My SOA...any advice??

hels123_2

We are treading water but I need something to aim for, Im trying to work out how soon I can be Debt Free.... Here is my SOA can anyone advise of any ways to save??

Income is about £3100 per month (it differs each month) We dont claim benefits.

But there always seems to be needing paying, eg car service, or MOT, I owe my Mum about £7k too which Im trying to pay off a bit each month (about £50) It is interest free.

have posted SOA on post 9, need to confirm APR on credit card and Next, but I know they arent good.

CLAPTON

you would be better posting on the debt free wannabe board and to use this SOA template
http://www.makesenseofcards.com/soacalc.html

hels123_2

Ooops Im sorry, I thought I had posted on DFW! Can this be moved???

pixiepie99

My personal opinion is you should be repaying your mum more quickly instead of making such large overpayments on your mortgage.

Also, you know that you car will need servicing and its MOT so budget a set amount each month for this.

hels123_2

Im just doing the proper SOA teplate.

posted_2

You are overpaying the mortgage, but that money is coming from (mum+) other high apr debt, overdraft, bank account fee, storecards, credit cards etc, which is compounding the problem, instead of reducing it.

eg 30% storecard/20% overdraft should be a higher priority than overpayment of a 5% mortgage.

hels123_2

Statement of Affairs and Personal Balance Sheet

posted_2

You need to quote apr's, and overdraft, debt to mum

hels123_2

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1000
Partners monthly income after tax....... 2000
Benefits................................ 120
Other income............................ 0
Total monthly income.................... 3120
Monthly Expense Details
Mortgage................................ 800 OVER PAYING THIS BY ABOUT £500 PCM, ALTHOUGH IT IS ONLY IO.
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 124
Electricity............................. 45
Gas..................................... 0
Oil..................................... 55
Water rates............................. 30.4
Telephone (land line)................... 0
Mobile phone............................ 130
TV Licence.............................. 11.61
Satellite/Cable TV...................... 21
Internet Services....................... 26 This includes land line and calls
Groceries etc. ......................... 300 Includes DH food while he works away
Clothing................................ 0
Petrol/diesel........................... 300
Road tax................................ 16.61
Car Insurance........................... 67.27
Car maintenance (including MOT)......... 0 (I need to assess this.)
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 240
Other child related expenses............ 160
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 16
Buildings insurance..................... 12
Contents insurance...................... 12
Life assurance ......................... 21 (for both DH and I)
Other insurance......................... 26
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2413.89

Assets
Cash.................................... 0
House value (Gross)..................... 190000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 190000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 166000...(800)......0
Total secured & HP debts...... 166000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Student loan ..................7846......224.......6.9
Next account...................580.......40........?
DH debts.......................3000......80........0
DFS............................672.......56........0
Tesco..........................1300......48........?
Credit card (Virgin)...........1800......25........0
Total unsecured debts..........15198.....473.......-

Monthly Budget Summary
Total monthly income.................... 3,120
Expenses (including HP & secured debts). 2,413.89
Available for debt repayments........... 706.11
Monthly UNsecured debt repayments....... 473
Amount left after debt repayments....... 233.11
Personal Balance Sheet Summary
Total assets (things you own)........... 190,000
Total HP & Secured debt................. -166,000
Total Unsecured debt.................... -15,198
Net Assets.............................. 8,802
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

CLAPTON

All things being equal, any spare money should go towards the highest APR debt.. this clears the debts earliest with least interest being paid... so maybe stop overpaying the mortgage and apply it the highest APR debt (maybe the store card debts)


There are a lot of things missing... with 4 people in the house hold you need something there for clothes, presents/birthdays, any RAC/AA costs, entertainment must cost something, and with a car and home you need an emergency fund.

but 130 for mobile seems very very high.

why is student loan at 6.9% ?

pixiepie99

I agree with the other poster - you should be paying off your credit card debts before overpaying your mortgage: always pay off the debts incurring the most interest first!. Plus, I still stand by the fact you should be repaying your mum before overpaying on the mortgage.

Also, your mobile phone bill sounds very high - can you renegotiate contracts to bring the price down?

Finally, you're not budgeting for all your costs such as haircuts and presents. With 2 children in the household you must budget for presents etc unless your children are very understanding!