My horrible SOA

MyopicMoo

Well here it is. A horrible thing to face and the result of years of hoping things will go away.

This SOA is where we are now.

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 2200
Partners monthly income after tax....... 1684
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3884
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 583 - with Welcome!
Rent.................................... 1250
Management charge (leasehold property).. 0
Council tax............................. 190 - arrears below
Electricity............................. 68 - includes arrears
Gas..................................... 99 - includes arrears
Oil..................................... 0
Water rates............................. 33
Telephone (land line)................... 20
Mobile phone............................ 90 - 3 mobiles - looking to reduce this
TV Licence.............................. 11.63
Satellite/Cable TV...................... 56 - OH tasked with reducing this
Internet Services....................... 20
Groceries etc. ......................... 300 - a rough estimate
Clothing................................ 20
Petrol/diesel........................... 260
Road tax................................ 30
Car Insurance........................... 90 - 2 cars plus breakdown
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 3130.63

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 11000 - on HP
Other assets............................ 0
Total Assets............................ 11000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 19810....(583)......0
Total secured & HP debts...... 19810.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Council Tax Arrears............4312......0.........0 - priority, being negotiated now, more than one council.
Student Loan 1.................2160......0.........0
Student Loan 2.................2655......0.........0
Welcome Loan 2.................6000......200.......0
Welcome Loan 1.................5000......266.......0
Quick Quid.....................468.75....100.......0 - stupid - I know
Wonga..........................565.48....565.4.....0
Wageday Advance................250.......50........0
Catalogue......................600.......0.........0
Credit Card....................1800......60........0
Total unsecured debts..........23811.23..1241.4....-

Monthly Budget Summary
Total monthly income.................... 3,884
Expenses (including HP & secured debts). 3,130.63
Available for debt repayments........... 753.37
Monthly UNsecured debt repayments....... 1,241.4
Amount short for making debt repayments. -488.03
Personal Balance Sheet Summary
Total assets (things you own)........... 11,000
Total HP & Secured debt................. -19,810
Total Unsecured debt.................... -23,811.23
Net Assets.............................. -12,811.23

I haven't got together all the information yet so have not added the APRs and there is probably a few things I have forgotten.


My priority is the council tax and I have been looking at how to get more money. So far I have:

• Got a refund of over payments to a previous student loan £190
• Applied for refund of bank charges under hardship
• Sent an SAR request to Welcome for all the accounts and will reclaim PPI
• Been accepted as an exam marker - long term as it is seasonal work but it should help

Any suggestions gratefully received but please be nice - I'm feeling bad enough as it is.

bunny999

Do you need 2 cars? You could cut back on groceries - there are great tips on the old style board.

dancingfairy

Hi and welcome. O.K well your SOA doesn't look too bad to be honest. O.k there are a few bits that can be trimmed in a bit but even with the extra cutabcks you aren't going to be able to free up and extra 488 pounds a month.
Therefore I think you really need to look at doing a dmp (debt management plan). Basically what's left after all the bills are paid gets split between your creditors fairly ie the ones you owe more to you pay more to and the ones you owe less to get a smaller chunk.
You are right in that you have identified that council tax is a priority debt , I think gas and electric arrears are also priority debts as obviously you need them to live.
I would suggest writing a letter to each of the creditors explaining that due to illness/redundancy/ etc you are struggling - if you haven't got a reason don't worry and that you are sorting out your affairs with the view to doing a debt management plan and that as soon as you can you will send them the SOA and let them know what you are able to offer them. In the meantime you can send them all 1 pound. This will give you a little breathing space to get the SOA into shape and to pay off the council tax arrears and the gas/electric - or hopefully a large proportion.
What do you think of the plan?
Also although you will get loads of help and support on here - don't forget you can also get in touch with National Debtline or CCCS or your local CAB or any of the other free charity/not for profit organisations that Martin recommends as well to get their advice.
Right I'll leave you to read this and go and have a look through the SOA for you.
df

MyopicMoo

I have also been looking at how to increase our income further. I will start ebaying stuff we don't need. I am also hoping to apply for additional responsibility at work which could also bring in a little more.

The car insurance is quite high so when I renew I will look at reducing this a lot (going through Quidco). I would switch now but am about 6 months into the year and don't want to lose the NCB as this will bring us up to 5 years NCB.

talana

MyopicMoo wrote: »

Any suggestions gratefully received but please be nice - I'm feeling bad enough as it is.

Constructive criticism we can do.

The problem seems to be not your monthly income (which is excellent). but your monthly spend. Racking up that much debt in the first place with such a good income does suggest your spending has been beyond your means for some time.

Rent - £1250pm :eek:
This is hurting you big time. Have you considered moving somewhere cheaper or buying and swapping rent for mortgage? I'm sure there must be options open to you.

I'll leave it to others to suggest other savings.
Good luck!

CLAPTON

how many payments have you made on tha car... if it's HP and you have made half the payments you can voluntarily terminate the contract... then buy a cheap car with considerable monthly savings

your rent is very high ..can you get a cheaper place while you pay off some of the debt

groceries... think meal planning, home cooking and 200 per month

dancingfairy

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 2200
Partners monthly income after tax....... 1684
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3884
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 583 - with Welcome!
Rent.................................... 1250
Management charge (leasehold property).. 0
Council tax............................. 190 - arrears below
Electricity............................. 68 - includes arrears
Gas..................................... 99 - includes arrears
Oil..................................... 0
Water rates............................. 33
Telephone (land line)................... 20
Mobile phone............................ 90 - 3 mobiles - looking to reduce this right you do really need to get this down to 2 (1 each should be plenty and max 20 a month each really)
TV Licence.............................. 11.63
Satellite/Cable TV...................... 56 - OH tasked with reducing this yep this needs to come down
Internet Services....................... 20 can you get a bundle deal with the sateltie/ cable tv and internet and phone ?
Groceries etc. ......................... 300 - a rough estimate a bit high to be honest- you need to be looking more at 200 pounds a month - head over to the old style board for lots of tips and tricks - they would probably say 150 pounds a month though.
Clothing................................ 20
Petrol/diesel........................... 260 this is high - why so high? to get to work or for work?
Road tax................................ 30
Car Insurance........................... 90 - 2 cars plus breakdown
Car maintenance (including MOT)......... 0 you need something here so you don't get hit with a nasty surprise
Car parking............................. 0 nothing here?
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 10 are you covered properly as seems quite low.
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 a small amount here?
Haircuts................................ 0
Entertainment........................... 0 and here?
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 3130.63

O.K well that's my take on it at the moment.
df

gratefulforhelp_2

Congratulations on being accepted as an examiner. You probably won't see the cash til this time next year, but great.

Can you let a room?

Can you do tutoring in anything?

Good luck.

pandora205

You've identified some of the obvious things to cut back - mobiles (who needs 3?) and satelite tv (cut rather than reduce). As others have said, the rent is very high for two people. Could you downsize cars?

RAS

I would suggest you start with a car boot sale for all the stuff that you no longer use. If you can get rid of one payday loan, you can start to get back into balance.

Also check whether you have PPI on any of the loans or cards. Would it pay out if you lost your job or were ill? Is it front-loaded (this can add 25% to a debt)?

chalkie99

MyopicMoo wrote: »

Rent.................................... 1250
What part of the country are you in? - This sounds horrendous!
Satellite/Cable TV...................... 56 - OH tasked with reducing this Don't "task" it - pick up one of your many 'phones and cancel it. Will take two minutes and it is something you do not need (just want). Buy a freeview box for about £15 one off payment.

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