My SOA, I feel sick now, any help would be appreciated, thanks.

salesaddict

Hello all,

it has only taken me 3 months since joining mse to pluck up the courage to firstly face up to my debts, and secondly to post on here. I feel sick, ashamed and terrified but I would be most grateful if you would give me any advice.
Thankyou,



Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1964
Partners monthly income after tax....... 0
Benefits................................ 173.8
Other income............................ 0
Total monthly income.................... 2137.8
Monthly Expense Details
Mortgage................................ 572 (we have just finished a years payment holiday and this is now our interest only payment)
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 151
Electricity............................. 135
Gas..................................... 120
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 0
Mobile phone............................ 20
TV Licence.............................. 8
Satellite/Cable TV...................... 77
Internet Services....................... 0
Groceries etc. ......................... 450
Clothing................................ 100
Petrol/diesel........................... 120
Road tax................................ 16
Car Insurance........................... 24.5
Car maintenance (including MOT)......... 40
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 19.66
Contents insurance...................... 0
Life assurance ......................... 49
Other insurance......................... 9
Presents (birthday, christmas etc)...... 100
Haircuts................................ 55
Entertainment........................... 40
Holiday................................. 40
Emergency fund.......................... 0
newspaper &mag.......................... 6.8
overdraft interest...................... 19
charities............................... 25
Total monthly expenses.................. 2251.96
Assets
Cash.................................... 0
House value (Gross)..................... 285000
Shares and bonds........................ 0
Car(s).................................. 500
Other assets............................ 0
Total Assets............................ 285500
Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 140420...(572)......4.89
Total secured & HP debts...... 140420....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
AA loan........................11500..... 207.1.....7
m&s............................ 5077......126.......0
Barclaycard....................3113......68........15.9
citi........................... 1980......44........15.7
sainsburys..................... 375.......8.........8.94
tesco......................... .2350......47........0
santander......................2851.6....64.16.....0
natwest...................... ..4946......113.......0
virgin....................... ..5813......25........0
Total unsecured debts..........38005.6...702.26....-
Monthly Budget Summary
Total monthly income.................... 2,137.8
Expenses (including HP & secured debts). 2,251.96
Available for debt repayments........... -114.16
Monthly UNsecured debt repayments....... 702.26
Amount short for making debt repayments. -816.42
Personal Balance Sheet Summary
Total assets (things you own)........... 285,500
Total HP & Secured debt................. -140,420
Total Unsecured debt.................... -38,005.6
Net Assets.............................. 107,074.4

Little_Vics

Hi - there will be people along who can help more than I can, but quick glance says that your gas and elec are WAY too high, you can def. cut down on presents, hair cuts, groceries, clothing, cancel Sky/satellite... don't stress though, it's going to be ok.

talana

Welcome! Many others on here in the same boat as you.

A few intial thoughts.

Presents...£100
Haircuts ....£55
Holiday ...£40
Clothing...£100

A month?? :eek:
Sorry, but you can't afford these expenses right now.
As things stand you're spending more than you earn every month, even without the debt repayments. Cut these drastically.

charities....£25

Very laudable, but charity begins at home. When you're on an even keel you can do this.

dib-dab

salesaddict wrote: »

Hello all,

it has only taken me 3 months since joining mse to pluck up the courage to firstly face up to my debts, and secondly to post on here. I feel sick, ashamed and terrified but I would be most grateful if you would give me any advice.
Thankyou,



Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1964
Partners monthly income after tax....... 0
Benefits................................ 173.8
Other income............................ 0
Total monthly income.................... 2137.8
Monthly Expense Details
Mortgage................................ 572 (we have just finished a years payment holiday and this is now our interest only payment)
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 151
Electricity............................. 135 This sounds really expensive - can you look at cheaper providers and at joint electricity and gas deals as gas is expensive too.
Gas..................................... 120 As above
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 0
Mobile phone............................ 20
TV Licence.............................. 8
Satellite/Cable TV...................... 77 Also expensive - look at cutting down your package or using a cheaper provider.
Internet Services....................... 0
Groceries etc. ......................... 450 Sounds quite expensive even for a family of 4 - ise a cheaper supermarket or cheaper brands.
Clothing................................ 100 Try to halve this maybe - unless your kids are young and quickly growing out of clothes? If so then think about buying and selling clothes on ebay.
Petrol/diesel........................... 120
Road tax................................ 16
Car Insurance........................... 24.5
Car maintenance (including MOT)......... 40
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 19.66
Contents insurance...................... 0
Life assurance ......................... 49
Other insurance......................... 9
Presents (birthday, christmas etc)...... 100 This sounds like a lot. I know that children can be an expensive business but could this be cut down without causing them too much distress?
Haircuts................................ 55 Sounds quite expensive for a monthly spend - look at a cheaper salon or a mobile hairdresser.
Entertainment........................... 40
Holiday................................. 40
Emergency fund.......................... 0
newspaper &mag.......................... 6.8
overdraft interest...................... 19
charities............................... 25 Unnecessary when you need to focus on your debts - if you feel strongly about charity donation then you can pay larger payments when you are debt free to make up for it.
Total monthly expenses.................. 2251.96
Assets
Cash.................................... 0
House value (Gross)..................... 285000
Shares and bonds........................ 0
Car(s).................................. 500
Other assets............................ 0
Total Assets............................ 285500
Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 140420...(572)......4.89
Total secured & HP debts...... 140420....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
AA loan........................11500..... 207.1.....7
m&s............................ 5077......126.......0
Barclaycard....................3113......68........15.9
citi........................... 1980......44........15.7
sainsburys..................... 375.......8.........8.94
tesco......................... .2350......47........0
santander......................2851.6....64.16.....0
natwest...................... ..4946......113.......0
virgin....................... ..5813......25........0
Total unsecured debts..........38005.6...702.26....-
Monthly Budget Summary
Total monthly income.................... 2,137.8
Expenses (including HP & secured debts). 2,251.96
Available for debt repayments........... -114.16
Monthly UNsecured debt repayments....... 702.26
Amount short for making debt repayments. -816.42
Personal Balance Sheet Summary
Total assets (things you own)........... 285,500
Total HP & Secured debt................. -140,420
Total Unsecured debt.................... -38,005.6
Net Assets.............................. 107,074.4

Please don't feel ashamed - we are all in the same mess, some more than others but debt is nothing to be ashamed of especially now that you are facing up to it. There are some very inspirational stories on here - you can and will become one of them. I don't know much about how to get payments cut down etc but there are loads of people on here who know everything (and I say that in a good way!) and will give you all the advice you need.
Good luck!

planning_ahead_2

Hi

I can't add much to what has already been said above, but regarding the charity donations - perhaps if you feel you really need to support a charity you could do so by volunteering sometimes, eg run a stall at a local fete, sell raffle tickets at work for them etc.

We used to give monthly to charity but realised that had to go, and instead we now support a local hospice as and when we can. They phone up and ask when they have something they want us to do and if it fits in with our family commitments we are more than pleased to help.

littlemissmoney

Council tax............................. 151 Seems high. Is it over 12 months? Does this include arrears?
Electricity............................. 135 Very high! Have you been on a comparison site lately? Does it include arrears?
Gas..................................... 120 Same as for elec
TV Licence.............................. 8 Are you sure this isn't more?
Satellite/Cable TV...................... 77 Get rid, you can't afford it.
Groceries etc. ......................... 450 See old style board to get this right down.
Clothing................................ 100 Reduce this!
Medical (prescriptions, dentist etc).... 20 What's this?
Presents (birthday, christmas etc)...... 100 Reduce this!
Haircuts................................ 55 Reduce this!
Holiday................................. 40 Is this already booked?
charities............................... 25 Charity starts at home. You can't afford this.

AfterDark

Monthly income after tax................ 1964
Benefits................................ 173.8
Total monthly income.................... 2137.8

I've noticed that the benefits side seems very low, do you not claim tax credits ? As for 2 children you'll get £133 child benefit alone a month, only to be getting £40 tax credits seems very low ?

katsu

salesaddict wrote: »

Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1964
Partners monthly income after tax....... 0
Benefits................................ 173.8
Other income............................ 0
Total monthly income.................... 2137.8
Monthly Expense Details
Mortgage................................ 572 (we have just finished a years payment holiday and this is now our interest only payment)
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 151
Electricity............................. 135 - this is really high. Are you paying arrears? Have you ever switched? Are your bills accurate or estimates? If your heating is gas, then what do you have turned on all the time? Turn off the immersion, things on standby, lights, use energy saving bulbs etc.
Gas..................................... 120 this is really high. Are you paying arrears? Have you ever switched? Are your bills accurate or estimates? Can you turn the heating down a degree or two? Have you got thick curtains, blocked draughts with draught excluders (you can roll up old blankets and towels, no sewing needed), close curtains at dusk, silver foil behind radiators etc.
Oil..................................... 0
Water rates............................. 35 - metered or unmetered? Is probably OK.
Telephone (land line)................... 0
Mobile phone............................ 20 - on the best tariff for your usage?
TV Licence.............................. 8
Satellite/Cable TV...................... 77 - does this really match your usage? Can you get freeview and drop the TV element? You need to cut some things to get back in balance.
Internet Services....................... 0
Groceries etc. ......................... 450 - Look at meal planning and see how you can drop this.
Clothing................................ 100 - every month? £1200 per yr. Use charity shops, freecycle and buying less.
Petrol/diesel........................... 120 - how much is social and could be cut?
Road tax................................ 16
Car Insurance........................... 24.5
Car maintenance (including MOT)......... 40
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20 - is this offering you the best deal? What is it?
Pet insurance/vet bills................. 0
Buildings insurance..................... 19.66
Contents insurance...................... 0 - in buildings?
Life assurance ......................... 49
Other insurance......................... 9 - what is this?
Presents (birthday, christmas etc)...... 100 - You don't need to spend £1200 pa. Cut to £400 or less - how many people are you buying for?
Haircuts................................ 55 - get clippers for the men and for girls, college student nights.
Entertainment........................... 40 - doing what? Think this needs to go.
Holiday................................. 40 - have a staycation and reduce your debts instead.
Emergency fund.......................... 0
newspaper &mag.......................... 6.8 - read online and get free mags from shops like supermarkets, John Lewis, etc.
overdraft interest...................... 19
charities............................... 25 - when you do not have enough money coming in to make ends meet, then charity begins at home.
Total monthly expenses.................. 2251.96
Assets
Cash.................................... 0
House value (Gross)..................... 285000
Shares and bonds........................ 0
Car(s).................................. 500
Other assets............................ 0
Total Assets............................ 285500
Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 140420...(572)......4.89
Total secured & HP debts...... 140420....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
AA loan........................11500..... 207.1.....7
m&s............................ 5077......126.......0
Barclaycard....................3113......68........15.9
citi........................... 1980......44........15.7
sainsburys..................... 375.......8.........8.94
tesco......................... .2350......47........0
santander......................2851.6....64.16.....0
natwest...................... ..4946......113.......0
virgin....................... ..5813......25........0
Total unsecured debts..........38005.6...702.26....-
Monthly Budget Summary
Total monthly income.................... 2,137.8
Expenses (including HP & secured debts). 2,251.96
Available for debt repayments........... -114.16
Monthly UNsecured debt repayments....... 702.26
Amount short for making debt repayments. -816.42
Personal Balance Sheet Summary
Total assets (things you own)........... 285,500
Total HP & Secured debt................. -140,420
Total Unsecured debt.................... -38,005.6
Net Assets.............................. 107,074.4

You need to make some serious changes. Have a look at my suggestions. Can you up your income with a part time job? How old are the children?

Good luck and well done for facing it.

AfterDark

Thought I was right checked with your income on entitled to and its showing you should get £54 per wk tax credits on top of your £33 child benefit. which amounts to £348 per month

QueenBeruthiel

Nice of you to buy groceries for the whole street, OP.

Seriously, you are overspending on absolutely everything. Groceries, obviously; haircuts = £55 per month?! Clothing = £100! Looks like you are getting the worst deals out there for satellite, gas and electricity.

A few changes should yield £££ per month in savings.

