Whats best plan of action? - SOA

desperate+determined

Hi All,

Been here loads before, but now once again find I need some advice from a different angle / perspective.

Re-done SOA as a couple - my OH has recently confessed to most of his debts - i didn't realise OH's situation.

I'll comment where i can - to help as much as poss. But really looking for some advice on how to clear OH's OS debts - I've learnt to be quite frugal over years - just cleared my own IVA off.

We should have a large sum coming to us shortly as selling OH's car. Approx £5700 - fingers x'd

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 553 (on mat leave - so SMP rate)
Partners monthly income after tax....... 1422.03 (can sometimes fluctuate depending if any OT available - this is based on no OT)
Benefits................................ 178.21 (this is C/benefit + basic CTC)
Other income............................ 120 (this is maintenance from my ex - however not a reliable source as its hit or mis as to whether he pays up)
Total monthly income.................... 2273.24

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 650 (best price in area for 3 bed) - youll notice from other post - this month haven't been able to pay this hence going back to roots and posting SOA
Management charge (leasehold property).. 0
Council tax............................. 156
Electricity............................. 25 (just in process of looking to switch gas+elec and fix - anyone suggest a good company - will use a cashback site)
Gas..................................... 25
Oil..................................... 0
Water rates............................. 44 (little high i know as clearing an outstanding bill o £103)
Telephone (land line)................... 25
Mobile phone............................ 50 (can't cancel but have reduced as tied in contract)
TV Licence.............................. 12.37
Satellite/Cable TV...................... 24 (have reduce by half)
Internet Services....................... 0
Groceries etc. ......................... 120 (really work hardto keep to this)
Clothing................................ 5
Petrol/diesel........................... 220 (in process of selling car - so this will reduce to about £140)
Road tax................................ 0
Car Insurance........................... 72 (this will reduce - as be using 1 car and 1 policy not sure to how much yet)
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 5
Haircuts................................ 6.5
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
(Unnamed monthly expense)............... 0
Maintenance - Ex........................ 230 (this is what my OH pays his ex for his kids)
Total monthly expenses.................. 1669.87


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 6700 (shud be selling 1 - bringing down to approx £800)
Other assets............................ 0
Total Assets............................ 6700

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
HMRC - Repay...................2751.88...43.33.....0 (this comes straight out bank when my current CTC goes in - so i dont see it)
Hitatchi Cap...................1750......68.5......11.7
c/card 1.......................2911.77...77.75.....0 (currently on 0%)
Loan 1.........................6866......181.4.....9.9
MIL loan.......................1900......0.........0 (currently on 0% - lol sorry had to have a smidge of humour)
c/card 2.......................5503.75...165.1.....0 (currently on 0%)
Total unsecured debts..........21683.4...536.08....-


Monthly Budget Summary
Total monthly income.................... 2,273.24
Expenses (including HP & secured debts). 1,669.87
Available for debt repayments........... 603.37
Monthly UNsecured debt repayments....... 536.08
Amount left after debt repayments....... 67.29 (usually we do have this however this month gone t*ts up - OH took his kids on o/night trip and spent this plus more (gets to do this once a year at summer hols time)

Personal Balance Sheet Summary
Total assets (things you own)........... 6,700
Total HP & Secured debt................. -0
Total Unsecured debt.................... -21,683.4
Net Assets.............................. -14,983.4

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

I appreciate any advice going - really like help re: unsecured debts -hoping when car sells the £5700 can go to clearing some of these

Thanks for reading

Tixy

Hi, well done for clearing your debts and finishing your IVA.
At least you'll have a head start on being frugal from being on this.

First thing that stands out is how high OHs maintenance is compared to his income - is this the right amount? is it through CSA. Is your newest baby also OHs? if so should that alter how much he pays in maintenance?

desperate+determined wrote: »

Monthly Income Details
Monthly income after tax................ 553 (on mat leave - so SMP rate) congats on baby? how much longer on mat? do you intend to go back to work?
Partners monthly income after tax....... 1422.03 (can sometimes fluctuate depending if any OT available - this is based on no OT)
Benefits................................ 178.21 (this is C/benefit + basic CTC)
Other income............................ 120 (this is maintenance from my ex - however not a reliable source as its hit or mis as to whether he pays up)
Total monthly income.................... 2273.24

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 650 (best price in area for 3 bed) - youll notice from other post - this month haven't been able to pay this hence going back to roots and posting SOA
Management charge (leasehold property).. 0
Council tax............................. 156 I guess you've done the quick online check to see that this is in the right ct band?
Electricity............................. 25 (just in process of looking to switch gas+elec and fix - anyone suggest a good company - will use a cashback site)
Gas..................................... 25
Oil..................................... 0
Water rates............................. 44 (little high i know as clearing an outstanding bill o £103)
Telephone (land line)................... 25
Mobile phone............................ 50 (can't cancel but have reduced as tied in contract)
TV Licence.............................. 12.37
Satellite/Cable TV...................... 24 (have reduce by half)
Internet Services....................... 0
Groceries etc. ......................... 120 (really work hardto keep to this) Thats very impressive
Clothing................................ 5
Petrol/diesel........................... 220 (in process of selling car - so this will reduce to about £140) will OH need to use public transport or something that will add an extra cost? or will he use your car?
Road tax................................ 0 (really need to budget)
Car Insurance........................... 72 (this will reduce - as be using 1 car and 1 policy not sure to how much yet)
Car maintenance (including MOT)......... 0 (really need to budget for this)
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0 is this realistic?
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0 don't you have this? you can usually get for just a few quid a month
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 5
Haircuts................................ 6.5
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
(Unnamed monthly expense)............... 0
Maintenance - Ex........................ 230 (this is what my OH pays his ex for his kids)
Total monthly expenses.................. 1669.87


