My SOA

RhiBi

Please be gentle with me! This is my SOA, which in theory, is ok (I think!) but the reality is different! I've tried to add information to help explain what some things are for.

The MBNA has a huge limit of £17,000 so we're wondering if we could transfer the balances of the other CC's plus the Next card over to it if they will do a low/zero rate interest. This SOA assumes that we pay the minimum amount on all cards whereas we actually to pay a bit more. The MBNA although still on 0% we pay £100 off a month, because if and when the interest free period ends, the interest payments will be high.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 4
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 2850
Benefits................................ 242 this goes into a Co-Operative bank savings account, intended to save, but invariably gets used nearing payday.
Other income............................ 0
Total monthly income.................... 3092

Monthly Expense Details
Mortgage................................ 285
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 103
Electricity............................. 70
Gas..................................... 63 Gas & Elec with Scottish Power, have recently increased from £99 a month for both to £133
Oil..................................... 0
Water rates............................. 33
Telephone (land line)................... 32.51 this includes internet and free calls to USA - my mother lives there!
Mobile phone............................ 29 contract finishes in July, I then intend to go on PAYG, was £37 but I've lowered the tariff as much as possible
TV Licence.............................. 12.5
Satellite/Cable TV...................... 23.5
Internet Services....................... 0
Groceries etc. ......................... 550 this is an estimate
Clothing................................ 0
Petrol/diesel........................... 300
Road tax................................ 17
Car Insurance........................... 20
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 160 hobbies, which I don't want to cancel unless essential
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 8.85 this has increased by over £2 since December, i hadn't even realised!
Buildings insurance..................... 20
Contents insurance...................... 17.55
Life assurance ......................... 10.18
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 30
Emergency fund.......................... 0
Endowment policies...................... 90 tho is a retirement policy of DH, plus policies that mature when children 18 anticipating uni fees.
Amicus Union............................ 11.48
IBMS professional institute............. 14.8these 2 payments are essential for DH to do his job
Total monthly expenses.................. 1901.37


Assets
Cash.................................... 0
House value (Gross)..................... 111000
Shares and bonds........................ 0
Car(s).................................. 2500
Other assets............................ 0
Total Assets............................ 113500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 50000....(285)......1.54
Total secured & HP debts...... 50000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Nationwide Loan................10000.....299.......0 3 years left to pay ironically, taken out to pay CC's!
Halifax........................2679.92...55........14.9
MBNA...........................6720.6....66.2......0
Next...........................1285.07...121.......25.99
Barcalycard....................3755......50.78.....14.9
Littlewoods....................419.......32........0
SCS............................1540......35........0
Apple..........................459.......50.94.....0 finishes in december

Summary of Monthly Income, expense and surplus
Total monthly income: £ 3,092

Expenses (incl. HP & secured debts): £ 1,901.37

Available for debt repayments: £ 1,190.63

Unsecured debt repayments: £ 709.92

Surplus (shortfall if negative) £ 480.71

Personal Balance Sheet Summary
Assets: £ 113,500

Secured & HP Debt £ -50,000

Unsecured Debt £-26,858.59

Net Assets £ 36,641.41

gizmo111

You've missed the bit off the end that works out what you have left for debts

RhiBi

when I click on the MSE link, thats all its bringing up, I'll try typing the rest in manually!

gizmo111

Theres a few things missed off - presents, entertainment, car maintenance, haircuts.
Do you have £480 per month left over?
How old are the children? Can you check the petrol and food costs back through statements?
Are you still using the cards?
There is enough money to pay the debts minimum and overpay - jsut needs a little attention and organisation.

RhiBi

No we have nothing left over! We're in overdraft up to the limit of £1100 by the end of the month (should I have included that in unsecured debts?) We're not still using the cards, we haven't used them since Christmas time. We don't factor in for 'sundries' such as birthdays, haircuts, car maintenance etc (at least having 4 girls, they want long hair!) hence the use of credit cards up until recently.

The children are 14, 11, 7 and 5.

gizmo111

RhiBi wrote: »

No we have nothing left over! We're in overdraft up to the limit of £1100 by the end of the month (should I have included that in unsecured debts?) We're not still using the cards, we haven't used them since Christmas time. We don't factor in for 'sundries' such as birthdays, haircuts, car maintenance etc (at least having 4 girls, they want long hair!) hence the use of credit cards up until recently.

The children are 14, 11, 7 and 5.

To get out of debt then you need to factor all this in else you will end up reaching for the cards - trust me I've been there, and couldn't understand why I had a good income and no money!! Put in £120 for clothes and £40 for haircuts.
Keep a spending diary for the next month and put the overdraft in the debts bit. And then star of the debt bustingat the beginning of May.
The girls are at an expensive age, I have 2 so speak from expereince:D - so I'd also add another £40 for sundries and a minimum of £50 for emergencies.
What about holidays?
You need some entertainment in there as well - try £80.

rising_from_the_ashes

RhiBi wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 4
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 2850
Benefits................................ 242 this goes into a Co-Operative bank savings account, intended to save, but invariably gets used nearing payday.
Other income............................ 0
Total monthly income.................... 3092

