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  • FIRST POST
    • louby40
    • By louby40 11th Jul 17, 8:51 AM
    • 1,161Posts
    • 3,176Thanks
    louby40
    New SOA - can you take a look please
    • #1
    • 11th Jul 17, 8:51 AM
    New SOA - can you take a look please 11th Jul 17 at 8:51 AM
    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 www.stoozing.com.
    Reproduced on Moneysavingexpert with permission, using other browser.
    [/font]
Page 1
    • StopIt
    • By StopIt 11th Jul 17, 8:57 AM
    • 1,391 Posts
    • 1,182 Thanks
    StopIt
    • #2
    • 11th Jul 17, 8:57 AM
    • #2
    • 11th Jul 17, 8:57 AM
    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
    • By EssexHebridean 11th Jul 17, 9:48 AM
    • 8,133 Posts
    • 42,875 Thanks
    EssexHebridean
    • #3
    • 11th Jul 17, 9:48 AM
    • #3
    • 11th Jul 17, 9:48 AM
    Coments in red as usual...

    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 www.stoozing.com.
    Reproduced on Moneysavingexpert with permission, using other browser.
    [/font]
    Originally posted by louby40
    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.
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£632.77 (20/11/17)
    SOA Calculator for DFW newbies: Stoozing.com SOA Calculator
    • Chandelier.
    • By Chandelier. 11th Jul 17, 9:59 AM
    • 511 Posts
    • 1,381 Thanks
    Chandelier.
    • #4
    • 11th Jul 17, 9:59 AM
    • #4
    • 11th Jul 17, 9:59 AM
    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.
    Check out my Diary
    • tallyhoh
    • By tallyhoh 11th Jul 17, 4:32 PM
    • 2,084 Posts
    • 2,116 Thanks
    tallyhoh
    • #5
    • 11th Jul 17, 4:32 PM
    • #5
    • 11th Jul 17, 4:32 PM
    Does your partner supply any other financial help? £400 is very cheap for all inclusive.
    Tallyhoh!

    Stopped Smoking October 2000. Saved £21,840 so far!
    • EssexHebridean
    • By EssexHebridean 11th Jul 17, 5:00 PM
    • 8,133 Posts
    • 42,875 Thanks
    EssexHebridean
    • #6
    • 11th Jul 17, 5:00 PM
    • #6
    • 11th Jul 17, 5:00 PM
    Does your partner supply any other financial help? £400 is very cheap for all inclusive.
    Originally posted by tallyhoh
    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.
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£632.77 (20/11/17)
    SOA Calculator for DFW newbies: Stoozing.com SOA Calculator
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