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Joanie72

I've floated about for a couple of weeks, and dipped into some of the discussions. Tonight I've found the courage to do the SOA.
From here I'm trying to cut down on our biggest expense, food, while treading water until November 30 this year, which is when OH's mortgage redemption expires and we can sell his house without a huge penalty. Then the plan is to wipe out those debts pronto.
Forgive me my mistakes please, cos here goes! :

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.................... 2

Monthly Income Details
Monthly income after tax................ 1700
Partners monthly income after tax....... 2590
Benefits................................ 135
Other income............................ 965
Total monthly income.................... 5390

Monthly Expense Details
Mortgage................................ 560
Secured/HP loan repayments.............. 1350
Rent.................................... 0
Management charge (leasehold property).. 30
Council tax............................. 126
Electricity............................. 73
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 0
TV Licence.............................. 15
Satellite/Cable TV...................... 65
Internet Services....................... 0
Groceries etc. ......................... 800
Clothing................................ 100
Petrol/diesel........................... 0
Road tax................................ 17
Car Insurance........................... 50
Car maintenance (including MOT)......... 60
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 145
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 25
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 105
Other insurance......................... 60
Presents (birthday, christmas etc)...... 100
Haircuts................................ 25
Entertainment........................... 10
Holiday................................. 200
Emergency fund.......................... 20
Total monthly expenses.................. 3946

Assets
Cash.................................... 0
House value (Gross)..................... 265000
Shares and bonds........................ 800
Car(s).................................. 3000
Other assets............................ 1000
Total Assets............................ 269800


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 105000...(560)......5.89
Secured Debt.................. 20000....(400)......10
Partner's mortgage.............122000...(950)......9.5
Total secured & HP debts...... 247000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Halifax .......................7440......130.......21
Barclaycard....................3650......80........14
Egg card.......................3885......90........17
Partner's overdraft............4420......50........15
Overdraft......................2000......30........15
Student loan...................1500......25........1
Egg Loan.......................6300......210.......9.5
Capital One....................400.......20........30
Nationwide.....................1575......50........19
MBNA...........................3220......90........33
Virgin.........................3925......60........15
Total unsecured debts..........38315.....835.......-


Monthly Budget Summary
Total monthly income.................... 5,390
Expenses (including HP & secured debts). 3,946
Available for debt repayments........... 1,444
Monthly UNsecured debt repayments....... 835
Amount left after debt repayments....... 609

Personal Balance Sheet Summary
Total assets (things you own)........... 269,800
Total HP & Secured debt................. -247,000
Total Unsecured debt.................... -38,315
Net Assets.............................. -15,515

HamsterWheel_3

Joanie72 wrote: »

I've floated about for a couple of weeks, and dipped into some of the discussions. Tonight I've found the courage to do the SOA.
From here I'm trying to cut down on our biggest expense, food, while treading water until November 30 this year, which is when OH's mortgage redemption expires and we can sell his house without a huge penalty. Then the plan is to wipe out those debts pronto.
Forgive me my mistakes please, cos here goes! :

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.................... 2

Monthly Income Details
Monthly income after tax................ 1700
Partners monthly income after tax....... 2590
Benefits................................ 135
Other income............................ 965
Total monthly income.................... 5390

Monthly Expense Details
Mortgage................................ 560
Secured/HP loan repayments.............. 1350
Rent.................................... 0
Management charge (leasehold property).. 30
Council tax............................. 126
Electricity............................. 73 This is high but i take it this is heating as well as no gas payments?
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0 no water rates???
Telephone (land line)................... 0 is this right?
Mobile phone............................ 0 no phones at all?
TV Licence.............................. 15
Satellite/Cable TV...................... 65 drop this down, the basic package is £17 a month saving you nearly £50 a month!!
Internet Services....................... 0
Groceries etc. ......................... 800 whoaaaaa this can be halved saving you £400 a month
Clothing................................ 100 every month? look on ebay or sell some things you have already to raise funds to buy new stuff
Petrol/diesel........................... 0 no fuel at all yet you have 2 cars??
Road tax................................ 17
Car Insurance........................... 50
Car maintenance (including MOT)......... 60 is this every month??
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 145
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 25 have a look at some money sites see if you can get this cheaper and earn some cashback while your at it
Buildings insurance..................... 0 none at all???
Contents insurance...................... 10
Life assurance ......................... 105 this is way too high have a look and see if you can get it cheaper or if you really need the cover you are getting
Other insurance......................... 60 which is??
Presents (birthday, christmas etc)...... 100 this is way too high make gifts or buy in sales but cut this down to save at least £50 a month
Haircuts................................ 25
Entertainment........................... 10
Holiday................................. 200 nearly £2500 a year on holidays? even with a big family there are big offers out there to bring this down especially while you are trying to clear other things
Emergency fund.......................... 20
Total monthly expenses.................. 3946

