My names DismalJim and I'm just seeing the light

DismalJim

Having had the light bulb moment, I've scoured the forum (a little) and created my SOA below: (apologies to MakeSenseOfCards for removing link)


Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 3
Number of children in household......... 3
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2380
Partners monthly income after tax....... 0
Benefits................................ 482.8
Other income............................ 0
Total monthly income.................... 2862.8

Monthly Expense Details
Mortgage................................ 580
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 156
Electricity............................. 100
Gas..................................... 55
Oil..................................... 0
Water rates............................. 86
Telephone (land line)................... 35
Mobile phone............................ 98
TV Licence.............................. 12
Satellite/Cable TV...................... 50
Internet Services....................... 0
Groceries etc. ......................... 450
Clothing................................ 30
Petrol/diesel........................... 350
Road tax................................ 16
Car Insurance........................... 20
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 23
Pet insurance/vet bills................. 10
Buildings insurance..................... 35
Contents insurance...................... 35
Life assurance ......................... 37
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 10
Entertainment........................... 20
Holiday................................. 50
Emergency fund.......................... 50
Total monthly expenses.................. 2338


Assets
Cash.................................... 0
House value (Gross)..................... 290000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 291000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 90000....(580)......5
Total secured & HP debts...... 90000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Amex...........................1718......43........19
Egg............................9159......300.......19.94
MBNA...........................9595......277.......26.95
Loan...........................6630......220.......10
Mint...........................6145......138.......28.94
MBNA...........................1465.81...67........26.95
Total unsecured debts..........34712.81..1045......-


Monthly Budget Summary
Total monthly income.................... 2,862.8
Expenses (including HP & secured debts). 2,338
Available for debt repayments........... 524.8
Monthly UNsecured debt repayments....... 1,045
Amount short for making debt repayments. -520.2

Personal Balance Sheet Summary
Total assets (things you own)........... 291,000
Total HP & Secured debt................. -90,000
Total Unsecured debt.................... -34,712.81
Net Assets.............................. 166,287.19

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


I'm looking at DMP over IVA, I know the Net Assets look good but there are reasons I don't want to remortgage to release equity. The above doesn't show my bank charges which are running at £200/month, but presumably I shouldn't budget for them having had the ligh-bulb moment.

Also, 3 adults means I have a 19 year old, but he's not contributing yet, nor does he take advantage.

Tixy

Hi Jim and welcome (hopefully you won't be a DismalJim for long if you can get a plan together!)

And well done for posting your SoA. I see you have quite a big shortfall at the moment so will look to see if there might be some areas you could look at to see if you can reduce.

DismalJim wrote: »

Having had the light bulb moment, I've scoured the forum (a little) and created my SOA below: (apologies to MakeSenseOfCards for removing link)


Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 3 who is the 3rd adult? can they contribute at all?
Number of children in household......... 3
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2380
Partners monthly income after tax....... 0 can partner not work? are they jobseeking?
Benefits................................ 482.8
Other income............................ 0
Total monthly income.................... 2862.8

Monthly Expense Details
Mortgage................................ 580
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 156
Electricity............................. 100 this seems very high, does it include repaying arrears? have you shopped around recently to see if you can find a cheaper gas & elec supplier, or a better tariff?
Gas..................................... 55
Oil..................................... 0
Water rates............................. 86 Gosh -Is this metererd? have you done checks for leaks? have you tried to get the whole family on board with water saving? look at your water suppliers websites for saving water.
Telephone (land line)................... 35 might be worth shopping around to see if you can get a cheaper deal (possibly combining with sky?)
Mobile phone............................ 98 how many phones? are they contract or payg? can you try to reduce tariffs or reduce spending on them.
TV Licence.............................. 12
Satellite/Cable TV...................... 50 can you drop to a cheaper package or try to get a combined landline/broadband/tv deal?
Internet Services....................... 0
Groceries etc. ......................... 450 I see you have a big family, but try to work on reducing, maybe you could get to £400 by looking at some of the tips on the oldstyle board
Clothing................................ 30
Petrol/diesel........................... 350 is this all essential mileage? is it mostly commuting? do you try to drive 'fuel efficently'?
Road tax................................ 16
Car Insurance........................... 20
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 23
Pet insurance/vet bills................. 10
Buildings insurance..................... 35 try shopping around for B&C at renewal time, should hopefully be able to reduce a little.
Contents insurance...................... 35
Life assurance ......................... 37
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 10
Entertainment........................... 20
Holiday................................. 50
Emergency fund.......................... 50
Total monthly expenses.................. 2338


