LBM and SOA

jellybean12

It has happened.....after splurging on xmas, i think i may have had my LBM, :eek:

ok, here's my SOA, i don't know if i have missed anything off but im always adding to my overdraft every month...so something is definately happening!!!

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 4 - we each need one for work and go in opposite directions, public transport is a no as we live in the middle of no-where. The other 2 cars are currently being restored (OH is a mechanic, once restored will be sold)
Monthly Income Details
Monthly income after tax................ 1367.3
Partners monthly income after tax....... 1294.39
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2661.69
Monthly Expense Details
Mortgage................................ 571.2
Secured/HP loan repayments..............199.60
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 106
Electricity............................. 40 - Gas and electric are through EDF, all done online and on cheapest tariff possible
Gas..................................... 44
Oil..................................... 0
Water rates............................. 31
Telephone (land line)................... 34.68 - this includes internet
Mobile phone............................ 64.98 - this is for 3 contracts, we don't use landline (only for internet, we each need these for work but one is a 'spare' can't be cancelled until september 2012
TV Licence.............................. 12.12
Satellite/Cable TV...................... 35 - can't be cancelled for another 6 months, then will go freeview
Internet Services....................... 0 - included in landline
Groceries etc. ......................... 300 - this is just an estimate, an area i need to get better at!
Clothing................................ 0 - just buy as and when, never really buy though
Petrol/diesel........................... 200 - just as estimate, probably a littel more
Road tax................................ 0 - never budget for, just get when needed, but prob £30 a month at a guess?
Car Insurance........................... 128.68 - this is for 3 cars, this is cheapest we can get and is very reaonably priced.
Car maintenance (including MOT)......... 0 - OH mechanic so just costs for parts
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..................... 8.16
Contents insurance...................... 7.56
Life assurance ......................... 39.46 - i've tried getting quotes but i don't really know what to do with these as got them when got mortgage
Other insurance......................... 46.78 - as above
Presents (birthday, christmas etc)...... 0 - never budget for these ( thats why were in this mess!!! :rotfl:
Haircuts................................ 0 - get these done by sister
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
magazine................................ 9.99
overdraft fee........................... 31
bank account fee........................ 15
gap insurance........................... 39.9 - this is only for 5 more payments as it was for a new car
Total monthly expenses.................. 1965.11

Assets
Cash.................................... 0
House value (Gross)..................... 130000
Shares and bonds........................ 0
Car(s).................................. 11000
Other assets............................ 0
Total Assets............................ 141000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 106651...(571.2)....4.8
Hire Purchase (HP) debt ...... 8000.....(199.6)....0
Total secured & HP debts...... 114651....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
loan...........................10000.....185.9.....11.7
cc.............................3999......90........0
o/d............................2200......0.........0
Total unsecured debts..........16199.....275.9.....-

Monthly Budget Summary
Total monthly income.................... 2,661.69
Expenses (including HP & secured debts). 1,965.11
Available for debt repayments........... 696.58
Monthly UNsecured debt repayments....... 275.9
Amount left after debt repayments....... 420.68
Personal Balance Sheet Summary
Total assets (things you own)........... 141,000
Total HP & Secured debt................. -114,651
Total Unsecured debt.................... -16,199
Net Assets.............................. 10,150

Any help you can give would be greatly appreciated!

:j

InDeepDebt

OK, my 2 pence worth.

You're paying about £35 for phone line and internet yet you don't make calls on your phone line. That's a lot of money. My phone line plus internet is about £21 - this is through o2 - who I have a mobile with so I get a discount. (O2 have useless customer service though - I'm thinking of leaving once my 12 months is up).

You have a £2,200 o/d - I'm assuming that your O/D fee and bank account fee would go down if you got your o/d down.

You have £400 spare a month.

My view would be to pay the £400 onto your overdraft - this will give you an extra £45 a month. In six months, put the £400 plus the extra £45 into a savings account and then use this to pay off the credit card once the interest free period is done or, if you get enough saved - pay off your loan.

Just noticed that you pay £199 on a secured loan or HP. How long left and what's the balance?

