SOA - please can you take a look and give me some advice please!

mellas666

People really are just trying to help you by offering places to save money.
Please stop being so defensive and allow us to make suggestions as you have asked.
Well done on bt.

XXSCOTSLASSXX

nicnicj wrote: »

Maybe we haven't had our LBM like everyone keeps going on about but to us, holidays are important.
You only live once and although I might have debts right now, I would rather have experienced life than be miserable sat on a massive pile of cash not spending it. Yes I will probably get flamed for this - whatever....

yes ur probably right live life in the moment and enjoy enjoy enjoy, the memories of those holidays will keep a roof over your head and the kids warm and fed if (god forbid) any unforeseen circumstances were to arise...

nicnicj

you obviously didn't even read my post as i am allowing people to make suggestions as you can see if you read back through my posts.

however, looking now at the fact you are a 'newbie', me thinks you might be trolling and trying to wind me up so shame on you!

nicnicj

XXSCOTSLASSXX wrote: »

yes ur probably right live life in the moment and enjoy enjoy enjoy, the memories of those holidays will keep a roof over your head and the kids warm and fed if (god forbid) any unforeseen circumstances were to arise...

yes ok maybe my comments will come back and bite me on the !!!.. probably a bit flippant I know. Of course I do worry about situations arising that would be a nightmare, who doesn't?
if the worst came to the worst, we would cash in our endowment policy which is worth about £15k at the moment and our parents would probably help us out.

I think ultimately making the post about myself gave me a kick up the !!!! to actually start doing something about my debts and not have my head in the sand. I'm sorry that you all don't agree with everything I'm saying and that must be frustrating but you can only do one step at a time!! I am trying, honestly!!

mum2one

nicnicj wrote: »

here is my SOA that i've done today... I would like some advice on how to get rid of our credit card debt.
Have tried calling the bank today to ask for a consolidation loan/extension to our mortgage but no joy as we want to borrow too much/don't earn enough.
without sounding daft thats the best answer, your soon get into shape on these boards
any advice much appreciated, thank you!!

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1234
Partners monthly income after tax....... 2200
Benefits................................ 135
Other income............................ 0
Total monthly income.................... 3569

Monthly Expense Details
Mortgage................................ 200
Secured/HP loan repayments.............. 343 - ?what are those for
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 153
Electricity............................. 65 - are you on the best tariff, is anyone lazy, leaving items on standby still uses 80% of the elec, leaving lights on in rooms?
Gas..................................... 35
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 25
Mobile phone............................ 65- even if your n contract ask to be reduced a tariff, most alllow at renewal either go sim only or pay and go. Giff gaff seem to be the market leaders on price and packages at the mo.
TV Licence.............................. 12
Satellite/Cable TV...................... 40 - if youve just took that out ur tied into a 12 mth contract, but beware the prices are due to rise in Sep.
Internet Services....................... 25 - way to high I pay £7.30 per month unliited internet, and all my local and national calls (aol)
Groceries etc. ......................... 1000 - sorry way to high - were family, 3 adults, 1 child + dog, max we spend is £500 thats not even going via old style boards - we shop at Tesco then anything frozen we go to Iceland
Clothing................................ 150 - this needs to be adjusted brand drop, supermarket items do as good, shop as you need, anything that still good see if you can sell on ebay - for us anything summer clothes that are gd and dd grown out of we hold on to and put on Feb to Easter(90% success rate)
Petrol/diesel........................... 100
Road tax................................ 25
Car Insurance........................... 75 - At renewal shop around, we have 2 cars bpth filly comp. sepeate poilcies nd pay £450 per year. Shop around at renewal, for the last 3 yrs had different insurance company each yr - did my dads ins in June, saved him £100 on his renewal price + £35 cashback
Car maintenance (including MOT)......... 15
Car parking............................. 0 - no car parking I would put £10 in there
Other travel............................ 0
Childcare/nursery....................... 80
Other child related expenses............ 100 - clubs get expensive, my dd does 3 dance lessons in 1 session - (pay for 2) - works out 3 terms a year, so maybe look at the £100 if its over schol hols and no classes chuck this as an extra off the credit card
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 14 - really good price
Buildings insurance..................... 14 - really good price
Contents insurance...................... 15 - really good price
Life assurance ......................... 21
Other insurance......................... 0
Presents (birthday, christmas etc)...... 70 - could you look at the list - do yu need to buy for everyone.
Haircuts................................ 20
Entertainment........................... 150 - could you knock £50 off that
Holiday................................. 200 - I can see where your coming from re holidays, although on one hand its aluxury, you do have a surplus bu if your going to justify spending 2.5k per yr, then you do need to cut back in other areas
Emergency fund.......................... 0 - you should have at least £50 pm in this
Total monthly expenses.................. 3047


Assets
Cash.................................... 0
House value (Gross)..................... 240000
Shares and bonds........................ 0
Car(s).................................. 10000
Other assets............................ 9000
Total Assets............................ 259000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 160000...(200)......1.5
Secured Debt.................. 8000.....(343)......8
Total secured & HP debts...... 168000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
halifax........................3600......36........0
aa.............................3000......30........0
nationwide.....................2600......30........0
virgin.........................6150......62........0
bt visa........................444.......25........0
barclaycard....................3100......72........0
tesco..........................1300......50........18.6
santander......................500.......90........22.6
Total unsecured debts..........20694.....395.......-

