SOA... in trouble

Elloyd

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1093
Partners monthly income after tax....... 1400
Benefits................................ 132
Other income............................ 164
Total monthly income.................... 2789

Monthly Expense Details
Mortgage................................ 864
Secured/HP loan repayments.............. 232
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 125
Electricity............................. 40
Gas..................................... 50
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 20
Mobile phone............................ 80
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 0
Petrol/diesel........................... 100
Road tax................................ 0
Car Insurance........................... 83
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 490
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 20
Contents insurance...................... 15
Life assurance ......................... 56
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2422


Assets
Cash.................................... 0
House value (Gross)..................... 240000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 240000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 211000...(864)......0
Secured Debt.................. 20000....(192)......0
Hire Purchase (HP) debt ...... 1500.....(40).......0
Total secured & HP debts...... 232500....-.........- [/B]

Unsecured Debts
Description....................Debt......Monthly...APR
Nationwide.....................917.......23........21
Nationwide.....................2400......80........21
Barclays.......................2900......50........27.9
Halifax........................2300......60........17.9
Virgin.........................2500......60........16.6
Egg............................6500......205.......26
Egg............................1000......25........21
Total unsecured debts..........18517.....503.......-


Monthly Budget Summary
Total monthly income.................... 2,789
Expenses (including HP & secured debts). 2,422
Available for debt repayments........... 367
Monthly UNsecured debt repayments....... 503
Amount short for making debt repayments. -136

Personal Balance Sheet Summary
Total assets (things you own)........... 240,000
Total HP & Secured debt................. -232,500
Total Unsecured debt.................... -18,517
Net Assets.............................. -11,017


Any suggestions anyone??

Verbatim

Have just tried to reply by quoting your SOA and adding suggestions but couldn't post. Will try this before typing again........

Tixy

Elloyd wrote: »

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1093
Partners monthly income after tax....... 1400
Benefits................................ 132
Other income............................ 164
Total monthly income.................... 2789

Monthly Expense Details
Mortgage................................ 864 interest only or repayment mortgage?
Secured/HP loan repayments.............. 232
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 125
Electricity............................. 40 gas & elec, have you checked you are on the best tariff with the cheapest supplier?
Gas..................................... 50
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 20
Mobile phone............................ 80 yikes - pretty high, how many phones? ask mobile co for a cheaper tariff.
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 0 need to budget a little here for the kids at least
Petrol/diesel........................... 100
Road tax................................ 0 need to budget 1/12 of the annual amount here
Car Insurance........................... 83 did you shop around on comparison sites?
Car maintenance (including MOT)......... 0 need to budget here
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 490 how old are the children? is this likely to reduce soon (eg are kids due to start school?)
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 20
Contents insurance...................... 15
Life assurance ......................... 56 try shopping around for cheaper cover
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 budget a little here
Haircuts................................ 0 probably need to budget something here
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2422


Assets
Cash.................................... 0
House value (Gross)..................... 240000
Shares and bonds........................ 0
Car(s).................................. 0 value of cars?
Other assets............................ 0
Total Assets............................ 240000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 211000...(864)......0
Secured Debt.................. 20000....(192)......0
Hire Purchase (HP) debt ...... 1500.....(40).......0 is this one of the cars?
Total secured & HP debts...... 232500....-.........- [/B]

Unsecured Debts
Description....................Debt......Monthly...APR
Nationwide.....................917.......23........21
Nationwide.....................2400......80........21
Barclays.......................2900......50........27.9
Halifax........................2300......60........17.9
Virgin.........................2500......60........16.6
Egg............................6500......205.......26
Egg............................1000......25........21
Total unsecured debts..........18517.....503.......-


Monthly Budget Summary
Total monthly income.................... 2,789
Expenses (including HP & secured debts). 2,422
Available for debt repayments........... 367
Monthly UNsecured debt repayments....... 503
Amount short for making debt repayments. -136

Personal Balance Sheet Summary
Total assets (things you own)........... 240,000
Total HP & Secured debt................. -232,500
Total Unsecured debt.................... -18,517
Net Assets.............................. -11,017


Any suggestions anyone??

