Just done the SOA - determined to get rid of this debt!

breakingbad

Evening all,

I've just completed the SOA (excellent isn't it!). I've simply filled it out for myself, not taking my wife's income or share of the household bills into account. Here are my results:

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................ 2156.43
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2156.43
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 239.9
Rent.................................... 400
Management charge (leasehold property).. 0
Council tax............................. 96.5
Electricity............................. 15
Gas..................................... 15
Oil..................................... 0
Water rates............................. 13.77
Telephone (land line)................... 0
Mobile phone............................ 40
TV Licence.............................. 22.73
Satellite/Cable TV...................... 16
Internet Services....................... 21
Groceries etc. ......................... 100
Clothing................................ 50
Petrol/diesel........................... 150
Road tax................................ 0
Car Insurance........................... 34.51
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 12
Entertainment........................... 100
Holiday................................. 0
Emergency fund.......................... 0
CreditExpert............................ 2.99
Season Ticket........................... 60
Trade Union Membership Fee.............. 13.95
Current Account Fee..................... 15
(Unnamed monthly expense)............... 0
Total monthly expenses.................. 1418.35

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

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Car Lease (HP) ............... 5039.79..(239.9)....0
Total secured & HP debts...... 5039.79...-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
BarclayLoan....................8637.88...266.6.....13.9
Nationwide CreditCard..........1828......45.24.....19.9
Natwest Platinum Card..........2283......51.38.....16.95
Oak Furniture Land.............817.03....74.26.....0
Total unsecured debts..........13565.91..437.48....-

Monthly Budget Summary
Total monthly income.................... 2,156.43
Expenses (including HP & secured debts). 1,418.35
Available for debt repayments........... 738.08
Monthly UNsecured debt repayments....... 437.48
Amount left after debt repayments....... 300.6
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -5,039.79
Total Unsecured debt.................... -13,565.91
Net Assets.............................. -18,605.7
Created using the SOA calculator at stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.


So as you can see, I believe it will be manageable to pay off the debts on my salary - I hope so anyway! Plus I'm a teacher so my salary will be rising in September again.


I just have to be extra strict with myself regarding the budget - I've given my credit cards to my wife to keep (with strict instructions to only let me have them in a genuine emergency).


Any advice anyone?


Cheers,


Gary

patman99

To be wholly accurate, it needs to include your wife's income/expenditure as well.

However, based on the info (scant as it is), I would suggest overpaying the Nationwide credit card by £50 a month as it has the highest APR and will free-up £45 each month that you can chuck at the NatWest C/Card.

Over-paying on a card that incurs interest each month is the most sensible move as for every £100 you pay off the balance, you will in effect save £19.90 in yearly interest (or £1.65 a month). Interest on C/cards can increase at any time the lender so wishes, so these are the most important ones to kill-off first.

Your loan and HP is at a fixed rate that won't vary. So there is not a risk of payments increasing due to a hike in the APR by the lender.

I would also put £50 a month into an ISA, £50 into an emergency fund & £50 into a high interest account to use as a future deposit on a house (or new car (no HP then).

breakingbad

Hi patman99, thanks for your reply...

My wife and I tend to keep our finances separate, at least until I get out of debt (she has very little). We have a joint account that we each transfer £600 into every month which covers rent and all utility bills, council tax etc. but after that, I'd like to keep her out of it - sorry.

I have tried to complete the SOA as accurately as possible, using my last 3 months bank statements. From the figures obtained, I intend to do as you suggest and try to overpay the Nationwide CC as much as possible, I'm hoping to try to pay approx £250/mth off in total (approx £200 overspend).

I will also start putting £50/mth into an ISA for a rainy day, however I would like to overpay the Nationwide CC by as much as possible so will probably not put any more savings away until at least some of the debts are paid off (seems pointless earning 5% on savings when I'm paying 15-19% on debt, no?)

Thanks!

Gary

pleasedelete

But marriage isnt like that!

How did you get into debt? paying household bills, joint holidays, going for a meal together, gifts for the wife?

If you cant share income and debt then you need to reflect a bit. Why would you pay equal amounts into 1 account? do you earn the same? You say you each pay £600 but your share of blls add up to more than that?

