Completed SOA.....advice please!

thistle9

OMG!!! When laid out it is scarrrrrrry, but we have done it! Some things we know we are spending too much on and we are going to discuss these now, but thought i would post on for your views.

In my earlier post i was thinking about selling one or both of my properties to try and make a dent in this mess but i am more confussed as ever now i have actually done the SOA as i really really didnt think that we overspent per month by this amount.:eek:

We own two homes but rent athird (our main home) as we needed to move to get into catchment for daughter school and we couldnt afford to buy in the area but thought we could afford to rent.

We need to change so i am really open to suggestions,

Thanks x

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 400
Partners monthly income after tax....... 1650
Benefits................................ 220
Other income............................ 1150 (rent from two properties)
Total monthly income.................... 3420
Monthly Expense Details
Mortgage................................ 481 (mortgage 1st property)
Secured/HP loan repayments.............. 515 mortgage 2nd, car,sofa,littlewoods)
Rent.................................... 950 (house we live in)
Management charge (leasehold property).. 0
Council tax............................. 196 (Scotland)
Electricity............................. 60
Gas..................................... 65
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 21
Mobile phone............................ 62
TV Licence.............................. 12.5
Satellite/Cable TV...................... 30
Internet Services....................... 30
Groceries etc. ......................... 350
Clothing................................ 100
Petrol/diesel........................... 90
Road tax................................ 36
Car Insurance........................... 38
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 20
Other child related expenses............ 80
Medical (prescriptions, dentist etc).... 0 (scotland no fees)
Pet insurance/vet bills................. 0
Buildings insurance..................... 37
Contents insurance...................... 18.36
Life assurance ......................... 33
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 65
Entertainment........................... 200
Holiday................................. 100
Emergency fund.......................... 0
Total monthly expenses.................. 3634.86

Assets
Cash.................................... 0
House value (Gross)..................... 250000
Shares and bonds........................ 0
Car(s).................................. 9000
Other assets............................ 0
Total Assets............................ 259000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 144706...(481)......0
Secured Debt.................. 9300.....(175)......4.7
Hire Purchase (HP) debt ...... 1410.....(105)......0<
Mortgage Flat..................67375....(235)......4
Total secured & HP debts...... 222791....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
career develop loan............6697......169.......9.9
Tesco Loan.....................15000.....169.......6.9
Student Loan...................4311......90........1.5
Barcley CC.....................6500......165.......15
Bank Scotland CC...............3383......34........0
Total unsecured debts..........35891.....627.......-

Monthly Budget Summary
Total monthly income.................... 3,420
Expenses (including HP & secured debts). 3,634.86
Available for debt repayments........... -214.86
Monthly UNsecured debt repayments....... 627
Amount short for making debt repayments. -841.86
Personal Balance Sheet Summary
Total assets (things you own)........... 259,000
Total HP & Secured debt................. -222,791
Total Unsecured debt.................... -35,891
Net Assets.............................. 318

wildingb

Is the "other income" of 1150 the rent you receive from your properties? In other words, are you covering the mortgage on those properties with rent payments?

thistle9

Yes Wildingb the other income is the rent from the two properties, interest only mortgages. cheers.

chevalier

thistle9 wrote: »

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 400 can you get more work, sell on ebay, do mystery shopping, do surveys?
Partners monthly income after tax....... 1650
Benefits................................ 220
Other income............................ 1150 please tell me you are doing this legally and paying the relevant tax?
Total monthly income.................... 3420
Monthly Expense Details
Mortgage................................ 481
Secured/HP loan repayments.............. 515
Rent.................................... 950 so your rental income is covering your two mortgage payments?
Management charge (leasehold property).. 0
Council tax............................. 196 ouch are you in the right band for the property?
Electricity............................. 60
Gas..................................... 65
Oil..................................... 0
Water rates............................. 0 you don't pay any on any of your properties?
Telephone (land line)................... 21
Mobile phone............................ 62 ask to downgrade contract or go payg
TV Licence.............................. 12.5
Satellite/Cable TV...................... 30 nope freeview is your friend
Internet Services....................... 30 high you can get cheaper than this.
Groceries etc. ......................... 350 probably could cut 100 of this with meal planning, batch cooking.
Clothing................................ 100 nope cut this and shop out of your wardrobe. if this is mainly school uniform shop at the second hand school shope
Petrol/diesel........................... 90you only use 90 a month petrol yet you have that much money tied up in the car? Perhaps you need to sell it and use alternative transport? Or get a cheap runaround?
Road tax................................ 36
Car Insurance........................... 38
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 20
Other child related expenses............ 80
Medical (prescriptions, dentist etc).... 0 you NEVER need a prescription, go to the dentist, or get your eyes checked?
Pet insurance/vet bills................. 0
Buildings insurance..................... 37 is this for both rentals?
Contents insurance...................... 18.36 quite high shop around
Life assurance ......................... 33 what is this for? does it cover both of you, seems expensive.
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 65 hold out for longer, or go to the local college and get it done cheap.
Entertainment........................... 200 nope not for a few years cut this back
Holiday................................. 100 you can't afford this cut.
Emergency fund.......................... 0
Total monthly expenses.................. 3634.86

