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Ok, so what happens?? NOW WITH SOA

MrsTiner
MrsTiner Posts: 5 Forumite
edited 16 June 2011 pm30 2:57PM in Debt-free wannabe
I've just spoken to someone at the CCCS and basically we need to make some decisions. Which I knew already.
In my mind i'd like to sell our flat move to somewhere rented and deal with the debt. But what happens to that debt?
The person I spoke to said our budget is looked at and a more affordable figure is put forward. Sorry to sound a bit daft but what does that mean??
Has anyone done this??

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................ 604
Partners monthly income after tax....... 1500
Benefits................................ 120
Other income............................ 0
Total monthly income.................... 2224


Monthly Expense Details

Mortgage................................ 512.9
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 104
Electricity............................. 50
Gas..................................... 35
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 13
Mobile phone............................ 40
TV Licence.............................. 12
Satellite/Cable TV...................... 35
Internet Services....................... 5
Groceries etc. ......................... 200
Clothing................................ 50
Petrol/diesel........................... 100
Road tax................................ 10
Car Insurance........................... 37
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 256
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 14
Buildings insurance..................... 10
Contents insurance...................... 10
Life assurance ......................... 27
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 15
Entertainment........................... 60
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1660.9



Assets

Cash.................................... 0
House value (Gross)..................... 135000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 140000



Secured & HP Debts

Description....................Debt......Monthly...APR
Mortgage...................... 130000...(512.9)....4.78
Total secured & HP debts...... 130000....-.........-


Unsecured Debts
Description....................Debt......Monthly...APR
Tesco Loan.....................15648.....260.8.....10.98
Northern Rock Loan.............25989.5...132.8.....4.78
MIL............................8500......100.......0
Total unsecured debts..........50137.5...493.6.....-



Monthly Budget Summary

Total monthly income.................... 2,224
Expenses (including HP & secured debts). 1,660.9
Available for debt repayments........... 563.1
Monthly UNsecured debt repayments....... 493.6
Amount left after debt repayments....... 69.5


Personal Balance Sheet Summary
Total assets (things you own)........... 140,000
Total HP & Secured debt................. -130,000
Total Unsecured debt.................... -50,137.5
Net Assets.............................. -40,137.5


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

Comments

  • Basically CCCS will help you work out your living expenses (rent/mortgage, gas/electricty, council tax, food, petrol, clothing, water rates,etc). In most cases they will then recommend a Debt Management Plan; any remaining money you have left over each month will be split and allocated to your creditors. Each creditor is different but in most cases the creditors will accept your offer of reduced payments.

    For example my minimum payment for my MBNA card was £160 pounds each month, now with my Debt Management Plan (DMP) I'm giving them £70.

    You have to write letters to each of your creditors explaning that you're in financial difficulties and offering them the reduced amount. CCCS will help you with all of this.
  • EssexHebridean
    EssexHebridean Posts: 23,946 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    MrsTiner welcome to the boards!

    I'm slightly confused - on the face of it it appears that you have a surplus on your SOA after all your payments are taken into account? There is also wiggle-room within the SOA - for example your electric seems high in comparison to gas (I take it you have central heating running on gas, but maybe cook on electric?), your clothing budget could be cut in the short term as could entertainment....Are there debts that you've not included in there which leave you short?
    🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
    Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
    Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
    SOA CALCULATOR (for DFW newbies): SOA Calculator
    she/her
  • katsu
    katsu Posts: 4,994 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Mortgage-free Glee!
    Hi there.
    MrsTiner wrote: »
    I've just spoken to someone at the CCCS and basically we need to make some decisions. Which I knew already.
    In my mind i'd like to sell our flat move to somewhere rented and deal with the debt. But what happens to that debt?
    The person I spoke to said our budget is looked at and a more affordable figure is put forward. Sorry to sound a bit daft but what does that mean??
    Has anyone done this??