How much do each of you earn? what do you each pay into a joint account? what is left? who pays for a night at the pub? christmas presents? holidays?

[Deleted User]

garmcqui wrote: »

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................ 2156.43
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2156.43
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 239.9
Rent.................................... 400
Management charge (leasehold property).. 0
Council tax............................. 96.5 - £193pm. That's nearly £2,000pa. :eek:
Electricity............................. 15
Gas..................................... 15
Oil..................................... 0
Water rates............................. 13.77
Telephone (land line)................... 0
Mobile phone............................ 40 - That is very expensive for one phone. Go PAYG/sim only (about £10) ASAP.
TV Licence.............................. 22.73 - £45-46pm :huh: Are you just starting on a payment plan?
Satellite/Cable TV...................... 16
Internet Services....................... 21
Groceries etc. ......................... 100
Clothing................................ 50
Petrol/diesel........................... 150
Road tax................................ 0
Car Insurance........................... 34.51
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0 - Never?
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0 - You need this. Costs around £10pm.
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 - Nothing, never?
Haircuts................................ 12
Entertainment........................... 100
Holiday................................. 0
Emergency fund.......................... 0 - You need something in here.
CreditExpert............................ 2.99
Season Ticket........................... 60
Trade Union Membership Fee.............. 13.95
Current Account Fee..................... 15
(Unnamed monthly expense)............... 0
Total monthly expenses.................. 1418.35

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0 - Your car isn't worth anything?
Other assets............................ 0
Total Assets............................ 0

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Car Lease (HP) ............... 5039.79..(239.9)....0
Total secured & HP debts...... 5039.79...-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
BarclayLoan....................8637.88...266.6.....13.9
Nationwide CreditCard..........1828......45.24.....19.9
Natwest Platinum Card..........2283......51.38.....16.95
Oak Furniture Land.............817.03....74.26.....0
Total unsecured debts..........13565.91..437.48....-

Monthly Budget Summary
Total monthly income.................... 2,156.43
Expenses (including HP & secured debts). 1,418.35
Available for debt repayments........... 738.08
Monthly UNsecured debt repayments....... 437.48
Amount left after debt repayments....... 300.6
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -5,039.79
Total Unsecured debt.................... -13,565.91
Net Assets.............................. -18,605.7
Created using the SOA calculator at stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

You have £300pm spare, yet you are paying the minimum on a 20% Credit Card :huh:

At the rate you are paying the Nationwide card, it will take you 6.5 years to clear it, and cost you £1,136.00 in interest. :eek:

Putting half of your spare cash toward it, will see it cleared in less than a year, for just £141.00 in interest.

Putting the whole £300 toward it, would see it cleared in 6 months, for £69 in interest.

breakingbad

Thanks for your reply pleasedelete...

We only got married in August 2013 so 95% of this debt was accrued before marriage, before living together etc. Therefore it is my responsibility to get it sorted.

She earns slightly less than I do (£1850/mth) yet has less debt so by making the same £600 payment into the joint account each month, our remaining money is approximately the same. That £600 covers rent, council tax, electricity, gas, water, Sky TV, internet and TV License.

We are pretty good at sharing costs, we take it in turns to pay for the weekly shop, and try our best to take it in turn to pay in restaurants, pubs etc.

Hope that helps...

Gary

breakingbad

Bedsit_Bob wrote: »

You have £300pm spare, yet you are paying the minimum on a 20% Credit Card :huh:

At the rate you are paying the Nationwide card, it will take you 6.5 years to clear it, and cost you £1,136.00 in interest. :eek:

Putting half of your spare cash toward it, will see it cleared in less than a year, for just £141.00 in interest.

Putting the whole £300 toward it, would see it cleared in 6 months, for £69 in interest.

Hi Bedsit Bob, thanks for taking the time to comb through the SOA...

Up to now, I have been paying £100 off each of the two credit cards, but the SOA asked for the minimum payments, so I entered these, sorry. I have just now switched the Natwest CC to minimum payments so I can begin overpaying on the Nationwide CC. As I said above, I'm hoping to pay it off at £250/mth from now on - hope that makes sense!

Council tax - we moved into this house in August, but the council didn't sort out a bill for us until the end of October, hence we are having to pay more each month, but only up until March.

