HELP: SOA indicated a shortfall but I can't see how? Must be why we're in debt!!!

catsense13

SOA is below. I think's it's saying we have a shortfall of £154.22 which would explain why we are in debt. I had my 17 month old son and returned to work in October 2011 3 days a week. we haven't really changed our lifestyle much and I know that I need to reduce our shopping. My husband had a heart attack 9th april and has been on statutory sick retunring to work on 18th June 2012. However, working out our income and direct debits I think we should be ok... Can't see what house value and number of cars/peeps in house has to do with anything or am I being obtuse? Any help would be greatly appreciated.

[tt]Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 750
Partners monthly income after tax....... 1220
Benefits................................ 81.2 Child benefit
Other income............................ 0
Total monthly income.................... 2051.2

Monthly Expense Details
Mortgage................................ 720.3
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 115
Electricity............................. 62
Gas..................................... 0
Oil..................................... 60
Water rates............................. 35
Telephone (land line)................... 20 tel/net & TV all paid in one to BT but I have split to equal the same
Mobile phone............................ 15
TV Licence.............................. 12.12
Satellite/Cable TV...................... 20 part of BT all-in-one
Internet Services....................... 5 part of BT all-in-one
Groceries etc. ......................... 500
Clothing................................ 10 averaged over a year. i haven't bought clothes for several years mostly only buy for our son
Petrol/diesel........................... 160
Road tax................................ 15
Car Insurance........................... 32
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 114
Bank overdraft charge (Santander)............ 10
Medical (dentist).... 8
Pet insurance................. 7
Buildings insurance..................... 15
Contents insurance...................... 15
Hubbie's pension assurance ......................... 100
Brown bin......................... 3
Presents (birthday & christmas etc)...... 80 (about £1000 a year)
Haircuts................................ 10 every 6-8 weeks
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2159.42


Assets
Cash.................................... 200
House value (Gross)..................... 150000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 153200


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 96026.5..(720.3)....5.49
Total secured & HP debts...... 96026.5...-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Virgin credit card.............2300......25........0 (this was to pay off a £2000 joint account overdraft and £300 to pay a bit off my hubbie's overdraft with santander hence we still get charged £10/month for being overdrawn but within our overdraft limit)
Barclaycard....................885.23....21........0
Nationwide overdraft...........1020......0.........18.9
Santander overdraft............590.7.....0.........0 (£1/day for 10 days capped at £10)
Total unsecured debts..........4795.93...46........-


Monthly Budget Summary
Total monthly income.................... 2,051.2
Expenses (including HP & secured debts). 2,159.42
Available for debt repayments........... -108.22
Monthly UNsecured debt repayments....... 46
Amount short for making debt repayments. -154.22

Personal Balance Sheet Summary
Total assets (things you own)........... 153,200
Total HP & Secured debt................. -96,026.5
Total Unsecured debt.................... -4,795.93
Net Assets.............................. 52,377.57

Hope this makes sense to some of you

RAS

Do you really spend £500 per month on groceries? That ia absolutely massive for three people particularly if one is a child.

You could halve that quite reasonably.

DCFC79

First thing that stands out is the £500 on groceries and the £80 for birthdays. Is the mobile a contract or payg, can you not reduce that or switch to payg for a sim only £10 month deal.

What about selling stuff, doing online surveys although it does take some time to get anything decent.

Do you have an aldi/lidl/home bargains/B&M store close by to use for groceries, check the food shopping boards for what to buy/what not to buy inm aldi/lidl.

OR
You ditch the brands and go supermarket own/value range, if the shops own brand/value isn't worth it(eg not as good, poor taste) then find another equivalent eg from 1 of the discounters if cheaper.

flippin36

Yes totally agree. £500 for groceries and £80 for gifts is huge. I feed a family of 4 (two hungry teenagers, plus large dog) for £200 - sometimes less, and we eat very well on that.

