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  • FIRST POST
    • missp1982
    • By missp1982 11th Jul 17, 3:50 PM
    • 21Posts
    • 2Thanks
    missp1982
    Help needed please!
    • #1
    • 11th Jul 17, 3:50 PM
    Help needed please! 11th Jul 17 at 3:50 PM
    Finally plucking up the courage to post my SOA. For the entertainment, groceries and clothing sections I have gone through my bank statements and taken an average for the last 3 months.


    I have all 3 credit cards on 0% balance transfer deals but only pay the minimum. I really want to start paying off more but am stuck in a cycle of over spending!


    Any help appreciated, and advice on whether it would be worth consolidating my credit cards to a loan?




    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 1
    Number of children in household......... 1
    Number of cars owned.................... 0

    Monthly Income Details

    Monthly income after tax................ 1373
    Partners monthly income after tax....... 0
    Benefits................................ 115.80
    Other income............................ 202
    Total monthly income.................... 1690.80

    Monthly Expense Details

    Mortgage................................ 586
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 83
    Electricity............................. 21
    Gas..................................... 28
    Oil..................................... 0
    Water rates............................. 10
    Telephone (land line)................... 0
    Mobile phone............................ 32
    TV Licence.............................. 12
    Satellite/Cable TV...................... 32
    Internet Services....................... 0
    Groceries etc. ......................... 200
    Clothing................................ 20
    Petrol/diesel........................... 0
    Road tax................................ 0
    Car Insurance........................... 0
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 35
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 8.60
    Pet insurance/vet bills................. 50
    Buildings insurance..................... 18.60
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 20
    Haircuts................................ 0
    Entertainment........................... 465
    Holiday................................. 0
    Emergency fund.......................... 0
    Charity................................. 0
    Adobe................................... 0
    Total monthly expenses.................. 1621.20



    Assets

    Cash.................................... 0
    House value (Gross)..................... 150000
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0
    Total Assets............................ 0


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    MBNA CC......................6000.....0%
    Barclays CC...................2200......0%



    Virgin CC...................3600......0%
    Total unsecured debts..........11800.....



    Monthly Budget Summary

    Total monthly income.................... 1690.80
    Expenses (including HP & secured debts). 1621.20
    Available for debt repayments........... 69.60
    Monthly UNsecured debt repayments....... 175
    Amount left after debt repayments....... 69.60


    Personal Balance Sheet Summary
    Total assets (things you own)........... 150000
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -18,571
    Net Assets.............................. -11800
Page 1
    • StopIt
    • By StopIt 11th Jul 17, 3:59 PM
    • 858 Posts
    • 792 Thanks
    StopIt
    • #2
    • 11th Jul 17, 3:59 PM
    • #2
    • 11th Jul 17, 3:59 PM
    £465 a month on Entertainment?


    I'm afraid if you want to get the debt gone, that's really the only thing in the SOA that needs to go.


    Does the buildings insurance cover contents too? if not, that needs addressing also.


    You also need to start building an emergency fund. Cut the Entertainment down to £150 p/m, put £100 p/m into an Emergency fund and you'll be able to put £215 extra onto your debts a month, a significant amount.


    Also: Massive no to consolidation, especially if you can get the debt down and keep the 0% deals going until it is gone.
    • missp1982
    • By missp1982 11th Jul 17, 4:03 PM
    • 21 Posts
    • 2 Thanks
    missp1982
    • #3
    • 11th Jul 17, 4:03 PM
    • #3
    • 11th Jul 17, 4:03 PM
    It does cover buildings and contents. The entertainment was a big shock! Included in the figures were eating out, pub, hobbies and cash withdrawls.


    On the plus side, this has reduced from £596 in month 1, to £479 in month 2 to £320 in month 3. I really need to work on this a lot more.


    Not having an emergency fund is not good either, especially living alone.
    • MallyGirl
    • By MallyGirl 11th Jul 17, 5:44 PM
    • 1,897 Posts
    • 6,319 Thanks
    MallyGirl
    • #4
    • 11th Jul 17, 5:44 PM
    • #4
    • 11th Jul 17, 5:44 PM
    definitely don't consolidate 0% card debt to an interest incurring loan.
    The rest of the SOA doesn't look too bad - you just have to knock the 'entertainment' down massively.
    Look at when the 0% deals run out then calculate what you need to pay each month to pay them off before the interest hits. Put those amounts in to the SOA and see what is left for entertainment - and don't spend more than that.
    • zippygeorgeandben
    • By zippygeorgeandben 11th Jul 17, 6:04 PM
    • 660 Posts
    • 752 Thanks
    zippygeorgeandben
    • #5
    • 11th Jul 17, 6:04 PM
    • #5
    • 11th Jul 17, 6:04 PM
    Don't consolidate! It's just making your debt plan longer!
    End Sep 2016 End August 2017
    £8236.57 £4876.49
    (Tesco 4.8%) £222.61pcm
    £6185.75 £851.34 (Zopa 4.0%) £48.99pcm