Mobile Phone - Unfortunately I'm in contract on my current phone until December 2014 (stupid I know!).

TV-License - I added to this slightly to make my share of the joint bills up to £600 for the SOA - as this is what I transfer into the joint account every month - this covers the unpredictable variable direct debits with a few quid spare, which just sits in the joint account (basic savings of a sort, I suppose).

Medical Costs - I can't remember the last time I had a prescription.

Contents Insurance - I paid the contents insurance (was only £68) in one go back in August.

Car - it is leased (the HP entry) so I don't own it.

Hope that helps!

Gary

[Deleted User]

garmcqui wrote: »

but the SOA asked for the minimum payments, so I entered these

It doesn't ask for minimum. It asks for Monthly.

TV-License - I added to this slightly to make my share of the joint bills up to £600 for the SOA - as this is what I transfer into the joint account every month[/quote]

The idea of the SOA, is to determine what you pay out, not to balance things up.

By adjusting the figures, you are making it inaccurate, and confusing people who are trying to help.

and I paid the contents insurance (was only £68) in one go back in August.

It still needs to be included. Divide the annual payment by 12.

Regarding my car, it is leased (the HP entry) so I don't own it.

By leased, do you mean you will never own it, or that you will own it eventually, when you have finished paying?

breakingbad

Sorry Bedsit Bob, but the SOA I completed asked for the Debt Description, Debt (£), Min Pay (£) and Annual Rate (%).

I added to the TV License section simply to give a more accurate representation of what I paid out every month. I explained that I need to transfer £600 in order to account for the variable direct debits for Sky etc. I pay out £600 for household bills each month, and that is what I wanted the SOA to show, so it gave an accurate account of what I have left each month.

Yes, by leased I mean I will never own it unless I choose to buy it at the end of the term. I make "rental" payments on it for 2 years, then at the end of this term I have the option to hand it back and walk away or purchase it outright.

Thanks,

Gary

[Deleted User]

garmcqui wrote: »

the SOA I completed asked for the Debt Description, Debt (£), Min Pay (£) and Annual Rate (%).

I've never noticed that.

As you fill it in, it asks for minimum but, when you format for MSE, it changes to Monthly :huh:

I explained that I need to transfer £600 in order to account for the variable direct debits for Sky etc.

This is where the SOA comes into it's own.

You state the actual amount you spend (divide by 12 for annual payments) and we can see where cuts can be made.

If all we can see, is that you spend £600pm, then we can't determine what can be reduced/eliminated.

breakingbad

ok, here is a slightly amended version of my SOA, as directed by Bedsit Bob...


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................ 2156.43
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2156.43
Monthly Expense Details
Mortgage................................ 0
Secured/HP Car Lease.................... 239.9
Rent.................................... 400
Council tax............................. 96.5
Electricity............................. 15
Gas..................................... 15
Water rates............................. 13.77
Mobile phone............................ 40
TV Licence.............................. 12.13
Satellite/Cable TV...................... 16
Internet/Landline....................... 21
Groceries etc. ......................... 100
Clothing................................ 50
Petrol/diesel........................... 150
Car Insurance........................... 34.51
Contents insurance...................... 2.63
Presents (birthday, christmas etc)...... 10
Haircuts................................ 12
Entertainment........................... 100
Emergency fund.......................... 0
CreditExpert............................ 2.99
Season Ticket........................... 60
Trade Union Membership Fee.............. 13.95
Current Account Fee..................... 15
Total monthly expenses.................. 1420.38

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

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 5039.79..(239.9)....0
Total secured & HP debts...... 5039.79...-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
BarclayLoan....................8637.88...266.6.....13.9
Nationwide CreditCard..........1828......45.24.....19.9
Natwest Platinum Card..........2283......51.38.....16.95
Oak Furniture Land.............817.03....74.26.....0
Total unsecured debts..........13565.91..437.48....-

Monthly Budget Summary
Total monthly income.................... 2,156.43
Expenses (including HP & secured debts). 1,420.38
Available for debt repayments........... 736.05
Monthly UNsecured debt repayments....... 437.48
Amount left after debt repayments....... 298.57
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -5,039.79
Total Unsecured debt.................... -13,565.91
Net Assets.............................. -18,605.7
Created using the SOA calculator at stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.


Thanks,


Gary