Assets
Cash.................................... 0
House value (Gross)..................... 290000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 291000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 90000....(580)......5 is this a fixed deal? are you tied in? might be worth shopping around to see if you can get a slightly cheaper deal?
Total secured & HP debts...... 90000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Amex...........................1718......43........19
Egg............................9159......300.......19.94
MBNA...........................9595......277.......26.95
Loan...........................6630......220.......10
Mint...........................6145......138.......28.94
MBNA...........................1465.81...67........26.95
Total unsecured debts..........34712.81..1045......-


Monthly Budget Summary
Total monthly income.................... 2,862.8
Expenses (including HP & secured debts). 2,338
Available for debt repayments........... 524.8
Monthly UNsecured debt repayments....... 1,045
Amount short for making debt repayments. -520.2

Personal Balance Sheet Summary
Total assets (things you own)........... 291,000
Total HP & Secured debt................. -90,000
Total Unsecured debt.................... -34,712.81
Net Assets.............................. 166,287.19

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

Have you had a recent change in circumstances (reduced income or something?)
How have you been managing the £500 shortfall a month so far?
What was the card debt spent on? anything that coud be sold to try to pay off some of the debt?

If partner and other adult are not able to start contributing to the house I'm not sure there is enough scope to cut back by all of your shortfall. You might need to think about other possible options - such as a reduced payment plan/DMP.

KxMx

DismalJim wrote: »

Having had the light bulb moment, I've scoured the forum (a little) and created my SOA below: (apologies to MakeSenseOfCards for removing link)


Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 3
Number of children in household......... 3
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2380
Partners monthly income after tax....... 0
Benefits................................ 482.8
Other income............................ 0
Total monthly income.................... 2862.8

Monthly Expense Details
Mortgage................................ 580
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 156
Electricity............................. 100 *is this from the cheapest supplier/tariff?*
Gas..................................... 55 * as above*
Oil..................................... 0
Water rates............................. 86 * This is high, would a meter be cheaper if not on one already? *
Telephone (land line)................... 35
Mobile phone............................ 98 *This is v.high, downgrade tariff or switch to PAYG*
TV Licence.............................. 12
Satellite/Cable TV...................... 50 *Can you get a cheaper deal? Drop some channels? Get a combined tv/phone package which would be cheaper than 85 pm! Or switch to Freeview?*
Internet Services....................... 0
Groceries etc. ......................... 450 *I'm not sure how reasonable this is for 6. Maybe drop a brand/ shop around for deals?*
Clothing................................ 30 *Wear what you have, understand children grow out of things*
Petrol/diesel........................... 350 *are all trips neccessary?*
Road tax................................ 16
Car Insurance........................... 20
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 23
Pet insurance/vet bills................. 10
Buildings insurance..................... 35 * is this the cheapest? Shop around. Or try and find a combo deal for this and contents, £70 seems high for both*
Contents insurance...................... 35
Life assurance ......................... 37 * this seems high, have you shopped around for best deal etc? *
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 10
Entertainment........................... 20
Holiday................................. 50 *Could you do without this until debts are better? *
Emergency fund.......................... 50
Total monthly expenses.................. 2338


