help with SOA please

eastender27

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned....................

Monthly Income Details
Monthly income after tax................ 1500
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 600
Total monthly income.................... 2100

Monthly Expense Details
Mortgage................................ 618
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 200
Council tax............................. 131
Electricity............................. 24
Gas..................................... 24
Oil..................................... 0
Water rates............................. 22
Telephone (land line)................... 15
Mobile phone............................ 60
TV Licence.............................. 13
Satellite/Cable TV...................... 35
Internet Services....................... 0
Groceries etc. ......................... 150
Clothing................................ 50
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 135
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 8
Pet insurance/vet bills................. 0
Buildings insurance..................... 27
Contents insurance...................... 0
Life assurance ......................... 25
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10
Entertainment........................... 40
Holiday................................. 50
Emergency fund.......................... 0
gym..................................... 50
Total monthly expenses.................. 1707


Assets
Cash.................................... 0
House value (Gross)..................... 200000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 200000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 142000...(618)......0
Total secured & HP debts...... 142000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
barclaycard 1..................4000......110.......22
barclaycard 2..................3800......85........22
hsbc cc........................2000......80........22
hsbc loan .....................2218......246.......0
egg loan.......................4733......221.......6.8
Total unsecured debts..........16751.....742.......-


Monthly Budget Summary
Total monthly income.................... 2,100
Expenses (including HP & secured debts). 1,707
Available for debt repayments........... 393
Monthly UNsecured debt repayments....... 742
Amount short for making debt repayments. -349

Personal Balance Sheet Summary
Total assets (things you own)........... 200,000
Total HP & Secured debt................. -142,000
Total Unsecured debt.................... -16,751
Net Assets.............................. 41,249




Erm, please can anyone point some direction to help my stubborn sister - rental income is lodger.

Gym apparently is her 'life' as is her phone. Yes, I know.

I don't know how else to help her.

any advice?

I've sent some PPI claims on her behalf - it's taken 7k off this year, and there's another 4K one that MIGHT come through on barclaycard 1. We wont know for ages on that one, only just sent.

She cant do payplan or cccs as works in finance.

I have some savings. IF i leant her some money, where best to put it? all her cards are in region of 22 per cent apr and no chance at all for balance transfers etc, ive tried.

List does not include another card with is on default another 5k with temporary agreed lower payments of 22 a month instead of 100 ish.

what to do clever people of mse?

eastender27

oh and forgot to add cigarettes 60 and bank fees 42 a month too

honey10

Well, I'm not sure how much I can help, but I would get rid of the bank fees asap, a basic bank account is sufficient.
Also, surely she doesn't need the £60 contract for her phone every month...there are £10 a month plans that are exactly the same.

TheSandman

I think bank fees refer to overdraft / bounced payment charges because I've never heard of a bank that charges £42 p/month (usually around £14)

If you include the cigarettes, bank fees and £22 default account she's now £473 short for making MINIMUM payments.

If she cut out mobile, satellite, clothing, presents, haircuts, entertainment, holiday, gym and cigarettes (ie everything aside from shelter, heat and food) she would manage to save £375 p/month.

Leaving aside the fact a few of these will be tied into contracts that may be impossible to escape it still leaves a hole of £98 p/month while living a hermit's existence for the forseeable future. The two loans that look like they'll drop off in 10 and 20 months respectively will give her some breathing space but should really be used to overpay the credit cards.

I think her 'life' will go from phones and gyms to an evening job waiting tables and cycling to work.

This is the step change necessary to turn this situation around. Without it the debt will escalate and will result in DMP/bankruptcy and possible job loss.

mum2one

eastender27 wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned....................

