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  • FIRST POST
    • anni999
    • By anni999 15th Sep 17, 8:39 PM
    • 7Posts
    • 2Thanks
    anni999
    Any tips/pointers on my SOA welcome!!...
    • #1
    • 15th Sep 17, 8:39 PM
    Any tips/pointers on my SOA welcome!!... 15th Sep 17 at 8:39 PM
    So here is my current SOA....anyone any ideas to cut down??

    Both me and my husband have recently gone self employed and our wage is a bit hit and miss at the moment so want to save as much as I can! We were going to move and 'port' our mortgage to a cheaper house to repay our debts but turns out 'porting' your mortgage involves a new application so they wont touch us at the moment having gone self employed.

    [font=courier new]Statement of Affairs and Personal Balance Sheet

    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................ 750
    Partners monthly income after tax....... 750
    Benefits................................ 89.7
    Other income............................ 0
    Total monthly income.................... 1589.7


    Monthly Expense Details

    Mortgage................................ 687
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 6.25
    Council tax............................. 118
    Electricity............................. 27.5
    Gas..................................... 27.5
    Oil..................................... 0
    Water rates............................. 31
    Telephone (land line)................... 0
    Mobile phone............................ 72 (both mine & hubbys)
    TV Licence.............................. 12.12
    Satellite/Cable TV...................... 0
    Internet Services....................... 58 (internet/tv and line rental. deal ends in october when we are going to switch)
    Groceries etc. ......................... 200
    Clothing................................ 20
    Petrol/diesel........................... 40
    Road tax................................ 9.17
    Car Insurance........................... 30
    Car maintenance (including MOT)......... 30
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 17
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 12.09
    Contents insurance...................... 0
    Life assurance ......................... 17
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 70
    Haircuts................................ 15
    Entertainment........................... 100
    Holiday................................. 0
    Emergency fund.......................... 20
    Professional subscriptions.............. 26
    Total monthly expenses.................. 1645.63



    Assets

    Cash.................................... 1000
    House value (Gross)..................... 230000
    Shares and bonds........................ 0
    Car(s).................................. 2000
    Other assets............................ 2500
    Total Assets............................ 235500



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 177000...(687)......0
    Total secured & HP debts...... 177000....-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Tesco Loan.....................17011.....245.......0
    Barclaycard 1..................2450......40........0
    Barclaycard 2..................3301......70........0
    Total unsecured debts..........22762.....355.......-



    Monthly Budget Summary

    Total monthly income.................... 1,589.7
    Expenses (including HP & secured debts). 1,645.63
    Available for debt repayments........... -55.93
    Monthly UNsecured debt repayments....... 355
    Amount short for making debt repayments. -410.93


    Personal Balance Sheet Summary
    Total assets (things you own)........... 235,500
    Total HP & Secured debt................. -177,000
    Total Unsecured debt.................... -22,762
    Net Assets.............................. 35,738
Page 1
    • tori.k
    • By tori.k 16th Sep 17, 9:17 AM
    • 2,890 Posts
    • 6,530 Thanks
    tori.k
    • #2
    • 16th Sep 17, 9:17 AM
    • #2
    • 16th Sep 17, 9:17 AM
    You have no way of making up that short fall off your SOA, as it not even covering your monthly outgoings never mind the debts, is it a joint business can one of you go back into paid employment until you clear the debt, you could probably tweak your SOA so your income and outgoings match, by cutting mobile and internet cost but would still be painfully tight. Upping your income is the only way forward.
    Debit to Credit (stage 1) 3652.34 completed 15/10/16
    Debit to Credit (stage 2) 6299.09 completed 25/06/17
    Last Castle 150,000/ 25300
    • pmlindyloo
    • By pmlindyloo 16th Sep 17, 11:00 AM
    • 10,831 Posts
    • 12,696 Thanks
    pmlindyloo
    • #3
    • 16th Sep 17, 11:00 AM
    • #3
    • 16th Sep 17, 11:00 AM
    It looks like you are only receiving child benefit.

    it is certainly worth applying for tax credits to see if you are eligible.

    https://www.moneyadviceservice.org.uk/en/articles/claiming-tax-credits
    • theoretica
    • By theoretica 16th Sep 17, 2:16 PM
    • 4,921 Posts
    • 6,148 Thanks
    theoretica
    • #4
    • 16th Sep 17, 2:16 PM
    • #4
    • 16th Sep 17, 2:16 PM
    Is that income an average or a bad month? You need to prioritise your spending, for instance no spending on entertainment or presents in a bad month until the essentials are covered, and don't blow it all in better months until you have put something aside for really bad months.
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
    • mumtoomany
    • By mumtoomany 16th Sep 17, 3:17 PM
    • 143 Posts
    • 1,212 Thanks
    mumtoomany
    • #5
    • 16th Sep 17, 3:17 PM
    • #5
    • 16th Sep 17, 3:17 PM
    A quick check on the government tax credits calculator, using the detail s above, suggest s that you should be entitled to child tax credits and a small amount of working tax credits. Around £260 per month. Also have you checked to see if you could get council tax relief? M2m.
    • sourcrates
    • By sourcrates 16th Sep 17, 3:22 PM
    • 12,455 Posts
    • 11,853 Thanks
    sourcrates
    • #6
    • 16th Sep 17, 3:22 PM
    • #6
    • 16th Sep 17, 3:22 PM
    Theirs no way to make up a £400 shortfall unless you can earn more.

    Check your benefits entitlement as suggested above.

    Your budget is not extravagant, so not much can be cut from that.

