Need help and advice - SOA attached

Cottage_Economy

BMG wrote: »

I have attached a SOA for advice. I think I have got everything on there but not really sure.


I can not work due to ill health and income has changed after last months dreadful loss.


Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 510
Other income............................ 1000
Total monthly income.................... 1510
Monthly Expense Details
Mortgage................................ 506
Secured/HP loan repayments.............. 35.90999999999997
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 145 have you obtained the single person discount, which would reduce your payment by 25%
Electricity............................. 35
Gas..................................... 30
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 45 this is very high as you are paying separately for internet. You can get packages that combine
Mobile phone............................ 11
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 20as above, combine this with a phone package to reduce the bill
Groceries etc. ......................... 150
Clothing................................ 0
Petrol/diesel........................... 150
Road tax................................ 23.75
Car Insurance........................... 37.5
Car maintenance (including MOT)......... 15.51
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 8.66
Pet insurance/vet bills................. 0
Buildings insurance..................... 12.5
Contents insurance...................... 0 if you can you really need something here
Life assurance ......................... 15 do you really need life assurance now? Do you have dependents you want to leave the money to? Or does this have a critical illness component to it that will pay out? Confused...
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 5
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
(Unnamed monthly expense)............... 0
Total monthly expenses.................. 1292.95

Assets
Cash.................................... 3000
House value (Gross)..................... 285this isn't correct, your house value is 285,000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 8285

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 70000....(506)......4
Hire Purchase (HP) debt ...... 430......(35.91)....NaN
Total secured & HP debts...... 70430.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
1..............................3839.12...100.......21.94
2..............................6090.86...120.......21.94
3..............................9816.77...221.......22.94
Total unsecured debts..........19746.75..441.......-

Monthly Budget Summary
Total monthly income.................... 1,510
Expenses (including HP & secured debts). 1,292.95
Available for debt repayments........... 217.05
Monthly UNsecured debt repayments....... 441
Amount short for making debt repayments. -223.95
Personal Balance Sheet Summary
Total assets (things you own)........... 8,285
Total HP & Secured debt................. -70,430
Total Unsecured debt.................... -19,746.75
Net Assets.............................. -81,891.75
Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.


Any advice would be appreciated

Hi BMG

Lovely to see you have come back. Some posters were really quite nasty to you in your original posts on this board and I honestly didn't think we'd see you come back.

Did you look into the one-off bereavement payment from the government as you husband died while he was still working? That would be £2,000.

Are all of these debts yours? My first instinct is to say your surplus income doesn't cover your monthly minimum payments on your cards and no amount of budget juggling will sort that out as I do not think you can squeeze another £221 out of your expenses. Add to that your husband's boss will only pay out for another 11 months or so and then you are down to just benefits. You need professional debt help from one of the debt charities and probably a DMP.

EDITED TO ADD: just noticed your house value was incorrectly entered - assumed it is £285,000? Compared to your mortgage, selling it might be a good idea and I see from reading your previous posts on other thread you are thinking about selling it. Might be a good idea, but make sure you are getting everything you should be from your husband's employer, the government etc before doing so. It might take your debts down to such a degree you may not need to sell.

Cottage_Economy

A couple of thoughts I had in the bath this morning.

1. The payments from your husband's employer may not be kindness. Your husband may have had Death in Service benefits and payments will be made to his next of kin. Everywhere I have worked I have had this benefit in my employment contract and had to fill in a piece of paper with details of who that payment is to go to.

You might want to dig out your husband's employment contract and find out what that payment is supposed to be and for how long it is to be paid. My last employment contract stipulated a lump sum and then monthly payments for set period of time. The lump sum was four times my annual earnings, but figures range depending on contract.

You don't want to find your husband's employer has already claimed for your husband on the company's insurance policy, and is giving you a nominal amount of what was paid out.

2. Did your husband have any occupational pensions he was paying into? If so you may be entitled to some kind of benefits there. Pension providers often have rules about providing some limited benefits to spouses if someone paying into their plan dies before retirement.

3. How many of the unsecured and secured debts you listed in your SOA belonged to you husband and you've taken over payments of?

Any that belonged solely to your husband must be paid from his estate - if you owned your home together as joint tenants the house is outside of his estate because under inheritance laws it passes to you.

You are not responsible for personally paying back your husband's debts. That doesn't mean the lenders might not try and strong arm you to take on the debt though, but you should not bow to their bully boy tactics.

Only those debts that you have jointly with your husband now revert to you solely.

You need to get advice from a debt charity quickly.

4. Did the joint life assurance policy pay out on your husband's death? For some reason I have the figure of £20k in my head about that? I'm not sure why you would want to continue paying for a policy for yourself. After you die, do you really care about helping your family considering how they have treated you and your husband over the years, but most particularly in the last few months.

asparagus1968

hi BMG,

can you use the £3000 to pay towards debt to bring outgoings down? i'm sure you aren't getting 22% interest on your savings!

tv/phones/internet- definitely can be got MUCH cheaper, look at t*lk t*lk for interest.

is the council tax single persons rate (25% discount)

car money is extortionate, I go to work 3 days a week, and have 2x400mile round trips a month and use just over £200 a month on petrol ??