Monthly Income Details
Monthly income after tax................ 1500
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 600
Total monthly income.................... 2100

Monthly Expense Details
Mortgage................................ 618
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 200
Council tax............................. 131 - can your sister pay this over 12 in months not 10 months in theory that woould be £11o a month
Electricity............................. 24
Gas..................................... 24
Oil..................................... 0
Water rates............................. 22
Telephone (land line)................... 15
Mobile phone............................ 60 - that a major expense - downgrade contract, look at sim only or pay and go - even to live on a phone get deal for £30
TV Licence.............................. 13
Satellite/Cable TV...................... 35 - with these debts this is a luxury that can not be afforded - try freeview for now
Internet Services....................... 0
Groceries etc. ......................... 150
Clothing................................ 50 - this needs to be cut back to the bare minumum, change to supermarkets, try to have an every other month spend
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 135
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 8
Pet insurance/vet bills................. 0
Buildings insurance..................... 27
Contents insurance...................... 0 - is the contents included with the buildings, def need contenst insurance
Life assurance ......................... 25
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10
Entertainment........................... 40
Holiday................................. 50 - not in a position at the moment to save for a holiday, -
Emergency fund.......................... 0
gym..................................... 50 - this is a luxury, go for a run, go swimming, cheaper gym, -
Total monthly expenses.................. 1707
+ extras
cigs - 80 - this is a spend that needs to go, go to see doctor, nurse for helps
bank fees - 42 - downgrade the account to a non fee paying account
new total 1829


Assets
Cash.................................... 0
House value (Gross)..................... 200000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 200000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 142000...(618)......0
Total secured & HP debts...... 142000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
barclaycard 1..................4000......110.......22
barclaycard 2..................3800......85........22
hsbc cc........................2000......80........22
hsbc loan .....................2218......246.......0
egg loan.......................4733......221.......6.8
Total unsecured debts..........16751.....742.......-


Monthly Budget Summary
Total monthly income.................... 2,100
Expenses (including HP & secured debts). 1,829
Available for debt repayments........... 271
Monthly UNsecured debt repayments....... 742
Amount short for making debt repayments. -471

Personal Balance Sheet Summary
Total assets (things you own)........... 200,000
Total HP & Secured debt................. -142,000
Total Unsecured debt.................... -16,751
Net Assets.............................. 41,249




Erm, please can anyone point some direction to help my stubborn sister - rental income is lodger.

Gym apparently is her 'life' as is her phone. Yes, I know.

I don't know how else to help her.

any advice?

I've sent some PPI claims on her behalf - it's taken 7k off this year, and there's another 4K one that MIGHT come through on barclaycard 1. We wont know for ages on that one, only just sent.

She cant do payplan or cccs as works in finance.

I have some savings. IF i leant her some money, where best to put it? all her cards are in region of 22 per cent apr and no chance at all for balance transfers etc, ive tried.

List does not include another card with is on default another 5k with temporary agreed lower payments of 22 a month instead of 100 ish.

what to do clever people of mse?

I've added in the cigs and the bank charges, and that means shes nearly £500 a month short.

In total honestly to lend your sister any money it would need to lend her at least 8k to half the debts to make her amount repayable.

I know you mention you can;t go via CCCS due to her job, which would be generally the 1st port of call. I really think your sister needs to look at taking a 2nd job, whether thats bar work in the evening, working supermarket as with the opening hours and Christmas coming up theres a lot of places taking on temps

Its going to end up that one of the creditors are going to push for money and that could put her job at risk, - I think you need to call CCCS and see what they say, it could be that she could do a DMP, I have no idea I'm thinking

The other thing is you need to talk to your sister to find out how she run up so many debts, was it robbing Peter to pay Paul, to keep her head above water, or I want that and must have it now.

She's lucky to have to have you to help her out xx

kj*daisy

Until she accepts that the gym and phone aren't "her life" and she needs to make massive changes I would not lend her any money. You will never see it again and it's enabling her to carry on thinking this situation is OK as it is, which it clearly isn't if she can't go on a DMP. If she can't do a DMP. She needs to make the cut backs and slowly chip away at the debt.

eastender27

Thank you for your replies everyone, she's locked in for phone contract and gym until easter next year...

will talk to her about tv/landline/internet as i never knew she was paying so much.

is there any way of getting card people to stop the really high interest chargs without going to a dmp? she apparently pays 80, 85 a month minimum payments but obviously this is not reducing any balances at all.

her credit rating is shocking, hence no balance transfers available, we tried that route.

debts are both extragant holidays - australia and vegas and thailand in the last 3 years plus things like boiler packing up and owing british gas 300 for repairs etc which family have to help with.

Also flat management company have sent all owners a massive arrears bill for years ago which has to be paid

all a bit of a stressful mess really.

