My SOA- what do I do now?

skollieal

Hi there, thanks for the advice yesterday on putting an SOA on here. think i was on a different thread -getting very confused lol (which is not hard for me)

My Salary : £1870.00 per month

Rent : £ 650.00
Council Tax:£ 87.00
Electricity 62.00
TV Licence 11.37
RCN(prof membership) 15.04
Monthly bank charges 12.00
Transport 50.00
Personal (health related) 150-175 (if 5 week month)
BT Land line 14.50
Talk talk calls 4.00
Mobile (contract) 25.00
Broadband 22.00

Debts:
Nat west Loan: 35 395.92 @6.8% @ 421.38 per month for 7 years (1st payment next month- prev loan reviewed)
Abbey Credit card £1611.48 : 0% til Feb 2008 @ £25.00 pm (min 8.26) (standard APR 15.9%)

Total outgoings =1574.29. (This is a new budget having extended my loan to get rid of the other 3 credit card debts, so am hoping i will be able to pay off more every month and also to find a stand alone insurance for the loan rather than the PPI have signed in for)

I then divide the rest into envelopes for each week of the month to cover food, toiletries, cleaning products, socialising and any other extras- usually works out at about £22-£25 per week.

Debt free by 2016 (panic/nervous breakdown) according to snowball calculator

sammiboo

How come you have your line with BT and CPS with talktalk. Talktalk do cheaper linerental than BT or shop around as BT arent the cheapest service provider out there. I work in telecoms and my boyfriend is with talktalk and his bill linerental and CPS is about £13 a month.

what are your bank charges for?

Your credit card is good at 0% just remember to move the balance before your interest free runs out.

your loan seems very high, if you dont mind me asking what was your loan for?

CLAPTON

firstly i don't understand how your loan of 35,359 @ 6.8% over 7 years (84 months ) costs £421 per month...can you check that out , unless that represents the total cost of the loan plus interest (plus PPI?).

secondly i would not advise PPI on the loan ...its generally unlikely ever to pay out but if you really think you need it then you can get it a lot cheaper that the PPI thats tied into loans. why do you think you need it?

thirdly ..you neeed to add everything to the budget so one can see the total picture, so yes do add groceries/food and show you clothes budget, and socialising etc all on separate lines...do you plan any holidays/weekends away, spend anything on present/xmas ...inlcude everything you will spend oveer the next 12 months and see what the total is (for annual/oneoffs divide by 12)

Sutty

Hi and welcome to DFW. You have a great advantage here in that your outgoings are quite a lot less than your incomings so that should allow you to pay off your credit card debt before the 0% offer runs out.
Another piece of advice I could offer is to be wary off the trap that many of us fall into (myself included, more than once) is that once you've sorted your finances you appear to have more money so begin spending again. I did this every time I extended my loan for about five years and therefore the debt continued to rise.
It's important to stick to your budget ( don't forget to treat yourself too otherwise its easy to get down about it all) and watch your debt reduce much faster.

All the best

skollieal

Yes that is the loan including insurance and interest I believe.
With insurance monthly loan payment is 421.38
Without insurance the monthly loan payment would be £332.55.
To be honest I dont understand the loan agreement!!

My understanding is that if I could not work due to sickness, or died that the loan would be paid off? My sister and hubby died in May leaving huge debts and they did not have insurance. We were told if they had, their mortgage and debts would have been either paid or wiped clean? It really scares me that if something happened to me my elderly mother in South Africa might be left with the debt.

Re clothing/ socialising etc I dont budget because I find it impossible to make £22 stretch so i would only socialise or buy clothes if there was any money left over at the end of the week which there isnt or if I just didnt buy food etc ! I just dont buy anything anymore - just food really with the £22 a week. The same with Xmas and birthday presents - I just stopped buying them at all because I couldnt budget for it. Will look at the online budget and see if that helps me at all.

As you can see I just cant see the wood for the trees right now but am so glad to have found this huge support network.:j

skollieal

Thanks. Yes it does seem for the first time there is a fair bit more coming in than going out- presumably to do with the other credit cards being consolidated into the loan.

Thanks for the advice and support!:T

skollieal

sammiboo wrote:

How come you have your line with BT and CPS with talktalk. Talktalk do cheaper linerental than BT or shop around as BT arent the cheapest service provider out there. I work in telecoms and my boyfriend is with talktalk and his bill linerental and CPS is about £13 a month.

what are your bank charges for?

Your credit card is good at 0% just remember to move the balance before your interest free runs out.

your loan seems very high, if you dont mind me asking what was your loan for?

Thanks for your response.
I was going to get Talk Talk landline, but am informed by my Internet provider that I have to have a BT line for Orange Broadband to work. I then thought about Talk Talk broadband but they got overwhelmed by demand so I didn't. Also not sure how long i have on my broadband contract (must check that out!)

I bank with Nat west - they take £12 off every month whether in the black or the red. I presumed it was a standard bank charge or is this not the case?

The loan was to pay off family members' debts. that is the total loan including interest and insurance, but I will look into stand alone insurance as advised by people on here.

millymoomoo_2

Your mum would not be left with the debt should anything happen to you. Anything left to pay would come out of your 'estate' but should there be nothing left over to pay this then your mum can't be made accountable for it.

mae

I hope this is not insensitive but why did your sister and hers hubbys debts not die with them?

skollieal

mae wrote:

I hope this is not insensitive but why did your sister and hers hubbys debts not die with them?

No it is not insensitive at all.
I dont know if the system in South Africa is different but I was told it was because they had not taken out insurance on their mortgage and debts, which is why I am thinking I should be paying this huge amount of insurance on my loan but I really dont want to as it is so much!!!

millymoomoo_2

I'm not sure about the law in South Africa but honestly in this country nobody can be forced to repay your debts should anything happen to you.
Should you have anything of any value ,eg property ,if you pass away it can be used to satisfy debts etc. But otherwise the debt dies with you.
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