Pinot's Potty debt free journey!!!

debtfreewannabe321

:rotfl:oh well i did say i may not be too helpful

I wish someone would invite me to a champagne breakfast :eek: ooooh how exciting!

dfw

Hopelessly_Hopeful

Hope this helps, just a few prompts in green


Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 3 (Some people may suggest the other adult should be contributing to the income stream. I assume it's an older offspring and in education, be prepared the creditors may query it)
Number of children in household......... 1
Number of cars owned.................... (Appreciate comment re business but should this really be zero, are they assets of the business? do they cost anything at all to run? Unsual for tax man to accept 100%)

Monthly Income Details
Monthly income after tax................ 2156.00
Partners monthly income after tax....... 2156.00
Benefits................................ 146 Child Benefit (how long will this run for?)
Other income............................
Total monthly income.................... 4458

Monthly Expense Details
Mortgage................................ 1870 (is it worth considering interest only or stratching the term whilst the other debt is paid back especially if you are paying interest on the debt? That said you may need to watch if creditors then want you to up payment as a result. Better to be ready to finish plan early than overpay during me thinks)
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 238 Over 12 months (£2856 PA, is this correct? If so how does it compare to others in the area, is it worth asking for it to be reassessed?)
Electricity............................. 200 Dual Fuel, cheapest deal (Appears reasonable as I guess the house is sizeable. Don't forget to regularily check every few months on u switch if worth changing. consider asking the companies for energy efficiency advice. I think you may do some work from home, can a proportion go against the business?)
Gas..................................... 0 (Electric seems especially reasonable if no gas, is above figure correct?)
Oil..................................... 0
Water rates............................. 79 (Have you considered asking for a comparison of water meter costs?)
Telephone (land line)................... 45 incl Broadband (Good, can any go through business?)
Mobile phone............................ 20 Daughters phone due to end Feb 2012 (How old DD? What happens end of Feb?)
TV Licence.............................. 12.5
Satellite/Cable TV...................... 23 Essential due to business, actually probably should be paid for from Busines Expenditure come to think of it (Good point, good luck, don't forget phone too)
Internet Services....................... 0
Groceries etc. ......................... 544 Aiming to reduce, incl toiletries and pet food (Think pet food has to go in pet section? Do you know what true budget is? OS board great for tips)
Clothing................................ 90 High, DD2 has problems with feet and requires new shoes regularly (Expect creditors to query)
Petrol/diesel........................... 0 - no car expenses incl , paid for via business (Are you sure they will cover all of it?)
Road tax................................ 0 (See prev car comments for all these)
Car Insurance........................... 0 (See prev car comments for all these)
Car maintenance (including MOT)......... 0(See prev car comments for all these)
Car parking............................. 0 (See prev car comments for all these)
Other travel............................ 65 - Girls bus / train fares
Childcare/nursery....................... 0
Other child related expenses............ 185 - tuition costs, pocket money, hobbies, school trips, GCSE courses (Creditors will no doubt query, fight for every penny, they deserve a childhood)
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 10 (do you have to put food here I can't recall, even without food it seems low)
Buildings insurance..................... 32 Renewal May 2012 (Good)
Contents insurance...................... 0 As above - Joint
Life assurance ......................... 191 Cheapest available
Other insurance......................... 25 (what is this for?)
Presents (birthday, christmas etc)...... 10 Not enough ! Will shave off elsewhere (Groceries) to increase this
Haircuts................................ 20 (Will they let you have more if there are 4 of you?)
Entertainment........................... 35
Holiday................................. 0
Emergency fund.......................... 45
Total monthly expenses.................. 3754.5


Assets
Cash.................................... 1000
House value (Gross)..................... 480000
Shares and bonds........................ 0
Car(s).................................. 0 (? see business comments earlier)
Other assets............................ 13000
Total Assets............................ 494000


Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 335000...(1870).....0 ( 0%, really?, put me forward! )
Total secured & HP debts...... 335000....-.........-

