Debt is driving Mr & Mrs Polkadot dotty! It's gotta go!!!

polkadot

SOA and Snowball done-its the cash flow that has me stumped.
Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1670
Partners monthly income after tax....... 0
Benefits................................ 690
Other income............................ 130
Total monthly income.................... 2490

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 825
Management charge (leasehold property).. 0
Council tax............................. 128
Electricity............................. 60
Gas..................................... 40
Oil..................................... 0
Water rates............................. 18
Telephone (land line)................... 19.94
Mobile phone............................ 45
TV Licence.............................. 12.12
Satellite/Cable TV...................... 34.5
Internet Services....................... 37
Groceries etc. ......................... 300
Clothing................................ 20
Petrol/diesel........................... 20
Road tax................................ 12
Car Insurance........................... 40
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 24
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 24.76
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 40
Haircuts................................ 0
Entertainment........................... 20
Holiday................................. 20
Emergency fund.......................... 20
(Unnamed monthly expense)............... 0
Total monthly expenses.................. 1800.32


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 600
Other assets............................ 0
Total Assets............................ 600

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly.. .APR
Barclaycard....................722.4.....17....... .12.9
Lloyds airmilles duo...........1009.5....22........14.88
Lloyds Loan....................10110.....329.4.....9.9
Argos..........................180.......5........ .27.9
Studio.........................145.......10....... .44.9
[STRIKE]Classic confidence.............49.86.....5.........39.6[/STRIKE]
Platinum overdraft.............2800......20........12.3
Total unsecured debts..........15016.76..408.4.....-


Monthly Budget Summary
Total monthly income.................... 2,490
Expenses (including HP & secured debts). 1,800.32
Available for debt repayments........... 689.68
Monthly UNsecured debt repayments....... 408.4
Amount left after debt repayments....... 281.28

Personal Balance Sheet Summary
Total assets (things you own)........... 600
Total HP & Secured debt................. -0
Total Unsecured debt.................... -15,016.76
Net Assets.............................. -14,416.76

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

polkadot

It's been a week since I had my LBM and I posted an SOA on the DFW
Last night I decided I need a bit of accountability, hence the diary. I know I could just write about it somewhere on my laptop-but I've been an MSE'er for so long now it's part of our lives (well, mine at least). So it seems right to keep it here.

I'm 26 weeks pregnant with our second child-thanks to the support from some fabby ladies on the ttc thread right here on MSE. My house is nearly ready for baby thanks to the flylady thread and I NEVER go shopping without checking the grocery challenge. I come home and I put my loose change into a sealed pot and it gets used on bits inspired by the thrifty gifty challenge...of course I had to graduate and so here I am, finally...where Martin wanted me from the start

I really have trouble keeping up with posting on all the threads I love to be part of. I end up either never posting, or always posting and never doing. That's a big part of why the diary-every thread I lurk has something to do with my desire to be debt free-and my journey toward it.

So I'm going to commit to posting at least once a week, shall I say Sundays? I do fancy myself as more of a Julie, rather than a Weezly so I expect to find Im mostly talking to myself

Still, as a lurker myself-I wont mind if you lurk

I wandered out to Asda today with my backpack and one extra shopping bag...and a shopping list. My total spend was £46.52. That included the £10.00 cash back which I took to give to Mr polkadot for the weeks milk money. As I had a scrub down of my kitchen and my fridge is all pretty with a laminated shopping list, neighbourhood watch numbers and my guild programme-I think I might try to make a "pretty" milk money envelope to go on the fridge so he doesnt forget...maybe that will be my little "happy task for tonight.

polkadot

I made my milk money envelope last night whilst we watched this weeks Lovefilm, the boat that rocked. It was rather good. I found some envelope templates here .I printed one, wrote the words "milk money" in the box, laminated it, then made it up using sticky tape...added some magnetic tape to the back of it and voila-just big enough to fit a £10.00 note without folding. And then Mr polkadot left the money in there this morning :rotfl:guess who fetched the milk.

