My SOA - please help!

jayss

If you cancel the bank fee will your overdraft charges increase?
I know with some banks the fee covers an interest free buffer zone. But doubt it would cost the difference.

Best of luck, you know you can make some changes, hope your pay goes back up at somepoint, so it can all go to your debts.

AFK_Matrix

Thanks jayss,

I haven't really had much to do with overdrafts tbh so definitely check what happens if you change banks. I didn't realise they may hit your overdraft for switching.

Baldybear

Thanks will check out my overdraft and see how this compares. Did claim last year on travel insurance as had to pay extra to change flights to come home early as had been burgled so got £200 back so not a bad investment last year! Will check out AA and the like as well

I really need to start doing a spending diary, will put it on my DFW diary to enable me to keep an eye on how things are going. Not sure how to do this for OH's expenses but will see what I can come up with!

AFK_Matrix

If you have smartphones there are a ton of apps that you can use to record your daily expenses. I use EasyMoney for Android, you have to pay something for it but there are free alternatives out there.

RAS

Hi

You really do need to do a proper SOA http://www.makesenseofcards.com/soacalc.html

With respect to the debts, you need to list them all in one place and list whose name they are in - mine, his and ours.

You also need the proper APPs and to add any odverdrafts to the debts list.

his_missus

Baldybear wrote: »

OH pay: £1200 (sometimes gets bonus but very rare at the moment)
Out of this:
£900 to joint account
£82 to CC1 min payment
£30 phone and mobile internet (works away a lot)
This leaves about £200, out of this is his personal spends, so pays his computer games subscription, food eating out, as working on the road buys a lot of his food out, and as working away not always facility to make stuff and rest is for his use so clothes, going out etc.

My pay £1139 (currently on 20% paycut :mad:)
Out of this:
£450 to joint account
£150 to parents loan
£100 to savings (this pays for car tax, car, life, building and contents insurance for the 2 of us over the year)
£13 bank fee (get green flag, travel and mobile insurance (use these a lot))
£2 - 6 interest on arranged overdraft fees
£35 mobile
£50 CC2 min payment
£70 fuel
£30 hairdresser
£100 misc (my general spends includes clothes, going out, presents etc)
so leaves me with about £100 spare a month (trying to leave this and not spend it to reduce my overdraft, currently £850 arranged but only use about £500 at the moment each month but want to reduce completely)


Any help or comments appreciated

Hi!

I agree with those who have commented above. Perhaps OH could keep a spending diary too. Can you cut down spending on clothes or going out etc? Also as you're managing to have £100 of your £200 spends spare a month because you're keeping your personal spends to £100, maybe OH should try and cut back on his personal spending too, is he spending £100 on food when working? Maybe he should have £100 to spend + work related food and the rest goes towards paying debts as you're doing.

Sound like you're doing really well on the grocery spends :T still trying to mine down:o

Baldybear

As requested, using SOA calculator, have added comments as needs be

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1139
Partners monthly income after tax....... 1200
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2339

Monthly Expense Details
Mortgage................................ 773
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 168
Electricity............................. 40
Gas..................................... 25
Oil..................................... 0
Water rates............................. 37
Telephone (land line)................... 60 (includes landline internet and tv)
Mobile phone............................ 70 (2 phones and 1 mobile internet)
TV Licence.............................. 30 (know this may now be 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 100
Clothing................................ 0
Petrol/diesel........................... 70
Road tax................................ 7
Car Insurance........................... 39
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..................... 12
Contents insurance...................... 12
Life assurance ......................... 25
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 30
Entertainment........................... 200 (includes OH general food and his personal spends, what is left in his account after bills gone out, see my shortened SOA at top!)
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1698


Assets
Cash.................................... 0
House value (Gross)..................... 230000
Shares and bonds........................ 0
Car(s).................................. 15000
Other assets............................ 0
Total Assets............................ 245000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 161000...(773)......2.89
Total secured & HP debts...... 161000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
CC1 B'card OH name.............3713......82........17.9
CC2 NW my name.................2881......50........18
CC3 NW my name.................2918......50........18
parents........................9100......150.......0
Sofa...........................1380......35........0
Total unsecured debts..........19992.....367.......-


Monthly Budget Summary
Total monthly income.................... 2,339
Expenses (including HP & secured debts). 1,698
Available for debt repayments........... 641
Monthly UNsecured debt repayments....... 367
Amount left after debt repayments....... 274 (this has to cover everything else, clothes presents going out etc, seems a lot, sure must have missed something!)

Personal Balance Sheet Summary
Total assets (things you own)........... 245,000
Total HP & Secured debt................. -161,000
Total Unsecured debt.................... -19,992
Net Assets.............................. 64,008

Of course, always trying to pay more than minimum payments, usually budget £780 for mortgage and the extra goes to the debt, same with water, council tax, tv licence, sofas, grocery spends, e.g. anything out of the joint account

RAS

Can you advise owns the sofa and parent debts?

Baldybear

sofa in my name, but comes out of joint account, loan to parents is my parents but loan to both of us. We dont separate who owes what, we pay amount into joint account each month to pay joint bills, it works out roughly same as £900 for OH, but me is £450 plus £150 to parents, £100 to savings I pay for fuel so works out roughly equal share each and then what is left is up to each other.

Hope that makes sense! We are on similar wavelength when it comes to money, OH was lax but is coming round and trying to be good, he has helped me find a lot of his stuff for ebay recently so cant moan too much!

sugarcube84

Baldybear wrote: »

Just looking at above really need to get these darn debts down and then would be better off each month, even with the paycut!!!

Note to anyone, do not work in the construction industry in a recession!!!

Im in the same position, long overdue a promotion and not getting anywhere plus we have had a baby which has squeezed us.

You have got to make some big decisions mine was keep my pony and cut everything else and hubby was behind me 100% he doesnt want his debts (which we are tacking together) to affect my pony which i struggled to save for, buy and keep.

We have cut things bit by bit and have now got to the stage where hubby is having to cut back things that he would like to keep but we need to get these debts down so they have to go. I know we could have them cleared a lot faster if i sold the pony but at the moment he is staying. It will just take a bit longer to clear.

You need to do the same short term pain, long term game ditch anything that isn't essential throw everything at the debt so you can move on

- keep a spending diary
- cancel all subscriptions sky etc
- stretch haircuts another 2 weeks or go to the local college/salon model night
- look on the oldstyle board, i know your grocery spend looks low but you could probably cut this further.

Good luck!