Assets
Cash.................................... 0
House value (Gross)..................... 265000
Shares and bonds........................ 800
Car(s).................................. 3000
Other assets............................ 1000
Total Assets............................ 269800


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 105000...(560)......5.89
Secured Debt.................. 20000....(400)......10
Partner's mortgage.............122000...(950)......9.5
Total secured & HP debts...... 247000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Halifax .......................7440......130.......21
Barclaycard....................3650......80........14
Egg card.......................3885......90........17
Partner's overdraft............4420......50........15
Overdraft......................2000......30........15
Student loan...................1500......25........1
Egg Loan.......................6300......210.......9.5
Capital One....................400.......20........30
Nationwide.....................1575......50........19
MBNA...........................3220......90........33
Virgin.........................3925......60........15
Total unsecured debts..........38315.....835.......-


Monthly Budget Summary
Total monthly income.................... 5,390
Expenses (including HP & secured debts). 3,946
Available for debt repayments........... 1,444
Monthly UNsecured debt repayments....... 835
Amount left after debt repayments....... 609

Personal Balance Sheet Summary
Total assets (things you own)........... 269,800
Total HP & Secured debt................. -247,000
Total Unsecured debt.................... -38,315
Net Assets.............................. -15,515

Hi there and well done for posting, it is a big step but im sure after looking through the boards and threads you will know first off " you are not alone" you do have a good monthly leftover amount but by tweaking here and there it could be a lot more, I have as many others will added a few comments next to things you could look at lowering, its just all about how much you want it at the end and you will find too that budgeting can be fun!

but most of all good luck xx

Joanie72

Thanks HW. I should have explained a few things in there I guess! Sorry.
The grocery amount is what we spend on everything that's not a monthly bill, so it's food, fuel and clothes. The £100 I put in for clothes is the payment to my next account, which I forgot to work into the SOA. Doh! balance for that is £900 just now and I've got it down from £1500 at the start of the year - I had to use it for a new washing machine just before Xmas. Not ideal, but you do what you have to do sometimes!
The three kids figure is a bit misleading. Actually there's two kids all the time, and every second weekend OH's kids come too, then there's five in total. There's alos four cats, a dog and a rabbit.
I guestimated the car maintenance figures based on this year's MoT costs, which were £400 and £300 respectively.
The Sky package includes phone and broadband.
The factor's fee includes building insurance.
The life insurance is for two policies, one for me and one for OH.
The other insurance is OH's health policy.
The pet insurance is also for two separate policies.
I forgot to add in mobile phone costs, £15 for me and £20 for OH.
And finally (you'll be glad to hear!), the presents cost is £100 per child for birthdays, and £700 towards Xmas. With a family the size of ours it doesn't go far.
The £200 for holidays is for a 5-day break in October which s already paid for, what this figure is for is spending money. Again, there's loads of us so it mounts up!
Thanks for the suggestions though, they're much appreciated.
I also did the snowball thing just now - it's fantastic!! So inspiring.

Tixy

Joanie72 wrote: »

I've floated about for a couple of weeks, and dipped into some of the discussions. Tonight I've found the courage to do the SOA.
From here I'm trying to cut down on our biggest expense, food, while treading water until November 30 this year, which is when OH's mortgage redemption expires and we can sell his house without a huge penalty. Then the plan is to wipe out those debts pronto.
Forgive me my mistakes please, cos here goes! :

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.................... 2

Monthly Income Details
Monthly income after tax................ 1700
Partners monthly income after tax....... 2590
Benefits................................ 135
Other income............................ 965 what is this from?
Total monthly income.................... 5390