Only other place that I can see to make savings is on the water - is this a fixed bill or a water meter? I reckon a meter could be cheaper.

jellybean12

Hi,

Thanks for your comments, the internet is about £26 a month, and the landline is part of the contract? we can't get a cheaper option unless we get mobile broadband, but thats not suitable for xbox live etc. Would love to cut this cost but it seems to be the cheapest around.

o/d fee would vanish if the overdraft vanished, but the bank account fee is fixed, and includes mobile phone insurance etc (which is a godsend!!)
currently the £400 isn't spare as it doesn't seem to be there at the end of the month...i really don't know where this goes!!!

The £199 is for a car, there's around 3 years left on this and around 7/8000 although this *should* be cleared once other cars have been sold.

We are on a water meter, both are out at work all day, and i have many times questioned the water charges...although i am told from the water company that this is correct!!

Many thanks for your help

:-)

rising_from_the_ashes

Well done for getting it all down Jellybean .... by looking at it now, you'll be ready to go by the New Year:D A few comments from me below which I hope help.....

jellybean12 wrote: »

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 4 - we each need one for work and go in opposite directions, public transport is a no as we live in the middle of no-where. The other 2 cars are currently being restored (OH is a mechanic, once restored will be sold) when are the 2 cars likely to be ready to be sold? What is the likely income from these?
Monthly Income Details
Monthly income after tax................ 1367.3
Partners monthly income after tax....... 1294.39
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2661.69
Monthly Expense Details
Mortgage................................ 571.2
Secured/HP loan repayments..............199.60
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 106
Electricity............................. 40 - Gas and electric are through EDF, all done online and on cheapest tariff possible
Gas..................................... 44 You may still be able to cut down your usage a bit - what size is your house? (Mine is a 3 bed and I pay £64/month - I am quite frugal with turning off lights / minimising washing/drying/turning off the heating when I go to bed etc but not as much as others:o as I'm not good at switching off TVs etc at night)
Oil..................................... 0
Water rates............................. 31 Have you got a meter?
Telephone (land line)................... 34.68 - this includes internet You may be able to get cheaper - as a comparison, my landline & internet is £25/month
Mobile phone............................ 64.98 - this is for 3 contracts, we don't use landline (only for internet, we each need these for work but one is a 'spare' can't be cancelled until september 2012:eek: Can you claim any of the costs back from work? (if so add to income) - not sure why you need a spare? Could one of the others be downgraded/cancelled if the spare can't?
TV Licence.............................. 12.12
Satellite/Cable TV...................... 35 - can't be cancelled for another 6 months, then will go freeview Can you downgrade to a lower package meantime?
Internet Services....................... 0 - included in landline
Groceries etc. ......................... 300 - this is just an estimate, an area i need to get better at! Try the Grocery Challenge on the Old Style board - great friendly bunch with loads of tips and some fab recipes (there are families of 4 who manage on £220/month incl toiletries & nappies etc:eek: and couples who manage on £100/month - personally I've no idea how they do this as I'm def still a "work in progress" and learning too!:)
Clothing................................ 0 - just buy as and when, never really buy though
Petrol/diesel........................... 200 - just as estimate, probably a littel more
Road tax................................ 0 - never budget for, just get when needed, but prob £30 a month at a guess? Stick the £30 in!
Car Insurance........................... 128.68 - this is for 3 cars, this is cheapest we can get and is very reaonably priced.
Car maintenance (including MOT)......... 0 - OH mechanic so just costs for parts Need to add something in to cover the parts - esp important if you're restoring 2 cars......
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..................... 8.16
Contents insurance...................... 7.56
Life assurance ......................... 39.46 - i've tried getting quotes but i don't really know what to do with these as got them when got mortgage Not something I know a lot about but get some quotes, and if you're not sure of where to go next, pop a question on the Insurance & Life Assurance board
Other insurance......................... 46.78 - as above What is this for?
Presents (birthday, christmas etc)...... 0 - never budget for these ( thats why were in this mess!!! :rotfl:Depending on how many people, stick in £20/month or so
Haircuts................................ 0 - get these done by sister
Entertainment........................... 0 Need something in here - even £20/month
Holiday................................. 0
Emergency fund.......................... 0 Try to stick something aside - again, even £20/month helps in the event of something going wrong
magazine................................ 9.99 Sorry but not really an essential:) can you cancel this?
overdraft fee........................... 31 See below
bank account fee........................ 15 "
gap insurance........................... 39.9 - this is only for 5 more payments as it was for a new car See below
Total monthly expenses.................. 1965.11

