SOA - advice please

angiepooos

Even assuming I keep my job (it's at risk but it's the 1750 not the 3450 salary) can we really sustain this level of debt or should I try and get a debt management plan? Any tips welcome.



We don't really go out and the gym is for our health and we use it regularly, but I've lost perspective. Can anybody advise?



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

Monthly Income Details
Monthly income after tax................ 1750
Partners monthly income after tax....... 3450
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 5200

Monthly Expense Details
Mortgage................................ 1200
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property) 0
Council tax............................. 175
Electricity............................. 100
Gas..................................... 120
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 0
Mobile phone............................ 0
TV Licence.............................. 0
Satellite/Cable TV...................... 85
Internet Services....................... 0
Groceries etc. ......................... 600
Clothing................................ 50
Petrol/diesel........................... 200
Road tax................................ 20
Car Insurance........................... 75
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 28
Pet insurance/vet bills................. 40
Buildings insurance..................... 0
Contents insurance...................... 40
Life assurance ......................... 36
Other insurance......................... 0
Presents (birthday, christmas etc)...... 100
Haircuts................................ 10
Entertainment........................... 150
Holiday................................. 50
Emergency fund.......................... 50
Total monthly expenses.................. 3219


Assets
Cash.................................... 0
House value (Gross)..................... 210000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 215000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 165000...(1200).....0
Total secured & HP debts...... 165000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
halifax loan...................5700......315.......0
capital 1......................960.......50........23.6
barclaycard....................5500......180.......24
loan unsecured.................11200.....223.......0
american express...............970.......45........5
halifax card...................8091......200.......NaN
M&S card.......................7810......220.......23.9
egg............................7500......220.......26.9
bank of scotland...............1750......80........24
mastercard.....................5000......140.......26
Total unsecured debts..........54481.....1673......-


Monthly Budget Summary
Total monthly income.................... 5,200
Expenses (including HP & secured debts). 3,219
Available for debt repayments........... 1,981
Monthly UNsecured debt repayments....... 1,673
Amount left after debt repayments....... 308

Personal Balance Sheet Summary
Total assets (things you own)........... 215,000
Total HP & Secured debt................. -165,000
Total Unsecured debt.................... -54,481
Net Assets.............................. -4,481

Keeping_Positive

angiepooos wrote: »

Even assuming I keep my job (it's at risk but it's the 1750 not the 3450 salary) can we really sustain this level of debt or should I try and get a debt management plan? Any tips welcome.



We don't really go out and the gym is for our health and we use it regularly, but I've lost perspective. Can anybody advise?



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

Monthly Income Details
Monthly income after tax................ 1750
Partners monthly income after tax....... 3450
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 5200

Monthly Expense Details
Mortgage................................ 1200
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property) 0
Council tax............................. 175
Electricity............................. 100can you look around to cut this and gas maybe switch, check you are paying to actual not estimate readings
Gas..................................... 120 as above
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 0
Mobile phone............................ 0 no mobile costs?
TV Licence.............................. 0 should be 12.50 ish
Satellite/Cable TV...................... 85 does this include the telephone and internet?
Internet Services....................... 0
Groceries etc. ......................... 600 too high £400 should be fairly easy
Clothing................................ 50 cut out for now also use freegle/charity shops for essentials
Petrol/diesel........................... 200
Road tax................................ 20
Car Insurance........................... 75
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 28 if anyone pays more than 10 a month for persciption costs get an annual prepay card
Pet insurance/vet bills................. 40
Buildings insurance..................... 0
Contents insurance...................... 40 have you shopped around?
Life assurance ......................... 36
Other insurance......................... 0
Presents (birthday, christmas etc)...... 100 cut to basics ie you child only
Haircuts................................ 10
Entertainment........................... 150
Holiday................................. 50 might need to go on hold if not alrady booked
Emergency fund.......................... 50 are you actualy saving this or is it a would like to have?
Total monthly expenses.................. 3219


Assets
Cash.................................... 0
House value (Gross)..................... 210000
Shares and bonds........................ 0
Car(s).................................. 5000 can you downgrade or lose a car if job has gone?
Other assets............................ 0
Total Assets............................ 215000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 165000...(1200).....0
Total secured & HP debts...... 165000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
halifax loan...................5700......315.......0
capital 1......................960.......50........23.6
barclaycard....................5500......180.......24
loan unsecured.................11200.....223.......0
american express...............970.......45........5
halifax card...................8091......200.......NaN
M&S card.......................7810......220.......23.9
egg............................7500......220.......26.9
bank of scotland...............1750......80........24
mastercard.....................5000......140.......26
Total unsecured debts..........54481.....1673......- Very high APRS look to move to better deals. Use the whats the cost snowball calcultor to see how long this will take to clear and see how much interest you are paying.


