Newbie-SOA + Essay

Mattb78

Suggest you make a cup of tea before reading this!:D

My salary - £2,400.00
Partners salary - 0
Benefits - 0

Total - £2,400.00

Monthly Outgoings:

Mortgage/Rent - £400 (Lodging, lump sum all utilities)
Mobile Phone - £21.00
Food - £120.00 (Kitty £30 pw)
Car Insurance – Company car, no running costs
Petrol - £50 (Personal miles)
Life Insurance £25
Bupa - £74.74

Total: £690.00
£1,710.00

Debt
Credit Cards
LloydsTSB Limit - £7500.00 Bal - £6,970.00 APR 16.6% Min Pay - £160.00
Halifax - £4,500.00 Bal - £4,290.00 APR 19.95% Min Pay - £72.00
Abbey - £5,000.00 Bal - £3,997.00 APR 14.4% Min Pay - £89.00
Barclaycard - £5,245.00 Bal - £5015.00 APR 19.9% Min Pay - £112.00
Lloyds Loan - £25,000.00 Bal - £15,545.00 70 X £383.00

Current account overdraft £600.00 charge - £15.00pm
Separate bills account overdraft £4,400.00 (Transferred from old cc for better APR) cost charge - £45.00pm

LBM - £40,817.00

Total debt payment per month - £1076.00:cool:

Avaliable cash (£634.00) This includes going out (A Luxury!)

Where do I start?, I was forced to realise my LBM when I was no longer accepted for further credit, I can only imagine this is because I’ve reached the limit of what I can borrow?, I haven’t missed a payment for over 5 years and my credit rating is good on both Experian and Equafax. I was making an attempt to transfer some of this debt to 0% cards but so far I haven’t been accepted for any cards, and I’m conscious of having too many credit searches on my records.

So

I have just had a recent shuffle, this week I’ve transferred £1k to my Abbey from LloydsTSB and made a payment of £300 above my min payment. I’m worried about the Lloyds debt as my bank account is with them and I’ve been reading the awful cases of “offsetting”. So I guess the quicker I can shift my Lloyds card the better?.

From my SOA you can see I have spare cash, and I generally use 80% of this to make additional payments to my cards but I seem to scatter between the Barclaycard and Lloyds and make no real headway!.

I have looked at DMP’s but do I need one of these?, I have a guy coming to see me next week to try and sell me a way out of this, but I am not one to take an easy route and prefer to do this myself if possible. (I certainly won’t pay someone to do this with the other free org’s about)

My out-goings are fairly low, I have a company car, so no running costs, (Just heavily taxed!), I pay one off lump sum rent a month to my landlord (Mate!) which covers all living cost with the exception of food, we put into a kitty each week £30 which covers all food, washing powder, etc.

The LBM has made me start saying NO to things, and I’ve just turned down my friends wedding in the South of France in August because of funds and all my life I’ve said YES to expensive wedding’s\stag weekends etc!. It kills me to be in this position but I do appreciate all the advice you lovely people offer, and I am open to all suggestions.

Thank you for reading this,

Matt

Mattb78

My Salary should read £2,400.00 PM

angelicmary85

http://www.makesenseofcards.com/soacalc.html

Hi Matt,

Welocme to MSE!!

It would be helpful if you could fill out the MSE SOA - It's easier to pick it apart!

Good luck with your debt free journey!

Mattb78

I did start to do this and will continue but the majority was 0 spending due to no utilities,car costs etc.

angelicmary85

It's o.k to have things at 0, just remember to include the apr's of your credit cards/loans etc... be honest about things like clothing and haircuts aswel!!

Horace

Rather than using a chap who will sell you a way to get of your debt so you end up in more debt contact one of the debt charities such as CCCS or National Debtline.

Well done on the LBM too - it cant have been easy. Can you open another account with a different bank so that all your money can go into that and then you can pay your debts from that which should stop Lloyds from trying to offset it?

