Soa

edited 30 November -1 at 1:00AM in Debt-Free Wannabe
6 replies 952 views
bextasbextas Forumite
77 Posts
edited 30 November -1 at 1:00AM in Debt-Free Wannabe
Hi Guys,
Just after some advice. Please see my SOA below:
[tt]Statement of Affairs and Personal Balance Sheet
Household Information

Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 1
Monthly Income Details

Monthly income after tax................ 1310
Partners monthly income after tax....... 1135
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2445

Monthly Expense Details

Mortgage................................ 0
Secured/HP loan repayments.............. 100
Rent.................................... 650
Management charge (leasehold property).. 0
Council tax............................. 200
Electricity............................. 25
Gas..................................... 0
Oil..................................... 0
Water rates............................. 50
Telephone (land line)................... 0
Mobile phone............................ 70
TV Licence.............................. 15
Satellite/Cable TV...................... 80
Internet Services....................... 0
Groceries etc. ......................... 40
Clothing................................ 0
Petrol/diesel........................... 150
Road tax................................ 0
Car Insurance........................... 35
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 40
Childcare/nursery....................... 0
Other child related expenses............ 150
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1615


Assets

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


Secured & HP Debts

Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 1800.....(100)......0
Total secured & HP debts...... 1800......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Unsecured total debt...........20000.....0.........0
Total unsecured debts..........20000.....0.........-


Monthly Budget Summary

Total monthly income.................... 2,445
Expenses (including HP & secured debts). 1,615
Available for debt repayments........... 830
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 830

Personal Balance Sheet Summary
Total assets (things you own)........... 1,500
Total HP & Secured debt................. -1,800
Total Unsecured debt.................... -20,000
Net Assets.............................. -20,300

[/tt]

Currently I don't put any money aside for anthing and am not paying back any of my debt. My council tax is high because i am paying off debt with them and my satelitte is high as it includes internet and phone and is our only luxury. My partner is paid weekly but that just seems to disappear or is used for an urgent bill. I have around £20k in unsecured debt and we want to start a family at the end of this year but I would like to have savings set aside (around £5-7K). Any advice would be great. Currently I use my monthly wage to pay the rent, child maintenance and council tax. I have 2 bank accounts set up with savings attached but I find it hard to budget my partners money which we get every thursday?
Thanks for listening and any advice.
Bex

Replies

  • [Deleted User][Deleted User] Forumite
    0 Posts
    MoneySaving Newbie
    Statement of Affairs and Personal Balance Sheet

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

    Monthly Income Details
    Monthly income after tax................ 1310
    Partners monthly income after tax....... 1135
    Total monthly income.................... 2445

    Monthly Expense Details
    Secured/HP loan repayments.............. 100
    Rent.................................... 650 (Is this competative for the area that you live?)
    Council tax............................. 200 (How long will this last? When will your arrears be cleared? And what will this revert to?)
    Electricity............................. 25 (seems low if no gas?)
    Water rates............................. 50 (Seems high for two adults)
    Mobile phone............................ 70 (Very high, especially as you have a home phone - if stuck in contracts drop a tariff or two if possible, if/when out of contract look at SIM only deals, or go PAYG)
    TV Licence.............................. 15 (12.37)
    Satellite/Cable TV...................... 80 (Very high, drop down to the basic package if in contract if out of contract, cancel and go freeview - you can get various deals with various companies for home phone and internet for £20/month - saving you £60)
    Groceries etc. ......................... 40 (Very low for 2 adults - is this acurate?)
    Clothing................................ 0 Maybe need a little here
    Petrol/diesel........................... 150
    Road tax................................ 0 Need something here
    Car Insurance........................... 35
    Car maintenance (including MOT)......... 0 probably need something here too
    Other travel............................ 40 What does this cover, look at weekly,monthly or season tickets for bus/train if you use it often enough
    Other child related expenses............ 150
    Contents insurance...................... 10
    Presents (birthday, christmas etc)...... 0 Nothing?
    Haircuts................................ 0 Never?
    Entertainment........................... 0 Nothing?
    Total monthly expenses.................. 1615

    Assets
    Car(s).................................. 1500
    Total Assets............................ 1500

    Secured & HP Debts
    Description....................Debt......Monthly...APR
    Hire Purchase (HP) debt ...... 1800.....(100)......0 Need to find out the APR - and also what the minimum payment should be
    Total secured & HP debts...... 1800......-.........-

    Unsecured Debts
    Description....................Debt......Monthly...APR Need to find the APR - and also what the minimum payment should be
    Unsecured total debt...........20000.....0.........0
    Total unsecured debts..........20000.....0.........-

    Monthly Budget Summary
    Total monthly income.................... 2,445
    Expenses (including HP & secured debts). 1,615
    Available for debt repayments........... 830
    Monthly UNsecured debt repayments....... 0
    Amount left after debt repayments....... 830 (Do you actually have this at the end of every month? If so pay the minimum towards all debts and overpay towards the debt that's costing you the most. If you don't have this, then keep a spending diary and see where it all goes noting down all your spends from bars of chocolate to magazines, and rent and direct debits,

    Personal Balance Sheet Summary
    Total assets (things you own)........... 1,500
    Total HP & Secured debt................. -1,800
    Total Unsecured debt.................... -20,000
    Net Assets.............................. -20,300
    [/tt]

    Hi,

    I have made some comments above hopefully some of them will be of use to you. According to your SOA you should be able to easily make the minimum payments on your debts, so check that your SOA is acurate.

