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Here goes my SOA...

edited 30 November -1 at 1:00AM in Debt-Free Wannabe
32 replies 4.3K views
SkinnylatteSkinnylatte Forumite
1.2K Posts
Part of the Furniture 1,000 Posts Debt-free and Proud! Home Insurance Hacker!
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edited 30 November -1 at 1:00AM in Debt-Free Wannabe
I've been lurking on these boards for a couple of years now, but it's time to come clean, I can not carry on to live the way I have and I have to change. I've been in debt since I was 18, and 26 years later the patterns are familiar. I had some therapy earlier this year for some issues from childhood, and this has been very helpful in many areas, I now feel ready to tackle my spending. I earn a good salary, but as a single parent I struggle to make ends meet and my debts are scarey. I work long hours and away from home, then feel guilty that I'm not with the kids, so I probably spend more on them than I should. (My daughter lives with her Dad, my son lives with me)
I own a house with a big mortgage, but I rent that out and receive an income that goes straight into the mortgage. I rent elsewhere for me and my son (long story!)
I've kept a spreadsheet of my spending over the last 5 months and it's scarey that I can spend £500 per month extra and don't know where it goes. This month I am keeping a log of every penny I spend. here's my SOA...

Statement of Affairs and Personal Balance Sheet

Household Information

Number of adults in household........... 1
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details

Monthly income after tax................ 3200
Partners monthly income after tax....... 0
Benefits................................ 81.74
Other income............................ 0
Total monthly income.................... 3281.74


Monthly Expense Details

Mortgage................................ 500
Secured/HP loan repayments.............. 194
Rent.................................... 650
Management charge (leasehold property).. 0
Council tax............................. 115
Electricity............................. 44
Gas..................................... 66
Oil..................................... 0
Water rates............................. 65
Telephone (land line)................... 10
Mobile phone............................ 0
TV Licence.............................. 12.5
Satellite/Cable TV...................... 31.5
Internet Services....................... 18.5
Groceries etc. ......................... 180
Clothing................................ 0
Petrol/diesel........................... 350
Road tax................................ 10
Car Insurance........................... 28.13
Car maintenance (including MOT)......... 80
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 82
Medical (prescriptions, dentist etc).... 8
Pet insurance/vet bills................. 0
Buildings insurance..................... 27
Contents insurance...................... 6
Life assurance ......................... 24
Other insurance......................... 0
Presents (birthday, christmas etc)...... 70
Haircuts................................ 15
Entertainment........................... 0
Holiday................................. 80
Emergency fund.......................... 0
Day to day stuff that I'm starting to wr 500
Gym..................................... 33
Savings for kids........................ 30
Therapy................................. 150 (for my daughter)
Total monthly expenses.................. 3379.63



Assets

Cash.................................... 0
House value (Gross)..................... 145000
Shares and bonds........................ 574 (trying to find share certificate so I can sell them)
Car(s).................................. 2600
Other assets............................ 0
Total Assets............................ 148174



Secured & HP Debts

Description....................Debt......Monthly...APR
Mortgage...................... 141000...(500)......2.98
Hire Purchase (HP) debt ...... 638......(194)......15.9
Total secured & HP debts...... 141638....-.........-


Unsecured Debts
Description....................Debt......Monthly...APR
Barclay Mastercard.............7253......150.......19.99
MBNA...........................4882......115.......19.99
Lloyds.........................261.......98........18.9
Over draft.....................1900......0.........0
Tax Credits....................2419......0.........0
Tax Man........................2941......0.........0
Barclay Visa...................1093......30........24.9
Total unsecured debts..........20749.....393.......-



Monthly Budget Summary

Total monthly income.................... 3,281.74
Expenses (including HP & secured debts). 3,379.63
Available for debt repayments........... -97.89
Monthly UNsecured debt repayments....... 393
Amount short for making debt repayments. -490.89


Personal Balance Sheet Summary
Total assets (things you own)........... 148,174
Total HP & Secured debt................. -141,638
Total Unsecured debt.................... -20,749
Net Assets.............................. -14,213


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


So that's it, warts on all, I'm embarrassed and angry that I am in this position.

I'm not sure where to start to try and make it right, but at least I know how bad it is now.

I have £60k in an old pension fund, but I can't touch that can I?

