Dont know where to start except cry at my SOA

smiler33

Hi everyone
Ive posted before so not a newbie. Have just re-done my SOA as I have finally paid my car off this month and hoped I would be in a position to start re-paying more than the minimums on my credit cards. The problem is that I have had a terrible couple of months due to not being able to work (managed three days in Dec/Jan). I had several large bills to pay in Jan (such as a business expense fee for £300) and now the car has just cost me another £300. I am a full time student also so cant work anymore hours than I already am as I have no more time left! Im struggling to find time to meet the deadlines as it is as Im working every day around uni times. Im going to see a student finance advisor next week so hopefully they may shed some light. I dont have a terrible credit history and I realise my debts are not as high as some others are having to deal with. I dont take any holidays (or even time off spent at home) I worked every week last year until the weather/illness hit me around Dec/Jan time. Ive always worked full time and havent received any help apart from WTC/CTC. Then because I have a mortgage and self employed - I find when I need help I cant get any:mad:. Also in Jan just about every direct debit I have bounced leaving me with £250 bank charges just in that month!!!:eek:

I am self employed so have used my gross figures (less approx tax and NI) as I have included my business expenses in my SOA as they are all direct debits.

This is showing a surplus but in reality I am upto both limits on overdrafts and any cash I had spare has just paid the £300 car bill. Its the petrol costs that are killing me - but the mileage I do is huge both for work and travel to uni which is a considerable distance from where I live. I dont spend on luxuries or clothes. I want some quality of life back.

Any help anyone?? :kisses3:

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1050 (very approx until I finish accounts for this year)
Partners monthly income after tax....... 0
Benefits................................ 420 (WTC/CTC)
Other income............................ 800 (Student Loans and Child Benefit)
Total monthly income.................... 2270

Monthly Expense Details
Mortgage................................ 420
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 45
Gas..................................... 30
Oil..................................... 0
Water rates............................. 13
Telephone (land line)................... 30
Mobile phone............................ 65 (will be gone by next month and PAYG)
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 15
Groceries etc. ......................... 200
Clothing................................ 20
Petrol/diesel........................... 330 (Business Costs)
Road tax................................ 15
Car Insurance........................... 55
Car maintenance (including MOT)......... 52.5
Car parking............................. 20
Other travel............................ 120 (My costs for travel to uni etc)
Childcare/nursery....................... 0
Other child related expenses............ 120
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 30
Contents insurance...................... 20
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
(Unnamed monthly expense)............... 0
Advertising............................. 30
Accountants............................. 25
Account Fee............................. 15
Total monthly expenses.................. 1713.5


Assets
Cash.................................... 0
House value (Gross)..................... 80000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 83000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 71000....(420)......4.24
Total secured & HP debts...... 71000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................4000......128.......0
CC1............................3400......114.......30
CC2............................900.......22........30
Tax............................850.......0.........0
Overdraft 2....................100.......0.........0
Overdraft 1....................1200......0.........0
Brother........................800.......0.........0
Mum............................1100......0.........0
Dad............................360.......0.........0
Total unsecured debts..........12710.....264.......-


Monthly Budget Summary
Total monthly income.................... 2,270
Expenses (including HP & secured debts). 1,713.5
Available for debt repayments........... 556.5
Monthly UNsecured debt repayments....... 264
Amount left after debt repayments....... 292.5 This showing as a positive but car payment was this much per month and paid up this month)

Personal Balance Sheet Summary
Total assets (things you own)........... 83,000
Total HP & Secured debt................. -71,000
Total Unsecured debt.................... -12,710
Net Assets.............................. -710

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

KPR11

Hi Smiler,

Well done on posting your SOA!

Just a couple of observations:

1. Your grocery seems a bit on the high side and maybe there is scope for savings there.

2. Have you tried shopping around for a combined buildings and contents insurance or something like that to see if you can save anything on it?

3. The phone bill is on the high side but it is dropping off and I guess you do need something especially since you run your own business and are on the go.

4. Do you not pay any council tax?

Hope this helps and things work out for you.

Good luck,

KPR

Poosmate

I don't understand why you are paying your business expenses out of your personal account? Shouldn't you keep your business and personal accounts seperate? Surely it would be so much easier for you to control?

Sorry for all the questions.

For the business miles you travel you should be reclaiming that back from the company. Keep a log of how many miles you do and submit a mileage claim to the business (I believe the AA worked out that it costs 43p per mile to run a car for business purposes - my company pays me 47p per mile).

Again for the advertising and accountants they should go through a business account too.

Your buildings and contents costs look very high, I think most on here would advise that you could get both for about £20.

Your gas/elec don't look too bad but could you cut down on usage a bit, turning everything off at the plugs when not in use?

Good news about the mobile! Yay!

Telephone/internet services seem high given that you can get a package including cable/satelite tv for around £35 with telephone allowing free calls after 7pm (to be on the safe side BT have changed their times from 6pm to 7pm recently) and weekends.

£200 for gorceries is huge for just the two of you! You could easily knock £50 off that.