Monthly Expense Details
Mortgage................................ 560
Secured/HP loan repayments.............. 1350
Rent.................................... 0
Management charge (leasehold property).. 30
Council tax............................. 126
Electricity............................. 73 have you checked you are with the cheapest supplier in the area?
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0 do you not pay this?
Telephone (land line)................... 0
Mobile phone............................ 0
TV Licence.............................. 15
Satellite/Cable TV...................... 65 even for a combined package this is high, can you reduce the channels you have? if not in contract threaten to leave and see what deal they offer you (often people get half price for 6months or so)
Internet Services....................... 0
Groceries etc. ......................... 800 Even with the family situation you have this is very high, split the petrol and clothes out, how much do you actually spend on food, cleaning products, toiletries etc. For the 4 of you full time £200 should be doable - so even with the other kids you should be able to do it for less than £300.
Clothing................................ 100 aside from the repayment, how much have you budgeted for new clothes?
Petrol/diesel........................... 0 split this out from groceries.
Road tax................................ 17
Car Insurance........................... 50
Car maintenance (including MOT)......... 60
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 145
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 25
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 105 shop around for this, this is high, imagine you may easily halve this.
Other insurance......................... 60 shop around for this, find something more competative.
Presents (birthday, christmas etc)...... 100
Haircuts................................ 25
Entertainment........................... 10 is this really enough?
Holiday................................. 200
Emergency fund.......................... 20
Total monthly expenses.................. 3946

Assets
Cash.................................... 0
House value (Gross)..................... 265000
Shares and bonds........................ 800
Car(s).................................. 3000
Other assets............................ 1000 what are these?
Total Assets............................ 269800


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 105000...(560)......5.89 is this repayment mortgage?
Secured Debt.................. 20000....(400)......10 is this secured on the house? what was it used for?
Partner's mortgage.............122000...(950)......9.5 ah? is this the other income? a rented property? how much is it worth? is the APR fixed it looks really high? how long is it fixed for . it might be worth looking how much cheaper a deal he could get now and if it would be worth paying the redemption penalties
Total secured & HP debts...... 247000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Halifax .......................7440......130.......21
Barclaycard....................3650......80........14
Egg card.......................3885......90........17
Partner's overdraft............4420......50........15
Overdraft......................2000......30........15
Student loan...................1500......25........1
Egg Loan.......................6300......210.......9.5
Capital One....................400.......20........30 pay this off straight away with one month's surplus. Very nice to get rid of 1 debt quickly.
Nationwide.....................1575......50........19
MBNA...........................3220......90........33 target this card next, put as much as you can towards it.
Virgin.........................3925......60........15
Total unsecured debts..........38315.....835.......-


Monthly Budget Summary
Total monthly income.................... 5,390
Expenses (including HP & secured debts). 3,946
Available for debt repayments........... 1,444
Monthly UNsecured debt repayments....... 835
Amount left after debt repayments....... 609 its good you have a surplus but how much of this are you using to overpay on your debts? you have high unsecured debts with some very high aprs, you really need to start work on reducing these down as much as you can.

Personal Balance Sheet Summary
Total assets (things you own)........... 269,800
Total HP & Secured debt................. -247,000
Total Unsecured debt.................... -38,315
Net Assets.............................. -15,515

Joanie72 wrote: »

Thanks HW. I should have explained a few things in there I guess! Sorry.
The grocery amount is what we spend on everything that's not a monthly bill, so it's food, fuel and clothes. The £100 I put in for clothes is the payment to my next account, which I forgot to work into the SOA. Doh! balance for that is £900 just now and I've got it down from £1500 at the start of the year - I had to use it for a new washing machine just before Xmas. Not ideal, but you do what you have to do sometimes! in future its always worth trying freecycle/freegle for this type of emergency. Even if you have to buy something catalogues are usually much more expensive than other places and don't have deals on, plus the APR is then often high on top. What is the APR on the next account?

The three kids figure is a bit misleading. Actually there's two kids all the time, and every second weekend OH's kids come too, then there's five in total. There's alos four cats, a dog and a rabbit.
I guestimated the car maintenance figures based on this year's MoT costs, which were £400 and £300 respectively.
The Sky package includes phone and broadband.
The factor's fee includes building insurance.
The life insurance is for two policies, one for me and one for OH.
The other insurance is OH's health policy.
The pet insurance is also for two separate policies.
I forgot to add in mobile phone costs, £15 for me and £20 for OH.
And finally (you'll be glad to hear!), the presents cost is £100 per child for birthdays, and £700 towards Xmas. With a family the size of ours it doesn't go far.
The £200 for holidays is for a 5-day break in October which s already paid for, what this figure is for is spending money. Again, there's loads of us so it mounts up! Start looking online for cheaper things to do/days out once you get on holiday, even with a group of you that is a large amount to spend on a holiday. Eg look for free places of interest and take a picnic etc.
Thanks for the suggestions though, they're much appreciated.
I also did the snowball thing just now - it's fantastic!! So inspiring.

I would actually redo your SoA, add in the next debt and the mobile costs and split out groceries, I think it will help you see clearer where you are. Then when you plug the figures into the snowball you'll get a realistic idea of how long it could take you to become debt free.