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 6700 (shud be selling 1 - bringing down to approx £800)
Other assets............................ 0
Total Assets............................ 6700

No Secured nor Hire Purchase Debts

Unsecured Debts Apart from HMRC are these all OHs debts?
Description....................Debt......Monthly...APR
HMRC - Repay...................2751.88...43.33.....0 (this comes straight out bank when my current CTC goes in - so i dont see it)
Hitatchi Cap...................1750......68.5......11.7
c/card 1.......................2911.77...77.75.....0 (currently on 0%) how soon does 0% end? what rate afterwards?
Loan 1.........................6866......181.4.....9.9
MIL loan.......................1900......0.........0 (currently on 0% - lol sorry had to have a smidge of humour) any pressure to start repaying this yet?
c/card 2.......................5503.75...165.1.....0 (currently on 0%) how soon does it end? what rate then?
Total unsecured debts..........21683.4...536.08....-


Monthly Budget Summary
Total monthly income.................... 2,273.24
Expenses (including HP & secured debts). 1,669.87
Available for debt repayments........... 603.37
Monthly UNsecured debt repayments....... 536.08
Amount left after debt repayments....... 67.29 (usually we do have this however this month gone t*ts up - OH took his kids on o/night trip and spent this plus more (gets to do this once a year at summer hols time) certainly looks like it should be just about manageable, especially once some of the debts are paid off from the car money

desperate+determined

Hi Tixy, Thanks for fast reponse.

Hopefully i can answer most of questions:

MAT leaves - finshes end of november but with accruing holiay should be back in work mid december - income goes up to 1200 but of course so will travel (£40pcm) and so will c/care (£680pcm)
Thanks for the congrats.

Council Tax - Check VOA site and appears on correct band - if only it was lower

Groceries - swear by online shopping as you only buy what you need lol - i also breastfeed so saves on formula, we grow own veg - so currently have beans, carrots, toms etc (soon to have enough apples to sink a battle ship)

OH wil be using my car and I will be walking - determined to loose my baby belly (or if weather really bad may catch the bus)

Will add in budget for Car Main/MOT/Tax eetc - not sure how much to budget tho.

Child Related -not sure what would come under this? I use freecycle to obtain any colthes, toys, nursery things etc

We've never had insurance as never been able to afford it - maybe should look into.

Unseured Debt:
As you state all OH's apart from HMRC
C/card 1 - 0% finish October 2011 - but not sure what APR is as cant find any paperwork - OH is a monkey at chucking stuff away
C/card 2 - 0% finish December 2011 - then 16.9%apr
MIL - no pressue here - however OH is guilt ridden over borrow (MIL wants to retire)

I was personally thinking when money from car comes thru - clear C/card 1 (presume if we ask for a settlement would that figure reduce?)
and plough rest into C/card 2 would that be the best route to take?

Tixy

I was thinking probably card 1 then the rest to card 2.
The other alternative might have been card1, hitachi, then the remainder to card 2, but given the 0%s don't have all that long left probably go for the credit cards. That should save about £160 in minimum payments each month.

For child costs I was thinking of things like kids activities, clubs, pocket money etc if your older one does any of these.

For car costs - tax - budget 1/12 of the annual cost. Try to do the same for maintenance if you can work out what a typical annual spend is (covering MOT, servicing, new tyres etc).

I would try and look into contents insurance, I know its another expense out but I've read some people have been able to get it for around £4-£5 a month (and if you do consider check if you can earn cashback on it as well). A few have even managed to get more cashback than the policy cost - so making a profit on having insurance! - http://www.moneysavingexpert.com/insurance/home-insurance#record

bargainbetty

If you haven't defaulted or been passed to a DCA you won't get a settlement on the credit card. You will have to pay the balance in full.

You could consider clearing the CC1, but rather than closing it, apply for a low-life of balance deal (often open-ended) and transfer the balance from CC2 onto it when the 0% runs out - it might save some in interest payments.

Good luck x

desperate+determined

Hi
Thanks tixy, oldest is 6 and currently is part of any clubs etc and doesn't get pocket money ( that makes me sound a tight mummy )
Like you say think well attack the c/cards 1st.
Have briefly looked at insurance will take a better look today.
Bargain - we have defaulted on both c/cards at least once so fingers x'd - guess there'd be no harm in asking? Never heard of low life balance deal we look into that and see what it involves etc. Think his CR is poor now and although I'm now DF apart from HMRC I'm not willing to apply for any sort of Credit.