Oh my - my SOA

beckstar1975

It's not pretty reading. Honest opinions on where we go please - all I can add is that the kids will soon be starting a new nursery saving £400 a month in fees, and in just over a year dd will be at school so another £250 a month saving (and a further £200 a month saving as DS will get his funded nursery place). Any chance they would buy a low start dmp until we have more funds? I would love to keep this house if at all possible

Thanks for your help

b*

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1940
Partners monthly income after tax....... 1500
Benefits................................ 400
Other income............................ 0
Total monthly income.................... 3840
Monthly Expense Details
Mortgage................................ 803
Secured/HP loan repayments.............. 260
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 140
Electricity............................. 50
Gas..................................... 60
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 20
Mobile phone............................ 40
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 440
Clothing................................ 80
Petrol/diesel........................... 110
Road tax................................ 20
Car Insurance........................... 45
Car maintenance (including MOT)......... 30
Car parking............................. 10
Other travel............................ 176
Childcare/nursery....................... 1500
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 30
Contents insurance...................... 35
Life assurance ......................... 60
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 15
Entertainment........................... 50
Holiday................................. 50
Emergency fund.......................... 30
Total monthly expenses.................. 4141

Assets
Cash.................................... 0
House value (Gross)..................... 255000
Shares and bonds........................ 0
Car(s).................................. 2500
Other assets............................ 0
Total Assets............................ 257500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 189000...(803)......2.5
Secured Debt.................. 25000....(260)......10.9
Total secured & HP debts...... 214000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Tesco loan.....................5500......150.......7.9
sainsburys loan................10500.....179.......8
Sainsburys loan (DH)...........15000.....200.......7.9
tesco..........................6000......100.......17.9
halifax........................6000......80........0
Virgin.........................11500.....50........0
Total unsecured debts..........54500.....759.......-

Monthly Budget Summary
Total monthly income.................... 3,840
Expenses (including HP & secured debts). 4,141
Available for debt repayments........... -301
Monthly UNsecured debt repayments....... 759
Amount short for making debt repayments. -1,060
Personal Balance Sheet Summary
Total assets (things you own)........... 257,500
Total HP & Secured debt................. -214,000
Total Unsecured debt.................... -54,500
Net Assets.............................. -11,000

scottishblondie

beckstar1975 wrote: »

It's not pretty reading. Honest opinions on where we go please - all I can add is that the kids will soon be starting a new nursery saving £400 a month in fees, and in just over a year dd will be at school so another £250 a month saving (and a further £200 a month saving as DS will get his funded nursery place). Any chance they would buy a low start dmp until we have more funds? I would love to keep this house if at all possible

Thanks for your help

b*

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1940
Partners monthly income after tax....... 1500
Benefits................................ 400 Have you checked you are getting everything you're entitled to?
Other income............................ 0
Total monthly income.................... 3840
Monthly Expense Details
Mortgage................................ 803 Is this repayment or interest only?
Secured/HP loan repayments.............. 260
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 140
Electricity............................. 50
Gas..................................... 60
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 20
Mobile phone............................ 40 How many phones is this for? Can you go to PAYG or drop to a lower contract?
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 440 You should be able to cut this down quite a lot - try the old style board for tips on how to eat well for less
Clothing................................ 80 This is a tough one with kids, but potentially by using what you have and getting hand-me-downs from friends or even on freecycle etc you could spend less on this
Petrol/diesel........................... 110
Road tax................................ 20
Car Insurance........................... 45
Car maintenance (including MOT)......... 30
Car parking............................. 10
Other travel............................ 176
Childcare/nursery....................... 1500 Ouch! Have you looked into getting childcare vouchers from your employers - this would reduce the amount of tax and NI you pay so you would be a bit better off.
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 30 Both buildings and contents seem high
Contents insurance...................... 35
Life assurance ......................... 60 Seems very high - have you shopped around?
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30 Only buy for the kids
Haircuts................................ 15 Try local colleges or leave longer between haircuts. If you're feeling brave cut the kids' hair yourself.
Entertainment........................... 50 Try to cut this down
Holiday................................. 50 Forgo holidays for a while, you really can't afford it at the moment
Emergency fund.......................... 30
Total monthly expenses.................. 4141