Quickest to ask the 0% are they )% for a limited time, I would look at chucking any spare money at the sanrtander account, as thatsthe hghest apr, (at the mo)


Monthly Budget Summary
Total monthly income.................... 3,569
Expenses (including HP & secured debts). 3,047
Available for debt repayments........... 522
Monthly UNsecured debt repayments....... 395
Amount left after debt repayments....... 127

Personal Balance Sheet Summary
Total assets (things you own)........... 259,000
Total HP & Secured debt................. -168,000
Total Unsecured debt.................... -20,694
Net Assets.............................. 70,306[/b

The goos news is you in theory have £127 per month spare is that really the case, I would suggest keeping a notebok off all expenses and see if there is anything that you have missed.

Re the shopping - what aabout a 2nd purse or internet shopping then you only order what you actualy need.

I notie you shop at Tesco, do you make the most of your vouchers, maybe see about savig them towards a holiday. Thats what I'm doing with mine DD wants to go to Bendiorm, but the hotle where the programme was filmed, but I wont be held ransom to those prices, so looking at using Tesco vouchers to pay at least half, and then less t find. xx

mellas666

I think you should be a bit kinder to people.
So what if I am new?
Everyone on here is in the same position.
I think you should have a bit more respect.
I am also learning to adjust to wages since a child was born.
You are totally posting comments to try and get a reaction so please don't be like that and allow everyone to have their opinion.
Nobody will ever judge on holidays/spending etc because that is half the reason we are all here.
Don't patronise new posters on the forum, it's not nice at all.

VICSH

Hi
I thought I would post to give you some advice that has helped me get out of debt. Similarly to you both husband and I had a good income when we had our son and it all changed but our mentality with moeny didnt and I only went back to work 4 days also so a straight 20% income drop!

Things that have really helped
1) I set up a new cash card account at a different bank from my current account and all my additional 'income' goes in there. For example, child benefit, expense payments from work, new savings from utility suppliers that I get (so your BT for example), Ebay sales etc. Then each month I would make an additional payment off of my high interest debt.
2) Each month I have a excel spreadhseet with all my exepected expenditure on it, food for month for example £300 but I try and beat that and any left over I move into my cash account again.
3) I think a spending diary would help, I did one for a few months and noticed at on my day off with my son I would buy a couple of magazines and chocolate as the shop was on the way back from the groups we went to. Since my LBM I allow myself £3 a month on magazines whether it be 1 gloss or 3 weeklys.

I wont go into the holiday, food etc I think enough people have covered that. I will say that with the children entertainement classes I would suggest that maybe you could downgrade to 1 a week and instead make that time that they would be there adventure time or cooking or library etc?
How old are your children will childcare start getting any cheaper that may help also?
Good luck and well done for having the courage to post your SOA I never had the guts :-)

mum2one

It really does sound like youve had your lightbulb moment, I built up a lot of debt when I had DD, I went from 13.5k plus bonuses to £250 per month statoury sick pay, every corner there was debts, I was robbing peter to pay paul, I even took out a consolidiation loan, and blew that, I know now that my debt free date could be as far as 15 years away. I don't want anyone else to end up in the mess that I did.

Yes I have holidays, but I trade off entertainment, I car boot, ebay, use vouchers for shopping do things cheaper, free child entry vouchers for attractions. I still have alife but but restricted, but when I'm away and see that smile on DD. It makes it all worthwhile.
x

YORKSHIRELASS

Hi, it takes some guts to post your SOA on here and let everyone pick over it so I admire you for that.

Like you I found it hard to adjust to having kids, especially as I was on a very high wage before they came along. We didnt cut our spending and like you we ended up £20k in debt.

My first thought is how accurate is your SOA? Do you really have £167 left at the end of every month? For me one of the biggest changes I made was starting to keep detailed records of every penny coming in and going out. Seeing it in black and white makes it real and made me realise that we needed to rein in our spending.

One of my biggest mistakes was living a lifestyle I thought I could afford or deserved - regardless of how much was in the bank. When you really think about it that just doesnt make sense but its so hard to take it on board.

Strangely enough I am far happier now and enjoy things like cheap holidays more because I know we can really afford them - I just wish I had realised that a few years ago.

I guess for you if you really tightened your belts it wouldnt need to be for long as you do have a decent income.

Oh and as for holidays we have just had a week away camping with all spending money for £250, and we had a great time! Good luck with it.

Lifes_Grand_Plan

Hi OP,

Hope you don't mind me asking... It appears that your husband is on about £37,500 salary and you must be on about £20k.... a very good combined salary especially when your mortgage is only £200 a month...

So I am surprised that you are getting £135 a month in benefits... - don't worry i'm not trying to benefit bash... its just my wife and I are on similar amounts and so i'm wondering what you claim for to get that much, that we might also be eligible for....

Thanks