I'm going to press SUBMIT now ...hohum :(
Pay off Car Loan £17,047 £10580 by Christmas 2022

Mortgage 1 @ 23/03/2019 [STRIKE]£101297[/STRIKE]
£84457 16.6% DI [STRIKE]£6.95[/STRIKE] £6.15
Mortgage 2 @ 12/04/2015 [STRIKE]£136121[/STRIKE]
£100,546 26.1
% DI [STRIKE]£9.13[/STRIKE] £6.07
1st LBM 02/06/2013 £[STRIKE]21595[/STRIKE] Debt Free Day 27/03/2015

«134

Replies

  • krustylouisekrustylouise Forumite
    1.5K Posts
    Tenth Anniversary Combo Breaker
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    I've been lurking on these boards for a couple of years now, but it's time to come clean, I can not carry on to live the way I have and I have to change. I've been in debt since I was 18, and 26 years later the patterns are familiar. I had some therapy earlier this year for some issues from childhood, and this has been very helpful in many areas, I now feel ready to tackle my spending. I earn a good salary, but as a single parent I struggle to make ends meet and my debts are scarey. I work long hours and away from home, then feel guilty that I'm not with the kids, so I probably spend more on them than I should. (My daughter lives with her Dad, my son lives with me)
    I own a house with a big mortgage, but I rent that out and receive an income that goes straight into the mortgage. I rent elsewhere for me and my son (long story!)
    I've kept a spreadsheet of my spending over the last 5 months and it's scarey that I can spend £500 per month extra and don't know where it goes. This month I am keeping a log of every penny I spend. here's my SOA...

    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 1
    Number of children in household......... 1
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 3200
    Partners monthly income after tax....... 0
    Benefits................................ 81.74
    Other income............................ 0
    Total monthly income.................... 3281.74


    Monthly Expense Details

    Mortgage................................ 500
    Secured/HP loan repayments.............. 194
    Rent.................................... 650 rent and mortgage? Is this shared ownership?
    Management charge (leasehold property).. 0
    Council tax............................. 115 this is high for single occupant have you questioned whether you're in the right band? Is this over 10 or 12 months?
    Electricity............................. 44
    Gas..................................... 66 these are high
    Oil..................................... 0
    Water rates............................. 65 again very high, have you considered a meter?
    Telephone (land line)................... 10
    Mobile phone............................ 0
    TV Licence.............................. 12.5
    Satellite/Cable TV...................... 31.5 is this a necessity right now?
    Internet Services....................... 18.5 this is very high, there are plenty of offers on ATM.
    Groceries etc. ......................... 180 this could be reduced if you meal plan etc
    Clothing................................ 0
    Petrol/diesel........................... 350 is there any chance of car share?
    Road tax................................ 10
    Car Insurance........................... 28.13
    Car maintenance (including MOT)......... 80 £960 per year on maintenance? Have you considered getting a more reliable car?
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 82 what are these?
    Medical (prescriptions, dentist etc).... 8
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 27
    Contents insurance...................... 6
    Life assurance ......................... 24
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 70 per month?? This can be reduced even just for the short term. This is not a necessity right now.
    Haircuts................................ 15 per month this is too high.
    Entertainment........................... 0
    Holiday................................. 80 do you need this right now? If you hold off on hols for a year you'll have £960 to put to your debts.
    Emergency fund.......................... 0
    Day to day stuff that I'm starting to wr 500 what's this figure for?
    Gym..................................... 33 can you cancel this and exercise outdoors for the time being?
    Savings for kids........................ 30
    Therapy................................. 150 (for my daughter)
    Total monthly expenses.................. 3379.63



    Assets

    Cash.................................... 0
    House value (Gross)..................... 145000
    Shares and bonds........................ 574 (trying to find share certificate so I can sell them)
    Car(s).................................. 2600
    Other assets............................ 0
    Total Assets............................ 148174



    Secured & HP Debts

    Description....................Debt......Monthly...APR
    Mortgage...................... 141000...(500)......2.98
    Hire Purchase (HP) debt ...... 638......(194)......15.9
    Total secured & HP debts...... 141638....-.........-