Assets
Cash.................................... 0
House value (Gross)..................... 255000
Shares and bonds........................ 0
Car(s).................................. 2500
Other assets............................ 0
Total Assets............................ 257500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 189000...(803)......2.5
Secured Debt.................. 25000....(260)......10.9
Total secured & HP debts...... 214000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Tesco loan.....................5500......150.......7.9
sainsburys loan................10500.....179.......8
Sainsburys loan (DH)...........15000.....200.......7.9
tesco..........................6000......100.......17.9
halifax........................6000......80........0
Virgin.........................11500.....50........0
Total unsecured debts..........54500.....759.......-

Monthly Budget Summary
Total monthly income.................... 3,840
Expenses (including HP & secured debts). 4,141
Available for debt repayments........... -301
Monthly UNsecured debt repayments....... 759
Amount short for making debt repayments. -1,060
Personal Balance Sheet Summary
Total assets (things you own)........... 257,500
Total HP & Secured debt................. -214,000
Total Unsecured debt.................... -54,500
Net Assets.............................. -11,000

I've put some comments in red for you. You need to consult one of the debt charities ASAP, I'm afraid nothing I have suggested above will come close to making up that shortfall. Are all of your payments up to date or have you defaulted on any of them?

mogchops

The thing that is jumping out at me is nursery fees - £1500 :eek::eek:

That is nearly twice your mortgage, and the same as your partners salary!!!!

As the poster above mentioned, does your employer do childcare vouchers? That would save a big chunk.

And have you considered a childminder?? They are much much cheaper than nursery. I had a childminder for my youngest from 6 months till she started school, & she was amazing, absolutely brilliant. Try & get a personal recommendation, & go visit a few at home.

Or do you have any parents/relatives who could help out with childcare?

Good luck xx

theoretica

Have you put your details into https://www.entitledto.com to check you are getting everything you can?

At the moment all your partner's wages are being eaten up with childcare. Obviously the change in nursery would make a big difference, but how much does s/he enjoy work and what might your finances (try the other figures in entitledto too) look like if s/he took a year out to look after the kids, or went part time? Have you thought of this?

beanielou

Basically unfortunatly the SOA shows that you cannot even cover your basic expenses.So you are going to find it hard to get advice from the debt charities as you have nothing left to offer to your creditors.
Difficult situation.

niccatw

beckstar1975 wrote: »

It's not pretty reading. Honest opinions on where we go please - all I can add is that the kids will soon be starting a new nursery saving £400 a month in fees, and in just over a year dd will be at school so another £250 a month saving (and a further £200 a month saving as DS will get his funded nursery place). Any chance they would buy a low start dmp until we have more funds? I would love to keep this house if at all possible

Thanks for your help

b*

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1940
Partners monthly income after tax....... 1500
Benefits................................ 400
Other income............................ 0
Total monthly income.................... 3840
Monthly Expense Details
Mortgage................................ 803
Secured/HP loan repayments.............. 260
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 140
Electricity............................. 50 OK, I'm likely is a smaller place than yours but I pay £50 per month for both. Have you checked you are with the cheapest provider or whether you are in credit? Also, do you keep your bills to a minimum, i.e making sure nothing is left on standby, switching of lights, using energy saving bulbs etc.
Gas..................................... 60
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 20 Is this all inclusive as I not you have nothing under interent services. Is it the cheapest available.
Mobile phone............................ 40 Are these contact phones? You can get a decent amount of mins for £10 per month from various providers (Mr Ts springs to mind)
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 440 Do you meal plan, have you tried dropping a brand? Have a look at the grocery challenge on the OS thread where folk pledge a certain amount in a bid to reduce their grocery spending. It is usually the easiest place to start cutting back.
Clothing................................ 80 Per month? Use what you have for you and OH and cut the budget right down to cover kiddies essentials.
Petrol/diesel........................... 110
Road tax................................ 20
Car Insurance........................... 45
Car maintenance (including MOT)......... 30
Car parking............................. 10
Other travel............................ 176
Childcare/nursery....................... 1500
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 30 When is this up for renewal? Shop around for best value and go via a cashback site to reduce the cost further still.
Contents insurance...................... 35 As above
Life assurance ......................... 60 Shop around to check you have the best deal.
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30 A month? Cut back to immediate family only.
Haircuts................................ 15
Entertainment........................... 50
Holiday................................. 50 Is this booked? If not, I'd add it to debt repayments and look out for money off for day trips and amusement parks etc.
Emergency fund.......................... 30
Total monthly expenses.................. 4141