Assets
Cash.................................... 0
House value (Gross)..................... 130000
Shares and bonds........................ 0
Car(s).................................. 11000
Other assets............................ 0
Total Assets............................ 141000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 106651...(571.2)....4.8
Hire Purchase (HP) debt ...... 8000.....(199.6)....0 Is this the new car?
Total secured & HP debts...... 114651....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
loan...........................10000.....185.9.....11.7
cc.............................3999......90........0 Is it 0% or are you just not sure of the APR?
o/d............................2200......0.........0 As above
Total unsecured debts..........16199.....275.9.....-

Monthly Budget Summary
Total monthly income.................... 2,661.69
Expenses (including HP & secured debts). 1,965.11
Available for debt repayments........... 696.58
Monthly UNsecured debt repayments....... 275.9
Amount left after debt repayments....... 420.68 See below
Personal Balance Sheet Summary
Total assets (things you own)........... 141,000
Total HP & Secured debt................. -114,651
Total Unsecured debt.................... -16,199
Net Assets.............................. 10,150

Any help you can give would be greatly appreciated!

:j

Your bank account & overdraft fees are costing £46/month - have you tried speaking to your bank to see if you can downgrade your account (I've just done this and have managed to reduce mine from £16/month to £6/month - with no effect on my overdraft):)

A bit confused about the Gap Insurance - this was for a new car .... but your total car assets for 4 of them is only £11k?

You have £400+ left each month (after everything's paid) but say you're adding to the overdraft all the time, I think this could be partly due to not knowing how much you spend on things (eg fuel) and partly down to not budgeting for things (eg car tax, entertainment, presents etc) (not a critism - I am terrible at budgeting and was very similar ... been trying really hard but def still learning that too!:)).

Try a spending diary for a couple of months ... write down everything - it does really make you see where the money's going. The odd £10 or £20 (and even £3 here and there in the canteen which is my downfall as it's handy etc:o) does really add up over the month.

HTH:)

jellybean12

Hi,

Thank you all soooo much for your comments!

Yes, you are absolutely right, its because im RUBBISH at budgeting!! but i'll try and answer your questions...

2 cars likely to be sold next year....but not anytime soon! (likely to fetch £3-6000

Gas and electric - im really really good with switching things off etc, not sure why its still so much :-(

Have downgraded spare phone, its pointless and has no use, we only got another because OH wanted fruit flavoured phone 4s!!!

Can't downgrade sky yet, as tied into contract for another 6 months, although i did ring them and they knocked it down to £35 fron £50 :-)

The other insurance is mortgage payment protection insurance....will ask on the insurance board :-)

Will cancel magazine subscription asap

The HP is the new car

The cc is at 0% and has another 13 months left at 0%

The o/d i have no idea of apr, we just get charged £1 a day :-(

I think I put the value of cars down as 11k as the new one is worth £9k and the other 3 combined worth 2K in current state...(or maybe i was having a blonde moment!)

Definately going to start a spending diary!!!

Thanks
JB
:-)

InDeepDebt

Good news on starting a spending diary. It is a good idea and you'll suddenly realise that £x is going on something that isn't good value.

Regarding your water usage (isn't going to save you loads this but - every little helps). Turn everything off in the house water wise and leave it for half an hour or so - go to your meter and see if it's still going around. If so, you've likely got a leak. £31 seems a lot to me - we pay less for a family of four (we all smell though). Have you got a power shower - they use loads of water (in fact, some use more than a bath). Is your toilet an old one - spending a penny on one of those will cost 2 or 3 pence.

Is your house well insulated and what level have you got your stat at. We now have ours at 18 degrees - ok on most days except when the air is damp outside - then we have to tweak it. We pay less for our gas and electric now though than we used to four years ago - and that's with the price of gas going up a million per cent.

Good luck with it all.

MFWannabe

jellybean12 wrote: »

It has happened.....after splurging on xmas, i think i may have had my LBM, :eek:

ok, here's my SOA, i don't know if i have missed anything off but im always adding to my overdraft every month...so something is definately happening!!!

