

    Also presents and holidays. How old are the children? Would you be able to have a frugal year or two so that you can get back on track? Even ask adults who would normally buy for you could they get extra for the kids instead. If you felt you could not do that, suggest only the kids are bought for.
    Getting ready for Christmas 2016

    Aiming to make £3,500 online in 2016.
    • EssexHebridean
    • By EssexHebridean 15th Oct 16, 9:11 PM
    • 6,383 Posts
    • 35,214 Thanks
    EssexHebridean
    • #3
    • 15th Oct 16, 9:11 PM
    • #3
    • 15th Oct 16, 9:11 PM
    Comments in red...

    Hi

    Long term lurker first time poster. We are currently managing to meet minimum debt repayments and are trying to overpay as much as we can to become debt free asap. Any pointers on the attached SOA would be lovely please

    Number of adults in household........... 2
    Number of children in household......... 3
    Number of cars owned.................... 2

    Monthly Income Details
    Monthly income after tax................ 2500
    Partners monthly income after tax....... 1750
    Benefits................................ 192.4
    Other income............................ 0
    Total monthly income.................... 4442.4

    Monthly Expense Details
    Mortgage................................ 1049
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 156 (over 12 months already)
    Electricity............................. 51 Your heating is oil fired I presume? You may be able to tweak this down a little but guessing three junior adults may make this a challenge!
    Gas..................................... 0 (no gas where we live)
    Oil..................................... 60 Turn the thermostat down a notch and put jumpers on until you get used to it?
    Water rates............................. 56 (this has just increased to cover an underpayment, was £39)
    Telephone (land line)................... 55 (This is landline, internet) This can be got more cheaply - are you in contract?
    Mobile phone............................ 0 (Work phones paid by employers)
    TV Licence.............................. 12.12
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 450 I'd really try and target that - depending on how old your children are there's £100 - £150 of wiggle room in that
    Clothing................................ 25
    Petrol/diesel........................... 280 Take it you already follow Martin's guide to driving economically?
    Road tax................................ 35.86
    Car Insurance........................... 42
    Car maintenance (including MOT)......... 42 Are you actually putting this aside each month?
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 12
    Pet insurance/vet bills................. 44.5
    Buildings insurance..................... 6.5
    Contents insurance...................... 6
    Life assurance ......................... 124.93 (history of genetic cancer plus incl. mortgage cover plus lump sum of £150,000)
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 75 Are you actually putting this aside each month? I'd also suggest that you could maybe trim that a bit until you're debt free
    Haircuts................................ 24
    Entertainment........................... 10
    Holiday................................. 165 Are you actually putting this aside each month?
    Emergency fund.......................... 0 Assume this is covered by the £1000 cash assets you show?
    Total monthly expenses.................. 2781.91



    Assets

    Cash.................................... 1000
    House value (Gross)..................... 320000
    Shares and bonds........................ 0
    Car(s).................................. 4000
    Other assets............................ 0
    Total Assets............................ 325000



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 222849...(1049).....3.12 (Fixed for another 4 years)
    Total secured & HP debts...... 222849....-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Loan...........................15932.....353...... .9.9
    Loan...........................17772.....356...... .7.9
    Credit card....................8145......88........0
    Credit card....................10137.....233.......0
    Total unsecured debts..........51986.....1030......-



    Monthly Budget Summary

    Total monthly income.................... 4,442.4
    Expenses (including HP & secured debts). 2,781.91
    Available for debt repayments........... 1,660.49
    Monthly UNsecured debt repayments....... 1,030
    Amount left after debt repayments....... 630.49
    This is fairly accurate as to the amount we have left to overpay debts with or covers unexpected costs without using the emergency fund, ie full exhaust replaced on car in the last couple of months)

    Personal Balance Sheet Summary
    Total assets (things you own)........... 325,000
    Total HP & Secured debt................. -222,849
    Total Unsecured debt.................... -51,986
    Net Assets.............................. 50,165
    Originally posted by oggie1978
    There's a few spots on the SOA you can probably tweak a bit, IMO, but my biggest question is whether you're putting aside the monthly sums you have accounted for for car expenses, christmas presents etc? The fact that you've got your emergency fund in place is great, but my suggestion should be that in the event of something coming up that needs spending on, it may perhaps be better to use some of that money to cover the cost then pay back gradually over a few months.

    To give you an idea - we also run two cars and probably do a similar amount of mileage to you looking at the diesel/petrol spend you've listed. We currently set aside £155 a month against car related spends - this pays for two lots of road tax but both are at the £30 p/a level. Also insurance, servicing, MoTs, and depreciative maintenance like Tyres. It's rare that we have to dip into further savings for anything car related - just on the odd occasion when something spectacularly major is required. Once our pay comes in each month a regular transfer automatically goes straight out again for the £155 into a separate account we have just for budgeting for car expenses. If you're currently paying insurances etc monthly then it's probably worth setting aside an extra amount now to start building funds to pay at least one of the insurances up front next time the renewal comes due as there is a saving to be had there.
    MORTGAGE FREE 30/09/2016
    • oggie1978
    • By oggie1978 15th Oct 16, 9:16 PM
    • 4 Posts
    • 1 Thanks
    oggie1978
    • #4
    • 15th Oct 16, 9:16 PM
    • #4
    • 15th Oct 16, 9:16 PM
    Hi

    Thanks for the reply. We shop at Aldi mostly and Tesco for things people are brand fussy for. I'm sure with effort I can cut this further - we have just started monthly meal planning which I'm hoping will help.

