an attempt at an SOA, doesnt look bad but still in debt.... please help

aah

So here we go, an attempt at an SOA.

A little about our situation.... I live with husband and teenage daughter, 19 year old son at university (away). I earn £44,500 but I have to work away from home, which means that we have a family house and a flat 200 miles away which I use 3 nights a week. Our joint account pays for all household bills, food and mortgages. I have personal debts and pay all the incidental bills (council tas, water, gas, electricity phone etc) on the work flat.

Expenditure

Joint account £1400
Council tax £60
Water £20
Sky £15 (only way I can get a tv signal)
Phone £11
Broadband £10 increasing to £18
Fuel £25
Insurance £30
Diesel for car £100
Horse £175 ( I know... but its as cheap as I can do it...)
Daughter pocket money £50


Debts
Northern Rock Loan £273.65 (outstanding £24908, 5.8%)
Abbeyloan £58.31 (outstanding £2682.26, 5.8%)
Barclaycard £130.00 (outstanding £4800 0% short term)
HBOS card £21 (outstanding £1200, 0% short term)
JLP card £11 (outstanding £300, 0% short term)
HSBC card £5 (outstanding £130, 0% short term)

Total outgoings £2290

Income: salary £2489.

But I'm constantly increasing my overdraft each month. Can you see what I am missing here?

Would really appreciate your help

Many thanks, pmr

slowlyfading

How old is your teenage daughter? Could she not get a part time job instead of pocket money? and even then, £50 a month seems a lot! Petrol also seems high... well done in posting, you've taken the first big step!
Nicola x

angelavdavis

Hi there, welcome!

I think you have missed:

Food
Car running costs
Haircuts, dental, opticians, etc
Socialising

What does joint account cover? If its just savings, its pointless with your debts outstanding to be saving.

Do you get expenses from your employer? If so, consider taking out a cashback credit card to use for this purpose - earn money on your expenses that can then be paid off your other debts.

Do you have anything you can sell on eBay to raise some cash to pay off the lower value debts?

LandyAndy

Hi

Just a few thoughts.

Do you never buy food, drink, clothes, personal items out of your own money? Does it all come out of your joint account?

Why do you pay your daughters pocket money out of your account and not out of the joint?

Do you need broadband in your flat? Could you just use your work access?

Horse! I know, I know but it is probably a saleable asset and it is a huge drain on your finances. Unfortunately there are no sacred cows (or horses) in being debt free!

You should keep a spending diary for a few weeks and see what that throws up.

Good Luck.

LandyAndy

CLAPTON

well first thing i made your total outgoings to be 2403

i.e. spending about 1,904
and debt repayments about 500


second point that your biggest outgoing is invisible i.e. 1,400 to scrutiny.

thirdly do you spend anything on car tax, insurance, mot, servicing, car repairs, clothes, haircuts, socialising, lunches/coffees, newspapers/magazines etc any presents, xmas costs, weekends away/holidays

you say you pay the costs on the flat but i can't see electricity/gas/ B&C insurance

start a spending diary and keep a record of everything you spend

review the 1,400 spending... surely there must be some things to reduce.

ktb

Hi aah... well done for taking the 1st step... although it's usually a bit of a shock seeing it all in black and white the feeling once you start getting sorted is so good!

Do you cover any of your son's university expenses? If so they should be on your SOA.

Although I can imagine it wouldnt be all that easy in a family situation - I can highly recommend doing a spending diary like Clapton just mentioned. Keep a little notebook or spreadsheet that shows where every penny of your money is going - including the odd couple of quid on a magazine or £20 that you give to your son if he pops back for the weekend etc etc... It has given me so much more control on my spending it's untrue.

Good Luck...

oops_a_daisy

Hi there and welcome to DFW

One way of seeing exactly where your money is going is to do a spending diary. It is easy to buy a few take aways ( for instance ) and spend a hundred on a debit card without noticing it except in your bank balance.
It would also be an idea to look at your bank statements to see where your money is going and the reason you have to keep increasing your overdraft.
Try to do a full SOA showing what goes out of your joint bank account as you may be able to make savings there by moving utility providers, mortgage providers and cutting back a bit etc. Some areas to cut back have already been mentioned by others but I would also second what has been said re the pocket money - you can not afford it at the moment as you are having to borrow the money every month. I am assuming that food etc all come out of the joint account ?
Well done on moving your debts onto 0% but you may have to look into a life of balance card next time to keep thr interest low and not let them go onto higher interest rates.
Good luck and come back with more information. All the best - OOPS

postingalwaysposting

welcome to dfw ahh ... some points, i agree with slowlyfading can you cut your teenage daughters pocket money or could she get a paper round/job. Also you have missed food/household costs, regular treatment (ie hair/dentist) and luch meals/food for the flat off your soa. The only otehr advice i have is a spending diary, know where every penny goes after a few months you can review it and see what you can cut down on/stop ... good luck on your debt journey

aah

yep I have missed the car tax and insurance, haircuts and presents.

Food for home and my flat comes out of the "invisible" 1400 as does son's living allowance (250) - OH contributes to joint account too, a little less than me but he earns less.

Car is paid for, elderly but reliable, £100 fills it up twice a month, thats me cutting back on its use - I work 200 miles away and try to get expenses paid train trips wherever possible. I'm stuck with broadbank for an 18month contract but will either get a cheaper deal or ditch it when done....

Thanks for your helps, I'll try and re-work it. No, no savings (just hoping for equity in house and flat in future, both of us have reasonable work pensions...)

Business gives me a credit card for exps, so they get the cashback points (fair enough, its their money) but I do my best to get loyalty bonuses on trains etc.

Many thanks, pmr

david_hellier

Hi,

Really need to break down that SOA, before we can do any work.

List all outgoings seperately, mortgages and utilities and uni fees/rent etc for both properties. Forget food for the time being; we'll tell you how much you can eat. Does your husband contribute any income?

Pumpkin_2

aah wrote:

yep I have missed the car tax and insurance, haircuts and presents.

Food for home and my flat comes out of the "invisible" 1400 as does son's living allowance (250) - OH contributes to joint account too, a little less than me but he earns less.

Sorry if I'm being nosey but what is your son's living allowance and is that £250 per month?