Gifts I spend around £400 a year for two Children each year, but some of that comes from saved survey vouchers, loyalty points , cashback etc. This also includes cost of parties which I usually do at home quite cheaply. We don't spend much on ourselves and have agreed to not buy for other grown ups.

You could easily scale all this down have a postive balance, and perhaps save a little for a holiday for instance. Definitely consider starting an emergency fund - it will stop you going further into debt. The washing machine always breaks down when there is no spare money, and cars are a very unpredictable cost.

Barbeduk

Ditto above. If you go to the old style board you'll find the grocery challenge, it'll really help you drop the spending there. The present fund is huge!

Could I just query the £9 for brown bin? Is that to get it cleaned? If so, stop it! You might as well put the £9 in the bin!!

With a few tweaks your budget should work fine, remember to pop something into entertainment and emergency fund even if you put off the holiday fund til the debt's gone.

Do consider the survey sites. I've just got into doing them regularly and it's amazing how quickly the money builds up.

Good luck!

princessdon

I can't help with your SOA (useless at budgeting personally that's why I am on here to help myself!)

But from your wages you appear to be close to the £26K that allows tax credits. You mention a pension assurance -- Is this a pension you pay into? You mention childcare do you use salary sacrifice childcare vouchers?

Reason I ask is that payment for above is "disregarded" for tax credits for want a basic explanation. Ergo if you earn £28K a year, but can offset the pension and childcare vouchers to reduce to under £26K you will tax credits.

Apologies as I know this isn't SOA advice, but if you can bring in the value of tax credits it may be worth looking at. This extra can be thrown at the debt.

Takeaway_Addict

catsense13 wrote: »

SOA is below. I think's it's saying we have a shortfall of £154.22 which would explain why we are in debt. I had my 17 month old son and returned to work in October 2011 3 days a week. we haven't really changed our lifestyle much and I know that I need to reduce our shopping. My husband had a heart attack 9th april and has been on statutory sick retunring to work on 18th June 2012. However, working out our income and direct debits I think we should be ok... Can't see what house value and number of cars/peeps in house has to do with anything or am I being obtuse? Any help would be greatly appreciated.

[tt]Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 750
Partners monthly income after tax....... 1220
Benefits................................ 81.2 Child benefit
Other income............................ 0
Total monthly income.................... 2051.2

Monthly Expense Details
Mortgage................................ 720.3
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 115
Electricity............................. 62This is high
Gas..................................... 0
Oil..................................... 60£720 a year is that correct?
Water rates............................. 35
Telephone (land line)................... 20 tel/net & TV all paid in one to BT but I have split to equal the same
Mobile phone............................ 15
TV Licence.............................. 12.12
Satellite/Cable TV...................... 20 part of BT all-in-one
Internet Services....................... 5 part of BT all-in-one
Groceries etc. ......................... 500massively massively high! Cut in half!
Clothing................................ 10 averaged over a year. i haven't bought clothes for several years mostly only buy for our son
Petrol/diesel........................... 160
Road tax................................ 15
Car Insurance........................... 32
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 114
Bank overdraft charge (Santander)............ 10
Medical (dentist).... 8
Pet insurance................. 7
Buildings insurance..................... 15
Contents insurance...................... 15
Hubbie's pension assurance ......................... 100
Brown bin......................... 9
Presents (birthday & christmas etc)...... 80 (about £1000 a year)How many is this for because £1000 is alot for say 5/6
Haircuts................................ 10 every 6-8 weeks
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2159.42


Assets
Cash.................................... 200
House value (Gross)..................... 150000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 153200


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 96026.5..(720.3)....5.49
Total secured & HP debts...... 96026.5...-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Virgin credit card.............2300......25........0 (this was to pay off a £2000 joint account overdraft and £300 to pay a bit off my hubbie's overdraft with santander hence we still get charged £10/month for being overdrawn but within our overdraft limit)
Barclaycard....................885.23....21........0
Nationwide overdraft...........1020......0.........18.9
Santander overdraft............590.7.....0.........0 (£1/day for 10 days capped at £10)
Total unsecured debts..........4795.93...46........-


