How shocking is this?? My SOA

lazer

Tommy81 wrote: »

Hey guys,


I have finally had my LBM!!


for the first time I have actually sat and listed/calculated my debts and I am horrified, shocked, embarrassed.... the list goes on.


I knew I owed a fair bit but not 30K!!. I have included my SOA below and would welcome any comments.


I have included all of my income. The £350 extra is the money that my wife has surplus each month. All of the debts on my SOA are in my name. My wife and I keep our debts separate. She only owes a relatively small amount but the £350 is what she could contribute after she has paid all of her own commitments.


My credit card payments include the overpayments that I make ( £750 per month in total)


I guess I am lucky that I have a decent income and can therefore make the payments and have some money left over but I cannot help feel foolish and like I have let everyone down. The debt was accrued due to home improvements, holidays and generally overspending and not thinking enough about the finances.


How shocking does this look? I don't know anyone who has debts on this scale!! I feel really ashamed!!!




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.................... 2
Monthly Income Details
Monthly income after tax................ 2937
Partners monthly income after tax....... 0
Benefits................................ 81.2
Other income............................ 350
Total monthly income.................... 3368.2
Monthly Expense Details
Mortgage................................ 250
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 102
Electricity............................. 35
Gas..................................... 35
Oil..................................... 0
Water rates............................. 43
Telephone (land line)................... 15 - look at combining phone, internet and sky - i pay £25 a month for mone (Basic TV package) with a few deals, phone them up)
Mobile phone............................ 35
TV Licence.............................. 14
Satellite/Cable TV...................... 20
Internet Services....................... 15
Groceries etc. ......................... 250
Clothing................................ 50 - only buy necessitys for adults, for you child, use primark, pundstretcher etc or charity shops.
Petrol/diesel........................... 120 - keep track of you mileage, don't do unnessecary journeys, walk instead where posible, make sure you fill up in the cheapest stations.
Road tax................................ 3
Car Insurance........................... 35
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..................... 10
Contents insurance...................... 10 - are these combined, look for cheaper alternatives.
Life assurance ......................... 33
Other insurance......................... 0
Presents (birthday, christmas etc)...... 100 - cut this as much as possible, although ours is £80 a month without a child.
Haircuts................................ 10
Entertainment........................... 100 - try and see how you get on with less, say £50, or leave iot at the £100, but anything not spent gets used to pay debts - might encourage you not to spend it
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1285

Assets
Cash.................................... 0
House value (Gross)..................... 140000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 143000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 89000....(250)......1.5
Total secured & HP debts...... 89000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
tesco loan.....................5800......364.......7.8
Barclaycard....................6000......120.......0
Barclaycard....................4000......200.......6.9
overdraft......................2000......25........13.9
very...........................416.......45........18.9
Creation.......................7000......230.......0
MBNA...........................5000......200.......16.9
Total unsecured debts..........30216.....1184......-

Monthly Budget Summary
Total monthly income.................... 3,368.2
Expenses (including HP & secured debts). 1,285
Available for debt repayments........... 2,083.2
Monthly UNsecured debt repayments....... 1,184
Amount left after debt repayments....... 899.2
Personal Balance Sheet Summary
Total assets (things you own)........... 143,000
Total HP & Secured debt................. -89,000
Total Unsecured debt.................... -30,216
Net Assets.............................. 23,784

Remember your net assets are positive, so thats good.

Pay of the minimum on all debts, and the throw the rest at the ones with the highest interest, Very first then MBNA

Tommy81

tallyhoh wrote: »

Is your SOA really correct? just wondering how you came to owe £30,000 on credit cards. Was it just putting the odd meal etc on your CC or was it for large purchases.

Hi


It really was an accumulation of spending bit too much each week, funding holidays, using cards to pay for the groceries but only paying minimum etc. I am afraid that I cannot make any excuses for my debt!! Some of it was due to my wife being on maternity leave.


The loan was to consolidate some old car debt.

Tommy81

Thanks for all of the posts folks. I really appreciate it and is spurring me on to get rid of this debt!!