    Unsecured Debts
    Description....................Debt......Monthly...APR
    Barclay Mastercard.............7253......150.......19.99
    MBNA...........................4882......115.......19.99
    Lloyds.........................261.......98........18.9
    Over draft.....................1900......0.........0
    Tax Credits....................2419......0.........0
    Tax Man........................2941......0.........0
    Barclay Visa...................1093......30........24.9
    Total unsecured debts..........20749.....393.......-



    Monthly Budget Summary

    Total monthly income.................... 3,281.74
    Expenses (including HP & secured debts). 3,379.63
    Available for debt repayments........... -97.89
    Monthly UNsecured debt repayments....... 393
    Amount short for making debt repayments. -490.89


    Personal Balance Sheet Summary
    Total assets (things you own)........... 148,174
    Total HP & Secured debt................. -141,638
    Total Unsecured debt.................... -20,749
    Net Assets.............................. -14,213


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


    So that's it, warts on all, I'm embarrassed and angry that I am in this position.

    I'm not sure where to start to try and make it right, but at least I know how bad it is now.

    I have £60k in an old pension fund, but I can't touch that can I?

    I'm going to press SUBMIT now ...hohum :(

    I've gone through as much as I can. Sorry if I sound harsh I'm on my phone so being brief.
  • SkinnylatteSkinnylatte Forumite
    1.2K Posts
    Part of the Furniture 1,000 Posts Debt-free and Proud! Home Insurance Hacker!
    ✭✭✭
    Thank you so much for your reply.
    • I own a house that I don't live in so I receive £500 per month income from this that goes straight into paying the mortgage. I pay £650 rent a month for the house I live in. I should move back into my own house, but I need to evict the current tenant (my ex and my daughter lol)
    • I have checked the council tax every-one else in the street pays the same so I'm unlikey to get it changed. I had single occupancy discount
    • Gas, electric - yes these are too high - I need to use less!
    • water, it's a rented house, I will look into a water meter
    • I can cancel sky but am in a contract until january
    • I will cancel my gym membership, but I need to give 6 months notice :mad:
    • Again, I am in a contract with my internet services
    • we will eat more jacket potatos and beans!
    • I have asked about carshare, no success so far
    • £960 is what I have spent in the last 12 months as it needed new brakes and other things, hopefully it'll be OK for a bit now. I get 55mpg from it and have 2 hp payments left on it, so would like to keep for a bit longer
    • I give my son the £82 child benefit and he has to buy everything he wants from this, including labelled clothes, I only buy him what he needs. (Food, school uiform etc)
    • I will spend less on presents, this is what I have been spending
    • Haircuts (mainly colour, don't know if I can bear to go grey!)
    • I have already committed to this years holiday (Actually 2 festivals). Next year I will do it differently
    • £500 a month spending money, it's ridiculous, but I'd been sensible I wouldn't be here. After my rent this is my second biggest expense. I am now keeping a daily diary and will analyse every penny that goes out of my hand bag.
    I've said it before already, yes I have been ridiculously stupid, (depression, 2 failed marraiges and 2 failed businesses didn't help) But it's changing from NOW, no more excuses. :)
    Pay off Car Loan £17,047 £10580 by Christmas 2022

    Mortgage 1 @ 23/03/2019 [STRIKE]£101297[/STRIKE]
    £84457 16.6% DI [STRIKE]£6.95[/STRIKE] £6.15
    Mortgage 2 @ 12/04/2015 [STRIKE]£136121[/STRIKE]
    £100,546 26.1
    % DI [STRIKE]£9.13[/STRIKE] £6.07
    1st LBM 02/06/2013 £[STRIKE]21595[/STRIKE] Debt Free Day 27/03/2015

  • Don't be embarrassed. There are plenty of us who have been in similar or worse situations and are working through it. I remember posting my first SOA on here and was devastated with some of the feedback I got, but it was all good stuff, and a little further down the line I'm plodding on, without being too frugal that I can't enjoy life.
    Does your £3200 income include the rent that your ex pays?
    I would suggest that you perhaps set yourself a couple of challenges for the month ahead to help curb your £500 spends. Things like the nsd challenge, weekly spend challenge etc. I'm on the Sparta thread, which is hard work but really, really makes me think about what I'm doing and what I'm spending.
    Meantime, the obvious cutback areas are holidays, presents and savings...
    Good luck
    Ninja Saving Turtle
  • SkinnylatteSkinnylatte Forumite
    1.2K Posts
    Part of the Furniture 1,000 Posts Debt-free and Proud! Home Insurance Hacker!
    ✭✭✭
    I just ralised that haircuts/holidays/pressies etc is coming out of my montly overspend so I've done my SOA again, looks a little better but not much!

