Hiya, I'm new! (SOA)

beckysld

Hiya everyone, I'm new and have been reading these forums for years but now I really need to pluck up the courage and post my SOA. I find this whole community really helpful so I appreciate any advice and support I am given!

Briefly, I am 21, moved away to uni aged 17, worked full time during my degree to fund my living expenses but unfortunately Edinburgh prices lead me deeper and deeper into debt. I have never been good at organising money and tended to bury my head in the sand. Now I'm back home and working but finding every month harder to deal with.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1004
Partners monthly income after tax.......
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1004

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 170
Rent.................................... 295
Management charge (leasehold property).. 0
Council tax............................. 78
Electricity............................. 20
Gas..................................... 20
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 6
Mobile phone............................ 29
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 19
Groceries etc. ......................... 80
Clothing................................ 5
Petrol/diesel........................... 160
Road tax................................ 10
Car Insurance........................... 79
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1004 (If this is added up correctly, it is a complete cooincidence!)


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1020 (paid to HP so far/against finance?)
Other assets............................ 0
Total Assets............................ 1020


Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 0........0...............0
HP................................7100.....170.........9%(can't remember)
Total secured & HP debts...... 0.........-.........-

Unsecured Debts
Description....................Debt......Monthly.. .APR
Very credit account........350.....50........39.9% as interest free period expiring
Capital One CC................200.......5.........19.9%
Creation/FlyBe CC..........1800.......50....... .19.9%
Vanquis CC....................250.......250 (if possible, then live out of it, can barely ever afford to do that).......49.9%!
Barclaycard CC...............400.......0........39.9% (interest free for 3 more months)
Debenhams.....................1000.......30.........19.9%
Halifax OD.......................900.......40..........not sure, it's the Ultimate Reward Account which basically costs £10+£1/day
Lloyds Graduate OD...........2000.......0....... .? (interest free period ends end July, then staggered interest)
RBS OD...........................250.......12.95.......Royalties Gold Account £12.95/month (no interest on OD)
Total unsecured debts..........7150......437.95.......-


Monthly Budget Summary
Total monthly income.................... 1004
Expenses (including HP & secured debts). 1004
Available for debt repayments........... 0
Monthly UNsecured debt repayments....... 437.95
Amount left after debt repayments....... -437.95

Personal Balance Sheet Summary
Total assets (things you own)........... 1020
Total HP & Secured debt................. -7100
Total Unsecured debt.................... -7150
Net Assets.............................. -13580

Hope I've filled it all in okay. Most of it is pretty accurate. I cannot cut costs on petrol unfortunately -- my car does 60mpg and I live 20 miles away from my work in a very rural area with an infrequent bus service. I have no relatives I can move in with to be nearby and rental prices in the town I work in are higher than what I am paying now by almost as much as the fuel. I know a lot of people find a car expendable but due to some family circumstances/in the event of an emergency, I don't know what I would do. Anyway, I am very open to help, suggestions, etc. I am having to live off new expensive credit every month. I have had a raise at work after trying to negotiate but it just doesn't stretch. I have tried everything to consolidate the debt - bank loans, 0% credit cards etc but am turned down for everything due to poor credit rating. I'm on the electoral role and follow my manage my accounts the best I can. Do I have to turn to a DMP/DAS?

Thanks everyone.

mildredalien

hi there, well done for unburying your head!

Your outgoings already seem fairly slim although could you reduce your mobile bill a bit by switching to PAYG? You have nothing in your budget for haircuts, entertainment or emergency fund though so I assume anything you pay to those goes on credit cards... as it is your income only just covers your expenses and you have no money left over to service your debts. I'm not even sure you can get a DMP if you literally have zero money to pay towards it?

The only things I can think of are finding a way to increase your income (a second job, ebaying, freelance work, mystery shopping, surveys etc). have you checked if you are entitled to any benefits e.g. working tax credit seeing as you are on a lowish income?

How much is your car actually worth? If you returned it could you get anything back? That £170 a month you are paying to get a new car could go towards actually paying off some debts if you could pick up a reasonable and reliable older car. Any chance friends or family could help there?