    £5344.50
    £2890.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 £1333.35 (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £11499.70 Original DFD May 2019.
    • Sncjw
    • By Sncjw 11th Jul 17, 6:17 PM
    • 1,426 Posts
    • 856 Thanks
    Sncjw
    • #6
    • 11th Jul 17, 6:17 PM
    • #6
    • 11th Jul 17, 6:17 PM
    What do you do in regards to entertainment.

    Is your mobile in a contract currently if it's finished maybe look at a sim only deal and get the phone unlocked also
    • consultant31
    • By consultant31 12th Jul 17, 2:51 AM
    • 4,723 Posts
    • 14,390 Thanks
    consultant31
    • #7
    • 12th Jul 17, 2:51 AM
    • #7
    • 12th Jul 17, 2:51 AM
    Almost £465 a month on entertainment cut down (a lot)
    Cable/satellite tv......get rid, there's plenty of channels on Freeview.
    I let my mind wander and it never came back!
    • fantastiyk
    • By fantastiyk 12th Jul 17, 9:10 AM
    • 324 Posts
    • 580 Thanks
    fantastiyk
    • #8
    • 12th Jul 17, 9:10 AM
    • #8
    • 12th Jul 17, 9:10 AM
    Hello,
    I'm not sure if I've misunderstood something.
    Available for debt repayments. 69.60
    Monthly unsecured debt repayments 175
    Amount left after debt repayments 69.60

    If you have 69.90 available for debt repayments before paying 175 you would have a minus balance -£105.10 as Amount left after debt repayments.

    There's also something that appears not right with the Personal Balance Sheet Summary Section. If you look at others that might help.

    Good luck with it.
    Last edited by fantastiyk; 12-07-2017 at 9:12 AM. Reason: Taking out emoji
    • EssexHebridean
    • By EssexHebridean 12th Jul 17, 10:57 AM
    • 7,747 Posts
    • 40,131 Thanks
    EssexHebridean
    • #9
    • 12th Jul 17, 10:57 AM
    • #9
    • 12th Jul 17, 10:57 AM
    It's all been covered really hasn't it - but I'll offer congratulations for posting a proper honest SOA and acknowledging that some of it shocked you! That really is the key to getting the situation sorted out - consolidation doesn't often work anyway but in your case, it's down to getting rid of the frittering of money under that "entertainment" category.

    The cash withdrawals thing can be a big one for people - some work it by taking out just a token amount every week to cover those awkward "shall we pop for a coffee" moments - you might also find it useful to "allow" yourself a meal out once a month and a pub visit (to an agreed budget) once a fortnight or similar. Take out cash for these though and only spend what you've budgeted. As a single parent which I presume you are from your personal details on the SOA you do need some interaction with other adults! Remember to include any babysitter costs etc in your budget too though.

    One thing I will say on the SOA is that you've fallen into the "rounding" trap - ideally it should be accurate to the penny so the TV license for example is 12.12 and should be shown as such.

    The £50 for pet insurance seems high - is this for an elderly dog? I will say though if you've been with the same insurer for years be wary of swapping and read all the small print very carefully. If there are pre-existing conditions then you will most likely be best just to swallow that.

    Try redoing the SOA from the link on the "sticky" post at the top of the board - I think you have done it by copying, pasting and amending someone elses haven't you - you'll find it a lot easier done from the link AND you can save it so when you want to amend it will be masses easier!
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£504.92 (29/08/17)
    • missp1982
    • By missp1982 12th Jul 17, 2:04 PM
    • 21 Posts
    • 2 Thanks
    missp1982
    It's all been covered really hasn't it - but I'll offer congratulations for posting a proper honest SOA and acknowledging that some of it shocked you! That really is the key to getting the situation sorted out - consolidation doesn't often work anyway but in your case, it's down to getting rid of the frittering of money under that "entertainment" category.

    The cash withdrawals thing can be a big one for people - some work it by taking out just a token amount every week to cover those awkward "shall we pop for a coffee" moments - you might also find it useful to "allow" yourself a meal out once a month and a pub visit (to an agreed budget) once a fortnight or similar. Take out cash for these though and only spend what you've budgeted. As a single parent which I presume you are from your personal details on the SOA you do need some interaction with other adults! Remember to include any babysitter costs etc in your budget too though.