    If you are having difficulty budgeting with two wages coming in at various times throughout the month, then try working out a budget. Start by listing all that needs payed and the date that it's meant to be paid by, and a list of what you have coming in wages wise and when in the month, When you have got these together you will then be able to work out how to allocate the money coming in to the money going out. - If you are finding this difficult list both here and people will be able to help.

    HTH

    D9
  • TixyTixy Forumite
    31.5K Posts
    ✭✭✭✭✭
    Hi bextas

    You say currently you are not repaying anything towards your debts. In that case do you know where the £830 you should have surplus each month has been going?
    Do you have any savings? If you don't know where such a large amount is going then you need to start a spending diary to work out what you are spending it on.
    How long since you paid anything towards your creditors? how far are you behind with repayments?
    bextas wrote: »
    Hi Guys,
    Just after some advice. Please see my SOA below:
    [tt]Statement of Affairs and Personal Balance Sheet
    Household Information
    Number of adults in household........... 2
    Number of children in household.........
    Number of cars owned.................... 1
    Monthly Income Details
    Monthly income after tax................ 1310
    Partners monthly income after tax....... 1135
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 2445
    Monthly Expense Details
    Mortgage................................ 0
    Secured/HP loan repayments.............. 100
    Rent.................................... 650
    Management charge (leasehold property).. 0
    Council tax............................. 200 how much current & how much arrears? how soon are the arrears paid off?
    Electricity............................. 25 is all your heating elec? no gas or oil? is this all you pay for elec? are you up to date with payments?
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 50 does this include arrears?
    Telephone (land line)................... 0
    Mobile phone............................ 70 this is high, can you find cheaper deals or drop to lower tariffs if in contract
    TV Licence.............................. 15
    Satellite/Cable TV...................... 80 you should be able to get internet, phone & sky for less than £50, or better still use freeview and get phone & internet for around £25.
    Internet Services....................... 0
    Groceries etc. ......................... 40 this doesn't look right for a monthly figure? I would have expected this to be around £160-£200 for a month for 2 people.
    Clothing................................ 0 need to start budgeting a small amount here.
    Petrol/diesel........................... 150
    Road tax................................ 0 need to budget 1/12 of the annual cost here
    Car Insurance........................... 35
    Car maintenance (including MOT)......... 0 need to start budgeting for this and put in a seperate account ready for when the service or MOT is due or new tyres needed etc.
    Car parking............................. 0
    Other travel............................ 40
    Childcare/nursery....................... 0
    Other child related expenses............ 150 what is this? is it maintenance?
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 10
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0 budget 1/12 of the cost here
    Haircuts................................ 0 budget for this
    Entertainment........................... 0 and a little something for this.
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 1615

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

    Secured & HP Debts
    Description....................Debt......Monthly...APR
    Mortgage...................... 0........(0)........0
    Hire Purchase (HP) debt ...... 1800.....(100)......0
    Total secured & HP debts...... 1800......-.........-
    Unsecured Debts
    Description....................Debt......Monthly...APR
    Unsecured total debt...........20000.....0.........0
    Total unsecured debts..........20000.....0.........-

    Monthly Budget Summary
    Total monthly income.................... 2,445
    Expenses (including HP & secured debts). 1,615
    Available for debt repayments........... 830
    Monthly UNsecured debt repayments....... 0
    Amount left after debt repayments....... 830
    Personal Balance Sheet Summary
    Total assets (things you own)........... 1,500
    Total HP & Secured debt................. -1,800
    Total Unsecured debt.................... -20,000
    Net Assets.............................. -20,300
    [/tt]

    Currently I don't put any money aside for anthing and am not paying back any of my debt. My council tax is high because i am paying off debt with them and my satelitte is high as it includes internet and phone and is our only luxury. My partner is paid weekly but that just seems to disappear or is used for an urgent bill. I have around £20k in unsecured debt and we want to start a family at the end of this year but I would like to have savings set aside (around £5-7K). Any advice would be great. Currently I use my monthly wage to pay the rent, child maintenance and council tax. I have 2 bank accounts set up with savings attached but I find it hard to budget my partners money which we get every thursday?
    Thanks for listening and any advice.
    Bex

    Is that grocery figure an error? it looks very low.
    You really need to start budgeting for all the costs you are likely to incur over a year to have a true idea of your finances. Ideally you then save that money in a seperate account so you don't get hit with a large bill to pay with nothing saved for it.
    Once you have put these into your SoA I would think your surplus would probably be halved or so. Then you should be able to use that money to start paying towards your debts.