Unsecured Debts
Description....................Debt......Monthly.. .APR
Loan1..........................33703.....458...... .0 (Are these really 0%. you could be heading for a carash, important to look at these what rate and how long for. I got rate jacket, I applied for a consolidation loan and then the doors started closing bang bang bang, you don't want to go threw all this pain for nothing)
Loan 2.........................6333......317.......0 (See above)
CC1............................10867.....350...... .0 (See above)
CC5............................3447......120...... .0(See above)
CC4............................11990.....350...... .0 (See above)
CC3............................10158.....250...... .0 (See above)
CC2............................7819......250...... .0 (See above)
Total unsecured debts..........84317.....2095......-


Monthly Budget Summary
Total monthly income.................... 4,458
Expenses (including HP & secured debts). 3,754.5
Available for debt repayments........... 703.5
Monthly UNsecured debt repayments....... 2,095
Amount short for making debt repayments. -1,391.5

Personal Balance Sheet Summary
Total assets (things you own)........... 494,000
Total HP & Secured debt................. -335,000
Total Unsecured debt.................... -84,317
Net Assets.............................. 74,683 ( good for you)

PinotGrigio41

debtfreewannabe321 wrote: »

:rotfl:oh well i did say i may not be too helpful

I wish someone would invite me to a champagne breakfast :eek: ooooh how exciting!

dfw

Oh please dont think you werent helpful ! Of course you were !

brizzledfw

Hi hon

Can't usually add to this ( and there are some areas of yours eg. kids classes etc that look scarily like mine!) But we have just taken out life insurance ( term decreasing so just to cover mortgage so £200k) at £15 a month, joint lives. Obviously depend on your underwriting but is that a compromise to think about? £190 odd is a lot to spend on something that will hopefully never ever happen xx

PS failing that if you become an employee of the company ( even for a minimal amount) ( maybe you alraedy are?) could you make the policy a legitimate employee benefit and then also get the costs as deductible for the business? Just trying to think laterally xx

ceebeeby

Morning Pinot,
Just popping over to say hello. Hope you enjoyed the Bucks Fizz yesterday
CBB x

Box_of_Fluffies

Hi Pinot
Hope the Bucks Fizz breakfast was good yesterday. Great way to start the day.

PP x

f1widow

ooo Bucks Fizz very nice for you (I dont drink but when I did drink and went to functions that was very nice!)

Im not knowledgeable enough to comment on your SOA but well done for doing it - very impressed!

Have a good day x

debtfreewannabe321

Could you not reduce the life insurance perhaps for the foreseeable? DH has to pay over and above usually for his as he's in the army and the top whack he pays is only £45 for i think cover of £300k. I'm also on that policy too?

xx

PinotGrigio41

Morning everyone on this grotty and miserable Thursday morning !

Thankyou HH and Brizzled for your comments yesterday. Turned into a very busy day workwise ( after the Bucks Fizz!) and I didnt have much time to answer you.

I will try and answer your notes HH as I did with DFW

1 - Adults - DD1 is nearly 14 so not officially an adult - but I have completed this as per my Common Financial Statement and once a child is 14 they are given additional allowances within the figures, hence why I have put her as an adult, but I can change this.

2 - Cars - Appreciate the comment with the business, but we dont pay any car expenses from that total Income we are showing. We pay for all car expenses out of the business and then at year end the Accountant works out what percentage can be classed as business expenses and which arent.So from that total we dont include car expenses.

3 - Mortgage - Was on Interest only for 18 months , but as you can see it is a large morgage.It was freaking me out that it wasnt reducing. We also then fell into arrears. We are now back on track with it and as it is a priority debt we would like to continue to now pay the full amount due and hopefully see the mortgage figures reducing. Our Mortage provider have been great but werent too happy about keeping us on Interest only for too much longer given the size of the mortgage. CCCS and CASHflow both advised us to start paying the mortgage properly rather than throwing that additional money at the credit cards as we have been doing for years.

4 - Council Tax - It was re assessed when we moved in 10 years ago and the band reduced, it is ridiculously high though.

