SOA - Please Advise

lita

Hi, please can you look at my SOA and see if there is anything we can do?

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 72.22
Partners monthly income after tax....... 1244.92
Benefits................................ 265.85
Other income............................ 0
Total monthly income.................... 1582.99

Monthly Expense Details
Mortgage................................ 288
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 108
Electricity............................. 36
Gas..................................... 34
Oil..................................... 0
Water rates............................. 28.79
Telephone (land line)................... 17.5
Mobile phone............................ 52
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 25
Groceries etc. ......................... 100
Clothing................................ 0
Petrol/diesel........................... 80
Road tax................................ 35
Car Insurance........................... 53
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 35
Medical (prescriptions, dentist etc).... 3.6
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 44.53
Life assurance ......................... 31.83
Other insurance......................... 24.97
Presents (birthday, christmas etc)...... 20
Haircuts................................ 5
Entertainment........................... 0
Holiday................................. 10
Emergency fund.......................... 0
Endowment............................... 66.68
Bank Account charge .................... 25
CSA..................................... 143.61
Total monthly expenses.................. 1289.63


Assets
Cash.................................... 0
House value (Gross)..................... 122000
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 123500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 84000....(288)......0
Total secured & HP debts...... 84000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
My CC..........................3600......70........13.9
OH CC..........................10000.....210.......0
OH CC..........................2000......66........0
OH o/draft.....................2000......9.........0
My o/draft.....................1000......12........0
Total unsecured debts..........18600.....367.......-


Monthly Budget Summary
Total monthly income.................... 1,582.99
Expenses (including HP & secured debts). 1,289.63
Available for debt repayments........... 293.36
Monthly UNsecured debt repayments....... 367
Amount short for making debt repayments. -73.64

Personal Balance Sheet Summary
Total assets (things you own)........... 123,500
Total HP & Secured debt................. -84,000
Total Unsecured debt.................... -18,600
Net Assets.............................. 20,900

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

dbushes

Hi Lita,

Congratulations on posting your SOA on line.

I did mine the other day and am currently working on updating it as I was given some really good advice.

I am not in a position to give any advice but wanted to say good luck and there are some amazing people on MSE who will give you some hard but very very good advice.

Good luck and I'll watch out for you.

Bx

katsu

lita wrote: »

Hi, please can you look at my SOA and see if there is anything we can do?

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 72.22 can you increase this?
Partners monthly income after tax....... 1244.92
Benefits................................ 265.85
Other income............................ 0
Total monthly income.................... 1582.99

Monthly Expense Details
Mortgage................................ 288
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 108
Electricity............................. 36 check you are on the cheapest tarrif by using a comparison site. Cut your usage. Everything off at the wall, energy saving bulbs, heat water to 60 only,don't heat water by the immersion, no lights on in empty rooms etc.
Gas..................................... 34 as elec
Oil..................................... 0
Water rates............................. 28.79
Telephone (land line)................... 17.5
Mobile phone............................ 52try and reduce usage
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 25 assume this includes TV or something as it is excessive for internet.
Groceries etc. ......................... 100 good.
Clothing................................ 0
Petrol/diesel........................... 80 cut out unnecessary trips.
Road tax................................ 35
Car Insurance........................... 53 seems a bit steep. check comparison sites at renewal time.
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 35 what is this? can you cut it out/reduce it?
Medical (prescriptions, dentist etc).... 3.6
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 44.53 seems too much - check carefully what you are insuring, understand the benefits of the new for old and accidental damage, decide what you need and use a comparison site at renewal time.
Life assurance ......................... 31.83 check this is best price and necessary (i.e. that partner is not covered already through work insurance/pension scheme)
Other insurance......................... 24.97 what is this?
Presents (birthday, christmas etc)...... 20 for how many people? I can do 23 people for Christmas less than this.
Haircuts................................ 5
Entertainment........................... 0
Holiday................................. 10
Emergency fund.......................... 0
Endowment............................... 66.68
Bank Account charge .................... 25 do you need this? Seems overpriced.
CSA..................................... 143.61
Total monthly expenses.................. 1289.63