    What do your current minimum payments come to on your debts? or have they been sold on to debt collectors now?
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • barbarawrightbarbarawright Forumite
    1.8K Posts
    Part of the Furniture 1,000 Posts Combo Breaker
    ✭✭✭
    You really pay twice as much for cable tv as you do for food? :eek:
  • joolsyboolsjoolsybools Forumite
    1.6K Posts
    ✭✭✭
    bextas wrote: »
    Hi Guys,
    Just after some advice. Please see my SOA below:
    [tt]Statement of Affairs and Personal Balance Sheet
    Household Information
    Number of adults in household........... 2
    Number of children in household.........
    Number of cars owned.................... 1
    Monthly Income Details
    Monthly income after tax................ 1310
    Partners monthly income after tax....... 1135
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 2445
    Monthly Expense Details
    Mortgage................................ 0
    Secured/HP loan repayments.............. 100
    Rent.................................... 650
    Management charge (leasehold property).. 0
    Council tax............................. 200
    Electricity............................. 25
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 50
    Telephone (land line)................... 0
    Mobile phone............................ 70 look into a cheaper deal(s), virgin are doing some cheap rolling contracts for more like 10 to 15 a month
    TV Licence.............................. 15
    Satellite/Cable TV...................... 80 think about cutting out satelite TV
    Internet Services....................... 0
    Groceries etc. ......................... 40 this is very low, are you sure?
    Clothing................................ 0
    Petrol/diesel........................... 150
    Road tax................................ 0
    Car Insurance........................... 35
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 40 is this bus fare? could it be cycled/walked instead?
    Childcare/nursery....................... 0
    Other child related expenses............ 150 is this your child maintenance?
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 10
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 0
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 1615

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

    Secured & HP Debts
    Description....................Debt......Monthly...APR
    Mortgage...................... 0........(0)........0
    Hire Purchase (HP) debt ...... 1800.....(100)......0
    Total secured & HP debts...... 1800......-.........-
    Unsecured Debts
    Description....................Debt......Monthly...APR
    Unsecured total debt...........20000.....0.........0
    Total unsecured debts..........20000.....0.........-

    Monthly Budget Summary
    Total monthly income.................... 2,445
    Expenses (including HP & secured debts). 1,615
    Available for debt repayments........... 830
    Monthly UNsecured debt repayments....... 0
    Amount left after debt repayments....... 830
    Personal Balance Sheet Summary
    Total assets (things you own)........... 1,500
    Total HP & Secured debt................. -1,800
    Total Unsecured debt.................... -20,000
    Net Assets.............................. -20,300
    [/tt]

    Currently I don't put any money aside for anthing and am not paying back any of my debt. My council tax is high because i am paying off debt with them and my satelitte is high as it includes internet and phone and is our only luxury. My partner is paid weekly but that just seems to disappear or is used for an urgent bill. I have around £20k in unsecured debt and we want to start a family at the end of this year but I would like to have savings set aside (around £5-7K). Any advice would be great. Currently I use my monthly wage to pay the rent, child maintenance and council tax. I have 2 bank accounts set up with savings attached but I find it hard to budget my partners money which we get every thursday?
    Thanks for listening and any advice.
    Bex

    Well done for posting. I have put some comments above whih I hope will help. Maybe you should start a spending diary to understand what is happening to the leftover cash once all the bills/rent are paid? Theoretically you should have quite a lot left over but you don't seem to? The priority has to be to get your debts sorted then think about savings. Is the 20k all on one credit card or loan? I would also have a careful think about starting a family so soon. As I'm sure you know, children are expensive and perhaps your priority for the next year or so should be resolving the debt issue?
  • bextasbextas Forumite
    77 Posts
    Thanks for all your help. The grocery figure is wrong that is for a week so around £160 a month. My partner and I were living off my wage of £650 a month and paying £500 in rent so got into debt and ever since have been playing catch up. All my debts have now been sold to debt recovery agencies and I've not paid any of them for a very long time I am ashamed to say. I can see what you are saying about the satelitte tv but we don't go out hardly ever so this is our one luxury - we are in contract until may and I know can reduce this by at least £20 - also my mobile is due for renewal in may so i can reduce my tarrif on this. We only have electric at home hence the low cost and we owe for last year on our water hence the high cost.
    Thanks again
    Bex
  • TixyTixy Forumite
    31.5K Posts
    ✭✭✭✭✭
    Change the grocery cost and then try to work out a monthly cost for all the other items that are not included so far.
    Then you'll know how much you have to offer your creditors each month. You should still have a few hundred spare a month to pay towards your creditors.

    Then as your debts are with debt collection agencies you need to write to them and offer them a monthly repayment. You should work this out pro-rata based on the amount you owe. So if your SoA says you have £500 a month and you owe £20k in total, then say you owe 1 creditor £6k, you would offer them £500/£20000 x £6000 = £150 a month.

    If you don't feel confident it contacting all your creditors and making payments to them all each month you could consider contacting one of the debt charities to see if they will run a DMP on your behalf. In this way you would just make a monthly payment to the charity who would then pay your creditors for you.

    It is essential that your budget is realistic though as once you have made your monthly offers you will need to ensure you have the money available each month and stick to the repayments.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
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