Advice on MY SOA please

JohnT1974

Well here is my SOA...

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.................... 2

Monthly Income Details
Monthly income after tax................ 2693
Partners monthly income after tax....... 900
Benefits................................ 100
Other income............................ 0
Total monthly income.................... 3693

Monthly Expense Details
Mortgage................................ 852
Secured/HP loan repayments.............. 363
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 120
Electricity............................. 65
Gas..................................... 65
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 20
Mobile phone............................ 60
TV Licence.............................. 20
Satellite/Cable TV...................... 40
Internet Services....................... 0
Groceries etc. ......................... 400
Clothing................................ 50
Petrol/diesel........................... 400
Road tax................................ 31.25
Car Insurance........................... 83
Car maintenance (including MOT)......... 46
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 10
Buildings insurance..................... 25
Contents insurance...................... 22
Life assurance ......................... 88
Other insurance......................... 40
Presents (birthday, christmas etc)...... 30
Haircuts................................ 20
Entertainment........................... 30
Holiday................................. 85
Emergency fund.......................... 20
Total monthly expenses.................. 3025.25


Assets
Cash.................................... 0
House value (Gross)..................... 140000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 5000
Total Assets............................ 148000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 162000...(852)......6.39
Hire Purchase (HP) debt ...... 15000....(363)......15.9
Total secured & HP debts...... 177000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................6150......190.......15.9
capital One....................6200......250.......18.9
AA Loan........................20000.....290.......7.9
Northern Rock..................12000.....177.......6.9
Total unsecured debts..........44350.....907.......-


Monthly Budget Summary
Total monthly income.................... 3,693
Expenses (including HP & secured debts). 3,025.25
Available for debt repayments........... 667.75
Monthly UNsecured debt repayments....... 907
Amount short for making debt repayments. -239.25

Personal Balance Sheet Summary
Total assets (things you own)........... 148,000
Total HP & Secured debt................. -177,000
Total Unsecured debt.................... -44,350
Net Assets.............................. -58,350



My question is rather simple. What do I do or where do I go from here.

I have applied for consolidation loans and 0% CC's but my credit rating is too low, get refused every time.

I have written letters to my creditors making revised payment offers in line with my budget but this does not seem to be going anywhere.

Please help me.

Is there something I could do to stop the horrible phone calls.
I dread going home from work to find out what letter is there waiting for me.

Thank you everyone,

regards

john

Horace

Hi and welcome contact one of the debt charities such as CCCS.

However as there are only 3 of you then you can cut your grocery bill by at least half - look at the moneysaving oldstyle board for tips on meal planning.

Mobile phone - switch to PAYG because £60 a month is too much. I thought the TV licence was £12 a month not £20 Don't buy clothes for a while except for essentials - kids clothes can be gotten easily from freecycle especially baby clothes.

Ditch your holiday fund as at the moment you can't afford it and you will pay off your debts quicker if you get rid until the credit card at least has been paid off.

Keep a spending diary so that you know where money is being spent - lunches at work, newspapers, magazines etc, they soon add up.

WASHER

JohnT1974 wrote: »

Well here is my SOA...

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.................... 2

Monthly Income Details
Monthly income after tax................ 2693
Partners monthly income after tax....... 900
Benefits................................ 100
Other income............................ 0
Total monthly income.................... 3693

Monthly Expense Details
Mortgage................................ 852
Secured/HP loan repayments.............. 363
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 120
Electricity............................. 65 - This is high
Gas..................................... 65 - This is high
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 20
Mobile phone............................ 60 - you can't afford a mobile - phone and reduce your contract if you have had the phone 9 months or more (T Mobile won't let you, but all the others as far as I am aware will)
TV Licence.............................. 20- Why is this 20, it should only be at 12 at the most
Satellite/Cable TV...................... 40 - you can't afford this
Internet Services....................... 0 - do you not have the internet at home
Groceries etc. ......................... 400 - reduce this slightly each month (see it as a challenge)
Clothing................................ 50 - You really can't afford this each month the amount of debt you have
Petrol/diesel........................... 400:eek:Gosh thats really high
Road tax................................ 31.25
Car Insurance........................... 83 - very high
Car maintenance (including MOT)......... 46
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 10
Buildings insurance..................... 25 - that seems high
Contents insurance...................... 22 - that seems high
Life assurance ......................... 88:eek:Life insurance is very important and I wouldn't cancel it for the world, but this is a lot of money each month. What is it covering?
Other insurance......................... 40 - Whats this
Presents (birthday, christmas etc)...... 30
Haircuts................................ 20
Entertainment........................... 30
Holiday................................. 85 - You certainly cannot afford a holiday - sorry to be blunt
Emergency fund.......................... 20
Total monthly expenses.................. 3025.25