Tommy81

Managed to do a weekly food shop today for... wait for it... £27


Admittedly we had a few bits in the cupboard but we are still pleased about it


My next plan is to identify a 0%balance transfer for my non 0% CC debt. I have a good credit rating so I am hoping I will be accepted!

Prothet_of_Doom

Tommy81 wrote: »

Hi


Yes, I halved the mortgage payment and the other payments reflect what I pay. Our mortgage is actually £497 but my wife pays £250 of this. The £350 extra income is what she can contribute after all of her own bills are paid


I know that some people disagree with the separate finance thing but it works for us

Ironic don't you think ? It clearly has not worked for you, as one of you is in debt.

Sorry !!! not trying to be deliberately provocative, but I have started to see trends where only one half of a couple believe there is a problem

I think that because in law your finances are linked, and in Love you are linked, it would be better if the whole couples financial situation is shared.

If you are not in debt, then, I think having a separation like this is okay, and it works for some, until, one person is unable to contribute their share due to illness or redundancy.

Note : You have to understand where I'm coming from, my wife was a stay at home mum, so you can't operate in the way you suggest, and the old fashioned way of 'giving the wife an allowance' is shall we say "1950", so you have to share your finances, however irritaing that can be sometimes.

Prothet_of_Doom

Tommy81 wrote: »

Hi


It really was an accumulation of spending bit too much each week, funding holidays, using cards to pay for the groceries but only paying minimum etc. I am afraid that I cannot make any excuses for OUR [STRIKE]my[/STRIKE] debt!! Some of it was due to my wife being on maternity leave.


The loan was to consolidate some old car debt.

I have changed one word.

You see the DEBT is joint, so the SOA probably should be joint.

Galeeno

Tommy81 wrote: »

Hey guys,


I have finally had my LBM!!


for the first time I have actually sat and listed/calculated my debts and I am horrified, shocked, embarrassed.... the list goes on.


I knew I owed a fair bit but not 30K!!. I have included my SOA below and would welcome any comments.


I have included all of my income. The £350 extra is the money that my wife has surplus each month. All of the debts on my SOA are in my name. My wife and I keep our debts separate. She only owes a relatively small amount but the £350 is what she could contribute after she has paid all of her own commitments.


My credit card payments include the overpayments that I make ( £750 per month in total)


I guess I am lucky that I have a decent income and can therefore make the payments and have some money left over but I cannot help feel foolish and like I have let everyone down. The debt was accrued due to home improvements, holidays and generally overspending and not thinking enough about the finances.


How shocking does this look? I don't know anyone who has debts on this scale!! I feel really ashamed!!!




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.................... 2
Monthly Income Details
Monthly income after tax................ 2937
Partners monthly income after tax....... 0
Benefits................................ 81.2
Other income............................ 350
Total monthly income.................... 3368.2
Monthly Expense Details
Mortgage................................ 250
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 102
Electricity............................. 35
Gas..................................... 35
Oil..................................... 0
Water rates............................. 43
Telephone (land line)................... 15
Mobile phone............................ 35
TV Licence.............................. 14
Satellite/Cable TV...................... 20
Internet Services....................... 15
Groceries etc. ......................... 250
Clothing................................ 50
Petrol/diesel........................... 120
Road tax................................ 3
Car Insurance........................... 35
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..................... 10
Contents insurance...................... 10
Life assurance ......................... 33
Other insurance......................... 0
Presents (birthday, christmas etc)...... 100
Haircuts................................ 10
Entertainment........................... 100
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1285

Assets
Cash.................................... 0
House value (Gross)..................... 140000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 143000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 89000....(250)......1.5
Total secured & HP debts...... 89000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
tesco loan.....................5800......364.......7.8
Barclaycard....................6000......120.......0
Barclaycard....................4000......200.......6.9
overdraft......................2000......25........13.9
very...........................416.......45........18.9
Creation.......................7000......230.......0
MBNA...........................5000......200.......16.9
Total unsecured debts..........30216.....1184......-

Monthly Budget Summary
Total monthly income.................... 3,368.2
Expenses (including HP & secured debts). 1,285
Available for debt repayments........... 2,083.2
Monthly UNsecured debt repayments....... 1,184
Amount left after debt repayments....... 899.2
Personal Balance Sheet Summary
Total assets (things you own)........... 143,000
Total HP & Secured debt................. -89,000
Total Unsecured debt.................... -30,216
Net Assets.............................. 23,784

Your income/expenditure,

As others have said other people have similar circumstances.

tulip28

I have seen worse SOA. My own for starters was shocking. Shocking enough that I changed a few things. You are lucky you hold down a well paid job.