I'd be looking into what benefit having the life assurance actually has? obviously the company will try and convince you to keep it, but practically, is the anyway it can help you?

stop paying any unsecured debts that are solely in your OH name.

Hope you are now getting some support in real life, best wishes to you.

Heres hoping for a quick sale too, and a fresh start for you:)

BMG

Thank you for noticing the house was priced incorrectly. I shouldn't have been trying to do this last night when I was tired.


hubby was only a contractor so all these things you are mentioning do not apply to him, including the fact that he didn't die at work. The policies the company have only cover work related deaths. He didn't have any death in service benefits and he did not have a pension.


With regard to the life insurance, I do not understand it all so I am going to make an appointment with CAB for advice.


None of the debts listed are in hubbies name. They are all mine or were put in my name like the purchase of a sofa. The mortgage was in join names but obviously is only in mine now.

BMG

I think I have got my self confused with the telephone and internet. I will have a deeper look into the mass of paperwork I have laying around to try and work it all out.


I noticed that the payments for a car service plan finish in Sept so the amount listed was worked out on 12 months. My car is a large car so it costs a lot in petrol. It is the only joy I have being able to drive the car I have always wanted. It is all paid for, there is no finance on it.


I will do a new SOA when I have sorted these figures correctly. I am just in a bit of a tiz at the moment and get confused easily.

BMG

I forgot to mention the building and contents insurance is combined

thecassman86

Hi BMG! Sorry once again about your loss. It's great to see you focused on getting sorted again though - you will get there i promise you.

BMG wrote: »

The house has gone on the market so once that sells there will be some spare cash unless I need it for a new house purchase

This is good as you have a lot of equity in your house so once it sells you'll have enough to really get back on your feet - you could also purchase a new property that is better equipped for your disabilities.

As others have suggested, any unsecured debt that was solely under your Husband's name is not your responsibility and you should stop paying those. Only pay debts that are yours or were joint with your husband.

I, of course, wish you the best of luck

BMG

thecassman86 wrote: »

Hi BMG! Sorry once again about your loss. It's great to see you focused on getting sorted again though - you will get there i promise you.



This is good as you have a lot of equity in your house so once it sells you'll have enough to really get back on your feet - you could also purchase a new property that is better equipped for your disabilities.

As others have suggested, any unsecured debt that was solely under your Husband's name is not your responsibility and you should stop paying those. Only pay debts that are yours or were joint with your husband.



Unfortunately the debts on the credit cards are mainly mine apart from groceries or petrol and I am the main card holder on the accounts
I, of course, wish you the best of luck

Thank you for all your kind words. It is appreciated

BMG

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household.........
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 510
Other income............................ 1000
Total monthly income.................... 1510
Monthly Expense Details
Mortgage................................ 506
Secured/HP loan repayments.............. 34.90999999999997
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 145
Electricity............................. 35
Gas..................................... 30
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 17.4 includes internet
Mobile phone............................ 11
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 150
Clothing................................ 0
Petrol/diesel........................... 150
Road tax................................ 23.75
Car Insurance........................... 29.17
Car maintenance (including MOT)......... 15.51
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 8.66
Pet insurance/vet bills................. 0
Buildings insurance..................... 12.5 includes contents
Contents insurance...................... 0
Life assurance ......................... 15
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 5
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1236.02

Assets
Cash.................................... 3000
House value (Gross)..................... 285000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 293000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 70000....(506)......4
Hire Purchase (HP) debt ...... 384.01...(34.91)....0
Total secured & HP debts...... 70384.01..-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
1..............................3839.12...100.......21.94
2..............................6090.86...120.......21.94
3..............................9816.7....221.......22.94
Total unsecured debts..........19746.68..441.......-

Monthly Budget Summary
Total monthly income.................... 1,510
Expenses (including HP & secured debts). 1,236.02
Available for debt repayments........... 273.98
Monthly UNsecured debt repayments....... 441
Amount short for making debt repayments. -167.02
Personal Balance Sheet Summary
Total assets (things you own)........... 293,000
Total HP & Secured debt................. -70,384.01
Total Unsecured debt.................... -19,746.68
Net Assets.............................. 202,869.31
Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.


Apologies I had got some of my figures wrong. I was obviously remembering other amounts I had paid rather than what was paid now.


I have just checked what is owed on the sofa and it is less than I thought. The payment finishes in May 2015.


The payment on the service plan finishes in Sept 2014.


I do not know to be honest what my grocery and petrol costs are going to be in the future. Lowering them figures will be work in progress.

glasgowsaver2011

Would the mortgage not have been paid off with life insurance policy after the accident - maybe look into it.

Make sure you get your council tax single person discount back dated to the date he moved out.

Look into selling the house, you are doing well just now, but when the 1000 a month stops, your mortgage and ct will be your total income