Assets
Cash.................................... 0
House value (Gross)..................... 290000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 291000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 90000....(580)......5
Total secured & HP debts...... 90000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Amex...........................1718......43........19
Egg............................9159......300.......19.94
MBNA...........................9595......277.......26.95
Loan...........................6630......220.......10
Mint...........................6145......138.......28.94
MBNA...........................1465.81...67........26.95
Total unsecured debts..........34712.81..1045......-


Monthly Budget Summary
Total monthly income.................... 2,862.8
Expenses (including HP & secured debts). 2,338
Available for debt repayments........... 524.8
Monthly UNsecured debt repayments....... 1,045
Amount short for making debt repayments. -520.2

Personal Balance Sheet Summary
Total assets (things you own)........... 291,000
Total HP & Secured debt................. -90,000
Total Unsecured debt.................... -34,712.81
Net Assets.............................. 166,287.19

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


I'm looking at DMP over IVA, I know the Net Assets look good but there are reasons I don't want to remortgage to release equity. The above doesn't show my bank charges which are running at £200/month, but presumably I shouldn't budget for them having had the ligh-bulb moment.

Also, 3 adults means I have a 19 year old, but he's not contributing yet, nor does he take advantage.

Have added my comments.

DismalJim

Hi Tixy, Thanks for looking so quickly, it was already a weight lifted with just doing the SOA.

1. Third adult is son. To be fair he has just took over his mobile contract, that helps us, giving us £30 more.

2. Partner is carer for youngest disabled, the benefits shown includes her carers allowance. She has been to job office and it seems she can earn upto £100/week without affecting any benefits. The trick now is finding something that meets with school hours and the youngest's requirements. (He is in nursery at a special needs school).

3. The Electricity/Gas is combined online at £156, I apportioned it, possibly incorrectly.

4. Everyone gasps at the water rates, I think it's because of old style rateable value. Even though there is six of us in the house there is a slight possibility that a meter may be better. I believe if it doesn't prove cheaper you can revert within the first year?

5. The telephone is phone/broadband with O2.

6. Three mobiles, two are contract, I think they are tied for a while.

7. Satellite, I suspect this will be reduced, on HD + Films at the mo.

8. Groceries, yes, my dieting may help :-)

9. Alas the mileage is to work. I have started to monitor fuel spend (and any outgoings) so hopefully I will drive fuel efficiently.

10. Insurance. Noted

11. Mortgage, my wife took redundancy from a bank and we appear to have kept the staff mortgage, it's not a brilliant rate but rocking the boat worries us. Maybe shopping around would prove effective although I worry about my credit rating now :-(

All your comments are very gratefully received and I'll look at all those areas. My circumstances are 'normal', this has come about from mismanagement on my part and not being open with wife about finances. Most of the credit card debt is balance transfers overun or generally consolidated. The loan is a bank one consolidating their exposure to me.

I've been managing the shortfall by maxing the credit cards (foolishly), but I'm at the end of the road now.

I'm favouring DMP over IVA because I don't want to involve equity if possible and also my wife as an ex banker believes we should pay back what we owe (rumour being that IVA can mean paying less).

Also it seems to add structure, my salary and priority debts should equal a comfortable life, we don't need luxuries but i do want to support my kids as the grow.

DismalJim

Hi KxMx, Thank you so much for the points. The clothing/holiday and emergency were all guestimates in only just facing up to my problems. WE were luck enough to take a heavily subsidised mini break because of my sons disability. I'm going to look at all these areas, I've never really looked at this website before although I do get the emails.

Little_Miss_Uni-Debt

Hi Jim,

I know it maybe tough but you probably need to look at your credit card statements. If the debts are simply from overspend and no specific large purchases then the statements hold the key to the areas you need to look at.

If it's cash withdrawals that show up frequently, then you could consider a spending diary and giving yourself a monthly spending allowance.

If it's car repairs showing up on the statements you need to start physically putting aside the money you have marked on your SOA for car stuff so that it's there when it crops up.

You can put something in place for each spending area to cover you so you won't need to keep using the cards.

