A pensioner between a rock and a hard place

Toto

JanMGreen wrote: »

Hi folks, as promised, below is my SOA and Personal Balance. Hope it contains all the information you need to help me with advice! Thanks Jan.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household 1
Number of children in household 0
Number of cars owned 0

Monthly Income Details
Monthly income after tax 513.82
Partners monthly income after tax 0
Benefits 375.68
Other income 0
Total monthly income 889.50

Monthly Expense Details
Mortgage 0
Secured/HP loan repayments 0
Ren 316.76
Management charge 0
Council tax 58.92
Electricity 30.38 check this is the cheapest you can get.
Gas 27.96 ditto above
Oil 0
Water rates 30.00
Telephone (land line) 38.00 see if you can reduce this, often just a call to the service provider can get rates lowered.
Mobile phon 3.00
TV Licence 1.95
Satellite/Cable T 0
Internet Services 15.99 There are cheaper internet services out there so again see what's available in your area then call your current service provider to cancel, they will usually price match, if not switch.
Groceries etc 125.00 This can easily be reduced, hop over to moneysaving oldstyle and get some ideas for eating well on a budget
Clothing 5.00 stop this for now.
Petrol/diesel 0
Road tax 0
Car Insurance 0
Car maintenance (including MOT) 0
Car parking 0
Other travel 0 no travel expenses at all?
Childcare/nursery 0
Other child related expenses 0
Medical (prescriptions, dentist etc) 0
Pet insurance/vet bills 0
Buildings insurance 0
Contents insurance 12.95 price compare through quidco, i bet you can cut this.
Life assurance 5.00 do you really need this? I know it's nice to pass on something but is it really necessary right now?
Other insurance 0
Presents (birthday, Christmas etc) 200.00 I assume this is a mistake :eek:
Haircuts 45.30 stop this, enquire at your local college, you can get a decent haircut and colour for a nominal amount. You can't afford this amount for hair right now.
Entertainment 20.00 can this be cut out for a while?
Holiday 8.50 ditto above
Emergency fund 50.00 This is your emergency. Stop saving this and use what you have to pay off the debt.
Total monthly expenses 1014.71

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
Halifax Credit card 342.91 9.65 9.9
Halifax Overdraft 1000.00 0 19.5
Total unsecured debts 342.91 9.65 -

Monthly Budget Summary
Total monthly income 889.5
Expenses (including HP & secured debts) 1,014.71
Available for debt repayments -125.21
Monthly UNsecured debt repayments 9.65
Amount short for making debt repayments -134.86

Personal Balance Sheet Summary
Total assets (things you own) 0
Total HP & Secured debt -0
Total Unsecured debt -1,342.91
Net Assets -1,342.91

I have added some thoughts to your SOA. I think with just a few months of cutting right down will sort out the debt you have and will also help you to budget long term so you are living within your means.

Well done, it's never nice to see your financial situation in black and white is it.

JanMGreen

Thanks - there was an error. Let's hope it's the only one. You can see why I get into a mess with money - numeracy is definitely not my forte!

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household 1
Number of children in household 0
Number of cars owned 0

Monthly Income Details
Monthly income after tax 513.82
Partners monthly income after tax 0
Benefits 375.68
Other income 0
Total monthly income 889.50

Monthly Expense Details
Mortgage 0
Secured/HP loan repayments 0
Rent 316.76
Management charge 0
Council tax 58.92
Electricity 30.38
Gas 27.96
Oil 0
Water rates 30.00
Telephone (land line) 38.00
Mobile phon 3.00
TV Licence 1.95
Satellite/Cable T 0
Internet Services 15.99
Groceries etc 125.00
Clothing 5.00
Petrol/diesel 0
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) 0
Pet insurance/vet bills 0
Buildings insurance 0
Contents insurance 12.95
Life assurance 5.00
Other insurance 0
Presents (birthday, Christmas etc) 16.66
Haircuts and treatments 45.30
Entertainment 20.00
Holiday 8.50
Emergency fund 50.00
Total monthly expenses 831.37