I also went to get some Gaviscon at the same time. Our local pharmacy charges £5.13 for a box of 32. The pharmacist said he noticed I was back so soon (I was in there on Saturday) and told me he had tubs of 60 that are sold on prescription. He suggested I pop into GP to get one, but in the meantime he'd be happy to sell one to me "OTC". It cost me £5.45 :j

Then I came home and got onto the PPI discussion thread, I've asked a few questions already so went to review. I got into our filing from 2008 to look for loan docs and I am FUMING.Here's what I discovered about the loan...

When DH went into the branch in 2008, he went with the intention of getting an overdraft of £1000.00 to purchase a motorbike to get in some overtime. When I questioned him the other day about the ridiculous amount outstanding he said he had a previous loan that had £7000.00 outstanding and the consultant advised him to take a loan to pay off that loan, a credit card and give him the money for the bike. £7000.00 MY FOOT!!! I found a "loan summary" today for what MUST be the first loan because he says the monthly repayment of £282.00 "rings bells". That loan amount was £9 200.00 with an insurance of £2 720.93 totalling
£11 920.93. The "charges for credit" on the loan was 3 680.88 and on the insurance 1 088.70 totalling 4769.58.This made the total amount payable for the loan £12 880.00 and the insurance 3 809.63 Making the grand total owing £16 690.51. Im trying to imagine how the conversation went in 2008. I can only surmise that the £7000.00 left on the loan that the advisor referred to were from the original loan amount-and that he neglected to tell DH about the charges and PPI still outstanding :mad:
So this brings me to the current loan...Loan amount=£11 000.00 with insurance £3 265.79 totalling £14 265.79. "Charge for credit" on loan £4 240.00 and on the insurance £1 258.81 totalling £5 499.41. This made the total amount owing for the loan £15 240.60 and for the insurance £4524.60 giving the grand total owing for the privilege of borrowing £11 000.00 £19 765.20.
Effectively he was charged £8 334.23 in PPI charges for the two loans...and he thought the advisor led him to believe that because he was so stretched that if he refused, PPI-he would be refused the loan.

Now Im trying to work out what this "charges for credit" is? So if you know, please yell. I worked out that the total amount in these two loans is £10 268.99-That's ALMOST half a years worth of his income!!!! It's not clear if this is interest...oh wait, interest, can I yell about this (regardless of whether or not it's the same thing). I found a statement for the period 28 Sept 2008 to 9 April 2009...this is how it reads:

Opening balance:£13 335.52, 2 Oct 08-payment received, thank you: £329.40,New balance:£13 006.10 2 Oct 08-Interest charged:£149.20,New balance:£13 155.30, 2 Nov 08-Interest charged: £152.09, New balance:£13 307.39, 3 Nov 08-Payment received,thank you:£329.40,New balance:£12 977.97...

So the balance that starts on the 28th Sept 08 is £13 335.52 ends on the 2nd April 09 at £12 386.85. Over 10 months we paid £3294.00 in dd's into this loan, yet the balance has only reduced by £948.67 :mad:

I want to be mad at DH for not understanding this upfront (and I think he thinks I am). But the reality is that prior to "meeting" Mr Lewis I know I would have been caught just as badly.

As a kid, growing up in South Africa, I remember going to the bank with my dad once a month. We would wait outside whilst he went into the managers office and half an hour later he'd come out looking like the man who knew what was happening with his finances. I attributed this to the bank manager being our friend And now years later there's my husband going to the bank under the same impression-you need financial advice, financial services is where to go...he looked another man in the eye and said "I need to change the way Im providing for my new family" and this man, whom he thought would do the best he could for him-took advantage of him!!!! Im going to kill this debt using the snowball we've produced, and then Im moving all of his accounts to basic classic accounts where no charges are incurred and that will be that. Right now I dont if Im FUMING, or just feeling VERY SMALL, and insignificant

nunnygirl

Polkadot, please please give a PPI reclaim a go. OH and I got £3k last October and it was a godsend as neither of us were working at the time

polkadot

I sent off the PPI questionnaire yesterday-along with a SAR request...both first class recorded. So I guess now we wait.