Monthly Budget Summary
Total monthly income.................... 2,051.2
Expenses (including HP & secured debts). 2,159.42
Available for debt repayments........... -108.22
Monthly UNsecured debt repayments....... 46
Amount short for making debt repayments. -154.22

Personal Balance Sheet Summary
Total assets (things you own)........... 153,200
Total HP & Secured debt................. -96,026.5
Total Unsecured debt.................... -4,795.93
Net Assets.............................. 52,377.57

Hope this makes sense to some of you

Some points of view, some real easy savings here for you...

asparagus1968

i'd suggest meal planning/storecupboard challenge etc to get that massive £500 down-pop over to the Old Style board-it's really great.

also-your house/contents insurance seems high -look on comparison sites and get to them via a cashback site.

i recently got £50 cashback for combined house/contents insurance of £16 per month.just a thought.

[Deleted User]

catsense13 wrote: »

[tt]Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 750Any way to increase? Overtime? Second job?
Partners monthly income after tax....... 1220As above
Benefits................................ 81.2 Child benefit
Total monthly income.................... 2051.2[/b]

Monthly Expense Details
Mortgage................................ 720.3
Council tax............................. 115Is this being paid over the usual 10 months? Ask your council if you can spread the payment over 12 months. If not, overpay debt by an equivalent amount during your CT free months
Electricity............................. 62This seems on the high side, are you in arrears (if so when will they be repaid), if not in arrears, check that you are not in credit with the company (if so, claim it back). make sure that you are using the electric conservatively - switch things off, don't leave them on standby, use energy saving bulbs, switch down the thermostat on the boiler [you will not notice]
Oil..................................... 60I am assuming that this is heating only? If so, do you pay this monthly? Or save it somewhere for winter months?
Water rates............................. 35Are you on a meter? If not consider if one would be cheaper.
Telephone (land line)................... 20 tel/net & TV all paid in one to BT but I have split to equal the sameThis all looks quite high. £45/month. Get rid of pay-for TV and use freeview or free sat. Also compare companies that operate in your area for the cheapest option for phone & internet
Mobile phone............................ 15how many phones is this for? Are any in contract. make sure that you are on the cheapest plan for usage - SIM only and PAYG - check out GiffGaff (you can transfer your number) - I switched and halved my mobile bill
TV Licence.............................. 12.12
Satellite/Cable TV...................... 20 part of BT all-in-oneAs above - I think you can cut this
Internet Services....................... 5 part of BT all-in-oneAs above - I think you can get home phone & internet for £20-£25 pm
Groceries etc. ......................... 500This is very very high - is there a particular dietary restriction that is causing this? Drop brands (use supermarket own brand products), try lidl/Aldi, cook from scratch, meal plan, batch cook, only buy what you will actually use and that you actually need - make a list before you go, and stick to it.For 2 adults we pay approx £150 including all food (B,L,D) and cat food and all cleaning/household bits and bobs, and we really don't have to put much of an effort in to do it
Clothing................................ 10 averaged over a year. i haven't bought clothes for several years mostly only buy for our son(is this saved somewhere for when it's needed?
Petrol/diesel........................... 160Any way to reduce? Would public transport be an option? Can you car share?
Road tax................................ 15
Car Insurance........................... 32
Car maintenance (including MOT)......... 10Is this saved somewhere for where it is needed?
Childcare/nursery....................... 114Is your child of pre-school age? If so will this reduce when they attend school? When will that be? Or is this after school club/care?
Bank overdraft charge (Santander)............ 10
Medical (dentist).... 8
Pet insurance................. 7
Buildings insurance..................... 15At renewal shop around and check for incentives on the cashback sites (onepoll cashback, quidco, topcashback)
Contents insurance...................... 15Often combined contents and building is cheaper
Hubbie's pension assurance ......................... 100
Brown bin......................... 9
Presents (birthday & christmas etc)...... 80 (about £1000 a year)This seems very high, do you actually save this somewhere for when it's needed? Buy presents in sales and when other offers are on, and keep an eye on the deals sections of this site for some really good offers for when they are needed. Also, join some of the survey sites (eg toluna, YouGov etc) -this will never make you a lot of money but you can earn vouchers that can be saved up for Xmas and birthdays and help reduce the cost a bit, it is not a quick way to make money though
Haircuts................................ 10 every 6-8 weeksSee if there's a college nearby that does trainee cuts for free/really cheap
Entertainment........................... 0never?
Emergency fund.......................... 0Might be worthwhile putting a little here to cover the cost of any unexpected/unplanned bill or expense that crops up, so you don't need to reach for credit again
Total monthly expenses.................. 2159.42


