Need help with my SOA guys!

Jo_R_2

Hi!

My OH has recently moved in, I have two DDs aged 4 and 2 from a previous relationship and we have a baby on the way in February. We don't own a car at the moment. He works full-time, I don't currently work.

Things have been really tight since he moved in, it's taken a while to process our joint tax credits claim, and obviously have ended my claims for IS, HB and CTB. I've been having to withdraw a fair bit of money on my credit card to make ends meet - not ideal, but decided better to do that than incur tonnes of bank charges and have bills outstanding.

I also have a loan from my previous relationship, taken out in my name (lesson learned on that one!) but me and the ex are in negotiations that he *may* contribute half towards it. The loan company did offer a reduced interest rate a while ago as I have an "excellent repayment record", and I am getting shot of the PPI so is quite feasible the amount payable per month will go down a fair bit.

Anyhow, here is my SOA. I've added a few little comments where appropriate and would appreictae any thoughts or ideas!

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 1000 Paid weekly
Benefits................................ 274 Child benefit and tax credits
Other income............................ 120 Child maintenance
Total monthly income.................... 1394

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 465
Management charge (leasehold property).. 0
Council tax............................. 60 Estimated as was previously claiming CTB
Electricity............................. 33
Gas..................................... 40 Estimated, just changed suppliers and not received monthly payment amount yet
Oil..................................... 0
Water rates............................. 24.99
Telephone (land line)................... 10
Mobile phone............................ 25 I usually put £10 a month PAYG, OH on contract but can't remember exact amount he pays so guesstimated
TV Licence.............................. 11.95
Satellite/Cable TV...................... 0
Internet Services....................... 25 Joint phone and bb package, have been searching to cut this down as know could get a better deal. Line rental separate with BT.
Groceries etc. ......................... 160 Averagely spend about £40 week, delivered by Tesco. Recently started making more in bulk and making bsicuits, cakes etc myself rather than buying.
Clothing................................ 20 Guesstimated, only clothes been buying recently is school uniform and cheap maternity bits off ebay
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 14 Day ticket once a week to library to take DD2 to storytime and playdate
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 15 My contact lenses - cheapest have found so far for the ones I have but been checking online deals
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 14 Paid this last year in full, coming up for renewal soon but not got anything aside so will be paying monthly
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10 This is for the ridiculous amount of parties DD1 gets invited to. Nothing saved for Christmas.
Haircuts................................ 0
Entertainment........................... 180 Can easily cut down on this: this tends to be mostly OH with beers and a taxi back from town, I don't drink anyway. Also a pack of cigarettes a week included for OH.
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1097.94

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

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
Jo loan........................7865.22...154.......12.75
Jo credit card.................2634.03...43.28.....14
Matt credit card...............800.......30........14
Tax credits overpay............487.......20........0
Total unsecured debts..........11786.25..247.28....-

Monthly Budget Summary
Total monthly income.................... 1,394
Expenses (including secured debts)....... 1,097.94
Available for debt repayments........... 296.06
Monthly UNsecured debt repayments....... 247.28
Surplus(deficit if negative)............ 48.78

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total Secured debt...................... -0
Total Unsecured debt.................... -11,786.25
Net Assets.............................. -11,786.25

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.Not sure if have forgotten anything, seems obvious things are entertainment, been trying to get OH to stop smoking for pretty much as long as have known him but to no avail! We will have a night out together once a week on a Saturday but this has been happening less frequently since money has been tight so we tend to stay in a lot more, but have worked with the once a week figure.

Am sure could cut down more on groceries - a while ago was managing on £30/£35 a week for four of us (DD2 was a baby then) so could shave maybe £20+ off groceries.

Horace

Hi and welcome

With regard to various insurances you could renew them through cashback sites such as Quidco.

To save on interest payments try transferring the credit card debts to a 0% balance transfer card (you will have to pay a small fee but at least you won't be charged interest), the tip with these cards is to not spend on them.