Assets
Cash.................................... 0
House value (Gross)..................... 250000
Shares and bonds........................ 0
Car(s).................................. 9000
Other assets............................ 0
Total Assets............................ 259000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 144706...(481)......0
Secured Debt.................. 9300.....(175)......4.7
Hire Purchase (HP) debt ...... 1410.....(105)......0<
Mortgage Flat..................67375....(235)......4
Total secured & HP debts...... 222791....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
career develop loan............6697......169.......9.9
Tesco Loan.....................15000.....169.......6.9
Student Loan...................4311......90........1.5
Barcley CC.....................6500......165.......15
Bank Scotland CC...............3383......34........0
Total unsecured debts..........35891.....627.......-

Monthly Budget Summary
Total monthly income.................... 3,420
Expenses (including HP & secured debts). 3,634.86
Available for debt repayments........... -214.86
Monthly UNsecured debt repayments....... 627
Amount short for making debt repayments. -841.86
Personal Balance Sheet Summary
Total assets (things you own)........... 259,000
Total HP & Secured debt................. -222,791
Total Unsecured debt.................... -35,891
Net Assets.............................. 318

The thing is that even after cutting all of the things I have suggested I think it would only save you about 500 pounds a month so you would still be sinking all be it more slowly.

I would suggest that really you need to look at downsizing where you are living now, that would mean that your rental would be paying money to you rather than just servicing the mortgage....

You might want to ask now you are in zone, what happens if you experience financial difficulties and have to move somewhere cheaper? Would they throw your daughter out?

I do not know the answer to the selling the house thing. It appears that your rental income is paying the mortgages on these properties, so they cancel each other off. It is your other spending that is what is hurting you.

I would suggest using the CCCS debt remedy tool to see what it suggests. But perhaps a debt management plan would be the way forward for you.
good luck
chev

thistle9

Thanks Chevalier,
We live in Scotland so we dont pay water rates, eyes checks, prescriptions etc but it seems we pay higher council tax rates lol. The two properties we rental income is listed under other income and more than covers the two morgages we have and half of the rental that we live in at the moment.

I am thinking of selling one of them to pay off other debts as i dont think we are benefiting as much as we would do paying off some cards.

I do have a sessional job also that i get income from but sporadic, this month i think i earned £70 from it which i have not listed.

After seeing the SOA in black and white you are soooo right there is no room for entertainment and holidays and these will be the first things off my list from today!

Cheers for the advice.

YoungBusinessman

Main thing to do is simply increase income to increase payments to debts once a few of them start to go they will all soon disappear.

sunshineangel

i def think groceries could be lower with more planning and using what you have in..we manage on £200 a month with 4 kids and 2 extra kids with special dairy free diet every other weekend and this counts dog food too
And def agree on cutting back on haircuts too thats a lot of money each month while you have your debts to clear.
Also keep a spare change jar and when full put this to a debt.
Good luck...you will get there. x

sunshineangel

chevalier wrote: »

The thing is that even after cutting all of the things I have suggested I think it would only save you about 500 pounds a month so you would still be sinking all be it more slowly.

I would suggest that really you need to look at downsizing where you are living now, that would mean that your rental would be paying money to you rather than just servicing the mortgage....

You might want to ask now you are in zone, what happens if you experience financial difficulties and have to move somewhere cheaper? Would they throw your daughter out?

I do not know the answer to the selling the house thing. It appears that your rental income is paying the mortgages on these properties, so they cancel each other off. It is your other spending that is what is hurting you.

I would suggest using the CCCS debt remedy tool to see what it suggests. But perhaps a debt management plan would be the way forward for you.
good luck
chev

I also wondered about the answer to the question i highlighted purple? would it be poss to move back to ur house now she is in even just while you sort debts? and then go from there?

rising_from_the_ashes

thistle9 wrote: »

We live in Scotland so we dont pay water rates, eyes checks, prescriptions etc but it seems we pay higher council tax rates lol.

We do (unfortunately) pay for trips to the dentist - and we do have to pay if we need glasses ..... and you need to factor both in.

Council tax rates do about balance out once you add on the additional water rates that are a separate payment in England.

thistle9 wrote: »

The two properties we rental income is listed under other income and more than covers the two morgages we have and half of the rental that we live in at the moment.

Have you incl an amount to cover repairs and landlords insurance on both properties?

thistle9 wrote: »

I am thinking of selling one of them to pay off other debts as i dont think we are benefiting as much as we would do paying off some cards.

If you can sell one it would certainly help take the pressure off a bit - is there enough equity in either of them to do this? Are either in an area where a quick sale is likely?


