S.O.A Advice

BenniBoi

Hi everyone, been reading through a lot of the threads on here and the advice been given. I'm hoping that someone would be able to give myself advice. In June I made the decision to move back to my moms after growing increasingly fed up of living out of not one but two overdrafts. Within a few days of getting paid I'd be back in my overdraft, countering each one so not to go over my agreed limits. I'm lucky that now I only have to pay £100 instead of the c. £300 a month in rent depending on bills (shared house). It is hard going however as I have to sleep on a portable fold out bed in the living room. The rent includes everything however including food although I do buy some of my own food aswell. Below is my how my financial situation was looking when I moved back and also my S.O.A with some notes to help. The Virgin CC was paid off in full this morning :j

Lloyds TSB Loan £8264/£8500 Buy Now Pay Later Loan Over 60 Months. Taken out October 2008. First Payment February 2009 .
Blackhorse Finance £855
Virgin CC £690/£2500
Lloyds TSB Overdraft £569/£600
Lloyds TSB Overdraft £342/400

Total Debt as of 16th June 2009 £10,720
Total Debt as of 14th October 2009 £8210
Debt reduced by £2510 in 4 months!!!

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1 Only counted myself as no other dependents.
Number of children in household......... 0
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 906 Get paid four weekly but this is my 12 monthly figure.
Partners monthly income after tax....... 0
Benefits................................ 0 Turn 25 next month and hoping to claim Working Tax Credit. EntitledTo came up with a figure of £16 a month.
Other income............................ 0
Total monthly income.................... 906

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 100
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 34.26 IPhone 3G contract. Stuck till 25th January 2010. No lower Tariff. Looking at moving to Simplicity plan for £9.79 afterwards. IPhone 3G has been sold already.
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 50 Loaded onto o2 Money card with £25 for petrol. Currently loaded monthly for cash incentive. Changing to weekly to better manage on a weekly basis. Often struggling by end of month for food and petrol money.
Clothing................................ 0
Petrol/diesel........................... 25
Road tax................................ 1.25 Have a Vespa so only £15 a year
Car Insurance........................... 14.88 As above very cheap insurance. Runs out January.
Car maintenance (including MOT)......... 10 Less than two years old so M.OT just services and cost of 2 Stroke.
Car parking............................. 0 Never need pay for this :rotfl:
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10 Wear contacts and are a must!!! Includes cost of dentist and opticians.
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 15 Recently got a lot cheaper as recently split with partner
Haircuts................................ 0 Done at home :beer:
Entertainment........................... 43.50 Includes Cineworld Unlimited Subscription. Don't drink so nights out are very cheap at £5 normally.
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 304.01


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2500 Vespa PX125. Cost £2999 Value unkown however as it's a special edition and only seen one for sale for £5000 but as new. Do have extras but also some damage from an accident. Really don't want to sell due to commute to work cut down by about 90 minutes compared with public transport. Also work hours to business needs often 8 -4 but last week included start at 3am
Other assets............................ 0
Total Assets............................ 2500

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Lloyds TSB Loan................7823......204.......13.83
Lloyds TSB.....................387.......0.........19 This will paid off at end of October in one go when I get paid again.
Total unsecured debts..........8210......204.......-


Monthly Budget Summary
Total monthly income.................... 906
Expenses (including HP & secured debts). 304.01
Available for debt repayments........... 601.99
Monthly UNsecured debt repayments....... 204
Amount left after debt repayments....... 397.99

Personal Balance Sheet Summary
Total assets (things you own)........... 2,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -8,210
Net Assets.............................. -5,710



The dilemma I am facing is a good friend has recently moved back to the area after getting transferred at work. We have looked at getting an apartment together in January in Birmingham City Centre which would increase my rent and bills to about £400 a month. Move out and have my freedom but take out a new 36 month loan for a better 7.9%-9.9% rate in January (Got my credit rating to excellent), or with the surplus save it to pay off my current loan in December 2010 and making a fresh start

misspoppy

Hi

You have a lot left over every month, or possibly not, so a spending diary would be a good idea jotting down every penny you spend and seeing where you spend more than you think and waste.

You could easily pay off your od's and cc in a few months with this extra money. Getting more loans is not a good idea as you found out already living away from your family is costly with so little expenses you could save a great nest egg to ensure you don't need to get loans in the future.

BenniBoi

You have a lot left over every month, or possibly not, so a spending diary would be a good idea jotting down every penny you spend and seeing where you spend more than you think and waste.

The extra money has gone towards paying off over £2500 off debts in the last four months. This is my S.O.A as of today which is why I now have such a surplus after paying off the Virgin CC today. All money is budgeted for and taken out when I get paid. £75 of this goes onto an o2 money card to pay for food and petrol combined so separate to my current account. No cash is then taken out after this till next pay day apart from the few emergencies I've had in recent months like buying a new phone to replace a lost one.

Tixy

Hi Benni

Its a difficult choice - obvioulsy living on a fold out bed is not great fun. But if you move out and your rent and bills increase by £300 and your groceries increase by say another £50 you are going to leave yourself in position of only having £47 left for emergencies and everything else. I note you haven't put anything down for clothes either?

I think you need to really work out how much it will cost you in rent, council tax, utilities, water, tv licence, insurance, groceries (cleaning stuff as well as food) plus any extras broadband/sky etc. If its an apartment you may have to pay a maintenance charge, car parking (even for a vespa you may have to buy a space in an apartment block) etc etc.
Whatever figure you come up with for all these I would add on a 10% contingency and then decide if you can still afford to move out.

Good luck with your decision.