    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 1
    Number of children in household......... 1
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 3200
    Partners monthly income after tax....... 0
    Benefits................................ 81.74
    Other income............................ 0
    Total monthly income.................... 3281.74


    Monthly Expense Details

    Mortgage................................ 500
    Secured/HP loan repayments.............. 194
    Rent.................................... 650
    Management charge (leasehold property).. 0
    Council tax............................. 115
    Electricity............................. 44
    Gas..................................... 66
    Oil..................................... 0
    Water rates............................. 65
    Telephone (land line)................... 10
    Mobile phone............................ 0
    TV Licence.............................. 12.5
    Satellite/Cable TV...................... 31.5
    Internet Services....................... 18.5
    Groceries etc. ......................... 180
    Clothing................................ 0
    Petrol/diesel........................... 350
    Road tax................................ 10
    Car Insurance........................... 28.13
    Car maintenance (including MOT)......... 80
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 82
    Medical (prescriptions, dentist etc).... 8
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 27
    Contents insurance...................... 6
    Life assurance ......................... 24
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 70
    Haircuts................................ 15
    Entertainment........................... 0
    Holiday................................. 80
    Emergency fund.......................... 0
    Day to day stuff that I'm starting to wr 327
    Gym..................................... 33
    Savings for kids........................ 30
    Therapy................................. 150
    Total monthly expenses.................. 3206.63



    Assets

    Cash.................................... 0
    House value (Gross)..................... 145000
    Shares and bonds........................ 574
    Car(s).................................. 2600
    Other assets............................ 0
    Total Assets............................ 148174



    Secured & HP Debts

    Description....................Debt......Monthly...APR
    Mortgage...................... 141000...(500)......2.98
    Hire Purchase (HP) debt ...... 638......(194)......15.9
    Total secured & HP debts...... 141638....-.........-


    Unsecured Debts
    Description....................Debt......Monthly...APR
    Barclay Mastercard.............7253......150.......19.99
    MBNA...........................4882......115.......19.99
    Lloyds.........................261.......98........18.9
    Over draft.....................1900......0.........0
    Tax Credits....................2419......0.........0
    Tax Man........................2941......0.........0
    Barclay Visa...................1093......30........24.9
    Total unsecured debts..........20749.....393.......-



    Monthly Budget Summary

    Total monthly income.................... 3,281.74
    Expenses (including HP & secured debts). 3,206.63
    Available for debt repayments........... 75.11
    Monthly UNsecured debt repayments....... 393
    Amount short for making debt repayments. -317.89


    Personal Balance Sheet Summary
    Total assets (things you own)........... 148,174
    Total HP & Secured debt................. -141,638
    Total Unsecured debt.................... -20,749
    Net Assets.............................. -14,213


    Created using the SOA calculator at https://www.stoozing.com.
    Reproduced on Moneysavingexpert with permission, using Firefox browser.
    Pay off Car Loan £17,047 £10580 by Christmas 2022

    Mortgage 1 @ 23/03/2019 [STRIKE]£101297[/STRIKE]
    £84457 16.6% DI [STRIKE]£6.95[/STRIKE] £6.15
    Mortgage 2 @ 12/04/2015 [STRIKE]£136121[/STRIKE]
    £100,546 26.1
    % DI [STRIKE]£9.13[/STRIKE] £6.07
    1st LBM 02/06/2013 £[STRIKE]21595[/STRIKE] Debt Free Day 27/03/2015

  • nat21luvnat21luv Forumite
    3.4K Posts
    Tenth Anniversary 1,000 Posts Name Dropper Cashback Cashier
    ✭✭✭✭
    So just to clarify, how much is your mortgage repayment per month? The £500 you have for the mortgage, surely that is cancelled out from the rent you receive?
    £12k in 2020 #=
    1% challenge #61 £142= 81% £10 a day = £460/£500

    **MONEY MAKES ME HAPPY**
  • SkinnylatteSkinnylatte Forumite
    1.2K Posts
    Part of the Furniture 1,000 Posts Debt-free and Proud! Home Insurance Hacker!
    ✭✭✭
    nat21luv wrote: »
    So just to clarify, how much is your mortgage repayment per month? The £500 you have for the mortgage, surely that is cancelled out from the rent you receive?

