My SOA

nurse-money

Hello and thanks for reading and your comments in advance.

Me and my partner want to get on the property ladder and want to be debt free before we do. Bank of Mum and Dad have offered to assist with deposit, but we want to be debt free first.

My partner is a full time student and has a minimal income, my partner gives me £250 of their income each month and they live off peanuts for uni, so I've not included that as I don't normally have anything to do with their income except the £250.

My income is already with overtime and extra hours I get from work and does fluctuate but my average on my last few statements over the past 12 months is as below.

I get a company car, so have no car expenses other than my own fuel.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 2190
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 250
Total monthly income.................... 2440

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 653 (rent £650 monthly + yearly £36 to re-let fee)
Management charge (leasehold property).. 0
Council tax............................. 83 (got student discount already and we a re due one free month which is March this year)
Electricity............................. 30 (just switched to cheapest)
Gas..................................... 50 (as above)
Oil..................................... 0
Water rates............................. 37
Telephone (land line)................... 39 (BT - phoneline and unlimited internet contract ends 15th March 2013)
Mobile phone............................ 50 (my little luxury - iPhone 5 on a 12 month contract due to finish Sept 2013)
TV Licence.............................. 12.18
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200 (I usually buy this)
Clothing................................ 0
Petrol/diesel........................... 220 (do a lot of miles each month)
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 13 (due for renewal March 2013)
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20 (going to start savings fund for this)
Haircuts................................ 16 (twice monthly £8 per cut)
Entertainment........................... 100
Holiday................................. 0 (none til debt free)
Emergency fund.......................... 0 (not needed as can get cash each monthly easily from income)
DVD rental.............................. 0 (cancelled my subscription today)
Magazine Sub............................ 0 (cancelled my subscription today)
Slimming World.......................... 40 (for me and partner)
Total monthly expenses.................. 1573.18

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 600
Total Assets............................ 600

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card 1..................2856......70........8.9
Credit Card 2..................3168......70........12.9
Total unsecured debts..........6024......140.......


Monthly Budget Summary
Total monthly income.................... 2,440
Expenses (including HP & secured debts). 1,573.18
Available for debt repayments........... 866.82
Monthly UNsecured debt repayments....... 140
Amount left after debt repayments....... 726.82

Personal Balance Sheet Summary
Total assets (things you own)........... 600
Total HP & Secured debt................. -0
Total Unsecured debt.................... -6,024
Net Assets.............................. -5,424

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

So I should have £866 per month to pay off debts (including minimal payments). This should therefore be easy to remove the £6024 of debt from life!!

What do people recommend/think?:money:

ellesbellesxxx

Hi well it looks like you are doing well already!
Only things to mention...

1) Groceries: some people can cut down further on this (See old style board) - saying that, we can't at the mo just in terms of time and storage but it can be done!
2) Entertainment - do you have a clubcard? We get restaurant and cinema vouchers from ours so barely pay for going out...depends what you like to do but this could be cut back on.Otherwise get mystery dines etc?
3) Def switch phone and internet - +net I can recommend! Worked out really cheap for me!
4)Iphone! Switch tariff in Sept!

Like I said, looks good otherwise good luck!

ellesbellesxxx

PS am sure I don't need to say this but concentrate on CC2 first x

chanz4

did you know you dont have to pay the re-rent charge, just go onto a rolling contract

nurse-money

ellesbellesxxx wrote: »

Hi well it looks like you are doing well already!
Only things to mention...

1) Groceries: some people can cut down further on this (See old style board) - saying that, we can't at the mo just in terms of time and storage but it can be done!
2) Entertainment - do you have a clubcard? We get restaurant and cinema vouchers from ours so barely pay for going out...depends what you like to do but this could be cut back on.Otherwise get mystery dines etc?
3) Def switch phone and internet - +net I can recommend! Worked out really cheap for me!
4)Iphone! Switch tariff in Sept!

Like I said, looks good otherwise good luck!

Thanks so much. That's really what I was thinking-

1) strict grocery shopping in Feb 2013.
2) this is where all my money goes, probably the full £700 each month which is ridiculous. I thought if I set it at £100, take the money out at the beginning of the month then can only spend from that £100.
3) going to switch in March, have been looking at what MSE recommends.
4) iPhone, going to drop down my contract as soon as possible

nurse-money

ellesbellesxxx wrote: »

PS am sure I don't need to say this but concentrate on CC2 first x

Was thinking this would be right. Going to leave CC1 at minimum payment amount of £70 and set CC2 at £300 for now. At the end of the month, whatever is left in my current account I will pay off on CC2.

nurse-money

chanz4 wrote: »

did you know you dont have to pay the re-rent charge, just go onto a rolling contract

I'm aware of this, but the landlord was thinking about selling and is a real worry about his property. He doesn't need to be, he knows over the past 12months the property has been well looked after and the agency told the LL that if they (us) sign for 12 months it will give him security.
The LL also lost his job too, so would rather know we were secure living here for the next 12 months.

Its only £36

nurse-money

Just used the snowball calculator - it shows I can be debt free in 7 months.

I'm going to add another month to this to allow for unexpected outgoings, couple of weddings in the summer etc...

This means debt free date is 27th August 2013 (August's paydate)!!

Wish me luck

theoretica

nurse-money wrote: »

...set CC2 at £300 for now. At the end of the month, whatever is left in my current account I will pay off on CC2.

'Whatever is left in my current account' sounds like you don't trust your budgeting and that you will really cut down the entertainment and stuff. I suggest you get an instant access savings account and put the extra £500 your SOA shows left for debts in there at the start of the month and onto the card at the end. That way you have it as a safety net if you have misjudged your SOA but you will really know if you have to use it, and will hopefully be less inclined to slip up and fritter it away. If you need money for something not on your budget you have the entertainment and grocery pots to raid.

marisco_2

The only other expense I can see that you could cut out is slimming world. £40 seems alot to pay when regular excercise, sticking to a healthy balanced diet and buying your own set of scales to keep an eye on your weight loss would suffice.

nurse-money

theoretica wrote: »

'Whatever is left in my current account' sounds like you don't trust your budgeting and that you will really cut down the entertainment and stuff. I suggest you get an instant access savings account and put the extra £500 your SOA shows left for debts in there at the start of the month and onto the card at the end. That way you have it as a safety net if you have misjudged your SOA but you will really know if you have to use it, and will hopefully be less inclined to slip up and fritter it away. If you need money for something not on your budget you have the entertainment and grocery pots to raid.

You're right. I probably cant fully trust myself fully. Will go with your idea. £300 payment and £500 into my savings.