Finally - my current SOA! Hit me with it!

niccatw

Hi everyone

Finally got around to updating my SOA. Had my "flickering candle" moment in 2008 but I don't think I aplied myself as I could have (lifted straight from many school repots back in the day )!

Finally, I've had my :idea: moment! But I felt it was a bit glib of me to be commenting on your SOA's without sharing my own! So here it is, I've tried to explain things in this colour as I go through. And I have started a spending diary as of last pay day (charity shop clothes shopping is probably my bigggest weakness!).

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.................... 1 Leased through work. I only pay for diesel for personal mileage, work pays for the rest.
Monthly Income Details
Monthly income after tax................ 1300
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 488 (250 from lodger and 233 from second job)
Total monthly income.................... 1788
Monthly Expense Details
Mortgage................................ 512.7 (N Rock SVR, currently overpaying 106.18)
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 94 (includes water rates)
Electricity............................. 25
Gas..................................... 25
Oil..................................... 0
Water rates............................. 0 (included in council tax)
Telephone (land line)................... 14 (BT)
Mobile phone............................ 15 (o2 Simplicity - gets broadband at 7.50)
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 7.5 (o2. Would be 12.50 if mobile payments less than 15)
Groceries etc. ......................... 80
Clothing................................ 5 (just in case)
Petrol/diesel........................... 30
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 5 (Just in case, i.e if I got tube into town a couple of times a month)
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 0
Buildings insurance..................... 19 ( I live in tenement flat, which is factored - I can't change this or control the price - every-one else in the block rents from housing association)
Contents insurance...................... 25.6 (I'm guessing this could come down! Renewal due in June)
Life assurance ......................... 33.34 (I'm guessing this could come down to! It is a condition of mortgage and I'd want critical illness cover as I live on my own and would be in trouble if anything happened that meant I couldn't work)
Other insurance......................... 29.08 (These are my professional registration fees and I can't work without them)
Presents (birthday, christmas etc)...... 5
Haircuts................................ 10
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 972.34

Assets
Cash.................................... 0
House value (Gross)..................... 85000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 85000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 79775....(512.7)....4.78
Total secured & HP debts...... 79775.....-.........-
Unsecured Debts
Description.......................................Debt.........Monthly...APR
unsecured along with mortgage..........4202.37......27.02.....4.78 (I'm not allowed to seperate this from mortgage and I've not enough equity to move mortgages providers at mo.)
MBNA................................................936.73......25.........0 (Due to end in April.)
RBS loan........................................12674.2......288........10.1 (Obviously this is the highest APR, but I'm plodding away...)
Folks.................................................200.........0...........0 (Don't need to worry about family and friends until everthing else is paid off - just added for completeness. They may not want the money back but I will offer when the time comes.)
Grandparent......................................835.........0............0 As above
Friend.............................................1000.........0.............0 As above
SLC 2 QMUC...................................5123.34.......93.........0 (Student loan, this one comes off my wages so probably shouldn't have added it here...)
SLC 1 Strath..................................2737.3.......100.9......0 (Student loan. Not too worried about this one)
HFC .............................................2169............45.15.....0 Yup, this is 0%
Summary of monthly income, expenses & surplus
Monthly income....................................1788
Expenses............................................972.34
Available for debt repayment.................815.66
Unsecured debt repayment...................579.07
Surplus...............................................236.59
Personal balance sheet summary
Assets................................................85000
Secured & HP debt................................ -79775
Unsecured debt.................................... -29877.94
Net assets........................................... -24.652.94

I'm thinking I should change the mortgage overpayment so all the overpayment is going into the unsecured loan rather than split between the two (I'm sure this is what I asked for but scrutinising my statement proves otherwise! And I'm assuming it can be done!)

I've also just opened A&L current account (every little helps!) and they've given me a 500 o/d. As it's interest free for a year, I'm thinking I should use it to pay 500 off MBNA credit card, leaving 436 to pay off over the next three months...

And finally, I don't ask my lodger for more money as he is a student and friend. I'm just undercutting the going rate for my area and I'd rather have him here at a cheaper rate for as long as possible. But I'm also aware he can go at any time and it may take a while to find some-one else - finding the extra 250 would be doable - more than that and I might have a nervous breakdown!

Wow, that was a bit epic! If you've made it this far :T and thank you!!! I think I've got everything...

Please fell free to hit me with your suggestions and, especially your thoughts on what I'm planning to do! I don't think it is as bad as I thought now I see it all down there, but I think I need a bit of objectivity!

Cheers
Niccatw

savingmummy

Surplus...............................................236.59
Personal balance sheet summary
Assets................................................85000
Secured & HP debt................................ -79775
Unsecured debt.................................... -29877.94
Net assets........................................... -24.652.94

I've also just opened A&L current account (every little helps!) and they've given me a 500 o/d. As it's interest free for a year, I'm thinking I should use it to pay 500 off MBNA credit card, leaving 436 to pay off over the next three months...