If would help if you could complete the SOA using this form as this will be easier so we know all your income and outgoings including APRS on all credit cards and loans. https://www.makesenseofcards.com/soacalc.html and follow instructions on there to copy and paste it here.

The statement of affairs should show all your outgoings e.g. entertainment, tv, mobile phone etc. It will also be easier to read.

If the £120 on groceries is just for you then that can be dramatically reduced so look on the Moneysaving Oldstyle board for tips on mealplanning and how to eat well on a lower budget.

Keeping a spending diary also helps as it will show where you are frittering money away e.g. the odd newspaper, coffee, beer with mates, lunch at work etc. etc.

Mattb78

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 2400
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2400

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 400
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 21
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 120
Clothing................................ 10
Petrol/diesel........................... 50
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 25
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 100
Holiday................................. 10
Emergency fund.......................... 0
Total monthly expenses.................. 756


Assets
Cash.................................... 0
House value (Gross)..................... 0
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
LloydsTSB......................6970......160.......16.6
Halifax........................4290......72........19.95
Abbey..........................3997......89........14.4
overdraft2.....................600.......15........0
overdraft1.....................4400......45........0
loan...........................15545.....383.......0
Barclaycard....................5015......112.......19.9
Total unsecured debts..........40817.....876.......-


Monthly Budget Summary
Total monthly income.................... 2,400
Expenses (including HP & secured debts). 756
Available for debt repayments........... 1,644
Monthly UNsecured debt repayments....... 876
Amount left after debt repayments....... 768

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -40,817
Net Assets.............................. -40,817

Looks like I made a few calculated errors on my original DIY SOA!, I have £768 left after debt repayments.

angelicmary85

Mattb78 wrote: »

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 2400
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2400

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 400
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 21
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 120
Clothing................................ 10 you don't need something new every month!!
Petrol/diesel........................... 50
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10 is this cheaper pre-paid?
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 25 cheaper elsewhere?
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 100 you could cut back on this
Holiday................................. 10
Emergency fund.......................... 0
Total monthly expenses.................. 756


Assets
Cash.................................... 0
House value (Gross)..................... 0
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
LloydsTSB......................6970......160.......16.6
Halifax........................4290......72........19.95
Abbey..........................3997......89........14.4
overdraft2.....................600.......15........0
overdraft1.....................4400......45........0
loan...........................15545.....383.......0
Barclaycard....................5015......112.......19.9
Total unsecured debts..........40817.....876.......-


Monthly Budget Summary
Total monthly income.................... 2,400
Expenses (including HP & secured debts). 756
Available for debt repayments........... 1,644
Monthly UNsecured debt repayments....... 876
Amount left after debt repayments....... 768

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -40,817
Net Assets.............................. -40,817

Looks like I made a few calculated errors on my original DIY SOA!, I have £768 left after debt repayments.

Hiya,

Where's your t.v licence charge and council tax - are they included in the rent?

angelicmary85

You've got alot of money left over from your salary - this could make a huge difference if you were to spend it wisely!!

urg123

HI Matt

Do you really have £768 per month at the end of the month. You need to start keeping a spending diary and writing down every singe penny that you spend. Go through you last three month's bank statements and review where you spend your money. I think you'll be surprised!

I looked back at some of your old posts and found that you had posted in Jan 08. Back then your debt was £43k so you have reduced your debt by about £3k.

Have a look at the snowball calculator and see how overpaying can help you to reduce your debt.

Now you need to look at what you can sell - use amazon, ebay, musicmagpie. Any purchases should be using quidco or other cashback sites.

Join some of the tasks. Set yourself goals.

Your second LBM is a blessing - grab it with both hands and work at getting debt free. It'll be hard work but you have a great salary and that will really help you.

YOu need to be honest with yourself about where your money is going.

Good luck on your debt free journey - keep posting. This site is really helpful.

urg x x

theoretica

Because of the charges on your overdrafts this is an expensive way to borrow small sums- £15 x 12 = £180 a year, so 30% on £600. I would suggest you pay this one off first.