Assets
Cash.................................... 0
House value (Gross)..................... 140000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 5000
Total Assets............................ 148000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 162000...(852)......6.39
Hire Purchase (HP) debt ...... 15000....(363)......15.9
Total secured & HP debts...... 177000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................6150......190.......15.9
capital One....................6200......250.......18.9
AA Loan........................20000.....290.......7.9
Northern Rock..................12000.....177.......6.9
Total unsecured debts..........44350.....907.......-


Monthly Budget Summary
Total monthly income.................... 3,693
Expenses (including HP & secured debts). 3,025.25
Available for debt repayments........... 667.75
Monthly UNsecured debt repayments....... 907
Amount short for making debt repayments. -239.25

Personal Balance Sheet Summary
Total assets (things you own)........... 148,000
Total HP & Secured debt................. -177,000
Total Unsecured debt.................... -44,350
Net Assets.............................. -58,350



My question is rather simple. What do I do or where do I go from here.

I have applied for consolidation loans and 0% CC's but my credit rating is too low, get refused every time.

I have written letters to my creditors making revised payment offers in line with my budget but this does not seem to be going anywhere.

Please help me.

Is there something I could do to stop the horrible phone calls.
I dread going home from work to find out what letter is there waiting for me.

Thank you everyone,

regards

john

John,

Welcome to DFW and for posting your SOA.

I have added comments in above, you are not going like some of them. Its never easy being told one can't afford something.

As regards to the telephone calls, I will get you a templete letter in a mo to send off to each creditor informing them to contact you in writing only...remember DO NOT SIGN THE LETTER, JUST TYPE YOUR NAME.

If calls are a real problem for you, get caller display or a cheap answer phone, they should stop after you send the letter.

In the meantime, have a read of the CCCS website, its a debt charity, the website has a wealth of knowledge and if you wish you could phone and make an enquiry....it will not cost you a penny, do not under any circumstances use any company which charge for this service. Payplan and National Debtline can also be used (free of charge too).

WASHER

http://forums.moneysavingexpert.com/showthread.html?t=963087

Templete letters to creditors, you need post 4.

Consolidation rarely works, I personally don't recommend securing any unsecured debts.

The immediate thing you need to do is to make up your short fall each month which is approx £240 per month, if you reduce the mobiles, grocery bill, get rid of sky etc, it can be done.

HTH.

WASHER

Tixy

Hi John and welcome to DFW

Have you included this budget with your revised payment offers? If so they may consider spending in some areas is excessive and that is why they are declining your offers.

You either need to reduce your outgoings by the £237 or consider something like a debt management plan. If you are doing the latter speak to one of the free organisations such as CCCS, Citizens Advice or Payplan. You may also want to consider filling in CCCS online debt remedy tool to see what it recommends as a guideline.

Looking at your costs there are several areas you could reduce

Your groceries are the most obvious area - this is really high for 3 people, you should be able to do this easily on £250 per month. Have you done the drop a brand challenge, do you meal plan? buy in bulk? shop around for the best deals. The oldstyle board is a really good source of ideas for eating cheaply and heathily and they are really friendly.

Gas & Elec are fairly high- have you checked you are with the best supplier recently? are these based on actual rather than estimated readings?

Is landline & satellite a package? does satellite include internet? Lookif you can get a better combined deal or drop to a lower SKY package. Alternatively SKY will usually give you 6months half price if you phone and say you are leaving due to financial difficulties.

Are you on the best deals with your mobiles? If in contract ask to drop to a lower tariff if not shop around for new deals or consider PAYG as there are some great deals at the moment.

Petrol is really high - is this all necessary journeys? Do you drive fuel efficent cars? Do you drive efficently? What is the split of fuel between you both?