Good luck.

katsu

Joanie72. Congrasts on the LBM. Just a quickie from me. Presents for 23 people cost me £180 last christmas. I shopped in the sales (I am over half way through the list for Christmas 2010 already) used 99p and pound shops and charity shops too. People can't tell if you shop wisely. Honestly, we are seen as good givers!

Joanie72

Thanks for all the ideas folks, it's given me food for thought.
The extra income is £265 a month maintenance from my ex, and £700 a month rental from OH's property. We're tied in to his mortgage, which is an appalling deal but taken out before i met him, until the end of this year. The plan is to then sell the property, and hopefully we'll clear our feet, and release a further £600 a month which will really help blitz our debt.
My plan was to hit his Capital One card first, then work away at my MBNA card and then the others in order of interest rates.
I'm also looking at getting our grocery bills down and being more inventive at keeping the kids entertained on a budget. We have a national trust membership, are getting into picnics and walks with the dog, and I've started banking my Tesco vouchers to use for rewards.
All in all, I'm feeling very positive and looking forward to the coming months' challenges!
Thanks all for your help, and for being so supportive.

property.advert

Joanie72 wrote: »

I've floated about for a couple of weeks, and dipped into some of the discussions. Tonight I've found the courage to do the SOA.
From here I'm trying to cut down on our biggest expense, food, while treading water until November 30 this year, which is when OH's mortgage redemption expires and we can sell his house without a huge penalty. Then the plan is to wipe out those debts pronto.
Forgive me my mistakes please, cos here goes! :

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.................... 2

Monthly Income Details
Monthly income after tax................ 1700
Partners monthly income after tax....... 2590
Benefits................................ 135
Other income............................ 965 what is this ? rent from his house ? tax position ?
Total monthly income.................... 5390

Monthly Expense Details
Mortgage................................ 560
Secured/HP loan repayments.............. 1350
Rent.................................... 0
Management charge (leasehold property).. 30
Council tax............................. 126
Electricity............................. 73
Gas..................................... 0 no gas ?
Oil..................................... 0
Water rates............................. 0 no water ?
Telephone (land line)................... 0 ????
Mobile phone............................ 0 ?????
TV Licence.............................. 15
Satellite/Cable TV...................... 65
Internet Services....................... 0 included elsewhere ?
Groceries etc. ......................... 800 you have already identified this as an area to cut down - hundreds available here
Clothing................................ 100 short term you can go without (nearly)
Petrol/diesel........................... 0 no fuel ?
Road tax................................ 17
Car Insurance........................... 50
Car maintenance (including MOT)......... 60
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 145
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 25
Buildings insurance..................... 0 no buildings insurance ? included in service charge ?
Contents insurance...................... 10
Life assurance ......................... 105 40yr old for 30 years can get £1m for around £100
Other insurance......................... 60 what is this ?
Presents (birthday, christmas etc)...... 100 again, short term cut back
Haircuts................................ 25
Entertainment........................... 10 I doubt this is as low as this
Holiday................................. 200 short term cut back
Emergency fund.......................... 20 if you have a fund, it must take more than this
Total monthly expenses.................. 3946

Assets
Cash.................................... 0
House value (Gross)..................... 265000
Shares and bonds........................ 800
Car(s).................................. 3000
Other assets............................ 1000
Total Assets............................ 269800


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 105000...(560)......5.89
Secured Debt.................. 20000....(400)......10
Partner's mortgage.............122000...(950)......9.5 you say this is gone next year but look at the penalties in the last year of a tie in, they might not be so bad
Total secured & HP debts...... 247000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Halifax .......................7440......130.......21 priority 3
Barclaycard....................3650......80........14
Egg card.......................3885......90........17
Partner's overdraft............4420......50........15
Overdraft......................2000......30........15
Student loan...................1500......25........1
Egg Loan.......................6300......210.......9.5
Capital One....................400.......20........30 priority 2
Nationwide.....................1575......50........19 priority 4 etc.
MBNA...........................3220......90........33 priority 2
Virgin.........................3925......60........15
Total unsecured debts..........38315.....835.......-


Monthly Budget Summary
Total monthly income.................... 5,390
Expenses (including HP & secured debts). 3,946
Available for debt repayments........... 1,444
Monthly UNsecured debt repayments....... 835
Amount left after debt repayments....... 609

Personal Balance Sheet Summary
Total assets (things you own)........... 269,800
Total HP & Secured debt................. -247,000
Total Unsecured debt.................... -38,315
Net Assets.............................. -15,515

Do have a look at the fee to cut short the mortgage at 9.5% as this is a killer. After this, how much will it free up in capital ?