    Until November OH has a fair commute for work but a promotion will mean this should be halved so should see a big saving here.

    Insurances are mostly due for renewal in December so will shop around but the life cover with critical cover for me is hard to find each year due to family history and always at least double my OH.

    Children are 4/4/ 7 months. This is based on spend so far this year (Christmas shopping is done ) so can definitely look to reduce from next year.
    • Bedsit Bob
    • By Bedsit Bob 15th Oct 16, 9:26 PM
    • 9,315 Posts
    • 48,779 Thanks
    Bedsit Bob
    • #5
    • 15th Oct 16, 9:26 PM
    • #5
    • 15th Oct 16, 9:26 PM
    Hi

    Long term lurker first time poster. We are currently managing to meet minimum debt repayments and are trying to overpay as much as we can to become debt free asap. Any pointers on the attached SOA would be lovely please

    Number of adults in household........... 2
    Number of children in household......... 3
    Number of cars owned.................... 2

    Monthly Income Details
    Monthly income after tax................ 2500
    Partners monthly income after tax....... 1750
    Benefits................................ 192.4
    Other income............................ 0
    Total monthly income.................... 4442.4

    Monthly Expense Details
    Mortgage................................ 1049
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 156 (over 12 months already)
    Electricity............................. 51 - This £612 pa. Check comparison sites, turn off devices not being used, only do laundry etc., when you have a full load.
    Gas..................................... 0 (no gas where we live)
    Oil..................................... 60 - Is the price of oil seasonal? If so, can you buy out of season, when it is cheaper?
    Water rates............................. 56 (this has just increased to cover an underpayment, was £39)
    Telephone (land line)................... 55 (This is landline, internet) - That is £660 pa, which is There are better deals available. Check comparison sites.
    Mobile phone............................ 0 (Work phones paid by employers)
    TV Licence.............................. 12.12
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 450 - You should be able to cut back on this a bit.
    Clothing................................ 25
    Petrol/diesel........................... 280
    Road tax................................ 35.86
    Car Insurance........................... 42
    Car maintenance (including MOT)......... 42
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 12
    Pet insurance/vet bills................. 44.5
    Buildings insurance..................... 6.5
    Contents insurance...................... 6
    Life assurance ......................... 124.93 (history of genetic cancer plus incl. mortgage cover plus lump sum of £150,000)
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 75 - This is £900 pa. Can you cut back a bit?
    Haircuts................................ 24
    Entertainment........................... 10
    Holiday................................. 165 - this is ~ £2,000 pa.
    Emergency fund.......................... 0 - You need something in here, especially as you are a home owner.
    Total monthly expenses.................. 2781.91



    Assets

    Cash.................................... 1000
    House value (Gross)..................... 320000
    Shares and bonds........................ 0
    Car(s).................................. 4000
    Other assets............................ 0
    Total Assets............................ 325000



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 222849...(1049).....3.12 (Fixed for another 4 years)
    Total secured & HP debts...... 222849....-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Loan...........................15932.....353...... .9.9
    Loan...........................17772.....356...... .7.9
    Credit card....................8145......88........0
    Credit card....................10137.....233.......0
    Total unsecured debts..........51986.....1030......-



    Monthly Budget Summary

    Total monthly income.................... 4,442.4
    Expenses (including HP & secured debts). 2,781.91
    Available for debt repayments........... 1,660.49
    Monthly UNsecured debt repayments....... 1,030
    Amount left after debt repayments....... 630.49
    This is fairly accurate as to the amount we have left to overpay debts with or covers unexpected costs without using the emergency fund, ie full exhaust replaced on car in the last couple of months)

    Personal Balance Sheet Summary
    Total assets (things you own)........... 325,000
    Total HP & Secured debt................. -222,849
    Total Unsecured debt.................... -51,986
    Net Assets.............................. 50,165
    Originally posted by oggie1978
    My comments in red.

    If you have over £600 pm left over, why aren't you using some of it overpay the debts

    Your first loan (the 9.9% one) has 57 months left on it, and will cost you a further £3,868 in interest, by the time it is paid off.

    If you put £400, of the £630 you have left each month, towards it, you would have it paid off in 24 months, for just £1,487 interest.

    I doubt you'll find a savings account, which will give you anywhere near £2,381 interest on that money.
    My job is Top Secret. Even I don't know what I'm doing.