Assets
Cash.................................... 0
House value (Gross)..................... 255000
Shares and bonds........................ 0
Car(s).................................. 2500
Other assets............................ 0
Total Assets............................ 257500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 189000...(803)......2.5
Secured Debt.................. 25000....(260)......10.9
Total secured & HP debts...... 214000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Tesco loan.....................5500......150.......7.9
sainsburys loan................10500.....179.......8
Sainsburys loan (DH)...........15000.....200.......7.9
tesco..........................6000......100.......17.9
halifax........................6000......80........0
Virgin.........................11500.....50........0
Total unsecured debts..........54500.....759.......-

Monthly Budget Summary
Total monthly income.................... 3,840
Expenses (including HP & secured debts). 4,141
Available for debt repayments........... -301
Monthly UNsecured debt repayments....... 759
Amount short for making debt repayments. -1,060
Personal Balance Sheet Summary
Total assets (things you own)........... 257,500
Total HP & Secured debt................. -214,000
Total Unsecured debt.................... -54,500
Net Assets.............................. -11,000

Yes, a DMP will ayou to up your payments when you are able.

I hope you don't mind me making a few comments. Only you will know what will work best for your family, so if you completely disagree with a statement, don't lose sleep over it. I'd recommend coming back to your SOA as you progress through your DFW journey. Many of the things I'd initially disregarded, I am now viewing differently.

Also, it might be an idea to keep a spending diary for a while to see where that overspend is really going. Do you really spend £80 per month on cloths and £50 on entertainment. I hate doing mine, but it's a huge eye opener and even trying to keep it means I really question whether I need something and I put it back if I don't.

Good luck

Firewalker

Childcare expenditure - too much. Apart from looking at employer schemes have you considered getting an au pair - you will probably have to pay her about £80-100 per week but still a substantial reduction of out goings.

Firewalker

Firewalker

Looking at it, you probbaly also need to seriously think of ways to inrease you earnings. Otherwise paying your debt will take too long and with the children growing, contrary to everyday wisdom, your expenditure on them will increase.

Firewalker

property.advert

Firewalker wrote: »

Childcare expenditure - too much. Apart from looking at employer schemes have you considered getting an au pair - you will probably have to pay her about £80-100 per week but still a substantial reduction of out goings.

Firewalker

The trouble with this is that you are going to be responsible for her NI, her tax, employers NI etc. They want a net figure and most want way over the £100 a week mark.

I looked into it for my daughter last year to get me back into work and the headline idea at what I thought was a reasonable amount balloons if you do it legitimately.

tyllwyd

I agree with beanielou, you are £300 short on your living expenses, before you even start paying debts, so on those figures it is going to be difficult to set up a DMP. Have you done the maths to see what would happen if one of you gave up work to look after the children - you would lose a salary, but stop paying childcare, and travel etc would probably go down.

I'm guessing you have very little equity in your property?

If it was me, I'd do the questionnaire on the CCCS website to see what your options are. At the moment you are heading deeper and deeper into debt, and I can't help wondering if bankruptcy is an option.

Firewalker

We had au pairs for years - there is not NI, tax or anything else involved. the arrangement is that they come for up to two years, live with you, you treat them as members of the family and they look after children and do light household chores.

Firewalker