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
Halifax Credit card 342.91 9.65 9.9
Halifax Overdraft 1000.00 0 19.5
Total unsecured debts 342.91 9.65 -

Monthly Budget Summary
Total monthly income 889.50
Expenses (including HP & secured debts) 831.37
Available for debt repayments 58.13
Monthly unsecured debt repayments 9.65
Amount short for making debt repayments 48.48

Personal Balance Sheet Summary
Total assets (things you own) 0
Total HP & Secured debt -0
Total Unsecured debt -1,342.91
Net Assets -1,342.91

MarsdenCuckoo

Equally, is the figure for TV licence correct?

RAS

Is that telephone cost you monthly spend?

Even without that there is another £100 in there at least that you can redirect to pay off the OD, based on my and Toto's readings.

Other things

1. What is there knocking about the house/flat that you can sell on amazon, e-bay or at a car boot sale? - even if it is not a lot.
2. Do you have food in the cupboards/fridge/freezer? Go over to the OLD Style forum and do a store cupboard challenge - live of the stores and only buy milk/bread etc. Could give you another £100 to reduce the OD this month.
3. Learn about cashback sites - you may not get the insurance any cheaper but you may get £50 for swapping supplier.
4. Look for EagerLearner's excellent threads on clicks and survey sites. http://forums.moneysavingexpert.com/showthread.html?t=609037 These do not affect your benefits but could bring you anything upto £30 per month.
5. Check the freebies section on here for stuff for pressies and treats.
6. join www.freegle.co.uk or www.freecycle.com depending on your area for clothes, household goods, electrical gear etc.

JanMGreen

Hi RAS and Toto, thank you so much for the advice you have given me above. You have given me hope! Although it is obviously going to be painful putting some of your advice into practise, it will be worth the effort.

In response to your questions, I do indeed pay £38 a month by direct debit towards my landline telephone bill, but now I am equipped with Skype I can phone my ‘boyfriend’ every day for free using that. I shall therefore ask BT about the possibility of a reduction. I shall also check whether I can get cheaper, electricity, gas, broadband and contents insurance.

The credit limit on the Halifax Credit card is £5,350, but I am in the process of switching this balance to a Virgin 0% card (not arrived yet). I am also planning to switch the Halifax £1000 overdraft via money transfer to the new Virgin card.

The life assurance is only for a ten-year term and matures next year; my intention was to save it towards my eventual funeral as I don’t want my kids to have to pay for that. Incidentally, does anyone know whether I shall be expected to pay tax on it and also confess to the benefits office about the matured sum I receive? I would be inclined to regard it just as savings.

I have no travel expenses because I get a free pensioner’s bus pass.

I shall definitely be investigating Oldstyle Moneysaver ways of cutting my grocery bill.

The suggestion that I try a college for haircuts/colouring is a useful one – if I can find a nearby college that will do it.

The figure for TV licence is incorrect because I lost a figure ‘1’ in £11.95 when transferring the figures to here, but that doesn’t affect the calculation.

I only get one holiday a year and it’s a long time until the next one! My boyfriend pays for most of it, but I do have to contribute £100 for lunches.

The monthly amount for gifts in my SOA was incorrect and should have been about £16.66.

I guess that lunches out with friends (the ‘Entertainment’ figure) will just have to lapse for now.

All of your other tips will be investigated too!

RAS

Hi

Whatever you do, make sure that you are getting the OD transfer at 0%. I am useless with this stuff, so check on the CC forum.

If you cannot use the virgin O% card, then put as much as possible on the halifax CC and cut the OD back over the next two or three months.

It will be a tough year, but at the end, you will be debt free and can lighten up.

If it gets too much remeber you can have one month which is slacker... as long as that does not extend to two months.

Re-do your SOA on senseofcards and then push the snowball button. This will tell you when you will be debt free and you can track how every spend and deposit against you de bts affects it. Some people find it addictive.

As for lunches - invite a couple of folks over on a shared meal - one brings starter, one main and one desert. Take it in turns. You get out, get company and a shared meal at a lower cost.