Hope that helps some.

Good luck and congratulations on posting.

Poo

smiler33

Thanks KPR for your reply. I have replied to your points below. Just really fed up of it all now and getting to the point where either uni or the job will have to go. If I give up uni then Ive wasted 18 months and if I give up the business then will be financially in a black hole. It just feels like Im getting nowhere and literally do nothing other than work and uni.

I know people are really helpful on here - really need some support at the moment

Smiler xx

KPR11 wrote: »

Hi Smiler,

Well done on posting your SOA!

Just a couple of observations:

1. Your grocery seems a bit on the high side and maybe there is scope for savings there. (I can try but to be honest at the moment I would struggle to batch cook etc and do rely on takeaways sometimes due to my hours - it really needs to improve)

2. Have you tried shopping around for a combined buildings and contents insurance or something like that to see if you can save anything on it? (Cant get any other cheaper quote because apparently it flooded here about 40 years ago so is considered a flood risk area!!)

3. The phone bill is on the high side but it is dropping off and I guess you do need something especially since you run your own business and are on the go. (Definitely too high and they wont offer a decent deal so will have to cut back but its mostly business related)

4. Do you not pay any council tax? (Fully exempt as full time student and only adult in household)

Hope this helps and things work out for you.

Good luck,

KPR

catmiaow

Full time students don't pay council tax.

smiler33

Hi and thanks :beer:
I know its not very clear but I have put my gross earnings on my SOA so that I can include all of my outgoings including business expenses.

Im a sole trader and claim back petrol etc but thought it would be easier to include my gross and my overheads in the SOA as they are so high that this seems to be where all my money is going. I do have two accounts but have lumped them both together for the purpose of the SOA. Hope that helps

Smiler xx

Poosmate wrote: »

I don't understand why you are paying your business expenses out of your personal account? Shouldn't you keep your business and personal accounts seperate? Surely it would be so much easier for you to control?

Sorry for all the questions.

For the business miles you travel you should be reclaiming that back from the company. Keep a log of how many miles you do and submit a mileage claim to the business (I believe the AA worked out that it costs 43p per mile to run a car for business purposes - my company pays me 47p per mile).

Again for the advertising and accountants they should go through a business account too.

Your buildings and contents costs look very high, I think most on here would advise that you could get both for about £20.

Your gas/elec don't look too bad but could you cut down on usage a bit, turning everything off at the plugs when not in use?

Good news about the mobile! Yay!

Telephone/internet services seem high given that you can get a package including cable/satelite tv for around £35 with telephone allowing free calls after 7pm (to be on the safe side BT have changed their times from 6pm to 7pm recently) and weekends.

£200 for gorceries is huge for just the two of you! You could easily knock £50 off that.

Hope that helps some.

Good luck and congratulations on posting.

Poo

KPR11

Hi Smiler,

Can you not ask your mom (if she lives close by) to help you out a bit in terms of the batch cooking etc?

You have a lot going on at the moment and can do with all the help that you can get. I hope you don't give up on your studies when especially since you are so close or your business that you have worked so hard to establish.

I am sure things will work out for you

smiler33

KPR11 wrote: »

Hi Smiler,

Can you not ask your mom (if she lives close by) to help you out a bit in terms of the batch cooking etc?

You have a lot going on at the moment and can do with all the help that you can get. I hope you don't give up on your studies when especially since you are so close or your business that you have worked so hard to establish.

I am sure things will work out for you

Thankyou.

My mum is an angel and already does so much for me and my daughter but she is so busy herself.

Im beginning to wonder whether a DMP would be a good idea. Certainly dont want credit cards or loans ever again. The thing is the debt is from paying the tax man and big repair bills on the car etc over the last couple of years and not from buying anything that remotely resembles luxuries

Smiler xx

KPR11

smiler33 wrote: »

The thing is the debt is from paying the tax man

Did you speak to HMRC and explain that you were in difficulty? for a bunch of very incompetent people they have actually been very helpful in spreading the payment or suspending it for a while! I know it may be too late now as the payment was due on 31 Jan but it is something to bear in mind for the future

Poosmate

smiler33 wrote: »

Thankyou.

My mum is an angel and already does so much for me and my daughter but she is so busy herself.

Im beginning to wonder whether a DMP would be a good idea. Certainly dont want credit cards or loans ever again. The thing is the debt is from paying the tax man and big repair bills on the car etc over the last couple of years and not from buying anything that remotely resembles luxuries

Smiler xx

Don't beat yourself up about it, a lot of us are in our situations because we've put yearly bills (car tax, MOT, Insurance in my case) onto our CC's before our lightbulb moments not twigging how much it was actually costing us, in many instances we're not paying our "yearly" bills just the interest on it!

It's taken me nearly 2 years to get out of that cycle. It's only been in the last few months really that I've really been able to actually start making overpayments on my CC's.

It's a long hard trek, but it will be one of the most enlightening journeys. Life's hardest lessons are always the most significant.

Keep posting, you're in good company here, everyone will look after you and gee you up when you are down.

Poo