From the original SOA, there are some "easy" cuts:

Sky - switch to Freesat
Mobiles - when can you get out the contracts?
Landline & Broadband - for a comparison, I pay less than £20 for both with anytime and have not yet hit a download limit - and I'm in a Market 1 (restricted to BT & affiliated companies) area
Groceries - try the Grocery Challenge on the Old Style Board, with some meal planning etc you should be able to get £100+ off this (incl household cleaning stuff etc)
Clothing - needs reduced, sell outgrown clothes & use funds to replace - cut by at least 1/2
Entertainment - sorry needs cut to say £50
Hols - sorry needs cut by quite a bit but I would incl £50 to cover additional child costs during school hols
Other childcare costs - what are these?

but
Car maintenance - sorry but £15 for 2 cars is not enough
Car insurance & fuel - are these def for both cars? Not sure if it's justifiable to have both if you're doing such a small milage
Emergency fund - need to get this up and running so you've access to funds (without getting into more debt) if something breaks down etc

I'd 2nd looking at the CCCS debt remedy tool - unless you can sell one of the properties & make enough of a profit to clear some of the debt, it's going to be really hard to make inroads and having more manageable payments through a DMP (or other plan) would make things a lot easier. Best of luck

Takeaway_Addict

thistle9 wrote: »

OMG!!! When laid out it is scarrrrrrry, but we have done it! Some things we know we are spending too much on and we are going to discuss these now, but thought i would post on for your views.

In my earlier post i was thinking about selling one or both of my properties to try and make a dent in this mess but i am more confussed as ever now i have actually done the SOA as i really really didnt think that we overspent per month by this amount.:eek:

We own two homes but rent athird (our main home) as we needed to move to get into catchment for daughter school and we couldnt afford to buy in the area but thought we could afford to rent.

We need to change so i am really open to suggestions,

Thanks x

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 400
Partners monthly income after tax....... 1650
Benefits................................ 220
Other income............................ 1150 (rent from two properties)
Total monthly income.................... 3420
Monthly Expense Details
Mortgage................................ 481 (mortgage 1st property)
Secured/HP loan repayments.............. 515 mortgage 2nd, car,sofa,littlewoods)
Rent.................................... 950 (house we live in)
Management charge (leasehold property).. 0
Council tax............................. 196 (Scotland)
Electricity............................. 60
Gas..................................... 65
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 21
Mobile phone............................ 62
TV Licence.............................. 12.5
Satellite/Cable TV...................... 30
Internet Services....................... 30
Groceries etc. ......................... 350 Can be cut down more, saving of £100
Clothing................................ 100try to halve this
Petrol/diesel........................... 90
Road tax................................ 36
Car Insurance........................... 38
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 20
Other child related expenses............ 80? whats this
Medical (prescriptions, dentist etc).... 0 (scotland no fees)
Pet insurance/vet bills................. 0
Buildings insurance..................... 37
Contents insurance...................... 18.36
Life assurance ......................... 33
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 65
Entertainment........................... 200If you can't afford the choices you have made then entertainment needs to be minimal....look into free things to do around your area
Holiday................................. 100 Again is it really needed?
Emergency fund.......................... 0
Total monthly expenses.................. 3634.86

Assets
Cash.................................... 0
House value (Gross)..................... 250000
Shares and bonds........................ 0
Car(s).................................. 9000
Other assets............................ 0
Total Assets............................ 259000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 144706...(481)......0
Secured Debt.................. 9300.....(175)......4.7
Hire Purchase (HP) debt ...... 1410.....(105)......0<
Mortgage Flat..................67375....(235)......4
Total secured & HP debts...... 222791....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
career develop loan............6697......169.......9.9
Tesco Loan.....................15000.....169.......6.9
Student Loan...................4311......90........1.5
Barcley CC.....................6500......165.......15
Bank Scotland CC...............3383......34........0
Total unsecured debts..........35891.....627.......-

Monthly Budget Summary
Total monthly income.................... 3,420
Expenses (including HP & secured debts). 3,634.86
Available for debt repayments........... -214.86
Monthly UNsecured debt repayments....... 627
Amount short for making debt repayments. -841.86
Personal Balance Sheet Summary
Total assets (things you own)........... 259,000
Total HP & Secured debt................. -222,791
Total Unsecured debt.................... -35,891
Net Assets.............................. 318

You can save £400 easily by stopping saving for a holiday and cutting your entertainment down and reducing your food bill but ultimately maybe one of the houses needs to go?

Also, are you paying the appropiate tax on your earnings from the mortgages (if there are any to pay that is)

HTH

thistle9

I am actually i'll after doing this SOA. I am more confused and angry than i was before. I dont know what to, how do i pay all this debt? I am soo mad because it aint like i went out and had a fab time. Im gonna have to sleep on this. Thanks for all the advice i really do appreciate it and it has given me alot of things to think about. cheers.