Hi elloyd, well done for posting:)

It looks to me that your budget is actually missing quite a few costs. I think maybe you need to consider a DMP - seek advice from one of the free advice providers here - http://forums.moneysavingexpert.com/showthread.html?t=2077631

Are you getting all the benefits/tax credits you can? are 2 cars essential? any chance either of you could increase your income or hours?

Good luck

Elloyd

Hi, Thanks for replying.
mortgage is interest only
We are in the process of switching gas and electric, saving £9 a month, thats the best I could find
The mobiles are for 3 mobiles, mine, my husbands and daughters.
We need a car each because of where we work and having to juggle picking kids up, we have one of 14, and one of 1, so nursery costs wont reduce for at least another 2 years...


We dont tend to by clothes that often, due to lack of funds.

Elloyd

The car on the hp is one I had taken off me 10 years ago, and still paying it off, its interest free debt though.
With the car insurance, its coming up to renew in May, so to cancel our current one will cost us £60, which is more than what we would save by switching. So i dont think its worth it this near the end of the policy.

Verbatim

That worked???
It all looks very tight. Have you considered a debt management plan? CCCS is well thought of on here but don't use a fee charging company. Admp would trash your credit rating but allow you to repay at a rate you can afford and in most cases get the interest stopped, at least for a while.

If you don't want to do this it may just be do-able if you can increase your income, (lodger or foreign student and/or a second job for one or both of you). Decreasing outgoings is another possibility and the obvious one is to sell one of your cars. If you absolutely need 2 forms of transport could one of them be a motorbike?
Your SOA does not have anything for car tax or maintenance, Xmas, birthdays, haircuts, or clothes. This isn't realistic. You could reduce expenditure on mobile phones perhaps, and maybe a little on groceries but it's all pretty tight. Do you meal plan and batch cook?

Is your credit rating good? If so could you get a 0% cc to transfer the most expensive debt, or some of it, to?

Good luck

RAS

Elloyd wrote: »

We are in the process of switching gas and electric, saving £9 a month, thats the best I could find

Still better than a kck in the teeth though

The mobiles are for 3 mobiles, mine, my husbands and daughters.

Reduce all the apckages and then go PAYG - max £10 per month each

We need a car each because of where we work and having to juggle picking kids up, we have one of 14, and one of 1, so nursery costs wont reduce for at least another 2 years...

Does it reduce in price as s/he gets older?

We dont tend to by clothes that often, due to lack of funds.

Do you know www.freegle.com?

Your life insurance is very higher, i would expect reducing term insurance to be £15-20 plus a small amount for non-mortage cover.

Elloyd

Credit rating is terrible due to the credit card debts, we havent defaulted on any yet, but that time is coming.
If we do the dmp, then we would never be able to refix our mortgage, we are on svr at the moment, but with interest rates so low, thats ok, but once they start sliding back up, we would look at fixing again.
We need 2 cars, because we both work quite far away, and need to be able to get ti nursery in good time to pick the baby up.
Maybe the dmp is the only option right now, its just hard to come to terms with it all.

RAS

Limits on those cards?

Elloyd

All maxed out....
Nationwide (me) £1000
Nationwide (husband) 2500
Barclays £2900
Halifax £2300
Egg (me) 1200
Egg (Husband) 7500 (but has been cancelled so cant transfer on it)
Virgin £2500

inca_2

RAS wrote: »

Your life insurance is very higher, i would expect reducing term insurance to be £15-20 plus a small amount for non-mortage cover.

For a mortgage balance of £211000, £56 isn't unexpected for 2 adults if it includes CI. Also, the mortgage is interest only so it shouldn't really be on a decreasing term basis it should be level cover.

The mobile bill is waaaaay too high though. I'm sure somebody mentioned on another thread that you could triple your top ups with Tesco PAYG which would definitely be worth looking into. Also, I don't know if your daughter is on contract or PAYG but get her on PAYG if not and tell her that her monthly limit is £10. It'll be a good lesson for her too.

Don't want this to sound patronising but well done for acknowledging things, the easiest thing to do is bury your head in the sand but by coming here and looking for help your getting yourself on the right path. Definitely take advice from the companies mentioned by people here. I don't usually post here but just from reading the threads it's obvious that they are a really helpful and caring bunch here so you're in the right place!