My SOA - Any and all advice welcomed

Hammerpgh

Hi all,

I finally got around to doing this and would really appreciate your advice. My main problem is with MBNA where the two big debts are held. The biggest issue is that they are badly in arrears and I can see no way of clearing those without some kind of windfall. The smaller one is in arrears of about £750 and the other by about £400. I have been in regular contact with them and they have been dispursing what money I have available each month in the way they felt best for me.
My partner works as well and she pays for the groceries, childminding, petrol and will now be taking over the car repayments and car insurance which I have been paying up until now.

Is a DMP my only option?

MBNA are looking for me to go into a management plan with them but I have also been in touch with the CCCS and am due to call them back with some more information. I would still appreciate your input here though. Thanks.

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.......................1
Monthly Income Details
Monthly income after tax................ 1581.43
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1581.43
Monthly Expense Details[/b]
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 850
Management charge (leasehold property).. 0
Council tax............................. 120
Electricity............................. 50
Gas..................................... 30
Oil..................................... 0
Water rates............................. 12
Telephone (land line)................... 20
Mobile phone............................ 30
TV Licence.............................. 12
Satellite/Cable TV...................... 48
Internet Services....................... 25
Groceries etc. ......................... 0
Clothing................................ 0
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...................... 21
Life assurance ......................... 13
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1231

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
MBNA...........................8460......170.......0
Alliance and Leiceste..........6564......150.......0
Capital One....................2500......70........34.08
Debenhams......................300.......12........0
Mastercard.....................320.......15........26.9
Barclaycard....................500.......25........24.9
Total unsecured debts..........18644.....442.......-

Monthly Budget Summary
Total monthly income.................... 1,581.43
Expenses (including HP & secured debts). 1,231
Available for debt repayments........... 350.43
Monthly UNsecured debt repayments....... 442
Amount short for making debt repayments. -91.57
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -18,644
Net Assets.............................. -18,644
Created using the SOA calculator at
Reproduced on Moneysavingexpert with permission, using IE browser.

System

Hammerpgh wrote: »

Hi all,

I finally got around to doing this and would really appreciate your advice. My main problem is with MBNA where the two big debts are held. The biggest issue is that they are badly in arrears and I can see no way of clearing those without some kind of windfall. The smaller one is in arrears of about £750 and the other by about £400. I have been in regular contact with them and they have been dispursing what money I have available each month in the way they felt best for me.
My partner works as well and she pays for the groceries, childminding, petrol and will now be taking over the car repayments and car insurance which I have been paying up until now.

Is a DMP my only option?

MBNA are looking for me to go into a management plan with them but I have also been in touch with the CCCS and am due to call them back with some more information. I would still appreciate your input here though. Thanks.

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.......................1
Monthly Income Details
Monthly income after tax................ 1581.43
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1581.43
Monthly Expense Details[/b]
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 850 (Does your partner not contribute to this?)
Management charge (leasehold property).. 0
Council tax............................. 120
Electricity............................. 50 (Seems quite high - have you looked at changing provider?)
Gas..................................... 30
Oil..................................... 0
Water rates............................. 12
Telephone (land line)................... 20
Mobile phone............................ 30 (This seems high - can you swap to lower tariff?)
TV Licence.............................. 12
Satellite/Cable TV...................... 48 (Get rid!)
Internet Services....................... 25 (you may be able to combine this with the landline to get a lower rate)
Groceries etc. ......................... 0
Clothing................................ 0
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...................... 21
Life assurance ......................... 13
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1231

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
MBNA...........................8460......170.......0
Alliance and Leiceste..........6564......150.......0
Capital One....................2500......70........34.08
Debenhams......................300.......12........0
Mastercard.....................320.......15........26.9
Barclaycard....................500.......25........24.9
Total unsecured debts..........18644.....442.......-

Monthly Budget Summary
Total monthly income.................... 1,581.43
Expenses (including HP & secured debts). 1,231
Available for debt repayments........... 350.43
Monthly UNsecured debt repayments....... 442
Amount short for making debt repayments. -91.57
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -18,644
Net Assets.............................. -18,644
Created using the SOA calculator at
Reproduced on Moneysavingexpert with permission, using IE browser.

Hiya,

Have just put a few comments on your SOA (in red). Seems that you haven't budgeted for most things, but that may be because your partner pays for those. Is this SOA to cover both of you, or just your own personal income and expenditure? Might be better to do one for the pair of you so we can get the full picture.

