How does our SOA measure up?? a bit worried about debts

Tommymax81

Thanks for all of the posts and advice. I am thinking more seriously about using some of the savings to pay off some of the CC debt.

Nat - I agree that my debt level is scary. It is also scary how is creeps up on you without you realising how much you owe until that awful day when you add it all up!!! It is the CC debt that I have the biggest issue with. I know that the loan is not interest free but it is a fixed payment and I know exactly when it will end etc. It would also be very manageable if we were not also servicing the CC debt.

I reckon that I can clear all of the CC debt in 18 months ( or recoup savings depending on what I decide to do).

I know that my level of debt is high but I wonder how common my situation is?? I think that part of my problem before was that I always felt that everyone was in debt and that I was just doing what everyone else does. I am starting to think that this may not be the case!!!!

afly

You're far from alone Tommy believe me. In fact it looks pretty good whilst you have the 0% cards. The motivator for me was simply to look at how much you are paying in loans & cc's each month (£644, nearly 8k a year) and think how it would be nice instead to be adding that to a savings pot or having as disposable for the family each month

Tommymax81

Afly it would be great to have that Cash to spend/save and I can now see that is a possibilty in the not too distant future!! :j

Tommymax81

My new, realistic SOA. I have taken out our holiday fund. This years hol is paid for and we aren't planning until at least a big chunk of our CC debt is cleared. I have entered the amount I am planning to pay off the CC's as opposed to the minimum payment so this should give a more realistic idea of how much we will have left each month - about £650 which doesn't seem too bad. I am also going to keep a spending diary to see exactly where this disposable income goes.

Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 2310
Partners monthly income after tax....... 923
Benefits................................ 81.2
Other income............................ 0
Total monthly income.................... 3314.2
Monthly Expense Details
Mortgage................................ 497
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 103
Electricity............................. 50
Gas..................................... 70
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 5
Mobile phone............................ 60
TV Licence.............................. 14
Satellite/Cable TV...................... 17
Internet Services....................... 15
Groceries etc. ......................... 200
Clothing................................ 50
Petrol/diesel........................... 180
Road tax................................ 7
Car Insurance........................... 78
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 200
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 25
Contents insurance...................... 0
Life assurance ......................... 33
Other insurance......................... 14
Presents (birthday, christmas etc)...... 70
Haircuts................................ 10
Entertainment........................... 40
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1828

Assets
Cash.................................... 15850
House value (Gross)..................... 135000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 154850

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 97000....(497)......1.5
Total secured & HP debts...... 97000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
credit card....................5000......200.......0
credit card....................3000......150.......0
loan...........................12105.....367.......8
car loan.......................3750......120.......9
Total unsecured debts..........23855.....837.......-

Monthly Budget Summary
Total monthly income.................... 3,314.2
Expenses (including HP & secured debts). 1,828
Available for debt repayments........... 1,486.2
Monthly UNsecured debt repayments....... 837
Amount left after debt repayments....... 649.2
Personal Balance Sheet Summary
Total assets (things you own)........... 154,850
Total HP & Secured debt................. -97,000
Total Unsecured debt.................... -23,855
Net Assets.............................. 33,995

Tommymax81

Just thought I would post a quick update. Had a really positive couple of months and have managed to be far less wasteful with money just by making small changes. I have also reviewed all of our insurance policies and utility bills and have managed to save £85 per month!!

orcocan

congrats mate keep it up

i also think you can halve your mobile phone bill, move to payg with giffgaff, gas seems quite high too and 70 pounds a month for presents to me is just a bit ridiculous

best of luck!!!

Tommymax81

Hi Orcocan

I am currently tied into my phone contract for another 12 months but I will definitely be looking to lower this when I can. Our gas and electricity actually increased above what is stated on my SOA but I have switched and now pay £94 per month for both.

The present money pays for christmas, birthdays etc etc. We normally have a bit left over after christmas which normally we would have just wasted but we will now be using this more productively.

I am aiming to be Credit card debt free in 2 years and my loan ends a year later so I so feel like I am getting there slowly but surely.