Assets
Cash.................................... 0
House value (Gross)..................... 122000
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 123500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 84000....(288)......0
Total secured & HP debts...... 84000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
My CC..........................3600......70........13.9
OH CC..........................10000.....210.......0
OH CC..........................2000......66........0
OH o/draft.....................2000......9.........0
My o/draft.....................1000......12........0
Total unsecured debts..........18600.....367.......-


Monthly Budget Summary
Total monthly income.................... 1,582.99
Expenses (including HP & secured debts). 1,289.63
Available for debt repayments........... 293.36
Monthly UNsecured debt repayments....... 367
Amount short for making debt repayments. -73.64

Personal Balance Sheet Summary
Total assets (things you own)........... 123,500
Total HP & Secured debt................. -84,000
Total Unsecured debt.................... -18,600
Net Assets.............................. 20,900

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

Try some of the above comments. HTH.

lita

katsu wrote: »

Try some of the above comments. HTH.

Hi, Thank you for your comments Have added some comments by your comments so if you wouldn't mind having another look for me please? I don't mind criticism, I just need help now:rotfl:

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 72.22 can you increase this? At the moment - no. Am not able to get childcare so have started doing Avon to bring in a bit extra.
Partners monthly income after tax....... 1244.92
Benefits................................ 265.85
Other income............................ 0
Total monthly income.................... 1582.99

Monthly Expense Details
Mortgage................................ 288
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 108
Electricity............................. 36 check you are on the cheapest tarrif by using a comparison site. Cut your usage. Everything off at the wall, energy saving bulbs, heat water to 60 only,don't heat water by the immersion, no lights on in empty rooms etc. This has only just been changed.
Gas..................................... 34 as elec
Oil..................................... 0
Water rates............................. 28.79
Telephone (land line)................... 17.5
Mobile phone............................ 52try and reduce usage This is for 2 phones both of which are stuck in contracts.
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 25 assume this includes TV or something as it is excessive for internet. It is only for internet:eek: My partner is in charge of this and isn't one for listening to my advice
Groceries etc. ......................... 100 good.
Clothing................................ 0
Petrol/diesel........................... 80 cut out unnecessary trips. This is for 2 vehicles. Only journies are to and from work, food shopping and visiting family really.
Road tax................................ 35
Car Insurance........................... 53 seems a bit steep. check comparison sites at renewal time. This is for 2 vehicles.
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 35 what is this? can you cut it out/reduce it? Nappies and baby formula
Medical (prescriptions, dentist etc).... 3.6
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 44.53 seems too much - check carefully what you are insuring, understand the benefits of the new for old and accidental damage, decide what you need and use a comparison site at renewal time. How can I check this information? OH is in charge of this so I have no idea what it's for.
Life assurance ......................... 31.83 check this is best price and necessary (i.e. that partner is not covered already through work insurance/pension scheme)This is my life insurance for the mortgage and a female cancer insurance that if I cancel will lose all money paid in already.
Other insurance......................... 24.97 what is this? OH pays this but yet can't remember what it is:cool:
Presents (birthday, christmas etc)...... 20 for how many people? I can do 23 people for Christmas less than this.3 kids minimum this year. Birthdays and christmas.
Haircuts................................ 5
Entertainment........................... 0
Holiday................................. 10
Emergency fund.......................... 0
Endowment............................... 66.68
Bank Account charge .................... 25 do you need this? Seems overpriced. Once again, this is OH's and he won't cancel it. He receives phone insurance, travel insurance, AA recovery and a few other things for this.
CSA..................................... 143.61
Total monthly expenses.................. 1289.63


Assets
Cash.................................... 0
House value (Gross)..................... 122000
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 123500


Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 84000....(288)......0
Total secured & HP debts...... 84000.....-.........-

Unsecured Debts
Description....................Debt......Monthly.. .APR
My CC..........................3600......70........13 .9
OH CC..........................10000.....210.......0
OH CC..........................2000......66........0
OH o/draft.....................2000......9.........0
My o/draft.....................1000......12........0
Total unsecured debts..........18600.....367.......-


Monthly Budget Summary
Total monthly income.................... 1,582.99
Expenses (including HP & secured debts). 1,289.63
Available for debt repayments........... 293.36
Monthly UNsecured debt repayments....... 367
Amount short for making debt repayments. -73.64

Personal Balance Sheet Summary
Total assets (things you own)........... 123,500
Total HP & Secured debt................. -84,000
Total Unsecured debt.................... -18,600
Net Assets.............................. 20,900

Hannah_10

I think having seen your SOA and your comments you need to drag OH into this thread for a read. If what I'm about to say sounds critical please understand it wasn't meant to be, but there are some things there is no other way to say than just to say them...