    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................ 604
    Partners monthly income after tax....... 1500
    Benefits................................ 120
    Other income............................ 0
    Total monthly income.................... 2224


    Monthly Expense Details

    Mortgage................................ 512.9
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 104
    Electricity............................. 50 this is really high. Are you in arrears? Check your tariff, are you on estimated bills etc?
    Gas..................................... 35
    Oil..................................... 0
    Water rates............................. 35
    Telephone (land line)................... 13
    Mobile phone............................ 40 you could cut this down
    TV Licence.............................. 12
    Satellite/Cable TV...................... 35 cancel and get a freeview box
    Internet Services....................... 5
    Groceries etc. ......................... 200
    Clothing................................ 50 this is high
    Petrol/diesel........................... 100
    Road tax................................ 10
    Car Insurance........................... 37 this looks very reasonable.
    Car maintenance (including MOT)......... 10 is this enough and are you saving it each month ready for the MOT?
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 256 can you get this through childcare vouchers at work?
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 14
    Buildings insurance..................... 10
    Contents insurance...................... 10
    Life assurance ......................... 27
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 20
    Haircuts................................ 15
    Entertainment........................... 60 what is this?
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 1660.9



    Assets

    Cash.................................... 0
    House value (Gross)..................... 135000
    Shares and bonds........................ 0
    Car(s).................................. 5000
    Other assets............................ 0
    Total Assets............................ 140000



    Secured & HP Debts

    Description....................Debt......Monthly...APR
    Mortgage...................... 130000...(512.9)....4.78
    Total secured & HP debts...... 130000....-.........-


    Unsecured Debts
    Description....................Debt......Monthly...APR
    Tesco Loan.....................15648.....260.8.....10.98
    Northern Rock Loan.............25989.5...132.8.....4.78
    MIL............................8500......100.......0
    Total unsecured debts..........50137.5...493.6.....-



    Monthly Budget Summary

    Total monthly income.................... 2,224
    Expenses (including HP & secured debts). 1,660.9
    Available for debt repayments........... 563.1
    Monthly UNsecured debt repayments....... 493.6
    Amount left after debt repayments....... 69.5


    Personal Balance Sheet Summary
    Total assets (things you own)........... 140,000
    Total HP & Secured debt................. -130,000
    Total Unsecured debt.................... -50,137.5
    Net Assets.............................. -40,137.5


    Created using the SOA calculator at
    Reproduced on Moneysavingexpert with permission, using Firefox browser.
    Well, you look like you can pay all your outgoings and minimum debt payments, and if you made some changes (plus the 69.50 left over) you could pay easily an extra £150 off your debts a month.

    If you don't feel you have the 69.50 a month left over then you need to review your bank statements etc and update your SOA.

    HTH and good luck.
    Debt at highest: £8k. Debt Free 31/12/2009. Original MFD May 2036, MF Dec 2018.
  • MrsTiner
    MrsTiner Posts: 5 Forumite
    edited 17 June 2011 pm30 6:04PM
    Thank you for your feedback.
    I think my soa is wrong if I'm honest.
    I've got to work through it. As for mobile phone this is for both mine and hubby's phone bill. I'm planning on seeing if I can get it cheaper when contract is up in august.
    Hubby would kill me if I cancelled sky and the freeview in Dorset has about 10 channels on it and seeing as I don't leave the house I guess I'm allowed something!!!:)
    I've never understood why our electric bill is so high, I've done comparisons and it comes out pretty much the same.
    I rarely buy clothes for myself so think that was an over estimate.
    Like I said need to spend time on soa!!

    Oh and my company doesn't do childcare vouchers. Is there a way I can convince them
    To???
  • EssexHebridean
    EssexHebridean Posts: 23,946 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    I think you need a spending diary!

    Re the electricity - go round the house - yes, now. Go into each room and list EVERYTHING that is using electric. The work out which of those things *need* to be on - ie, if you've leaving the room after doing the list, the light can go off - TV on standby? Switch it off.....etc. Oh, and read the meter as well. If the comparisons don't show it can be cheaper elsewhere then you're just using too much. As an example - I pay £41 per month for electric - this pretty much balances over the year. We use gas ONLY for cooking - everything else is electric. This is for two people, and we are pretty careful about what we use.

    Get out some bank statements and utility bills, and start working through your SOA piece by piece. Ring the mobile provider and ask if you can drop to a lower tariff - you never know, they might say yes!
    🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
    Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
    Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
    SOA CALCULATOR (for DFW newbies): SOA Calculator
    she/her
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