Monthly Budget Summary
Total monthly income.................... 5,200
Expenses (including HP & secured debts). 3,219
Available for debt repayments........... 1,981
Monthly UNsecured debt repayments....... 1,673
Amount left after debt repayments....... 308 is this actually left? try a spending diary it is a real eye opener

Personal Balance Sheet Summary
Total assets (things you own)........... 215,000
Total HP & Secured debt................. -165,000
Total Unsecured debt.................... -54,481
Net Assets.............................. -4,481

Hi

Comments a bit blunt but not meant that way. If you think you have cash available at month end try putting it into an ISA at the start of the month and see if you can live with whats left. I also think some shopping around will help save some cash.This site is great for that.

Good luck

Pennysmakepounds

Hi,

Sorry to sound insensitive but - to be perfectly honestly with you. I'm actually pretty amazed that, with an income of OVER 5K a month you have managed to build up so much debt.

Where did this debt come from. Was it just 'Splashing out' ??

poppy10_2

Pennysmakepounds wrote: »

Sorry to sound insensitive but - to be perfectly honestly with you. I'm actually pretty amazed that, with an income of OVER 5K a month you have managed to build up so much debt.

That's not very helpful.

OP - your figures show a surplus of over £300 a month, even after all your debt repayments. I suspect your spending figures aren't quite right - you've not budgeted anything for TV license, mobile or landline. Try keeping a spending diary so you can see where the money is going, then it will be easier to figure out where you can make cuts. For a start, the expensive satellite/cable TV subscription will need to go, and you need to make some serious cuts to that hefty grocery bill

NeverAgain_2

...that's not very helpful...

Opinions differ, but I think an idea of where the debt came from is an important piece of information when assessing someone's budget.

This is particularly so when the debt is a lot and the OP intends to pay it off.

It may also help the OP see why she's 'lost perspective'.

That remark is encouraging, because it shows the OP is realistic and has identified part of the problem.

Which as we all know is the biggest step to dealing with it.

Going back to the budget, as others have said, the big saving opportunity must be the grocery bill.

Sorry, angiepoos, it's Aldi not Waitrose for you from now on.

You can always turn the carrier bags inside out to stop the neighbours seeing.

Pennysmakepounds

Sorry didn’t mean anything nasty,

Was just trying to understand if there was a underlying spending issue which was masked by the high income and is now coming to light.

angiepooos

Our debt is shameful and we are ashamed.

We were doing well with the cards but this house took all our savings and profit from our last house for a deposit a year ago and needed a lot of work, etc. I made the curtains and bought second hand, but there were unforseen problems that were only apparent when we started getting work done. We should have bought a more modern house, but once we'd bought it we were committed. And we love it very much.

I do have a £60 mobile phone bill, and can drop the insurance now but the contract runs for another year. The loans are due to expire in around 2 years but there seems no end to the credit cards.

We don't pay for prescriptions in Wales, but my husband's denplan costs £29.00 per month.

By meaning I've lose perspective, I mean that I am working to lose weight , reduce my blood pressure and get healthier (I have been doing well) and the gym membership seems like something that is a good investment. But maybe it's got to go, I mean't I just can't see whether that's obvious or not.

The landline is in a package with NTL.

I do have a slight surplus every month, because I spend more than the budget shows. The budget is what I could survive on. I could sell my car and then pay that 4K off the highest interest card, then add that extra £300 on to my minimum payments and pay it off then go to the next.

Grocery bill could be cut, that's true. I will have to shop differently. Trouble is my 20 year old and her boyfriend eat here all the time. I guess it's time to tell them to buy their own food!

angiepooos

We also drink a bottle of wine ever night, which was supposed to go when we joined the gym. But money worries mean it's the only way I can sleep. It has to stop though right?

DebtfreeBY40_2

I get the impression that there are a lot of guestimates on your figures? Sorry if I'm wrong. I think you would benefit from a spending diary for a month to really drill down into the figures.
We have a similar income and at one point had a similar amount of debt. The debt started with studen loans for me which then developed into debt to stay afloat when we first got married and were on low incomes. Now that we have a comfortable income we are in a position to focus on paying the debt off. Back then I had no idea what I was spending because I didn't want to know! Now I know to within a penny and I like my life a lot more! I still don't like the debt but we'll get there.
Its all achievable and you're in the right place to get it sorted. Well done x

DebtfreeBY40_2

angiepooos wrote: »

We also drink a bottle of wine ever night, which was supposed to go when we joined the gym. But money worries mean it's the only way I can sleep. It has to stop though right?

Yep know that feeling too, its a vicious circle! I'm back on the wine at the moment and its always easy to have it rather than not but actually it does tend to make things more difficult. Because it means you don't sleep properly you're resilience during the day is affected which means you struggle to deal with things that normally you would take in your stride. I so wish I could find the strength!

secretshopper75

Angie, it's so easy isn't it to end up in debt, at least you're facing up to it and trying to sort things out...what about doing a good shop once a month at Waitrose for the things you really love, then shopping locally weekly for bread/milk/veg etc...

Good luck