    Yes, but I have included the £500 received in my income, so yes they just cancel each other out.
    Pay off Car Loan £17,047 £10580 by Christmas 2022

    Mortgage 1 @ 23/03/2019 [STRIKE]£101297[/STRIKE]
    £84457 16.6% DI [STRIKE]£6.95[/STRIKE] £6.15
    Mortgage 2 @ 12/04/2015 [STRIKE]£136121[/STRIKE]
    £100,546 26.1
    % DI [STRIKE]£9.13[/STRIKE] £6.07
    1st LBM 02/06/2013 £[STRIKE]21595[/STRIKE] Debt Free Day 27/03/2015

  • nat21luvnat21luv Forumite
    3.4K Posts
    Tenth Anniversary 1,000 Posts Name Dropper Cashback Cashier
    ✭✭✭✭
    Gotcha, sorry, didn't see it was included.

    Just a suggestion, but instead of 'allowing' yourself to spend the money but write it down every time you do, how about giving yourself an allowance? Say, £100, to buy clothes, drinks, whatever and pay the £400 straight as you get it on a debt? You can't spend what you don't have.
    £12k in 2020 #=
    1% challenge #61 £142= 81% £10 a day = £460/£500

    **MONEY MAKES ME HAPPY**
  • [Deleted User][Deleted User] Forumite
    0 Posts
    Eighth Anniversary 10,000 Posts Debt-free and Proud!
    MoneySaving Newbie
    I own a house with a big mortgage, but I rent that out and receive an income that goes straight into the mortgage.

    Shouldn't this rent be listed under "Other income", so it offsets the Mortgage payments :huh:

    What is this "Day to day stuff" you are spending £6k per year on?
  • SkinnylatteSkinnylatte Forumite
    1.2K Posts
    Part of the Furniture 1,000 Posts Debt-free and Proud! Home Insurance Hacker!
    ✭✭✭
    Bedsit_Bob wrote: »
    Shouldn't this rent be listed under "Other income", so it offsets the Mortgage payments :huh:

    What is this "Day to day stuff" you are spending £6k per year on?
    yes, it should be in other income really, but it is included in my total income, so the end results is the same.
    You're right the 6k bit is my problem, this is what I have been spending, and is the main thing I need to change, some of that is legit spending such as clothes, shoes, haircuts, school uniform, christmas/birthdays, holidays, the other I really don't know, macdonalds, costa, the price of 2 teenagers, etc etc, that's why I am going to write down everything this month, and only spend what I absolutley have to, and see what that looks like at the end of the month.
    the truth is I have been thinking that because I earn a good wage I can spend like I do, but I've been spending more than I have available for years, and today is the realisation off just what damage I've done. :(
    This is the first time I have ever written it all down, and shared it with any-one.
    The better news is that I've only another 2 months payments on my car and Lloyds loan, so I will have £292 more available from August. I'm not behind on any payments and never have been, just crippled with debt and overspending, and at this very moment I don't know how I'm going to pay Junes rent due in 3 weeks.
    Pay off Car Loan £17,047 £10580 by Christmas 2022

    Mortgage 1 @ 23/03/2019 [STRIKE]£101297[/STRIKE]
    £84457 16.6% DI [STRIKE]£6.95[/STRIKE] £6.15
    Mortgage 2 @ 12/04/2015 [STRIKE]£136121[/STRIKE]
    £100,546 26.1
    % DI [STRIKE]£9.13[/STRIKE] £6.07
    1st LBM 02/06/2013 £[STRIKE]21595[/STRIKE] Debt Free Day 27/03/2015

  • [Deleted User][Deleted User] Forumite
    0 Posts
    Eighth Anniversary 10,000 Posts Debt-free and Proud!
    MoneySaving Newbie
    some of that is legit spending such as clothes, shoes, haircuts, school uniform, christmas/birthdays, holidays

    So put them under the appropriate headings.

    ATM your SOA is, at best confusing, at worst unfathomable.
This discussion has been closed.
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