B&C insurance is high - I pay £23combined for a house worth slightly more than yours. Life ins seems really high - you should be able to make a big saving unless one of you has underlying health problems. What is other ins? For all insurances check comparison sites - do not wait for renewal time, sometimes the saving is so big its worth switching midyear.

Whilst you have a monthly deficit you can't afford a holiday.

What is on HP at £15k?
What are £5k other assets -can they be sold to pay off debts? If they are earning less than 18.9% then you should consider getting rid of them.

Just my thoughts -Hope this helps

Dinah93

JohnT1974 wrote: »

Well here is my SOA...

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.................... 2

Monthly Income Details
Monthly income after tax................ 2693
Partners monthly income after tax....... 900
Benefits................................ 100
Other income............................ 0
Total monthly income.................... 3693

Monthly Expense Details
Mortgage................................ 852 Quite a big property? Get a lodger = +£200 a month
Secured/HP loan repayments.............. 363
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 120
Electricity............................. 65 Quite high, look to get a better rate +£20 a month
Gas..................................... 65 As above + £20 a month
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 20
Mobile phone............................ 60 Again high, look to get this to £40 for two phones maximum +£20 a month
TV Licence.............................. 20 It's £12. +£8 per month
Satellite/Cable TV...................... 40 This is a luxury you can't afford + £40 a month
Internet Services....................... 0
Groceries etc. ......................... 400 For 3 people?!?! This can be halved easily, I feed two on £125 a month and that is full 5 a day, meat daily etc. +£200 a month
Clothing................................ 50 Essentials only till you clear the debt +35 a month
Petrol/diesel........................... 400
Road tax................................ 31.25
Car Insurance........................... 83 Really high, look for a better deal when you renew and go through quidco for cashback
Car maintenance (including MOT)......... 46
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 10
Buildings insurance..................... 25
Contents insurance...................... 22
Life assurance ......................... 88 All these insurances seem really really high, I'm sure at least £30 a month can be saved by looking for a better deal.
Other insurance......................... 40 What is this?
Presents (birthday, christmas etc)...... 30
Haircuts................................ 20
Entertainment........................... 30
Holiday................................. 85 Be realistic! You can't meet your commitments, you can't afford a holiday. + £85 per month
Emergency fund.......................... 20 You're in one. where is this money going as you haven't said you have any savings. +£20 a month
Total monthly expenses.................. 3025.25


Assets
Cash.................................... 0
House value (Gross)..................... 140000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 5000 What is this?
Total Assets............................ 148000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 162000...(852)......6.39
Hire Purchase (HP) debt ...... 15000....(363)......15.9
Total secured & HP debts...... 177000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................6150......190.......15.9
capital One....................6200......250.......18.9
AA Loan........................20000.....290.......7.9
Northern Rock..................12000.....177.......6.9
Total unsecured debts..........44350.....907.......-


Monthly Budget Summary
Total monthly income.................... 3,693
Expenses (including HP & secured debts). 3,025.25
Available for debt repayments........... 667.75
Monthly UNsecured debt repayments....... 907
Amount short for making debt repayments. -239.25

Personal Balance Sheet Summary
Total assets (things you own)........... 148,000
Total HP & Secured debt................. -177,000
Total Unsecured debt.................... -44,350
Net Assets.............................. -58,350



My question is rather simple. What do I do or where do I go from here.

I have applied for consolidation loans and 0% CC's but my credit rating is too low, get refused every time.

I have written letters to my creditors making revised payment offers in line with my budget but this does not seem to be going anywhere.

Please help me.

Is there something I could do to stop the horrible phone calls.
I dread going home from work to find out what letter is there waiting for me.

Thank you everyone,

regards

john

I've gone through your SOA and my savings would have you £713 better off per month, or £513 if you are unable/unwilling to take in a lodger. That's without reducing any of the other costs I haven't put a figure in for that I also think could be reduced. This would mean you can make huge headway into the debt as cutting these bills would have you meeting your repayments with spare money to make overpayments. You need to accept getting into debt didn't happen overnight, and getting out of it won't either. And it does require sacrifices, but if you don't make changes you'll be in an even worse position in a years time. Good luck

gfplux

hello jhnt1974,
This will seem harsh but I mean to be helpful.
Examine yourself, is this really your “light bulb moment.” If you find plenty of reasons and excuses not to act immediately then the bulb has not come on properly. If you can not do without (this is a general list) - A Sky contract, Mobile Phones, Two cars, Lottery tickets, Air fresheners, Cloths for a year, Charity contributions, Savings for a child, Presents, Holidays, Fitness/Sports Membership, then again the bulb has not come on properly.
What do you think?