Also there is no mention of the current account, does this have an overdraft? Sometimes its hard to work out an SOA if your wages are being swallowed by a current account with an overdraft. This will also take into account your £200 bank charges. It all needs to be on your SOA so it is true to your situation.

I can see you have a large family so expenses will be high, however you do have a decent income.

Find out where your money leaks are and plug the holes

Keep us updated!

jonjamie1970

HI JIm
Well done on your LBM !
Can I urge you to look at the snowball calcualtor for your debts so you can really see what it will mean to lower them and in which priority. You seem to be sitting on a decent capital with your house and I can understand your reluctance regarding the rate, but at the moment you could probably achieve better than that on a deal elsewhere ?

Read the boards, the forums are inspirational sometimes and I'm sure you will work out an attainable plan to lower your debts.

Tixy

I would agree that a DMP looks to be a sensible option. On an IVA a person could well end up paying less, although in your case with the equity compared to debt level its likely that you would probably end up paying all (plus the IVA fees).

Who are you looking at a DMP with? hopefully one of the free ones (charities or payplan).

I'd look into the water meter option, research if its likely to be cheaper (considering teenagers are not always the best at remembering to turn things off!) and yes you are right you can still do the switch back if it works out more costly.

Fingers crossed for you that your wife lucks out on finding something to bring in a bit of income that fits around the children.

Have you now been totally upfront with wife? does she know the full extent? has she seen the SoA? Its certainly much easier if you are both working together at the budgeting.

Might just be worth looking at the mortgage before you do go into a DMP (especially if you haven't so far missed any payments and so your credit history is not blemished yet), just to have a think about whether you could get cheaper and also factor in the likely rate rises and that it will be harder to move mortgage once in a DMP. Might not be worth moving but do a bit of reasearch.

Good luck.

DismalJim

JohnJamie1970 - I will look at the snowball calculator. Further comments bellow regarding mortgage.

Tixy - I hadn't been upfront with my wife until light bulb moment, she now knows as much as you :-/ ... Also since posting I've learnt that our Mortgage rate = base rate so err mustn't grumble! When I spoke to wife from work just she seems to favour Payplan and I like the look of CCCS. One thing that does worry me is that although I don't foresee needing credit for a while after this anyway, I may need to replace my car at some point, but well cross that bridge later.

DismalJim

Little Miss Uni-Debt,

I am going to have another look at my SOA and look properly at charges. Also, the food spend I took by just looking at the debit card transactions, so we have now started a spending diary.

Thanks.

Little_Miss_Uni-Debt wrote: »

Hi Jim,

I know it maybe tough but you probably need to look at your credit card statements. If the debts are simply from overspend and no specific large purchases then the statements hold the key to the areas you need to look at.

If it's cash withdrawals that show up frequently, then you could consider a spending diary and giving yourself a monthly spending allowance.

If it's car repairs showing up on the statements you need to start physically putting aside the money you have marked on your SOA for car stuff so that it's there when it crops up.

You can put something in place for each spending area to cover you so you won't need to keep using the cards.

Also there is no mention of the current account, does this have an overdraft? Sometimes its hard to work out an SOA if your wages are being swallowed by a current account with an overdraft. This will also take into account your £200 bank charges. It all needs to be on your SOA so it is true to your situation.

I can see you have a large family so expenses will be high, however you do have a decent income.

Find out where your money leaks are and plug the holes

Keep us updated!

DismalJim

Update. Been using and reusing the CCCS calculator last night, in theory thing the DMP is the best option but also looking at cut-backs obviously.

1. I'm scrapping contact lenses, love my 'new' glasses, that's £18/month.
2. Scrapping SKY+ HD, going to Freesat HD and considering using Picturebox for online films at £4.99 a month. That's £46/month.
3. There is an additional £18 being spent on a life insurance that I don't even know what it's for!

Potentially £82/month better off, better go make some phone calls instead of procrastinating!