Monthly Expense Details
Mortgage................................ 285
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 103
Electricity............................. 70
Gas..................................... 63 Gas & Elec with Scottish Power, have recently increased from £99 a month for both to £133 This is huge .... do you have arrears? Also check your readings against bills, comparison sites & above all turn off things you don't use / need (eg heating in rooms which aren't used a lot, lights etc)
Oil..................................... 0
Water rates............................. 33
Telephone (land line)................... 32.51 this includes internet and free calls to USA - my mother lives there!
Mobile phone............................ 29 contract finishes in July, I then intend to go on PAYG, was £37 but I've lowered the tariff as much as possible
TV Licence.............................. 12.5
Satellite/Cable TV...................... 23.5 Not an essential - could easily go to Freeview
Internet Services....................... 0
Groceries etc. ......................... 550 this is an estimate This is huge ..... (even for a family your size) - try the Grocery Challenge on the Old Style board & I bet you can get £250/month off this over a few months
Clothing................................ 0 Need something in here
Petrol/diesel........................... 300
Road tax................................ 17
Car Insurance........................... 20
Car maintenance (including MOT)......... 0 Need something in here
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 160 hobbies, which I don't want to cancel unless essential mmmmm a lot!
Medical (prescriptions, dentist etc).... 0 Need something in here
Pet insurance/vet bills................. 8.85 this has increased by over £2 since December, i hadn't even realised!
Buildings insurance..................... 20 See below
Contents insurance...................... 17.55 Both figures are really high - check comparison sites - I know it goes on size & area, but as a comparison I pay £15/month total
Life assurance ......................... 10.18
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 Need something in here - probably £10 for each child
Haircuts................................ 0 Need something in here
Entertainment........................... 0 And here
Holiday................................. 30
Emergency fund.......................... 0 This is essential to stop further debt building up - min of £40 to cover appliances etc
Endowment policies...................... 90 tho is a retirement policy of DH, plus policies that mature when children 18 anticipating uni fees.
Amicus Union............................ 11.48
IBMS professional institute............. 14.8these 2 payments are essential for DH to do his job
Total monthly expenses.................. 1901.37


Assets
Cash.................................... 0
House value (Gross)..................... 111000
Shares and bonds........................ 0
Car(s).................................. 2500
Other assets............................ 0
Total Assets............................ 113500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 50000....(285)......1.54
Total secured & HP debts...... 50000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Nationwide Loan................10000.....299.......0 3 years left to pay ironically, taken out to pay CC's! Been there too - consolidation rarely works unless you're very disciplined (which I'm certainly not!)
Halifax........................2679.92...55........14.9
MBNA...........................6720.6....66.2......0
Next...........................1285.07...121.......25.99 Start with this one
Barcalycard....................3755......50.78.....14.9
Littlewoods....................419.......32........0
SCS............................1540......35........0
Apple..........................459.......50.94.....0 finishes in december

Summary of Monthly Income, expense and surplus
Total monthly income: £ 3,092

Expenses (incl. HP & secured debts): £ 1,901.37

Available for debt repayments: £ 1,190.63

Unsecured debt repayments: £ 709.92

Surplus (shortfall if negative) £ 480.71

Personal Balance Sheet Summary
Assets: £ 113,500

Secured & HP Debt £ -50,000

Unsecured Debt £-26,858.59

Net Assets £ 36,641.41

Really on paper it looks OK, although I suspect that by the time all the missing things are added in it's a lot tighter.

A big plus is that your mortgage is so low & there is room to save a lot on the grocery front which should just about cover the above.

Kids expenses are a lot & I understand you not wanting to cut them - see how it goes and if other things can be reduced & you come in under budget then .... but if not then difficult decisions may need to be taken.

Start a spending diary and write down everything - it's amazing how easily £10 here and there adds up.

RhiBi

Thank you so much for your comments, I really appreciate them

The main bulk of other child related is piano lessons. I know not essential, but when you have children who are doing so well (the 11 and 14 year old are about to take Grade 5, the 7 year old grade 1) it's really not something I want to put a stop to unless it is essential.

The SOA is as we deal with finances now, hence nothing factored in for the sundries.

I'll definitely look into switching utilities providers, we aren't in arrears, and the price increase was done without a meter reading being taken. Our home and contents are due for renewal this month so we'll certainly be looking into reducing that - We live in a 3 bedroomed terraced house.

I'm certainly going to keep a spending diary, as the food cost is a complete estimate, and I suspect is actually higher than the estimate.

Do you think we should see if we could transfer the balances of the cc's and the next bill onto the MBNA (limit is unbelievably high at £17,000). And then cancelling the other cards/next account? Assuming MBNA will give 0% on the transfers.

rising_from_the_ashes

RhiBi wrote: »

I'll definitely look into switching utilities providers, we aren't in arrears, and the price increase was done without a meter reading being taken. Our home and contents are due for renewal this month so we'll certainly be looking into reducing that - We live in a 3 bedroomed terraced house.

Ahhh quite a good comparison then (although area will obvious have an impact) as I'm in a 3 bed-semi.

Unless end of terrace, you should be fairly warm & certainly more so than a semi as you're surrounded on both sides - I'm also in Scotland so your heating should certainly be less than mine.

Anyway, for a comparison on Gas & Elec - I pay a total of £64 so less than 1/2 you do (although you will obviously use more hot water than me and wash more!) - and you're also paying more than double what I do for B&C insurance.

HTH when doing some comparisons:)

RhiBi

Thanks again, we're mid terrace, living in south Wales! I'll dig out the policy and see what is covered, check if it's all necessary, and then look around for cheaper alternatives.

I'll also take meter readings for gas and electricity and see if I can submit them online and sort an adjustment

gizmo111

Do you think we should see if we could transfer the balances of the cc's and the next bill onto the MBNA (limit is unbelievably high at £17,000). And then cancelling the other cards/next account? Assuming MBNA will give 0% on the transfers.

you have a balance so unlikely they will give you 0% offer at thsi stage.
have a look and see if there are any long 0% deals that you could transfer to.