Do you really need two cars - two insurances, two tax, two MOT's, two services.... I got rid of my car two years ago - one of the best decisions I made. The extra money was VERY welcome and I lost some weight through the extra walking/commuting. Also made me more street wise.

Your mobile bill - does your work have any scheme's? Can you change your tariff?

Entertainment - I go week to week now, some weekends I stay indoors watching films on you tube - recently watched the whole series of Benidorm from start to finish.

We started making our own wine and it's lovely. and no extra nasties added to make it preserve longer on the shelf.

Get a breadmaker.

Plan your meals.

Do a stock check before EVERY shop.

I have a new mantra - I don't want T3sco's or A3da taking my hard earned money! I work for it why should I give it all to tthem for their lovely xmas meals!? lol

You are in a really good position - use it wisely - luckily you have had you LBM in good time while it's still fixable.

I do agree though that debt should be SHARED - especially as it wasn't just you running it up.

x

Tommy81

Prothet_of_Doom wrote: »

Ironic don't you think ? It clearly has not worked for you, as one of you is in debt.

Sorry !!! not trying to be deliberately provocative, but I have started to see trends where only one half of a couple believe there is a problem

I think that because in law your finances are linked, and in Love you are linked, it would be better if the whole couples financial situation is shared.

If you are not in debt, then, I think having a separation like this is okay, and it works for some, until, one person is unable to contribute their share due to illness or redundancy.

Note : You have to understand where I'm coming from, my wife was a stay at home mum, so you can't operate in the way you suggest, and the old fashioned way of 'giving the wife an allowance' is shall we say "1950", so you have to share your finances, however irritaing that can be sometimes.

Thanks for the reply


I think that you have misunderstood the situation though. My wife is as committed as I am to clearing the debt. The £350 that she contributes is a significant proportion of her earnings. We are both in debt and we both support each other.


Of course it would be a different scenario if she was out running up further debts but this is not the case. I don't think that having a joint account would have made any difference to our current financial predicament

Tommy81

tulip28 wrote: »

I have seen worse SOA. My own for starters was shocking. Shocking enough that I changed a few things. You are lucky you hold down a well paid job.

Do you really need two cars - two insurances, two tax, two MOT's, two services.... I got rid of my car two years ago - one of the best decisions I made. The extra money was VERY welcome and I lost some weight through the extra walking/commuting. Also made me more street wise.

Your mobile bill - does your work have any scheme's? Can you change your tariff?

Entertainment - I go week to week now, some weekends I stay indoors watching films on you tube - recently watched the whole series of Benidorm from start to finish.

We started making our own wine and it's lovely. and no extra nasties added to make it preserve longer on the shelf.

Get a breadmaker.

Plan your meals.

Do a stock check before EVERY shop.

I have a new mantra - I don't want T3sco's or A3da taking my hard earned money! I work for it why should I give it all to tthem for their lovely xmas meals!? lol

You are in a really good position - use it wisely - luckily you have had you LBM in good time while it's still fixable.

I do agree though that debt should be SHARED - especially as it wasn't just you running it up.

x

Hi Tulip


We need both cars as I have a 50 mile round trip each day and my wife does the school run on her way to work. It would be very difficult for her to not have a car with her work and commitments etc and it would cost me a fair bit to get the train each day.


My mobile tariff is fixed until August but I will be changing it asap!


Our entertainment budget is fairly random and some weeks we will spend nothing! We are definitely trying to reduce this outgoing!!