Look at the Moneysaving Oldstyle Forum (on MSE) as they have fab recipes over there for cakes, biscuits etc. If you say to them that you have a tin of tomatoes, an onion, a potato and a piece of cheese (or whatever you have left in the fridge) they will come up with something that you can make.

Use your clubcard points that you earn with Tesco to 'buy' entertainment as apparently the points are worth more if they are not used for grocery shopping.

Also re the PPI - look elsewhere on this forum for tips on how to claim it all back.

HTH

doodledo_2

Looking at your SOA the only area which really jumps out at me is entertainment.

£180 a month is a lot when you are trying to clear debts so definately think this is an area to discuss with your OH.

Council tax seems low but obviously not sure on your area or house size so might be worth finding out an accurate figure for this.

Other than those most things seem pretty good to me.

With contact lenses it may be worth looking at bulk buying instead of paying monthly. I tend to do this now as works out quite a bit cheaper. Again this does depend on what type of lenses and perscriptions you have etc.

Good luck

Jo_R_2

Cheers guys.

Horace - have been thinking about transferring cc balances to a 0% card, I did this a while ago with mine but forgot to set up the DD so the 0% went out the window...:o OH's has just come out of his 0%. The thing I wasn't sure about regarding this is that as I don't currently work, am I going to now have any chance of being accepted for a new card?

I shall look into claiming the PPI back, it's something I've been thinking about doing.

doodledo - Touchy subject is entertainment! Being fair, since OH has moved in, he has cut down massively on going out. I don't go out in the week anyway (too tired!), OH might go out once for a couple of quiet drinks and on a Friday goes to meet his dad across town. On Saturdays we have tended to have an evening out as a couple as my DDs go to their dads or my parents. I'm a cheap night out as a couple of cokes will sort me, but OH can overload on beers and then a taxi back mounts up over the month.

He absolutely insists he couldn't go a week without going out, even if it meant we got our debts paid off quicker. I have pointed out that if we took it easy for maybe six months, that would mean his credit card would be paid off completely, but for some reason this fails to register with him...

Something which came up last night as well was that the loan in my name, being from my relationship with my ex, my OH feels really, REALLY resentful that because I have to pay this, it means he has to make up the shortfall. The thing is, in principle I totally agree he shouldn't have to take responsibility; however in practice I don't know what I can do apart from trying to get ex to pay towards it. OH was aware of the debt before he moved in and the situation with it. So I feel guilty now but not sure what to do with that guilt...

The tax credits debt is from an overpayment on the joint claim I had with my ex. I agreed to be responsible for half, but they have said (which I knew would be the case anyway) that if he didn't pay his half, I would be liable for the rest of it.

Jo_R_2

I meant to ask, just been talking to OH re: money situation, and was wondering, does anyone know:

• what would happen if my ex refused/just didn't pay his half of the tax credits overpayment? I understand I would be liable, how would this work if this came to be the case? I sincerely hope it wouldn't but I want to be prepared just in case.
• I want to ring up my loan provider and renegotiate my loan. A while ago when I last spoke to them they offered me a lower interest rate which would have reduced my monthly payments because as mentioned have a good repayment record, but I honestly thought there must be some catch if they were offering it to me without me asking? Could this be true? Call me a cynic lol! Who do I need to speak to and what's best to say? And what do I say about not wanting the PPI - this is included in my monthly repayment so do I need to tell them when I speak to them about not wanting it or do I just renegotiate the interest and loan repayments then and deal with the PPI as a separate issue?

I hope that all makes sense, I'm just trying to keep the ball rolling with getting on top of things!

Salazar_2

Hi Jo. I would guess that your loan provider, in the knowledge that you know that 12.75% is way over the top in view of the current BoE base rate, are trying to ensure you don't go and seek a better deal elsewhere by offering to bring down your rate. See what they offer you but shop around for a better deal anyway.