JanMGreen

Hi RAS again,

I presume that you mean I should re-do my SOA on senseofcards and push the snowball button AFTER I have organised some of your proposed reductions in charges, and then continue to check up on it as other changes take place over time?

Yes the OD transfer will definitely be at 0% and I shan't be using the card for anything else but the money transfer and the credit card balance transfer. I shall probably need to switch my Halifax current account too, to ensure that I don't accidentally slip back into their overdraft and end up with a hefty £1 a day charge despite all of this!

rockabilly_rebel

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household 1
Number of children in household 0
Number of cars owned 0

Monthly Income Details
Monthly income after tax 513.82
Partners monthly income after tax 0
Benefits 375.68
Other income 0
Total monthly income 889.50

Monthly Expense Details
Mortgage 0
Secured/HP loan repayments 0
Rent 316.76 Have you had your case re-assesed to see if you qualify for extra help with this. Have they had a SOA from you? A recent one
Management charge 0
Council tax 58.92
Electricity 30.38
Gas 27.96
Oil 0
Water rates 30.00 - Is this a fixed monthly bill? If so, if you are living on your own, you would probably benefit from having a meter instead.
Telephone (land line) 38.00 - This is very very expensive You can pay basic BT land line and £5 a month for free anytime UK calls. This should be now more than about £15-£16 tops
Mobile phone 3.00
TV Licence 1.95
Satellite/Cable T 0
Internet Services 15.99 You could look into a combined package with the new phone deal I mentioned. You shouldnt be paying a combined total of £45.99 for phone and internet
Groceries etc 125.00 0 Have you tried dropping a brand? As martins guide suggests? This can save siginificantly.
Clothing 5.00
Petrol/diesel 0
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) 0
Pet insurance/vet bills 0
Buildings insurance 0
Contents insurance 12.95
Life assurance 5.00 - do you need this if you are a single person?
Other insurance 0
Presents (birthday, Christmas etc) 200.00 - Conider buying presents well in advance and shopping around for as long as possible, to get the gift at the VERY lowest possible prioce
Haircuts 45.30 - Perhaps less frequently? Or find a cheaper hairdresser?
Entertainment 20.00 - you cannot really afford this either - halve it
Holiday 8.50 Can this be forfeited in order to handle your debts?
Emergency fund 50.00 - Always pay off debt before saving, put this £50 towards any current debts you have
Total monthly expenses 1014.71

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
Halifax Credit card 342.91 9.65 9.9 - what is the limit on this card
Halifax Overdraft 1000.00 0 19.5 - this is the priority as the APR is highest
Total unsecured debts 342.91 9.65 -

Monthly Budget Summary
Total monthly income 889.5
Expenses (including HP & secured debts) 1,014.71
Available for debt repayments -125.21
Monthly UNsecured debt repayments 9.65
Amount short for making debt repayments -134.86

Personal Balance Sheet Summary
Total assets (things you own) 0
Total HP & Secured debt -0
Total Unsecured debt -1,342.91
Net Assets -1,342.91

theoretica

If you can live within these figures I think you will make it. You have £58 left over for your debt, and £50 earmarked for 'emergencies'. Use both of these for your debt and you should be able to pay it off within the 16 months. Then look at the other suggestions to cut down spending or sell things to give you money for unexpected needs and meals with friends. (Such as telephone and internet where you should be able to save £25 at least. You qualify for BT's social tariff/BT Basic, but this is only good if you make very few calls out.) The aim is to keep your quality of life while spending carefully and sensibly to make your money go further. Sadly this does mean you need to think about money quite a bit, but hopefully not worry about it.

I would strongly advise you to keep a spending diary where you write down every penny you spend and add it up to make sure you are keeping within your budget. The hassle is part of the idea- to stop you spending! Your budget works out at £48.80 a week for all non-bills (food, clothing, hair, presents, entertainment) so make sure you are within this each week and save up out of this for things like haircuts.

JanMGreen

Thank you, both Rockabilly and Theoretica, for more excellent advice. I intend to apply as many of the tips Ih ave been given as possible.