SOA - Help needed with managing/clearing overdraft

19lottie82

Danielts wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1245
Partners monthly income after tax....... 0
Benefits................................ 100
Other income............................ 0
Total monthly income.................... 1245

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 595 at the moment, you can't really afford this 50% of your salary on rent is too much, but hopefully you should get a contribution from housing benefit shortly
Management charge (leasehold property).. 0
Council tax............................. 130
Electricity............................. 50
Gas..................................... 50
£100 a month on utilities seems a bit steep, what size is your flat / house? I live in a 2 bed and my total is £70, and I'm not super strict with my usage. Try to reduce this.
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 0
Mobile phone............................ 27
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 15
Groceries etc. ......................... 220
Clothing................................ 0
Nothing, ever? Not realistic, especially with a growing baby.
Petrol/diesel........................... 80
Road tax................................ 0 ?
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 60
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
You should really have contents insurance. Mine is only £5 a month. What happens if your house burns down, or is flooded? How will you replace your stuff?
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Not realistic.
Haircuts................................ 0
Never? Even your partner?
Entertainment........................... 60
You can't afford this right now, half it to £30
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1330

Is there any chance of you getting a better paid job? Or getting some overtime or a second job?

I'd consider getting rid of the car, you can't really afford to run it right now. If your OH isn't working, do you really NEED it? How "limited" is the public transport? You, personally, seem to manage without a car?

Plus you could sell it and use it pay off your OD.

tallyhoh

Apply for your housing benefit ASAP, they dont backdate

Danielts_2

19lottie82 wrote: »

Is there any chance of you getting a better paid job? Or getting some overtime or a second job?

I'd consider getting rid of the car, you can't really afford to run it right now. If your OH isn't working, do you really NEED it? How "limited" is the public transport? You, personally, seem to manage without a car?

Plus you could sell it and use it pay off your OD.

Okay, so clothing thus far has been paid for by friends/family, contents insurance was on an annual basis (£45), I cut my own hair and my partner's is really quite long (doesn't seem to grow all that much.) I agree with your other points, but as I have said there are other expenditures that I haven't determined, some of your other highlights is probably where that goes.

My house is a 2 bedroomed detached, it's Victorian with terrible insulation, but I'd imagine we could cut down - hopefully with summer soon this won't be such an issue.

And the car is a necessity I'm afraid, required by my partner to get to and from university from where we live. I manage without a car because I walk and travel by train, which is paid for by my employers. The rail line isn't linked to where her campus is and she takes the child with her to University paid child care, so bus/train hopping isn't really an option.

I work as a Junior Insurance Underwriter at the moment and am currently 'going' for a pay rise, it's salary based with no overtime. I have thought of getting second part-time job, but this would be my last chance saloon due to family circumstances and having a new baby.

And, yes I will do tallyhoh - printed the form today, thanks!

R_P_W

You still need to include things you pay for annually - otherwise how do you budget to pay for them? If you are not putting money aside now?

Danielts_2

That's the thing, I don't budget for them. Which is obviously why I joined this forum, because I'm rather useless at keeping track of finances!

I'll plan for annual things from this day forward, although I have no money to put aside. Think they've, hopefully, now all been mentioned in this thread?

tallyhoh

Hopefully when you get your tax credits etc you might even be able to clear your overdraft in one hit. Suggest you start putting some of the extra money to pay for major one offs that you havent listed.

The best thing is that you have no other debt, thats a big bonus.

getmore4less

You might need to consider moving to a place that is on public transport routes for both of you, idealy cheaper than your current place if possible and also a more economical place to run to reduce utilities.

That way you can get rid of the car.
Cars are liability

When is the insurance due?
That will be the crunch point as that has accounted for all your current OD.


whats the interest rate on your OD look at the statements for the charges they are not on the SOA and will be eating into the cash..

what you need to so is loo kat a fill years worth of costs and divide all the annual costs by 12 and stick them on the SOA, they will need paying at some point.