I can`t advise on this BUT if you can pay it in 3 months it sounds like a plan.

Where is the £236.59 going each month???
Your SOA is really good tbh can`t see anywhere to reduce! Very basic and healthy. You need to know where the surplus is going! Start a spending diary and throw this at debts x

niccatw

Thanks Savingmummy. Last year was a nightmare of a year spending-wise - 4 very close friends' turning 30, one close family member's 50, bridesmaid duties and 2 other wedding of close friends (though none of the couples got pressies as all invovled travelling and accomm). I've asked all my friend's to hold off with the special occasions for a while Though one did decide to have a baby anyway - I think I'll give "I owe you babysitting" vouchers instead of baby goodies

The surplus was supposed to be thrown at my unsecured mortgage but so far, they've all gone on the above! Though I will be checking that spending diary against groceries and clothes - as I suspect some of it sneaks it's way over to both of them!

Which is why I figured I'd stop lurking, come out, post and get myself back on track and motivated to pay this off!!!

Thanks again

RAS

Are you allowed to over pay on the RBS loan without penalty?

How long is the HFC remaining at 0% and what does it go to afterwards?

Tixy

Hi nicca

Don't think your costs are excessive, like you have identified I suspect the 2 insurances can be brought down at renewal time. I wonder if your clothes budget is enough if its a problem for you (although if you can curb the temptation then great).

I know other people have had real issues with these NR unsecured loans as part of the mortgage. Typically when NR has refused to just reduce payments on the unsecured when someone is on a DMP and has put them into arrears on their mortgage, whilst yours seems to be the opposite problem it sounds similar. I'd try to find out all the paperwork so you fully understand what you should be allowed to do with that overpayment.
If you can't split it so it just goes to the unsecured mortgage I wonder if it might be worth overpaying the RBS loan instead? does that allow overpayments? or to the MBNA card.

Have you had a play around with the snowball calculator to see what options you have. Whatever way you do it you really want rid of that MBNA balance before the deal runs out (as I guess its likely to be 20% after that).

Good luck

Is the £1300 what you take home after the student loan of £93? if so then you are doubling counting the cost, which is good cos the surplus should be even more.

chivers1977

NR will always split the payment received on a Together mortgage so that is a no go...

I think that you need to relook at your insurance. If you are on your own, critical illness really is there to cover you if you get one of the (potentially life-threatening) illlnesses on your providers list. It would pay off the mortgage. Most people have life cover when they are in a relationship or have children. If you were to die, the debt would go against the estate.

If you are looking for something that will pay each month if you cannot work then you need Mortgage Payment Protection Insurance.

I am not qualified to give financial advice but that is my two pennyworth re insurances!

Well done on the grocery budget by the way!

niccatw

Hi guys,

The HFC is 0% for 4 years and the payments I'm making will have it paid off by then, so again, assuming everything remains staus quo, that should take care of itself.

I can make overpayements on the RBS loan without penalty - it was the first thing I asked! (Second was about the necessity of PPI!!)

I'm determined to have the credit card paid off by April and it can be done with the surplus (yup, I think I have double counted the student loan).

So it seems to be between the RBS loan and N Rock unsecured... after reading RAS's post, I'm wondering if the most sensible thing to do is contact N Rock and see if I can get that overpayment to only the unsecured loan part. Then throw my surplus at the RBS loan - it would be fab to see that as 4 figures instead of 5! What do you reckon?

And yes Tixy - keeping that clothes budget to 5 might be tough for me! But I'm determined to try! Sorting out the wardrobe to see what I've got and what fits is next on the agenda. I'm hoping that and the spending diary will keep me in check! Also gonna join the clothes challenge to help me out

niccatw

Thanks Chivers1977. Boo, that's not good news about N Rock! Might give them a call (if I can find the Saynoto0870 number!) and chance my arm anyway!

And I'll look into my life assurance cover. I was working on advice from a broker as I know nothing about that kind of stuff. Will have a look on the appropriate forums here and see what people can advise.

Deep_In_Debt

Well done for using charity shops for clothes. i love having a rummage in them and it's amazing what you can find.

Re your contents insurance - that can certainly come down. Mine is linked in with my mortgage and I pay about £12 pm for house and contents so could you see if your mortgage company could do a deal for you?

niccatw

PS Re. the grocery budget - I'm veggie so that kinda helps bring the prices down. And I get a veggie box delivered which keeps me out the supermarkets and away from the impulse buys

And work do lunches for a £1 - soup, baked potato, 2 pieces of fruit and a drink - can't argue with that! It's a city council workbase though, so I'd bet that'll be reined in shortly!

Happytogetdebtfree

Morning nicca I finally found your soa not much to really add it looks good, what's your professional reg fee? I wonderedif you could not over pay your loan for a few months so that you excess plus your loan would allow you to shift the mbna balance before the intrest recommenced or get it low enough so you don't pay as much intrest ? Xx