    I would say you need some sort of debt management plan putting in place, you appear to have some small savings, which is good, you should really speak to stepchange about starting a DMP.

    Dont continue to borrow off those cards, cut them up, throw them away, get some debt advice as a priority.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • 19lottie82
    • By 19lottie82 16th Sep 17, 3:37 PM
    • 5,726 Posts
    • 8,663 Thanks
    19lottie82
    • #7
    • 16th Sep 17, 3:37 PM
    • #7
    • 16th Sep 17, 3:37 PM
    Why are both you and your partners incomes so low?

    Sorry ..... edit, just realised you are both self employed.
    Unfortunately this isn't paying the bills. One or both of you need to get a different job, or an additional one so the bills can be paid.
    Last edited by 19lottie82; 16-09-2017 at 3:40 PM.
    • Bedsit Bob
    • By Bedsit Bob 16th Sep 17, 5:12 PM
    • 9,779 Posts
    • 51,247 Thanks
    Bedsit Bob
    • #8
    • 16th Sep 17, 5:12 PM
    • #8
    • 16th Sep 17, 5:12 PM
    Statement of Affairs and Personal Balance Sheet

    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................ 750
    Partners monthly income after tax....... 750
    Benefits................................ 89.7
    Other income............................ 0
    Total monthly income.................... 1589.7


    Monthly Expense Details

    Mortgage................................ 687
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 6.25
    Council tax............................. 118
    Electricity............................. 27.5
    Gas..................................... 27.5
    Oil..................................... 0
    Water rates............................. 31
    Telephone (land line)................... 0
    Mobile phone............................ 72 (both mine & hubbys) - This is ASAP go PAYG/sim only for ~ £10 per phone.
    TV Licence.............................. 12.12
    Satellite/Cable TV...................... 0
    Internet Services....................... 58 (internet/tv and line rental. deal ends in october when we are going to switch) - You can't afford this, so don't switch, but instead, get rid of completely.
    Groceries etc. ......................... 200 - You could probably trim a bit off this.
    Clothing................................ 20
    Petrol/diesel........................... 40
    Road tax................................ 9.17
    Car Insurance........................... 30
    Car maintenance (including MOT)......... 30
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 17
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 12.09
    Contents insurance...................... 0
    Life assurance ......................... 17
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 70
    Haircuts................................ 15
    Entertainment........................... 100 - Halve this.
    Holiday................................. 0
    Emergency fund.......................... 20 - As a home owner, you could probably do with a bit more in here.
    Professional subscriptions.............. 26
    Total monthly expenses.................. 1645.63



    Assets

    Cash.................................... 1000
    House value (Gross)..................... 230000
    Shares and bonds........................ 0
    Car(s).................................. 2000
    Other assets............................ 2500
    Total Assets............................ 235500



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 177000...(687)......0
    Total secured & HP debts...... 177000....-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Tesco Loan.....................17011.....245.......0
    Barclaycard 1..................2450......40........0
    Barclaycard 2..................3301......70........0
    Total unsecured debts..........22762.....355.......-



    Monthly Budget Summary

    Total monthly income.................... 1,589.7
    Expenses (including HP & secured debts). 1,645.63
    Available for debt repayments........... -55.93
    Monthly UNsecured debt repayments....... 355
    Amount short for making debt repayments. -410.93


    Personal Balance Sheet Summary
    Total assets (things you own)........... 235,500
    Total HP & Secured debt................. -177,000
    Total Unsecured debt.................... -22,762
    Net Assets.............................. 35,738
    Originally posted by anni999
    Are all your unsecured debts really on 0%?
    My job is Top Secret. Even I don't know what I'm doing.

    Amount I have so far denied the BBC - £1161
    • enthusiasticsaver
    • By enthusiasticsaver 16th Sep 17, 9:45 PM
    • 4,661 Posts
    • 8,820 Thanks
    enthusiasticsaver
    • #9
    • 16th Sep 17, 9:45 PM
    • #9
    • 16th Sep 17, 9:45 PM
    Your problem here is lack of income rather than cutting down. In the meantime the entertainment has to go as that is a nice to have rather than essential. The presents bill also is way too high on such a low income and you can reduce the groceries by meal planning and using Lidls or Aldi. That could maybe half the shortfall but is not going to eliminate it altogether. One or both of you will need to get paid employment until the self employment income rises sufficiently to cover your essential outgoings or your situation will rapidly get worse.

    What was the Tesco loan for?
    4 weeks to go until early retirement in December . Debt free and mortgage free.

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • Cherry Burton
    • By Cherry Burton 17th Sep 17, 11:56 AM
    • 92 Posts
    • 496 Thanks
    Cherry Burton
    Hi,

    I agree that your problem is lack of income and this needs to be tackled through increasing wages and benefits. You need to "buy some time" while you sort this out and, perhaps enter a debt management plan.

    I have few of other observations which might or might not be helpful,
    1. In the long term, £20 isn't enough for clothes for three people particularly when one is a growing child. You will be able to go for a while but then you will end up putting clothes and shoes on your card.
    2. Do you need the car? You only spend £40 on fuel, could you sell the car and perhaps use the money to pay down one of your debts?
    3. What are the other assets worth £2500? Could you sell these and pay off card 1?

    Best of luck

    CB
    Debt 08/14 - £8200
    Mortgage 1/1/14 approx £50,000, 1/8/16 £31,269 1/9/16 27500 3/10/16 £25842
    1/11/16 £23987 1/12/16 £22050 1/4/17 £16312 3/7/17 £9989 1/8/17 £7,666 1/9/17 £5959 2/10/17 £4772 1/11/17 £2965
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