    One thing I will say on the SOA is that you've fallen into the "rounding" trap - ideally it should be accurate to the penny so the TV license for example is 12.12 and should be shown as such.

    The £50 for pet insurance seems high - is this for an elderly dog? I will say though if you've been with the same insurer for years be wary of swapping and read all the small print very carefully. If there are pre-existing conditions then you will most likely be best just to swallow that.

    Try redoing the SOA from the link on the "sticky" post at the top of the board - I think you have done it by copying, pasting and amending someone elses haven't you - you'll find it a lot easier done from the link AND you can save it so when you want to amend it will be masses easier!
    Originally posted by EssexHebridean



    The £50 for pet covers the insurance and also dog walker. I massively need to cut down the entertainment, I do things before thinking!


    Will re-look at things, I copied and pasted from someone elses so its possible the totals are not right.


    Thanks again for the help.
    • EssexHebridean
    • By EssexHebridean 12th Jul 17, 3:03 PM
    • 7,747 Posts
    • 40,131 Thanks
    EssexHebridean
    Yes thought you had - definitely re-do it in the actual calculator then to make sure it's all accurate.
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£504.92 (29/08/17)
    • enthusiasticsaver
    • By enthusiasticsaver 12th Jul 17, 11:05 PM
    • 4,215 Posts
    • 7,577 Thanks
    enthusiasticsaver
    Entertainment is definitely very high so I am sure there is scope for that to come down and the cable tv could go. You should be putting something in the emergency fund column as you own a house. Groceries and the mobile phone costs could also be brought down.

    Consolidating will not work and will make matters worse as you have the debt on 0%. The main thing you should do though is to stop using the cards altogether as I am guessing the debt has increased due to you carrying on spending on them even though you are only paying minimum payments. Has all the credit card debt come from living beyond your means or did you use the money for something specific?
    Countdown to early retirement on 31.12.17 3.5 months to go.
    • missp1982
    • By missp1982 13th Jul 17, 11:25 AM
    • 21 Posts
    • 2 Thanks
    missp1982
    Entertainment is definitely very high so I am sure there is scope for that to come down and the cable tv could go. You should be putting something in the emergency fund column as you own a house. Groceries and the mobile phone costs could also be brought down.

    Consolidating will not work and will make matters worse as you have the debt on 0%. The main thing you should do though is to stop using the cards altogether as I am guessing the debt has increased due to you carrying on spending on them even though you are only paying minimum payments. Has all the credit card debt come from living beyond your means or did you use the money for something specific?
    Originally posted by enthusiasticsaver

    I havent spent on the 0% cards and am not doing so at the minute, so purely paying off but obviously would like to increase the amounts to get it down quicker. It was a mixture, I moved house so used it for purchasing some furniture, then I suppose some was living beyond my means and paying for a lot of things for my ex (through choice, and which I thoroughly regret!).


    I cannot reduce my mobile bill as I have just got a new 12 month contract, it has reduced by £20 to what it was before. I will look at groceries and make better use of what I already have in the cupboards as definitely in a trap of buying things I already have.


    The entertainment seems to be the big one, I need to focus on not just saying yes to everything without thinking about whether I can afford it!
    • EssexHebridean
    • By EssexHebridean 13th Jul 17, 12:35 PM
    • 7,747 Posts
    • 40,131 Thanks
    EssexHebridean
    make your default on invitations "I'll need to check my diary so I'll get back to you on that" - it buys you time and lets you make a reasoned decision.
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£504.92 (29/08/17)
    • horseygirl2014
    • By horseygirl2014 13th Jul 17, 2:07 PM
    • 81 Posts
    • 400 Thanks
    horseygirl2014
    Think everyone's covered anything i would say

    Entertainment - ouch! but you've included cash withdrawls, eating out ect. well done for being brave a doing a really honest SOA
    well done for already reducing this entertainment bill!
    If you always pop to the cash point to get cash, a fiver here, 10 there - why not withdraw a weeks worth of money - that you've budgeted for - and put it in your purse and then put a sticky note of your card reminding you not to withdraw for the week!. it might help break the habit of always reaching for the card, and will also give you a better visual idea of how much - or little- you have left for the week. Any spare at the end of the week, put towards a debt or something specific. Don't think, I've got it left i can spend it. - At the end of every week, I empty all my change out of my purse and put it in a pot. at the end of the month i cash it all. Its amazing how much adds up - and i always make sure i put it to something specific (normally a winter feed bill for Pony)
    Missing my money saving mojo.
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