Assets
Cash.................................... 200Is this saving for non-monthly bills? Or something else?
House value (Gross)..................... 150000
Car(s).................................. 3000
Total Assets............................ 153200[/b]


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 96026.5..(720.3)....5.49
Total secured & HP debts...... 96026.5...-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Virgin credit card.............2300......25........0 (this was to pay off a £2000 joint account overdraft and £300 to pay a bit off my hubbie's overdraft with santander hence we still get charged £10/month for being overdrawn but within our overdraft limit)Is this 0% then, and actually reducing by £25 per month? When will the 0% end? (is it life of balance, or an introductory deal? And if it will revert to a standard rate, what will it be then?)
Barclaycard....................885.23....21........0As above. Is this 0% and actually reducing by £21 per month? If so, does/when will the 0% end?
Nationwide overdraft...........1020......0.........18.9This debt is the one that seems to be costing you the most, What is the monthly charge then? I think when you begin to find a surplus in your SOA you need to tackle this one first (while always maintaining minimum payments on all other debts). Can you transfer this debt to 0% or a lower APR than 18.9%?
Santander overdraft............590.7.....0.........0 (£1/day for 10 days capped at £10)
Total unsecured debts..........4795.93...46........-


Monthly Budget Summary
Total monthly income.................... 2,051.2
Expenses (including HP & secured debts). 2,159.42
Available for debt repayments........... -108.22
Monthly UNsecured debt repayments....... 46
Amount short for making debt repayments. -154.22The first thing that you need to do is get you income to at least equal your outgoings to just prevent you from getting further in to debt, and to really start tackling the debt you need to get this to show a surplus. I really don't think that this could be too difficult, as other posters have noted - you really need to get the groceries under control and really reigned in.

Personal Balance Sheet Summary
Total assets (things you own)........... 153,200
Total HP & Secured debt................. -96,026.5
Total Unsecured debt.................... -4,795.93
Net Assets.............................. 52,377.57
/QUOTE]

I have made some comments above, I hope that they help.

D9

paulmapp8306

totally agree on prezzies and food. I run a family of 4, and we spend quite a lot - on £400/month (thats ALL shoping, not just food) and £50 for prezzies and christmas (complete including dinner, decs etc).

As for childcare, are you on a voucjer scheme? or other help? - that wouled cuit costs a little.

I dont think Elec/Oil is high TBH. i spend about that on oil, and more on electric. i have a monitor and Im using around £3/day electeric being VERY carefull on whats on and not. Taht said, Im in NI so its 15.3p/unit. If I was mainland Id be on around 10.5p/unit - so roughly 2/3 the cost. Thats still £2/day - so £60. I think your about right there.

You need to cut your BT all in one - down to just phone and basic internet. That would save around £20/month.

Petrol looks high though - unless you commute a large distance for work.

Louise600

I have just noticed that the Child Benefit is listed as a 4 weekly figure, have you changed everything to calendar monthly? This should be £88 a calendar month. It's only £7 difference but every little helps!