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

wanna-be-mortgage-free_2

debtington wrote: »

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.

Thanks for that

As said previously, it might be time to look at other options, especially since a default has already been registered on your credit file.

Good luck with it and keep me posted debtington.

jd87

You have to pay a mortgage of nearly £500 a month so that your parents have somewhere to live? Do they pay you any rent? It's respectable that you want to put a roof over their head, but if you weren't doing it they'd still manage.

debtington

Hi folks,

thanks for the replies and apologies for the delay responding; have been car bootin' today as I've been doing every week for a month now, getting rid of old stock, made £70 today:D

@ReadingTim - Yes, I agree the satellite is still a bit high - we pay £60 for phone/all calls, tv and broadband all in - we've already managed to reduce it from £90 odd but we're already looking at other options.

£300 is what we spent last year on a holiday (4 days over Christmas - the ONLY time I took off after working 6/7 days a week for the whole year) but we have no plans to take any holidays this year until we can afford it so yes, it could certainly and will be be used elsewhere.

My partner did used to go to a council gymn but it worked out more expensive than the private membership as he had to pay £5 per visit and why we got the private membership in the first place. We've also looked at off peak. They don't do that option at the current gymn and we live in a semi rual loaction so options are limited. It would mean switching to a different gymn which is further away and we only have one car at the moment so he couldn't go during off peak times anyway as I have the car for work.

@theoretica, - Our house is in a suspended state of disrepair sadly, we were in the middle of refurbishing when things started to get difficult the year before last year so work stopped. We're in a bungalow ('cos of my partner's condition) and have holes in ceiling, doors missing, no flooring throughout, some walls missing and half a bathroom (not all in the same room!!) - it's a complete mess, so no possibilty of a lodger.

The house my parentes live in is literally 4 rooms; living, kitchen, bedroom, bathroom, it's a little single story property. They receive housing benefit for most of the rent and pay about £30 to make it up to £480 - that's the 'other income' in my SOA.

I doubt very much that the NHS will help with the gymn membership I think they'll consider it a luxury but it's definitey worth an ask - it's incredibly hard to explain here the nature of my partners condition and how impreative the gymn is. Suffice to say it's something we consider a neccessity. When he goes he's there for several hours so he does make good use of it - he can't go every day though.

@wbmf - You're welcome. Yes my credit is shot to bits at the moment as all attempts to raise finance personally have proved fruitless.

@jd87 - No I don't pay nearly £500 a month just so my parents have somewhere to live..... they do. I bought the property as an investment and for somewhere secure for them to live but I couldn't do it without the rent - it's in as 'other income' in my SOA. My father is selling his £3500 car to help us out - they will then manage with a 17 year old hatchback they've managed to get through its MOT - and they're raiding cupboards for stuff to sell on Ebay.

Even with the extra savings we are still way off what we need to service our debt. As you suggest wbmf, we could make token payments to the cards until things improve as my credit is trashed anyway. Does anyone have any thoughts regarding an IVA and whether it would suit us?

Thanks everyone, debtington

gizmo111

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

The PM is because they send you to NIDDY's site - had one myself a couple of weeks ago. Obvioulsy people in debt are too stupid to use forums and see they have a PM so it has to be posted on the open forum that one has been sent.
I reported it back then and will continue to do so - NIDDY seems to be all about debt avoidance via CCA etc rather than responsibility and has a fair few followers.

EDIT
Apologies if this was not the reason for the PM

gizmo111

debtington wrote: »

Hi folks,


Even with the extra savings we are still way off what we need to service our debt. As you suggest wbmf, we could make token payments to the cards until things improve as my credit is trashed anyway. Does anyone have any thoughts regarding an IVA and whether it would suit us?

Thanks everyone, debtington

You need to balance your SOA before you can think about token payments let alone IVA. You have no surplus without making cutbacks - which I can't see where. Are you claiming any benefits to supplemtn income? Look here www.entitled.to

Lexxi

Hi, one of the things that hasn't been mentioned to you is the business debt line. They are a charity I used a few years ago I only spoke to them once but they sent me a whole bundle of information that really helped me, there were template letters to send out to people the business owed money to. I was advised to phone as early as possible with all the business info to hand and they then discuss your situation and talk through your options with you - http://www.bdl.org.uk/

Sometimes it's hard enough sorting out the personal finances without having anything else to even think about!

Another suggestion, if your parents are recieving housing benefit, check the council allowances, prices for similar properties in the area and see if you are able to increase the rent at all. I'm only saying this a you have mentioned HB and if you have bought the property to help them out you may not have set a fair rent as you would if you were renting people you aren't related to. The council site will tell you what the allowances are for your area.

sithmaster

debtington wrote: »

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 get a water meter, i live in a 3 bed with 2 adults and pay about £100 every 6 months
Telephone (land line)................... 20
Mobile phone............................ 18.21
TV Licence.............................. 12.16
Satellite/Cable TV...................... 30 if your not on min package try reducing
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 consider getting a pre-payment card for prescriptions
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 sorry but you cant afford
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

made notes above hope it helps a bit, not many changes some people may have more ideas

NeverAgain_2

An alternative suggestion.

Sell both properties and rent somewhere for you all to live in.

debtington

Hi Guys,

thanks for all the suggestions advice and support;

@gizmo111 - I completed the entitled-to questionaire and it turns out I'm probably entitled to working tax credits so I will certainly follow that up. Thanks for the tip. I'll also update my SOA as you sugget and repost when done.

@Lexxi -

Sometimes it's hard enough sorting out the personal finances without having anything else to even think about!

You can say that again!! - Thanks for the tip about the business debt line, I didn't know that existed. Had a peek at their site and will download their help pack.
My father checked the fair rent for our area and we were already receiving the max. It was a few months ago now though so probably worth checking again.

@sithmaster - Thanks for all the hints.
We are already on a water meter installed about 18 months ago. I think the monthly charge is still being assessed, it was £36.00 a month and it reduced to £32.00 just recently after a reading. Because of the sad state our house we don't have a shower at the moment so it's baths for us both. I sacrifice cleanliness for my beloved :grinheart who, again because of his health issues needs a bath every day. However! Now that I qualify for working tax credits I can get help from the WaterSure scheme to cap the overall water charges to £29.33 a month for both metered water and sewerage because I have a qualifying health condition - not much but every little helps and at least I know I can have a bath this month :laugh:
With regard to satellite and holidays, I'd already broached those in previous posts.
Prescriptions: Both me and my partner are already on yearly prescription pre-payment. We both go to national health dentists and take advantage of free eye tests and re-lensing for our specs. I can't see how we can reduce this any more.

Thanks everyone, I'll let you know how I go with all the follow-ups I have to do....

Debtington