Lara44

Salesaddict WELL DONE :T

You have taken the first step and there is a lot that can be done here. I am no expert with SOAs but I though I would add a few comments.

salesaddict wrote: »

Hello all,

Monthly income after tax................ 1964
Partners monthly income after tax....... 0
Benefits................................ 173.8
Other income............................ 0
Total monthly income.................... 2137.8
Monthly Expense Details
Mortgage................................ 572 (we have just finished a years payment holiday and this is now our interest only payment)
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 151
Electricity............................. 135 Cut to £70?
This is really big, do you use immersion for your water heating?
Things to do -
Put in energy saving lightbulbs (if you didn't already)
If you have immersion change the timer to half an hour per day (this is what I did in my house without telling anyone and they didn't notice!)
Review providers and change to the cheapest supplier, use direct debit payments.
Our figure is £66pm for 3 adults immersion water heating, which is still considered here to be really high.

Gas..................................... 120 Cut to £60?
Again this is huge - we are £40 for 3 adults pm. Things to do -
Turn the heating right down
Change the timer to as little as possible
Educate the kids on energy saving
Look up suppliers and change to cheapest, change to direct debit
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 0
Mobile phone............................ 20
TV Licence.............................. 8
Satellite/Cable TV...................... 77 [COLOR="rgbDarkOrchid)"]Can you give this up and change to freesat? [/COLOR]
Internet Services....................... 0
Groceries etc. ......................... 450 Cut to £300?
Do you cook meals from scratch at home? There is so much great information on old style for cutting down costs.
Perhaps cooking from scratch every day is something your partner might be able to do for the family? Might also help building confidence.
Clothing................................ 100 Think you have think about cutting this.
Petrol/diesel........................... 120
Road tax................................ 16
Car Insurance........................... 24.5
Car maintenance (including MOT)......... 40
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 19.66
Contents insurance...................... 0
Life assurance ......................... 49 Could this be halved to £25?
Check around to see if this is the cheapest quote.
Other insurance......................... 9
Presents (birthday, christmas etc)...... 100 Cut to £20?
Salesaddict I can't believe you don't buy things in the sales and store them throughout the year! This is what I do and also if I feel I *really* want to buy something I buy a present for a friend later in the year.
Haircuts................................ 55 Cut to £20?
Could you do part of this at home, for example colour yourself and get a cut at a salon? Or use a local mobile hairdresser?
Entertainment........................... 40
Holiday................................. 40 Think you need to budget this out until you get your finances stabilised a bit - not forever, just a little while.
Emergency fund.......................... 0
newspaper &mag.......................... 6.8 Use internet for news papers and magazines from friends and family.
overdraft interest...................... 19
charities............................... 25 As above, budget out for a little while, and can be added back in as things improve.
Total monthly expenses.................. 2251.96
Assets
Cash.................................... 0
House value (Gross)..................... 285000
Shares and bonds........................ 0
Car(s).................................. 500
Other assets............................ 0
Total Assets............................ 285500
Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 140420...(572)......4.89
Total secured & HP debts...... 140420....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
AA loan........................11500..... 207.1.....7
m&s............................ 5077......126.......0
Barclaycard....................3113......68........15.9
citi........................... 1980......44........15.7
sainsburys..................... 375.......8.........8.94
tesco......................... .2350......47........0
santander......................2851.6....64.16.....0
natwest...................... ..4946......113.......0
virgin....................... ..5813......25........0
Total unsecured debts..........38005.6...702.26....-
Monthly Budget Summary
Total monthly income.................... 2,137.8
Expenses (including HP & secured debts). 2,251.96
Available for debt repayments........... -114.16
Monthly UNsecured debt repayments....... 702.26
Amount short for making debt repayments. -816.42
Personal Balance Sheet Summary
Total assets (things you own)........... 285,500
Total HP & Secured debt................. -140,420
Total Unsecured debt.................... -38,005.6
Net Assets.............................. 107,074.4

Ok if I add up the figures I suggested in purple, leaving out some of the lines such as holiday, then I get £2282.42, which is just £144.62 over your income. I think its easily possible to make this much extra on the side a month, especially if your husband signs on for jobseekers.

There is hope, and there are options. Your suggestion of downsizing on your other thread could be a good one, but you also need to address the spending habits that got you into debt in the first place (otherwise it risks happening again).

Were you mis-sold PPI on the cards or loans? this could be reclaimed (and it can be worth a lot).
What can you ebay from your own house?

Well done salesaddict! :money:

ETA: with AfterDark's great research, and your OH job seekers that would add a lot more into the pot.