    Amount I have so far denied the BBC - £1015-50
    • Bedsit Bob
    • By Bedsit Bob 15th Oct 16, 9:32 PM
    • 9,315 Posts
    • 48,779 Thanks
    Bedsit Bob
    • #6
    • 15th Oct 16, 9:32 PM
    • #6
    • 15th Oct 16, 9:32 PM
    Children are 4/4/ 7 months.
    Originally posted by oggie1978
    So, atm, you are basically buying presents for two children?

    Around £450 for each of the 4 year olds?

    £450 is a lot of presents, for a 4 year old.
    My job is Top Secret. Even I don't know what I'm doing.

    Amount I have so far denied the BBC - £1015-50
    • enthusiasticsaver
    • By enthusiasticsaver 15th Oct 16, 9:50 PM
    • 2,571 Posts
    • 4,383 Thanks
    enthusiasticsaver
    • #7
    • 15th Oct 16, 9:50 PM
    • #7
    • 15th Oct 16, 9:50 PM
    The only things which stand out to me on the soa is the presents amount which is £900 per year and the £1980 for holiday. Is it possible to halve the presents figure (your children are young and won't care) and just do day trips for a couple of years until you have got more on top of your debt?

    Are your credit cards all on 0%? If so I would throw all your overpayments of debt on to the highest paying loan to get that cleared asap then you have an additional £350 to throw at the other loan or credit cards if 0% deals finishing.

    Were the loans to consolidate debt and have you stopped using credit cards now?
    Debt and mortgage free and saving for early retirement
    • EssexHebridean
    • By EssexHebridean 15th Oct 16, 10:09 PM
    • 6,383 Posts
    • 35,214 Thanks
    EssexHebridean
    • #8
    • 15th Oct 16, 10:09 PM
    • #8
    • 15th Oct 16, 10:09 PM
    With the children being as young as they are you can definitely cut back on both presents (well done for having this year done already) and on the holiday stuff too.

    Note of caution with O/P'ing loans - double check the T's and C's to make sure that a) you're allowed to and b) that it will save you interest if you do.

    Bob the OP already has an emergency fund in place, and they have also said that they are already throwing extra from their surplus at the debts.
    MORTGAGE FREE 30/09/2016
    • oggie1978
    • By oggie1978 15th Oct 16, 10:28 PM
    • 4 Posts
    • 1 Thanks
    oggie1978
    • #9
    • 15th Oct 16, 10:28 PM
    • #9
    • 15th Oct 16, 10:28 PM
    Thank you. Present spend is based on this year's spend for my 2, 4 young family members, 7 adults plus preschool/school children. Agreed though it definitely can be better next year.
    All fuel/food purchases are made on a cashback cc and paid in full. No new debts have been made this year. Cards are 0% with first interest starting in December and snowballing suggests paying this off first, then next cc and leave the loans till last. Current dfd is in 35 monthds but would love to do this sooner if possible
    • oggie1978
    • By oggie1978 15th Oct 16, 10:38 PM
    • 4 Posts
    • 1 Thanks
    oggie1978
    Loans were for building work to our house and a car purchase when we found out a twin pushchair wouldn't fit in the boot of our seat Leon. I've also took a pay cut due to reducing work hours as better off this way than paying the childcare bill we were getting. OH also went p/t for 18mths to try to get a new business off the ground. No new debts are being made and the surplus is already being paid against existing just would love to get debt free sooner so we can then save for new bathrooms which are on their last legs
    • enthusiasticsaver
    • By enthusiasticsaver 15th Oct 16, 11:39 PM
    • 2,571 Posts
    • 4,383 Thanks
    enthusiasticsaver
    Sounds like you have it under control then if no new debts. Ditch the holidays for a few years until debt free and that should shave some time off the dfd. Hopefully with savings on phone, fuel and groceries it could come down further. We have stopped buying presents for adults at Christmas/birthdays. Can you suggest that?
    Debt and mortgage free and saving for early retirement
    • Bedsit Bob
    • By Bedsit Bob 16th Oct 16, 10:08 AM
    • 9,315 Posts
    • 48,779 Thanks
    Bedsit Bob
    Bob the OP already has an emergency fund in place, and they have also said that they are already throwing extra from their surplus at the debts.
    Originally posted by EssexHebridean
    Then that needs to be shown in the SOA.

    ATM, it is showing a £630 pm surplus, and a 57 month settlement date on the first loan.
    My job is Top Secret. Even I don't know what I'm doing.

    Amount I have so far denied the BBC - £1015-50
    • Bedsit Bob
    • By Bedsit Bob 16th Oct 16, 10:13 AM
    • 9,315 Posts
    • 48,779 Thanks
    Bedsit Bob
    Present spend is based on this year's spend for my 2, 4 young family members, 7 adults plus preschool/school children.
    Originally posted by oggie1978
    Then I suggest you cut back on presents, for non-household people.

    Assign say £10 per non-household person.

    Ideally, agree not to exchange any gifts, with the adults.
    My job is Top Secret. Even I don't know what I'm doing.

    Amount I have so far denied the BBC - £1015-50
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