Prolonged Light Bulb Moment

jackieblack

National_Debtline_representative wrote: »

A lot of work goes on behind the scenes, involving a large number of organisations. The idea is that if a creditor is presented with a budget which is compliant to 'the common financial statement' with their figures falling within the guidelines, a creditor should accept the offer of payment being put to them.

You can read a bit more about the common financial statement here:
http://www.cfs.moneyadvicetrust.org/

Sadly, the actual figures are generally not in the public domain - but we allude to them within our 'Dealing with your debts' guide, which I posted up earlier.

The figure includes clothing and generally housekeeping and personal care items too.

David.

"The trigger figures represent pre-agreed levels for certain areas of discretionary household expenditure. The trigger figures help identify levels of monthly expenditure deemed reasonable when completing the CFS. You will not need to explain the financial statement to creditors unless the trigger figures are exceeded."
"The trigger figures are calculated using research from the Government’s Living Costs and Food Survey (previously known as the Family Expenditure Survey). The Costs and Food Survey is based on a random sample of lower-income UK households produced by the Office for National Statistics."

So that explains it.... they're figures 'produced' by government :rotfl:

National_Debtline

jackieblack wrote: »

So that explains it.... they're figures 'produced' by government :rotfl:

That's an interesting interpretation, but its not quite how it works. As it goes there are similar guideline figures used by the courts when determining rates of payment for court judgments, the Insolvency Service also have their own guidelines. I think they are quite generous - but as I've mentioned that covers ALL housekeeping costs and clothing too.

David.

jackieblack

BlueDaisy
Well done for tackling this

My DH is like yours, not interested in household finances, never has been, never will be, it's something I've always had to deal with.
We had times when we were completely skint, when DH was out of work early in our marriage, which made us into pretty frugal spenders and although things are easier now we've maintained our frugal ways (mostly).
Consequently, despite a household income below the national average and, according to one online calculator "on the edge of poverty", we have no debt and even manage a holiday abroad every year.

Small changes can create big results

jackieblack

National_Debtline_representative wrote: »

That's an interesting interpretation, but its not quite how it works. As it goes there are similar guideline figures used by the courts when determining rates of payment for court judgments, the Insolvency Service also have their own guidelines. I think they are quite generous - but as I've mentioned that covers ALL housekeeping costs and clothing too.

David.

I think they are VERY generous, even if they do include clothing.
All the other things you mentioned with the exception of cigarettes (cleaning products, personal care items, alcohol, newspapers and magazines) are included as part of most people's housekeeping costs anyway.

BlueDaisy

Well! Thanks for posting, everyone, I didn't mean to start a debate on what was an acceptable or otherwise level of household spending.

We do need to reign in our finances (obviously)... I think I will save further explanation until I can actually fill out the SOA

jackieblack

Sorry BlueDaisy, I didn't intend to take your thread off-topic.
I just found the idea that spending £500 a month for 2 people on groceries is considered 'acceptable' by an organization that helps people with debt issues totally presposterous.
No wonder the country is in the state it's in if that is considered acceptable!

Have a look at the Old Style Moneysaving board for some great help and advice on cutting costs and well done for tackling your problems.

BlueDaisy

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.................... 2

Monthly Income Details
Monthly income after tax................ 1531.61
Partners monthly income after tax....... 1070.99
Benefits................................ 0
Other income............................ 300
Total monthly income.................... 2902.6

Monthly Expense Details
Mortgage................................ 595
Secured/HP loan repayments.............. 220
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 115
Electricity............................. 53
Gas..................................... 67
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 31.43
Mobile phone............................ 22.84
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 500
Clothing................................ 0
Petrol/diesel........................... 200
Road tax................................ 21.66
Car Insurance........................... 52.88
Car maintenance (including MOT)......... 141
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 23.44
Buildings insurance..................... 48.4
Contents insurance...................... 0
Life assurance ......................... 24.5
Other insurance......................... 5.95
Presents (birthday, christmas etc)...... 0
Haircuts................................ 35
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 100
Total monthly expenses.................. 2269.22


Assets
Cash.................................... 9000
House value (Gross)..................... 120000
Shares and bonds........................ 0
Car(s).................................. 10000
Other assets............................ 0
Total Assets............................ 139000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 55194....(595)......4<
BTL Mortgage...................22317.2..(220)......0
Total secured & HP debts...... 77511.2...-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Bank of mum....................22000.....150.......2
Barclaycard....................5800......135.......0
Total unsecured debts..........27800.....285.......-


Monthly Budget Summary
Total monthly income.................... 2,902.6
Expenses (including HP & secured debts). 2,269.22
Available for debt repayments........... 633.38
Monthly UNsecured debt repayments....... 285
Amount left after debt repayments....... 348.38

Personal Balance Sheet Summary
Total assets (things you own)........... 139,000
Total HP & Secured debt................. -77,511.2
Total Unsecured debt.................... -27,800
Net Assets.............................. 33,688.8

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

jackieblack

So your SOA looks pretty good.
The grocery spend has already been identified as something that could be reduced, but you still have £350 a month left over according to your figures.
So, if you are overspending this just means that your budget is not being stuck to.
Basically, your problem is not lack of funds so much as lack of sticking to your budget (ie self discipline )

My advice would be get Christmas out of the way then start the new year with getting the grocery bill down and using the £350 a month you already have 'spare' to build your savings back up to a level that you're happy would tide you over any kind of emergency/ unexpected major expense like boiler repairs or car problems (3 months income is what is usually recommended)
Do you know when your 0% on your Barclaycard finishes? Obviously it would be beneficial to be able to clear as much of that as possible when the 0% comes an end.
But actually, based on your SOA your finances aren't in bad shape at all

BlueDaisy

Haha Jackie,
I was trying to get my SOA on before I left for work and then driving here I kept thinking, what I hadn't added in or what needed to be changed. I was going to remove it and do it again tonight. But yes, I agree with you, we just need to agree a budget and stick to it. I think DH will be on board aswell. We have already (mostly) identified where we need to reign in.
The Barclaycard finishes in March - if I can't swap it onto another 0% we will just pay it off our savings. (See I didn't include our savings in my rush this morning)