Trollfever

I have written letters to my creditors making revised payment offers in line with my budget but this does not seem to be going anywhere.

When you speak to the free debt charities, ask them about The Common Financial Statement.

JohnT1974

thanks everyone for your great replies. They have been really helpful.
Yes I do need to re-examine my expenditure and cut in certain areas.
Perhaps it has been my lightbulb moment and the general consensus is that I have unnecessary excesses which can be cut/omitted from my budget.
I see this now.
I will keep you posted on changes I have made (about to make) regarding mobile phones, household bills, holidays, insurance, etc etc etc.

Thanks again all

John

Nikkei

Hi John

Looking at your SOA it is very similar to our own but some things do stand out -

Gas and Electricity - This seems quite high, we have a large three bed semi and spend £80 a month (£40 gas/£40 Electric) Can you gut this by changing suppliers? Do you leave appliances switched on or on standby that can be switched off? Do you have the heating on unnecessarily (consider blankets me and my son get comfy on the sofa in our pyjamas and watch our favourite shows, he thinks it's fab and gets excited when it's pyjama night!)

Food - This is really excessive and this is also the area we've managed to figure out and it's all down to planning. There are three of us plus 2 dogs and 2 guinea pigs to feed and we spend £120 a month (we're trying to cut this even more) If you live quite local to your supermarket then try and shop once a week, before you go have a meal plan for the upcoming week and check what you already have in your cupboards and only get whats on your list, you can always allow yourself a set amount of treat money for any little extras that tempt you but once that money is used it's used! The bargain that helps us out the most is our local farm, they sell fruit and veg boxes packed to overflowing for £5 or £10 and they give us all our veg for the week and they get delivered to the door! see if there's anything like this in your area?

Satellite - I know everyone says this is not needed but It's one of things I won't give up, if keeping sky means that you don't go out then keep it as going out will surly cost more money, however do you need the £40 package -if it's sky movies that cranks up the bill do you need this as most of the movies are replayed to death so it's not great value for money, if it's sky sports then I'm staying quiet as it's never wise to get between a man and his sports:D

Clothes - £50 does seem a little high however it depends on whether you are buying two items costing £50 or 5-6 Items costing £50, if this clothing is for your child are you buying clothes that fit well but still have room to grow (i'm assuming your child is still young and grows at the speed of light like mine!!)

Insurances - All of these seem to be on the high side but it depends on personal circumstances, Life assurance - I have a pre-existing medical condition when we bought our house so our assurance cost £70 for the two of us however now I've had two years all clear assurance now costs £20. If it's higher for that reason then keep checking back with your provider whether they can revise the policy based on current circumstances, as people have said comparisson websites can save you hundreds of pounds, try and tackle one a day and buy the weekend you could be quids in!!!

Emergency fund - I think you need to increase this as £20 for an emergency is unlikely to be enough. Example, last month my Dog became quite sick out of the blue, took her to the vets and it cost me £50, then later in the day she started convulsing so we took her back to the vets and she passed away shortly after, we sent her to be cremated and that then cost a further £90. I would pay this a million times over for any one of my pets don't get me wrong but the money had to come from somewhere and an emergency fund of £20 would not have covered anywhere close to the cost. They say your emergency fund should be the equivalent of three months salary so I would say up this to £60 a month or so for the next few until you actually have a 'fund' this money could be gained from a saving elsewhere, plus the money is still there until it is used so it would be an asset going forward.

Holiday - I'm a wishful thinker too and it would be fab to get away! Instead why don't you allow yourself a holiday fund that can only be paid when you hit certain targets ie everytime you pay £1000 off debt allow yourself £100 to your holiday fund, when you've paid off £5000 of debt you should have enough to book a last minute holiday in europe for a week and it'll be a reward well deserved:T.

Anyway good luck on your quest and I'll keep my fingers crossed all goes well, would love to hear how your getting on

Nikkei X