I used to be in her position with some debts but in a way i got lucky with redundancy and ppi/ charges reclaims and now save 70 per cent of my money with a few sacrifices. so i know desperate how she feels and just want to help if i can. but even with my new savvy head i cant see a way through it without really upsetting her!

19lottie82

eastender27 wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned....................

Monthly Income Details
Monthly income after tax................ 1500
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 600
Total monthly income.................... 2100

Monthly Expense Details
Mortgage................................ 618
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 200
Council tax............................. 131
Electricity............................. 24
Gas..................................... 24
Oil..................................... 0
Water rates............................. 22
Telephone (land line)................... 15 (Get rid, no need if she has a mobile)
Mobile phone............................ 60 (Drop to sim only or payg ASAP)
TV Licence.............................. 13
Satellite/Cable TV...................... 35 (get rid, freeview will do for now)
Internet Services....................... 0
Groceries etc. ......................... 150
Clothing................................ 50 (This is too much, cut to £10-20 for essentials from primark / tesco / asda only)
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 135
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 8
Pet insurance/vet bills................. 0
Buildings insurance..................... 27 (you mention a service charge? Usually BI is included in this? Get her to check)
Contents insurance...................... 0 (This is a neccessity)
Life assurance ......................... 25
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20 (can't afford this, who is she buying for? cut to £5 -10 pcm for token gifts @ xmas)
Haircuts................................ 10
Entertainment........................... 40 (can't afford this, reduce to £10 for once a month cinema or pre theatre)
Holiday................................. 50 (can't afford this)
Emergency fund.......................... 0
gym..................................... 50 (once the contract is up find a cheaper gym if it is a "must have", new ones are popping up for £12 a month now)
Total monthly expenses.................. 1707


Assets
Cash.................................... 0
House value (Gross)..................... 200000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 200000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 142000...(618)......0
Total secured & HP debts...... 142000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
barclaycard 1..................4000......110.......22
barclaycard 2..................3800......85........22
hsbc cc........................2000......80........22
hsbc loan .....................2218......246.......0
egg loan.......................4733......221.......6.8
Total unsecured debts..........16751.....742.......-


Monthly Budget Summary
Total monthly income.................... 2,100
Expenses (including HP & secured debts). 1,707
Available for debt repayments........... 393
Monthly UNsecured debt repayments....... 742
Amount short for making debt repayments. -349

Personal Balance Sheet Summary
Total assets (things you own)........... 200,000
Total HP & Secured debt................. -142,000
Total Unsecured debt.................... -16,751
Net Assets.............................. 41,249




Erm, please can anyone point some direction to help my stubborn sister - rental income is lodger.

Gym apparently is her 'life' as is her phone. Yes, I know. Until she changes this mentality, things are unlikely to change
QUOTE]

Also if she MUST smoke, change to roll ups.

theoretica

Why does she have life assurance? If she is single this doesn't seem necessary.

Was she in the flat at the time the arrears relate to? If not, is she really liable?

Is the grocery cost for just her or the lodger too? Halve it if just for one.

Tixy

Any scope to sell up and downzie? using some equity to repay the debts.

I wouldn't consider lending her money in this situation she is in at the moment, she is short by £500 a month and isn't prepared to make some sensible cut backs and live frually. Any money you loaned to her would just get used up on this shortfall.

You say she cannot do a DMP as she is in finance. What does she actually do? A DMP is not the same as an IVA or bankruptcy, and affects far fewer people's careers, you've already mentioned she has 1 default, is this not impacting on her job? if not then its likely going on a DMP will not either, as its only an informal agreement.

firesidemaid

she needs to have her proper lightbulb moment. she needs to keep her main job.

if she cuts all non-essentials on the SOA plus halves her food bill she can meet all the payments and bills (that includes phoning her mobile supplier and asking them to reduce her contract/bill, even though she is in contract - what phone costs THAT much anyway)? at the same time she could buy a cheap £10 payg and sell the 'expensive' phone

IF she wants to overpay and have a bit of a life then she needs another income source - be it ebay, another job, overtime etc.

she can throw as much extra at the hsbc cc. once that is paid off, onto the next highest rate/lowest balance. maybe you could show her the snowball calculator.

do not lend her any money - you have already more than helped her out (and saved her bacon) by helping with the ppi claims.