You need to find another £73.64p a month to keep your heads above water and unless you cut something somewhere or double your Avon round this just isn't going to happen. It's a slim margin to have to find and I can see £64.97 right there comprised of OH not listening, never mind anything more complex than that!

£73.64 is the difference between staying afloat or sinking into a life where Debt Collection Agencies hound you night and day until you're petrified to open the post and you unplug the phone at the wall to stop the harrassment. If that realisation doesn't shake him then perhaps you ought to manually give the man a shake because all of these home comforts there's no compromising on wont be very comforting if it starts falling down round your ears. For the sake of £73.64 a month don't let it. You may feel your DFW lightbulb is warming up, but has he even plugged his in yet? You're above your means by such a small amount, by far and away your best option is to rein yourselves in and get those expenses down, by at least £74, but ideally £100-£200 (plenty of potential for that). However you get out of debt, your lifestyle and means will need to be addressed, don;t leave it so long a creditor starts calling for bankruptcy!

There are two other potential options. Debt Management Plan or IVA. There's a downloadable guide about IVA's just above your opening post. A DMP is where you use your SOA to work out what you can afford to repay (£367 by the current SOA) and then repay it on a pro-rata basis (ie if your creditor is owed 12.7% of the total debt they get 12.7% of the total repayment). This sounds great but it has down sides (although not as huge a set of downsides as an IVA). Perhaps not all of your creditors will accept your DMP, you might not be able to get the interest stopped, your credit rating might notch up defaults meaning you wont be able to get another card let alone a 0% one and the DCA's might get involved- with them comes much bother.

Your resistance to compromise the lifestyle you know (and OH's greater resistance) is understandable, however the penny needs to drop that the best way to preserve thier lifestyle is to come over all frugalista starting right this month and find a margin in the budget to snowball with.

Snowballing means paying minimums on all but the highest interest debt and then overpaying that until you clear it. Then you take all the available money from that too and snowball it again onto the next one and so on until you clear it.

There's so fine a line here I urge you to reconsider what truly represents compromise.

HappyMJ

Hannah_10 wrote: »

There's so fine a line here I urge you to reconsider what truly represents compromise.

Wow serious words in your post... If only you could see and coment on my SOA. You'd die of shock. All I was thinking is that it doesn't look that bad. Save a few pounds here and a few pounds there. Up the income by £100 per month and all will be fine. You've made it sound like the end of the world.

I can't see £64.97 of savings. They are on an unlimited internet package for £25. They probably use it probably not. Install a metering program on the P.C and see how much is actually used. I tried downgrading BTBB to Option 2 but went over (by a lot) so had to go back to BTBB Option 3. Although it's £25 it makes savings on other parts of the BT bill.

The bank account fee includes insurance which sounds important to him. If I had an expensive phone I would like to have it insured. AA insurance can be purchased separately and with cashback it's quite cheap. They only spend £10 per month on holidays so the travel insurance is pointless.

I would assume the Other Insurance would be Boiler/Central Heating cover including Annual safety checks which may or may not be required. Again it may be important to him. It can be acquired cheaper though.

My big suggestion is and you may not like it is "Why do you have to have 2 cars?" You don't work so do not need a car. Wait till OH gets home then do the shopping or do it on the weekend. Get rid of 1 and you easily save. If you aren't sure then SORN it when the insurance and tax runs out just for a few months and see if you can cope.