My plan for this week is to spend as much time as possible getting the house tidy for DS's 4th birthday party next week. I ordered his birthday present yesterday...he's getting this and this. ELC is currently running a 15% off offer,and I used a 20% off voucer code I found on the codes board and paid £56.00 for both together-including delivery (free delivery for £50 spend) :j

Good thing I did get them both as DS's bio called this morning with more maintenance whinges. Thank goodness we haven't added his money to our income as we'd be really stuck. He lives in South Africa, and pays R2500.00 (if we draw it here, after exchange and commission we get about £100) into a South African account. When we're REALLY tight we pull this money as needed. He's been very erratic about paying and since we moved here in June 2007 (DS and I), he has missed 13 payments. Thank goodness we aren't living there because I'd be completely lost with DS (considering the cost of living and the fact that school fees are about R2000.00 a month there) He's asked if he can cut his payments by half. Which means I need to fork out again to see a South African lawyer in London to try and work out what to do about contracts and enforcement.

Ive been on the lappy most of the morning now so I best wiggle my bum and get some work done....hope you're all having a wonderful one.

polkadot

So it’s been a week and as promised, I’m back for an update. Where to start? We got a letter back from Lloyds asking for a signature to authorise a SAR, or to nominate a branch to collect it from. As DH was not at home at the time I opted to nominate a branch and post it the same day when I went out for the shopping. Very embarrassed to say, I did not keep track of what was bought, but it totalled £45.00 and required a cab home. I did use my taxi card which resulted in a 45 minute wait for the cab to arrive, but only cost £1.50 as opposed to the £7 it would have cost to use a normal cab. And as there is a little playground next to the parking basement it wasn’t time wasted as I got a bit of one on one time with DS.
His birthday party went well, I did the packed lunches but forgot to take pictures. They were very well received, but there was WAY too much food and booze. DH went out in the morning and bought a 3 for £20.00, included a box of Smirnoff ice, fosters and John Smiths. Only half the box of Fosters was consumed so he has no need to buy anymore booze this month. And there’ll be a box of Smirnoff waiting for me once Ive delivered DS2. We’re still eating leftover meat and salad so that’s sorted us for food for a large chunk of the week. The house has suffered though, which leaves me feeling very disorganised-but it’ll come back together.
I got my DLA and CHB today, which meant it was “books” day. Discovered I needed to put £220.00 in DH’s account to bring it back in line to cover his direct debits and work lunches for the month. Then I paid £30.00 into my Classic Confidence account-leaving a balance of £22.00 left to pay. I also paid £30.00 into the Studio account-leaving a balance of £120.00 there. I transferred £70 to the grocery debit card and left £90 in the accounts card. So next week I’ll need to transfer £60.00 to the accounts and that will cover me for direct debits, the rest can be left in the grocery account and the same thing the following fortnight. Id like to try and build up a balance in the grocery account of £300.00 and in the accounts card £150.00, I figured it would work out over two or three months and the cash flow should be on track.
The big one...my SOA is wrong. I decided today to put it into excel and add it as I page in my “moneysaving budget tracker” (I use one designed by Eagerlearner, but Ive added loads of pages that meet my needs), and noticed what I think could be a HUGE error. I included DH’s expense payment of £128.00 as income, but called his travel expenses £44.10£144.10. The result is that we only have £71.18 to contribute to snowball payments, instead of £171.18. This is why I’ve left the £21 on Classic confidence now. I’ll have to redo the snowball calculator now, but DH suggested just now that I wait a week or so as his employment is about to change. He is about to be Tupe’d from his current employer to a company client. As he’s not had an increase or a bonus for the last three years, it’s been implied that he might see an income increase after the tupe is complete-as the new employer will then be at liberty to offer him different perks. The thing with this is I assume if we do get an increase, we’ll face a decrease in LHA and CTC. So I think I’ll just continue finding my way up for the next week or so, until we see the new contract. We have been told that we will be getting BUPA and that we will all be covered-but again we don’t know how that will be paid for yet. I’m struggling between excited about the change and looking forward to it (this company is also way more family friendly than his current employer) and being really worried that we may be financially worse off. instead of
So wish me luck...and hopefully I’ll be able to update my SOA within the next fortnight.