My SOA - I think I know where this is heading :-(

debtington

Hello good people,

Below is my SOA, I think I've included everything but please let me know if any more info is required.

Background - I am sole director of a small Ltd Company and things were going along just nicely. However, my business has taken a massive hit in the recession and all attempts to improve things have so far proved unsuccessful - not giving up yet though! My salary was previously £20-25k but has nosedived to barely £5k. We have been juggling personal cards (used primarily to prop up the business) for 18 months or so but this last few months have got more difficult. We are still managing to pay minimum payments, just, but that can't last if business doesn't improve.

My partner is disabled, hence the benefits part of our income, and cannot contribute. I also have chronic health issues but can still work full time at the moment.

I am considering an IVA to resolve the cc debt. I believe the company will not be affected by my personal circumstances and as long as we continue to pay the business loan of 25k, the directors guarantee won't be called upon. I'm not sure if I should have include the business loan in my SOA actually?

What concerns me though is that I have a second property that my elderly parents live in. Without it they would be homeless as they have no income or savings apart from their pensions. The property was bought for £155k in 2008, mortgaged at £141k and worth now £180k at the very most.

I don't believe there is enough in the second property for it to be worth a forced sale but I am reluctant to take to the risk.

All advice and information you can provide would be most welcome.

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 500
Partners monthly income after tax....... 0
Benefits................................ 550
Other income............................ 480
Total monthly income.................... 1530

Monthly Expense Details
Mortgage................................ 522
Secured/HP loan repayments.............. 469
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 130
Electricity............................. 35
Gas..................................... 25
Oil..................................... 0
Water rates............................. 32
Telephone (land line)................... 20
Mobile phone............................ 18.21
TV Licence.............................. 12.16
Satellite/Cable TV...................... 30
Internet Services....................... 10
Groceries etc. ......................... 30
Clothing................................ 5
Petrol/diesel........................... 60
Road tax................................ 1.66
Car Insurance........................... 28.21
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 40.66
Pet insurance/vet bills................. 8
Buildings insurance..................... 25
Contents insurance...................... 0
Life assurance ......................... 44.81
Other insurance......................... 17.24
Presents (birthday, christmas etc)...... 5
Haircuts................................ 3.33
Entertainment........................... 10
Holiday................................. 25
Emergency fund.......................... 0
Personal pension plans (min payments)... 72
Total monthly expenses.................. 1679.28


Assets
Cash.................................... 0
House value (Gross)..................... 192000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 165000
Total Assets............................ 357000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 147745...(522)......4.2<
Mortgage.......................141033...(469)......4
Total secured & HP debts...... 288778....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Santander .....................6700......192.4.....29.84
Tesco Mastercard...............7976......158.......20.94
American Express...............5800......145.......19.9
MBNA (0% til Dec)..............7800......0.........0
Barclaycard....................6300......140.......6.94
Total unsecured debts..........34576.....635.4.....-


Monthly Budget Summary
Total monthly income.................... 1,530
Expenses (including HP & secured debts). 1,679.28
Available for debt repayments........... -149.28
Monthly UNsecured debt repayments....... 635.4
Amount short for making debt repayments. -784.68

Personal Balance Sheet Summary
Total assets (things you own)........... 357,000
Total HP & Secured debt................. -288,778
Total Unsecured debt.................... -34,576
Net Assets.............................. 33,646

Created using the SOA calculator at www dot makesenseofcards dot com
Reproduced on Moneysavingexpert with permission, using Firefox browser.

Thanks all, debtington

wanna-be-mortgage-free_2

Hi there and welcome to the forums.

Yes the recession is hitting people pretty badly. No point in me going through your SOA as it looks like you are doing a great job at keeping your outgoings low. Even with shaving off a little here and there it's not going to make a big difference since you can't service the debts you have.

What year were your cards/loans taken out?

debtington

Hi WBMF, thanks for your reply,

yes, we've managed to reduce our personal outgoings by £3800 pa and sold our second car for £3700 and we've cut the company outgoings by £26k which includes making a very valued part-time member of staff redundant sadly. We're trying very hard!

With regard to the cards;
Tesco mastercard - early 2006
Amex - Feb 2008
Barclaycard - Feb 2009
Santander - Aug 2009 **
MBNA - May 2011

**The rate on the Santander card is currently 29% which I challenged using the advice on this site because I did not receive notification of that increase and further discovered they made 2 rate increases in 2 months at the end of 2010. It is now over 8 weeks since sending the complaint letter so need to find out what to do next on that. In the meantime I've just received a notification that they intend to increase it to 34.5% !!!
:eek::eek::eek:
I will politely decline of course.

McKneff

You must be really starving yourselves - groceries are donw to
£30 a month:D

I presume its a typo........

debtington

Ha, well we are pretty hungry but yes, it's a typo, that's £30.00 a weeks so should be £120.00 a month. Doh!

I also remembered a couple of other things as well, like ya do!

All the aforementioned debt is all in my name but my partner recently took out a 0% 'til Dec 13 (I think) credit card as well for £2k - used to reduce balalnce on another card and paying off just over the minimum at £40.00 while there's no interest. We also have a gymn membership at £39.00 month which is essential for my partners health condition and used 2 to 3 times a week.

Many thanks

wanna-be-mortgage-free_2

Have you defaulted on the cards yet? Might be an idea just to send them token payments at the moment as you are not in a position to keep paying. No point getting in to more debt.

I've sent you a pm.

McKneff

Why a pm, the advice you have may help other people in the same position.

Unless you are touting for business in which case OP please be careful.

Could you actually qualify your user name.

Does it actually mean

Do you want to be mortgage free?

or

I want to be mortgage free.

Im sure you wll agree it is a little ambiguous

wanna-be-mortgage-free_2

McKneff wrote: »

Why a pm, the advice you have may help other people in the same position.

Unless you are touting for business in which case OP please be careful.

Could you actually qualify your user name.

Does it actually mean

Do you want to be mortgage free?

or

I want to be mortgage free.

Im sure you wll agree it is a little ambiguous

For one, NO I AM NOT TOUTING FOR BUSINESS. And two, what has my user name got to do with anything? Do you go round asking others to 'qualify' their user names?

debtington

Oooh.......... bit harsh........WBMF wasn't touting for business I can assure you.

Aaaanyway.....

I missed one payment on the Barclaycard but caught up within 3 weeks - Barclaycard have registered the default on my credit file for this.

I also missed and caught up one RBS mortgage repayment and one Santander mortgage payment.

Repayments are currently up to date on everything.

ReadingTim

I'd suggest that the £30 per month satellite/cable tv is a luxury you could cut out - there's a reasonable number of channels on freeview now

The holiday money could perhaps be reallocated until things improve also...

Can you reduce the gym fees at all - switch to an off peak mmbership, use council facilities on a pay as you go basis etc? If not, try and go more often - 2 or 3 times a week means you're not getting that good value from your membership!

theoretica

Do you have a spare room you could take a lodger in- in either of your houses?

You might find it useful to talk to Age Concern or a similar charity about your parents' options if you do need to sell that house - they won't be the only retired couple surviving on their pension. Are they paying anything in rent towards the mortgage?

As the gym is medically necessary can the NHS help?