Hannah_10

If you think I'm in someway shocked or that it now sounds like the end of the world then I fear you have misread me. Looking at this SOA alone it would seem to me the best option would appear to be combining cutting back and snowballing. Second best option would be a DMP. Lastly an IVA might be possible but not great. If you look at the OP's replies though it's clearly very hard for her to consider compromising the current spending. The sad thing is that the line is so fine between the first best option (which would leave her credit rating and mortgage totally unscathed) and the second (which will dent her credit rating and she may find her home threatened and a heck of a lot of aggro).

If you feel I have been cruel or that I came accross as outraged or unsettled in any way then I assure you, you misread me. I write in what I believe to be her own best interests, as unpretty as that is. Those cuts she and her OH don't want to make are a lot less disturbing to the secure lifestyle her kids currently have than even the next best option- a DMP.

Phone insurance is a great thing, so is breakdown cover, so is life assurance... Are they worth a charging order being put on your home though? That's a decision she's going to have to make. Better to hear it from me now than to find it out when she's lost control of the situation and it's too late (which sadly happens to many people). You of course have the right to disagree and I respect that. I am just trying to help.

£25 internet + £25 bank charges + £24.97 unknown insurance = £74.97
£74.97 - £10 for a cheaper ISP = £64.97

HappyMJ

I see she wants to cut back but the OH doesn't. I still don't think it's that bad. The CC payments will still be made and the shortfall will be made up by spending on them again. I know this is the DFW board but I can't see a real way of getting these expenses significantly down with his co-operation. She said "he won't cancel it" on some of the items so it's a choice as you say but DMP is an option I wouldn't want to take.

What concerns me is that there is no allowance for Clothing or Entertainment. I don't believe for one minute that they spend £0 on those items. I'm imagining they sit in at home on the internet, watching freeview, going on a £120 annual holiday and visiting friends but not spending anything on doing so.

At the moment the child is a baby costing only £35 per month wearing hand me down free clothing. What about in 10 years time?

OP. You have £18,600 of unsecured debt now. Keep an eye on it. Make a note of it every week/month of all outstanding balances. Write it down remind the OH of it and make sure it goes in one direction. Balance transfer to 0% interest free offers when you can and get your income up. Even just daily clicks on the internet can make £5 per day takes about 2 hours but if you are at home and can't get out due to the baby then why not.

Hannah_10

If the credit cards continue to pick up by £75 a month (for the sake of a round number) then the debt will grow, debts don't grow indefinately, there will come a point no one will lend, what then? They'll still have to cut back to get thier spending within means only now they'll have to do it with a bigger debt burden and tarting for a new 0% rate will be out.

I couldn't agree more that a DMP is an option she shouldn't have to take, it's no easy ride setting one up and that is what I've attempted to highlight. Right now though living as she is doing, only a DMP or going deeper into debt appear possible.

We also both agree that the ideal resolution would be cutting back/upping income then snowballing her way out of debt; but to do this means she's will to have to change some of those items on the SOA she previously argued weren't changeable. If it's done on the income side, the expenditure side or both is immaterial; the important bit is the result- she needs to find a bare minimum of another £73.64 somehow and ideally a bit more too. I suggest £100 to £200 would not just service the debt but begin to reduce it.

Also your giving tips on reducing spend or upping income would again suggest to me you and I are very much on the same page with this. If you look at what you and I are writing it's really only the style that varies and not the substance, we're agreeing on all the key points.

iamana1ias

Why can't you work when your OH is home? Evening/weekend work would mean money coming in while dad looks after the kids. Just a few hours a week (5 at minimum wage) would balance the books.

Also question why 2 cars. Your petrol spend shows you barely use either, and the standing costs (insurance, tax) are unnecessary for such little use. It's probably the same with your Internet service.

And you could easily cut back on presents. Kids don't need hundreds spending on them, especially if it's getting you into debt.

Marisco

I agree totally with the analysis of the problems and solutions that Hannah put forward. Unfortunately, unless Lita gets oh on board, everything is doomed to failure!! It seems to be that it's things he is "in charge" of that need changing and cutting, and if he refuses then it's going to be an uphill battle if not impossible!!:( My ex was like that "my way or no way" and it's hard going! (We were not in debt, but his outlook was very "old fashioned" i.e wife at home, man go to work etc!!!) Maybe if she pointed out that if they go with a DMP, then that's the credit ratings shot for 6 years!!