MY SOA -your comments and suggestions please.

Steve1963

Here it is, not 100% accurate but not bad.

A quick bio: married, two children (10 and 8). Work full time for NHS (as does my wife). Problems really started 10 years ago (house repo + unexpected child). I have had loans since I was old enough to get one. Each one has been "the last":rolleyes: Had enough now. Worried about kids future, wife has been off sick for 6 months, but back at work soon:j ; recently tried to get another consolidation loan but turned down (probably just as well). And just for good measure I'm crying as I write this I'm so ****** desperate to change things. Don't worry, I'll pull myself together in a minute:rolleyes:

Anyway, see what you think, and thanks.

My SOA (per month)


My Income 1600
Partners Income 1200
Child Benefit/tax credit 152

Total 2985



Outgoings:

Rent 435
Council tax 59
Electric 50
Water 30
Phone 46
TV Licence 10
Life Insurance 30
Child Minder 80
Sky TV 47 (about to get cancelled)
Petrol 300 (2 daily use cars)
Shopping 500
Overdraft fees and ins. 3
Car Ins 33 (for 2 cars and campervan)
House Ins 10
Professional fees 20 (have to pay to work!)
Charity donations 10 (good for the soul)
School/cubs/clubs etc 70
Savings 65 (for our children-not negotiable!)
Car HP 150 (Black Horse 12.5% 5yrs started 12/05 owing 6395)
Unsecured Loan 396 (A&L, 2 yrs remaining of 5, balance about 9500)
Liverpool Victoria credit card 248 (8338 balance, 1.24% [.323% on 3000 balance transfer]) Limit 10,000
Barclaycard 70 (3641 balance, 1.6% ) Limit 5,300
Beneficial Bank credit card 170 (4000 balance, 26.4% APR !!! )Limit 9,200
Lloyds credit card 60 (2580 balance, 1.49%) Limit 6550
A&L credit card (MBNA) 80 (5468 balance, 1.24%) limit 5,900

Total £2972

(sorry about the layout)

As you can see a lot of nasty plastic and loans. Not a lot left at the end of the month (forgot to include we use our £400 overdraft every month). No money for emergencies,holidays etc. Some lifestyle choices to be made perhaps. All the credit cards on more or less minimum payments.

Steve

Mrs_Arkwright

Hello

I'm still only new here myself, but this is what I can see, going on the advice I've seen from others:

Your shopping bill at £500 is high, there are good ideas for money saving on the Old Style board.

Do you really need two cars and a campervan - you could sell to make some money to put towards your debts.

Charity donations - charity begins at home, I'd stop them.

Kids savings - I've stopped mine, needs must.

Can you transfer some of the higher interest cards onto the lower interest ones?

You will get some great advice and support here

Katgoddess

Hello and welcome to MSE. :j

One thing to look at is your "shopping". £500 for 2 adults and 2 children is high. There are people on the Old Style board who have a budget of £40 a week. Meal planning and bulk cooking could bring the £500 figure down a lot. Take a look here.

Stop the charity donations. Maybe donate £10 at Christmas instead?

Stop the childrens savings. You could keep a note of how much you are not putting in and make this amount up when you are debt free. Being debt free when your children are at Uni/getting married etc will put you in a better position to help them.

Good luck! I'm sure more experienced people will be along shortly with technical solutions for the debts.

What about mobile phones?

gallygirl

Steve1963 wrote:

Here it is, not 100% accurate but not bad.

A quick bio: married, two children (10 and 8). Work full time for NHS (as does my wife). Problems really started 10 years ago (house repo + unexpected child). I have had loans since I was old enough to get one. Each one has been "the last":rolleyes: Had enough now. Worried about kids future, wife has been off sick for 6 months, but back at work soon:j ; recently tried to get another consolidation loan but turned down (probably just as well). And just for good measure I'm crying as I write this I'm so ****** desperate to change things. Don't worry, I'll pull myself together in a minute:rolleyes:

Anyway, see what you think, and thanks.

My SOA (per month)


My Income 1600
Partners Income 1200
Child Benefit/tax credit 152

Total 2985



Outgoings:

Rent 435
Council tax 59
Electric 50 No gas???? have you shopped around for this?
Water 30
Phone 46
TV Licence 10
Life Insurance 30
Child Minder 80
Sky TV 47 (about to get cancelled) Good!!!!
Petrol 300 (2 daily use cars)
Shopping 500 Try old style MSE to get this down. People survive on thin air on this site but still eat well. Do menu planning, shop in cheaper shops, take packed lunches etc.
Overdraft fees and ins. 3
Car Ins 33 (for 2 cars and campervan) ooooh this is cheap! well done! could you sell camper van?
House Ins 10
Professional fees 20 (have to pay to work!) make sure you claim these back from the IR
Charity donations 10 (good for the soul) but not for the debt. charity begins at home - cancel & restart once out of debt, pay back what you've missed then.
School/cubs/clubs etc 70 kids have to live 0- but can you cut back a little?
Savings 65 (for our children-not negotiable!) oh yes it is!!!! if you're so much in debt youy're sitting crying at your computer everything is negotiable. if your debt is affecting you so much you owe it to your kids to resolve this - a happy home is much more important than money in the bank at some future date when they'll probably blow it on a motorbike.
Car HP 150 (Black Horse 12.5% 5yrs started 12/05 owing 6395)
Unsecured Loan 396 (A&L, 2 yrs remaining of 5, balance about 9500)
Liverpool Victoria credit card 248 (8338 balance, 1.24% [.323% on 3000 balance transfer])
Barclaycard 70 (3641 balance, 1.6% )
Beneficial Bank credit card 170 (4000 balance, 26.4% APR !!! )
Lloyds credit card 60 (2580 balance, 1.49%)
A&L credit card (MBNA) 80 (5468 balance, 1.24%)