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 4 - we each need one for work and go in opposite directions, public transport is a no as we live in the middle of no-where. The other 2 cars are currently being restored (OH is a mechanic, once restored will be sold)
Monthly Income Details
Monthly income after tax................ 1367.3
Partners monthly income after tax....... 1294.39
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2661.69
Monthly Expense Details
Mortgage................................ 571.2
Secured/HP loan repayments..............199.60
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 106 - consider paying over 12 months instead of 10
Electricity............................. 40 - Gas and electric are through EDF, all done online and on cheapest tariff possible
Gas..................................... 44
Oil..................................... 0
Water rates............................. 31
Telephone (land line)................... 34.68 - this includes internet - see below comment in satellite tv
Mobile phone............................ 64.98 - this is for 3 contracts, we don't use landline (only for internet, we each need these for work but one is a 'spare' can't be cancelled until september 2012 - this is very high. when do other contracts end? See if you can lower tariffs
TV Licence.............................. 12.12
Satellite/Cable TV...................... 35 - can't be cancelled for another 6 months, then will go freeview - see if it's cheaper to get your landline and internet with this
Internet Services....................... 0 - included in landline
Groceries etc. ......................... 300 - this is just an estimate, an area i need to get better at! - You could easily shave £50 off this
Clothing................................ 0 - just buy as and when, never really buy though - you need to enter a figure here; even if it's £10 per month
Petrol/diesel........................... 200 - just as estimate, probably a littel more - If it is more then enter the higher figure
Road tax................................ 0 - never budget for, just get when needed, but prob £30 a month at a guess? - You need to enter £30 then
Car Insurance........................... 128.68 - this is for 3 cars, this is cheapest we can get and is very reaonably priced.
Car maintenance (including MOT)......... 0 - OH mechanic so just costs for parts
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..................... 8.16
Contents insurance...................... 7.56
Life assurance ......................... 39.46 - i've tried getting quotes but i don't really know what to do with these as got them when got mortgage - check comparison sites to get cheaper. You can move life insurance anytime; you just need to make sure you have it as you have a mortage
Other insurance......................... 46.78 - as above - check comparison sites to see if you can get cheaper
Presents (birthday, christmas etc)...... 0 - never budget for these ( thats why were in this mess!!! :rotfl:- you neeed to start budgeting for these; so enter a figure here
Haircuts................................ 0 - get these done by sister
Entertainment........................... 0 - Is this really nothing? Do you never go out?
Holiday................................. 0
Emergency fund.......................... 0
magazine................................ 9.99 - This is a lot; cancel
overdraft fee........................... 31
bank account fee........................ 15 - downgrade account
gap insurance........................... 39.9 - this is only for 5 more payments as it was for a new car
Total monthly expenses.................. 1965.11

Assets
Cash.................................... 0
House value (Gross)..................... 130000
Shares and bonds........................ 0
Car(s).................................. 11000
Other assets............................ 0
Total Assets............................ 141000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 106651...(571.2)....4.8
Hire Purchase (HP) debt ...... 8000.....(199.6)....0
Total secured & HP debts...... 114651....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
loan...........................10000.....185.9.....11.7
cc.............................3999......90........0
o/d............................2200......0.........0
Total unsecured debts..........16199.....275.9.....-

Monthly Budget Summary
Total monthly income.................... 2,661.69
Expenses (including HP & secured debts). 1,965.11
Available for debt repayments........... 696.58
Monthly UNsecured debt repayments....... 275.9
Amount left after debt repayments....... 420.68
Personal Balance Sheet Summary
Total assets (things you own)........... 141,000
Total HP & Secured debt................. -114,651
Total Unsecured debt.................... -16,199
Net Assets.............................. 10,150

Any help you can give would be greatly appreciated!

:j

Hi
I've made some comments above where you could make some cutbacks. You need to start budgeting for EVERYTHING though; so you need to edit your soa with amounts added for presents, car tax etc. These will add up to approx £100 per month. You need to budget for these so you can see where the £420 per month is going that you should have left over each month.
Are you able to get a Super Balance Transfer card at 0% that you could use to pay off your overdraft? At least that way your overdraft will be cleared and you won't be paying so much interest each month.

tallyhoh

What does you bank account fee cover (except mobile phone insurance)?

gfplux

Paying for a bank account fee is normally a waste of money.

gfplux

Paying for a bank account fee is normally a waste of money.
Get rid of the overdraft and get rid of the fee.
Insure your phones ( will not cost £180 a year like your bank account fee)
It's a shame you had your LBM after your Christmas SPLURGE.

rising_from_the_ashes

gfplux wrote: »

It's a shame you had your LBM after your Christmas SPLURGE.

That's a bit unkind ...... the important thing is that she has had her LBM and is prepared to sort things out.