5 - Electricity / Gas - The £200 is for Dual fuel, both the gas and electricity. It is a little cheap so have slight concerns we may be hit with an additional bill over the winter and the monthly premiums hiked up, but we were in credit over the Summer so I am hoping things will balance out. Thankyou for your suggestion though and I will keep checking with other providers.

6 - We are already on a Water Meter and again the bills have reduced over the last year. Being a bit dim, what do you mean by a Comparison of Water Meter Costs though please ?

7 - She is nearly 14, we will be checking around for new tarriffs etc

8 - Groceries - There was £30 for Pet Food put on the Budget, so I can reduce that from the Grocery amounts. I never do and dont intend to spend that amount on Groceries. I am hoping to come in at £300 or under this month to give me a better figure ( then gradually reduce this) and use the additional on other areas we are short on, ie Gifts, or put it away for emergencies. I think I have mentioned before that last year Iwasnt reall y shopping properly as we had no money left after making the payments to the creditors so I didnt really have a realistic figure ont he grocery bill, but at the end of this month I should. The girls do eat adult size meals and are very sporty, and eat me out of house and home, but I want to reduce this further and have had a read of the Old Style Board and will sign up to the Grocery challenge. I am a dab hand at whizzing up soups if things are getting desperate ! You have already given me lots of tips there so thankyou.

9 - Child related Costs - All creditors have accepted this amount for the time being at least within the Financial Statement, but again if there is any surplus that will be used elsewhere in the budget. If DD2 gets her Grammar School place her bus fare will be £150 per month as well as so we may need this even more than ever!

10 - Pet Ins / Bills - Yes it is low ,but will try and make up from other budgets if needed. Neither of the pets are insured at the curent time we jsut pay vets bills if needed. This is something I need to do though.

11 - Hair - We could possibly ask for more, but Mr Pinot does his own and I dont want to increase it and then have to reduce what I pay to the creditors, again I will try and make up any surplus from other areas. A friend cuts mine and the girls pretty cheaply and I dont have mine done too regularly.

12 - Mortgage - I did mention elsewhere that I hadnt dug out the APR on the mortage yet . Wouldnt it be lovely though if it really was 0% !

13 - All Creditors have currently agreed to 0% for the next 6 months at least, then we will see !

Thankyou , HH and DFW its been great to have your views.


Brizzled - Thankyou for your comments as well. Re the Life Insurance, it was renewed a year ago, but I have had some health issues and struggled to get the Life Insurance,infact it tool them 6 months to accept me on the current policy. I am reluctant to rock the boat with this one with such a high mortgage. We couldn't get covered jointly, so Mr Pinot and I have separate policies I think. Thats a good point re the Business, we are employees. We did try that in the past when we were classed as Self Employed but it wasnt allowed. I will have a chat with the Accountant. Yes the girls costs are high, but so much lower than they been in the past. Again the budget wont be used in full each month, but is there to work with, and we can use any suplus elsewhere or for emergency fund.

Thankyou you all for your thoughts and help with this. Basically the amounts shown are what we aim to pay ourselves from the business. We cant always do this hence why there are some highter areas, but the main thing I cant do is reduce the amounts to the creditors any further. Yesterday Santander came on board for the next 7 months, so that is everybody currently singing off of the same song sheet for now at least. This gives us 6 months to see how this is going and all being well make more inroads into the debt. Once the reviews are due in 6 / 7 months then we will see where we are at and maybe have a re- think. I had another lengthy chat with our CASHflow advisor yesterday and also the Accountant and and they all feel that our decision for now to go down the DMP route rather than an IVA or Bankruptcy is the way to go for now. We are both happy with that and so much more positive and relaxed than I think we have been in the last 5 years. Thats got to be good right ? Who knows what the future will bring, but for now I think we are in a good place and I know that I can shave off and reduce many areas from the budget, especially with al the help Ive been receiving on here.

Thanks Guys !

kerri_dfw

My sister gets a good deal on life insurance from LV, not quite sure what she pays but I think it's something like £15 a month.
Hope you had a fantabulous time yesterday being a busy bee socialite
Kerri x