Total £2972

(sorry about the layout)

As you can see a lot of nasty plastic and loans. Not a lot left at the end of the month (forgot to include we use our £400 overdraft every month). No money for emergencies,holidays etc. Some lifestyle choices to be made perhaps. All the credit cards on more or less minimum payments.

Steve

Sorry, some of what I've written seems harsh but you must consider ALL options. Can you post your credit card limits so that we can see where there is room for manouvere? Have you applied for WFTC etc?

Put your debts into here:

http://www.whatsthecost.com/snowball.aspx and it will give you some idea of what is in store - but there is loads of help available on here and elsewhere so thsi will be the worst case scenario.

Don't despair - you've come to the right place for help x

iwanttosave_2

Shopping is amazingly high, I feed 2 adults, 1 child, a toddler and a dog on £35 a week

Phone seems high as well. Shop around if you are not tied into a contract.

I agree about getting rid of the camper unless you use it often enough to get its moneys worth in holidays.

I would get rid of the charity donation, as said, charity begins at home.

If you still want to save for the kids why not just lower the payments for a little while, even for half that would be ample

Steve1963

Thanks for the quick replies. I have realised for some time that our shopping bills are excessive. This figure actually includes a lot more than just food. I need to keep a better track of what we actually spend on what.

The campervan is our holiday. It is 34 years old, tax exempt and goes on the same insurance as my wifes 35 year old Beetle, also tax exempt:D

Professional fees are claimed back against tax.

The charity? I need to think about this.
Kids savings? I will reduce but not stop.
Gas is included in the rent. Just changed leccy supplier.
Phone-owe a bit, when clear(6months) will reduce monthly payment.
School/clubs etc- sorry, kids shouldn't lose out because of my debts.

I will amend SOA with credit limits.

What is WFTC?

Don't anyone worry about being harsh with me. I wish I had had someone to shout at me before now.

Thanks

Steve

iwanttosave_2

In regards to the charity as I have mentioned on another thread, why not just do one good deed a month/week in place of it, be it give a load of old stuff to oxfam (with two kids I know this is an easy one)

I think it would be good to reduce the savings, the kids need you to be happy more than they needs kids clubs and stuff like that. Plus there are upteen amount of things you can do with them for free in return. I dont spend half that on activities.

WFTC is working family tax credit, but not everyone gets this, go to http://www.entitledto.co.uk/ to make sure you are getting all you are entitled to.

doelani

Steve1963 wrote:

What is WFTC?

Don't anyone worry about being harsh with me. I wish I had had someone to shout at me before now.

Thanks

Steve

Hi Steve

WFTC = Working Family Tax Credit.

No-one is goingt o be harsh with you, the important thing is you ahve realised taht you cannot keep going on the way you are. I have been there (but our debts were £110k ) and it is good that you have decided to get help.

You need to see where you can make savings and you should really contact CCCS or Payplan for help. Getting another loan will not help and will only add to your debts.

Well done for taking the first step.:T

CLAPTON

firstly and most important is the SoA actually what happens...do you actually have £13 spare at the end of the month? i.e. your debts are actually decreasing each month even if by a only a little???

you need to keep a spending diary so you can see exactly where your monry goes each month...you and your OH need to sit down and discuss all the things you are likely to spend over the next 12 months....
so some examples ...you dont budget for any clothes (2 adults and two school age children?...nothing for xmas / present/ childrens parties/
you have nothing in for holidays so why have a camper van?

the important point is that the SoA must include everything you will spend over the next 12 months..you have 2 cars and a campervan but you are paying no MOT, servicing, car tax?

only when you understand your total outgoings can you decide what is non-negotiable and whether you wish to continue borrowing at 24.6% in order to save at about 5%?

Iona_Penny

I don't have much to add to what has already been suggested, but with regards to the shopping I suggest a weekly budget in CASH and stick to it, BUT reduce it it steps so you will find it easier to adjust ie £425 the first month and then £375. Learn how to save the money so you can feel ready for the next reduction.

With regards to the kids savings, I understand your feeling, but it's really important you sort out how you feel and that you are in control of your finances. What about £15 per month for 6 months and then see if you feel ready to increase by an amount. This leaves £50 straight away to throw at your debt.

You have come to the right place for suggestions; you need to read them all and see what changes you can make, but at least you have realised that you DO have to make changes.

Good luck and keep posting. :wave:

CLAPTON

just a late thought

if you borrow £65 per month at 24.5% for say 10 years it will cost you £31,500.65p

if you save the £65 in a saving a/c paying 5% for your children for 10 years you (they) will have £10,301.29p at the end.

explain that to your children