Red.

talana

Rent.................................... 850

To be honest it's the rent that's killing you. That's over 50% of your income right there.

I don't know whereabouts in the country you are,but are there not cheaper places around to rent? Maybe consider moving?

Mimi_Arc_en_ciel

just a quick note - If your living together should you not be splitting the bills 50/50 ? if you go for a DMP they will want to know what your partner earns as this will be included in your monthly house hold budget

savingmummy

Mobile phone............................ 30 go payg or reduce amount spent if already payg
TV Licence.............................. 12
Satellite/Cable TV...................... 48 get rid of this for now until your straight! freeview maybe??
Internet Services....................... 25 can you get this cheaper?
Groceries etc. ......................... 0

Amount short for making debt repayments. -91.57

If you got rid of sky and reduced mobile this would put your amount into a clear balance each month.
Do you NEED sky is it a must right now?
Your partner does other expenses and you need to inculde all this in the soa, including her income and outgoings - she may also beable to cut back on her spending each month.

Hammerpgh

In_The_Red_2009 wrote: »

Hiya,

Have just put a few comments on your SOA (in red). Seems that you haven't budgeted for most things, but that may be because your partner pays for those. Is this SOA to cover both of you, or just your own personal income and expenditure? Might be better to do one for the pair of you so we can get the full picture.

Red.

Thanks for the comments.

The mobile phone is on a two year contract and the tariff cannot be changed for some time.

The elctricity is an estimate at present as we only moved into this place a few months ago and the provider has made a mess of sorting that side of the account out. But I was paying £45 in my last place so assumed it will be similar.

The telephone and internet are with BT so they are combined but they still charge seperately.

Most of those items not shown (Groceries, Childminding, Car, etc) are paid for by my partner as this SOA is just my own and not a joint one. When I spoke to MBNA about a payment plan they said I could do it on an individual basis due to the debts being mine and not hers. I would rather keep her money seperate, do you not think that is correct?

Mimi_Arc_en_ciel

I have to be on my OH's "income" as we live together even though I dot owe anything so Im not sure?

Hammerpgh

talana wrote: »

To be honest it's the rent that's killing you. That's over 50% of your income right there.

I don't know whereabouts in the country you are,but are there not cheaper places around to rent? Maybe consider moving?

Yeah, tel me about it. We live in London (Newham) and although this is still high it is actually pretty cheap for this area. After selling my house in December 2008 we moved into our first rental house and it cost £1040 per month!! The main reason why the debts built up!! When this one became available late in the Summer I jumped at it. You won't find another property even close to the same price around here. The same type of house 3 doors away has a rent of £1150!!!

We would have to move well out of the area to find anything cheaper and of course that would then incur travel costs for work which I currently don't have as it's just a half hour walk for me now.

Thanks for the comments.

savingmummy

Whether the debt is yours or not as a partnership you have to include ALL income and outgoings.
I can guarentee you will become debtfree if two heads work with it.

As for mobile i cancelled mine, i called and said i could no longer pay and they accepted worth a go!

Hammerpgh

mommyme wrote: »

just a quick note - If your living together should you not be splitting the bills 50/50 ? if you go for a DMP they will want to know what your partner earns as this will be included in your monthly house hold budget

Well, although I do pay more my partner does pay for all shopping, petrol, childminding, birthdays, medical, clothing, etc. The original plan was for us to save all her money to go towards a house but that has gone out of the window now!! She has been putting a couple of hundred pounds a month into my account to help with the MBNA debt as well.

As I mentioned in another reply if the debt is mine would they still want to take my partners income into account? Bottom line is I think if we combined our earnings we could probably manage to pay off everything each month but why should my partner be liable for my debts.

I will put together another SOA of our combined income \ expenditure tonight \ tomorrow as well just to see what everyone thinks.

Thanks again.

savingmummy

You have answered the question....if you put them together you could manage which is what you need to do!
As your partner is already giving you money to help she is becoming liable so i dont see what is up she obviously wants to be debtfree as a couple.
I can see what your saying regarding its not hers but your debt BUT as a couple you need to work together.

If your OH had debt and you were financially ok would you help? Is your OH wanting to help you?

Your OH does all the other expenditures, is she budgeting and spending low? this is why people do joint SOA. You may find your OH is spending more then needed which could help each month.