I sympathise with you both re the 'entertainment' issue. I work full-time whilst my partner looks after our daughter so I NEED a night out once a week. The trouble is I sometimes make it 2 or 3 nights instead of the 1 and it does mount up after a while. Try to get your OH to stay in the odd weekend out of every month with a few cans or some wine and a nice home cooked meal. I'll be doing that tonight.

Re the tax credits: I would imagine that you and your ex applied jointly and that your bank account was the recipient account. If so I would think that if he stops paying his half then you'd need to make it up.

Jo_R_2

Salazar wrote: »

Hi Jo. I would guess that your loan provider, in the knowledge that you know that 12.75% is way over the top in view of the current BoE base rate, are trying to ensure you don't go and seek a better deal elsewhere by offering to bring down your rate. See what they offer you but shop around for a better deal anyway.

I sympathise with you both re the 'entertainment' issue. I work full-time whilst my partner looks after our daughter so I NEED a night out once a week. The trouble is I sometimes make it 2 or 3 nights instead of the 1 and it does mount up after a while. Try to get your OH to stay in the odd weekend out of every month with a few cans or some wine and a nice home cooked meal. I'll be doing that tonight.

Re the tax credits: I would imagine that you and your ex applied jointly and that your bank account was the recipient account. If so I would think that if he stops paying his half then you'd need to make it up.

Erm I didn't know that first part but I certainly do now *runs away embarrassed thinking she should know these things*

*comes back*

That second part is like me and OH but reversed! He says he needs to unwind by going out and having beers after a hard week at work (and he does work very hard.) Thing is I feel like after running round after DD2 all day and DD1 when she's not at school that I could do with an evening out - I don't drink anyways (obv. not when pregnant anyways!) so it's more the getting out of the house and adult company I crave!

Salazar_2

Jo_R wrote: »

Erm I didn't know that first part but I certainly do now *runs away embarrassed thinking she should know these things*

*comes back*

That second part is like me and OH but reversed! He says he needs to unwind by going out and having beers after a hard week at work (and he does work very hard.) Thing is I feel like after running round after DD2 all day and DD1 when she's not at school that I could do with an evening out - I don't drink anyways (obv. not when pregnant anyways!) so it's more the getting out of the house and adult company I crave!

I don't know who your lender is but I reckon you could knock 3-4% off that rate.

I know what you mean about adult company. Maybe once a month you could all go out for a wee pre-threatre dinner or a cheap lunch. We do that. It gets all of us out the house, there's no need for a childminder and I get a drink and my partner gets time out the house. Isn't it funny how kids behave so much better outside the house than in it? It's almost like a rest even though they're still with you.

little_miss_thrifty

Hello, does your ex pay you child maintenance through the CSA or did you both come to some mutual arrangement? Depending on your ex's earnings, it seems rather low for 2 children, as we pay £100 a month for one child; DH is not a great earner and we have 2 other children at home also.

Good luck x

Jo_R_2

little_miss_thrifty wrote: »

Hello, does your ex pay you child maintenance through the CSA or did you both come to some mutual arrangement? Depending on your ex's earnings, it seems rather low for 2 children, as we pay £100 a month for one child; DH is not a great earner and we have 2 other children at home also.

Good luck x

Child maintenance is a private arrangement, which has only happened from this last month onwards. Long story which I won't bore you with :eek: but coming off Income Support when OH moved in not long ago, I was free to make arrangements and approached the ex about it. Essentially I wanted him to contribute, he knew I could go through CSA and get a considerable amount more, so we agreed a figure lower but I knew I was more likely to receive.

Is open to negotiation whenever but don't want to rock the boat right now.

dancingfairy

Well if the bank offers you a lower rate they may well increase the term for you. Nice - isn't it. This obviously means you will be paying it off for a lot longer and earning them a nice lot of interest. Plus whoever sells it to you I would think will get a nice little bit of commission.
Make sure you shop around and don't let them blind you - stay as cynical as you can about it all. If you can get a good deal make sure that the term is not increased if at all possible.
df