NeverAgain_2

You say you are 'back at home', but your budget is being battered each month by rent and council tax.

Wanting to pay your way is only right, but can parents/whoever it is give you a rent free or reduced rent period?

You are only 21, so could hardly be classed as sponging of them.

amyloofoo

beckysld wrote: »

Hiya everyone, I'm new and have been reading these forums for years but now I really need to pluck up the courage and post my SOA. I find this whole community really helpful so I appreciate any advice and support I am given!

Briefly, I am 21, moved away to uni aged 17, worked full time during my degree to fund my living expenses but unfortunately Edinburgh prices lead me deeper and deeper into debt. I have never been good at organising money and tended to bury my head in the sand. Now I'm back home and working but finding every month harder to deal with.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1004
Partners monthly income after tax.......
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1004

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 170
Rent.................................... 295
Management charge (leasehold property).. 0
Council tax............................. 78 does this include single person discount?
Electricity............................. 20 whilst both of these seem reasonable, have you looked whether you could save money by changing provider / plan?
Gas..................................... 20
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 6
Mobile phone............................ 29 again, this seems pretty reasonable, but have you contacted your provider and explained your situation? Sometimes they're able to help with reducing costs.
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 19
Groceries etc. ......................... 80
Clothing................................ 5
Petrol/diesel........................... 160
Road tax................................ 10
Car Insurance........................... 79
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1004 (If this is added up correctly, it is a complete cooincidence!)


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1020 (paid to HP so far/against finance?)
Other assets............................ 0
Total Assets............................ 1020


Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 0........0...............0
HP................................7100.....170.........9%(can't remember)
Total secured & HP debts...... 0.........-.........-

Unsecured Debts
Description....................Debt......Monthly.. .APR
Very credit account........350.....50........39.9% as interest free period expiring contact vey and arrange a repayment plan - they're usually quite willing to do this and may freeze / reduce interest
Capital One CC................200.......5.........19.9%
Creation/FlyBe CC..........1800.......50....... .19.9%
Vanquis CC....................250.......250 (if possible, then live out of it, can barely ever afford to do that).......49.9%! why are you spending at all on the card which has the highest interest? Have the other cards been cancelled or have you reached your credit limit?
Barclaycard CC...............400.......0........39.9% (interest free for 3 more months) Could you transfer some of your higher interest debt to this account for at least the remainder of the interest free period?
Debenhams.....................1000.......30.........19.9%
Halifax OD.......................900.......40..........not sure, it's the Ultimate Reward Account which basically costs £10+£1/day
Do you need / use the rewards associated with this account? If not then it might be cheaper to downgrade.
Lloyds Graduate OD...........2000.......0....... .? (interest free period ends end July, then staggered interest) Will they also reduce your OD amount at this time? It's worth checking as they did this to me and it caught me off guard.
RBS OD...........................250.......12.95.......Royalties Gold Account £12.95/month (no interest on OD)
Total unsecured debts..........7150......437.95.......-


Monthly Budget Summary
Total monthly income.................... 1004
Expenses (including HP & secured debts). 1004
Available for debt repayments........... 0
Monthly UNsecured debt repayments....... 437.95
Amount left after debt repayments....... -437.95

Personal Balance Sheet Summary
Total assets (things you own)........... 1020
Total HP & Secured debt................. -7100
Total Unsecured debt.................... -7150
Net Assets.............................. -13580

Hope I've filled it all in okay. Most of it is pretty accurate. I cannot cut costs on petrol unfortunately -- my car does 60mpg and I live 20 miles away from my work in a very rural area with an infrequent bus service. I have no relatives I can move in with to be nearby and rental prices in the town I work in are higher than what I am paying now by almost as much as the fuel. I know a lot of people find a car expendable but due to some family circumstances/in the event of an emergency, I don't know what I would do. Anyway, I am very open to help, suggestions, etc. I am having to live off new expensive credit every month. I have had a raise at work after trying to negotiate but it just doesn't stretch. I have tried everything to consolidate the debt - bank loans, 0% credit cards etc but am turned down for everything due to poor credit rating. I'm on the electoral role and follow my manage my accounts the best I can. Do I have to turn to a DMP/DAS?

Thanks everyone.

I know this looks really bad and I'm sure someone more knowledgeable than myself will be along to offer some better and more detailed advice. There are savings which can be made but ultimately the decision of whether to go on a DMP will be down to yourself.

Is there any possibility of getting a second job until the debt is cleared? Could family or friends help you out with clearing some of the higher interest debts?

Also, please stop applying for more cards. It's highly unlikely you'll get any more credit with your income and level of debt as it stands; the repeated searches and applications will only damage your credit history further.

carrielovesfanta

Sadly the OP won't be entitled to working tax credit, you have to be 26+ if you don't have kids (because obviously people younger than that don't need a decent income )

OP - I really think that the best thing for you to do would be to try and get a second job. your SOA looks like you are doing really well at the moment - although do check your council tax for single person discount if you are living alone.

beckysld

Thanks for such speedy and helpful responses, everyone! Really didn't expect anything so promptly!

mildredalien I literally don't have entertainment or do anything! My friend is a hairdresser so I am lucky there though.

I have been looking for extra jobs etc but in such a remote area it's difficult. I think the car is worth 7k-ish. I wish I was able to clear the finance to sell it, or return the car but I'm not entirely sure what the best thing to do is. Unfortunately the car is a bit of a regret but I was having such a crisis with my old banger - it was costing a fortune but worth nothing in the end! I thought a newer car would be cheaper and more reliable in the long run, and actually leave me with an asset but it doesn't seem to be working out that way!

NeverAgain - hiya, when I say "back home" I mean where I am from, sorry complete habit! As a matter of fact I have no family here anymore and am considering the options you've mentioned with friends and my partner. He is not in a position to provide for me wholly but together our outgoings would obviously be much reduced. It is a bit of a contentious issue at the moment, but the money I would save would be an enormous help! I have my fingers crossed for this option, and am doing everything I can.

amyloofoo - thanks for your comments. Definitely going to look to contact Lloyds re my graduate OD and Very re my credit, etc. Do they need an official letter from CAB or is it simply worth calling them myself? Will it affect my credit rating substantially to have interest rates frozen?

Thanks everyone!

mildredalien

Wow that sucks! I think by back home the OP meant hometown.

If you are living alone, would it be cheaper to find a houseshare perhaps?

beckysld

carrielovesfanta wrote: »

Sadly the OP won't be entitled to working tax credit, you have to be 26+ if you don't have kids (because obviously people younger than that don't need a decent income )

OP - I really think that the best thing for you to do would be to try and get a second job. your SOA looks like you are doing really well at the moment - although do check your council tax for single person discount if you are living alone.

Thanks for your help re tax credits. I wasn't sure about it at all. The age thing is ridiculous, I wish it was means-tested. And no kids (un)fortunately!

beckysld

mildredalien wrote: »

Wow that sucks! I think by back home the OP meant hometown.

If you are living alone, would it be cheaper to find a houseshare perhaps?

Definitely will be looking for houseshare (with my partner or not!).

And congratulations on being so near your debt-free date! :T

NeverAgain_2

Becky.

Thanks, you can always rely on an internet forum for a misunderstanding.

Council tax looks high for a cheap rental property.

Are you getting the single person's discount?

Assuming that applies in Scotland.

Time_to_face_the_music

Hi beckysld and welcome :hello:

You have two debts listed as secured/HP @ £170 each, is this actually the same debt?

Are you at the limit on all your CCs and your ODs? Is there any room for transfer to a lower rate on some of your high interest debts?

Are you getting any benefits from the fee paying RBS and Halifax ODs?

It must be very difficult to get a second job in a remote area, do you have any uni books you can sell via Amazon etc? Or anything to ebay?

Have you signed up for any survey sites to earn cash/vouchers? YouGov and Valued Opinions are both good.

You've come to the right place for help, lots of people will offer you advice and the benefit of their experiences :T