Our SOA - trying to stay out of more debt!

Sox77

Hi

If anyone has a chance to take a look at my SOA and offer advice, harsh criticism etc, I'd appreciate it. I was made redundant this year and our income has significantly dropped. We are okay at the moment (I still have some of the redundancy money squirrelled away) with tax credit changes looming, credit card 0% rate ending next year and the fact that the majority of the money we owe is to my parents I want to make sure we stay okay.


To explain a couple of things, pay our Mortgage to Bank of Mum and Dad. A fixed amount was agreed upon for repayment when we borrowed the money but I want to pay back as quick as possible as I don't like owing my parents money, particularly since I worry they are not covered if anything happens.

We recently had gas installed and BG has still not taken a payment but have said that because of household size £80 is the minimum direct debit to start with. The electricity was set way too low and I think we probably owe about £800 on it, but I've been too much of a wimp to find out!

No TV licence as we only watch Netflix (in under sky/cable).
Clothing is so high at the moment because I've averaged each category over spend for the last 8 months and I've had to spend a small fortune on school uniform this year. Senior school child had to have two specific pe tops totalling £50!!

Childcare/Nursey is actually clubs and out of school activities which is really high I know...

Okay that's all my excuses, thanks for reading
Sox


Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 4
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 555.1
Partners monthly income after tax....... 1731.84
Benefits................................ 787.74
Other income............................ 650
Total monthly income.................... 3724.68
Monthly Expense Details
Mortgage................................ 1285.00
Secured/HP loan repayments.............. 240.20
Council tax............................. 130.00
Electricity............................. 46.00
Gas..................................... 80.00
Water rates............................. 25.71
Telephone (land line)................... 5.00
Mobile phone............................ 30.00
Satellite/Cable TV...................... 8.99
Internet Services....................... 10.00
Groceries etc. ......................... 343.50
Clothing................................ 97.68
Petrol/diesel........................... 74.04
Road tax................................ 11.43
Car Insurance........................... 30.00
Car maintenance (including MOT)......... 40.00
Childcare/nursery....................... 386.85
Other child related expenses............ 4.78
Medical (prescriptions, dentist etc).... 4.75
Buildings insurance..................... 7.50
Contents insurance...................... 7.50
Life assurance ......................... 50.00
Presents (birthday, christmas etc)...... 67.53
Haircuts................................ 7.40
Entertainment........................... 72.32
Holiday................................. 29.35
Lottery................................. 23.85
Charity................................. 14.50
Miscellaneous........................... 15.38
Child Maintenance....................... 300.00
Total monthly expenses.................. 3469.26

Assets
House value (Gross)..................... 220000
Shares and bonds........................ 19155
Car(s).................................. 5000
Total Assets............................ 244155

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 179898...(1285).....0
Hire Purchase (HP) debt ...... 10089.6..(240.2)....0
Total secured & HP debts...... 189987.6..-.........-


Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card....................3001.08...67.54.....0
Total unsecured debts..........3001.08...67.54.....-

Monthly Budget Summary
Total monthly income.................... 3,724.68
Expenses (including HP & secured debts). 3,469.26
Available for debt repayments........... 205.42
Monthly UNsecured debt repayments....... 67.54
Amount left after debt repayments....... 207.88


Personal Balance Sheet Summary
Total assets (things you own)........... 244,155
Total HP & Secured debt................. -189,987.6
Total Unsecured debt.................... -3,001.08
Net Assets.............................. 51,166.32
Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

chocolatelover93

Personally I would get rid of the lottery and try something like freepostcodelottery which is free obviously and there are 5 chances a day to win.

I would also get rid of the DD to charity, instead why not volenteer at a local shop (it could turn into a job maybe?) or donate unwanted items to a local shop so you're still giving to charity.

When you say entertainment what sort of things are you doing? Have you looked at anything free or cheap you could do? Me and my OH made a "date night" jar with different things in, maybe you could do something similar and one for the children too, ask them to write down things they like to do?

Maybe you should sell your car and pay off the finance and buy one that you own outright, that would save quite a bit too.

Have a look around different shops and supermarkets for your shopping and buy in bulk it works out cheaper - not all the time though so do your math.

Hope I've helped, I am in no way perfect myself and me and my OH need to have a look at our finances. And as I say this is all my personal opinion
xx

greensalad

I think with a 6 person family most of your spends do make sense. Very high on the mortgage payments, but then what can you do.

Do you have a new job? Are you looking?

You have quite a lot of HP debt. Is that a car?

Charity begins at home! Bin it.

Lottery, why are you spending £23+ a month on the lottery?! Bin!

£67 seems an awful lot a month for presents. £804 a year on presents!

I would also try to decrease the cost of kids clubs.

rockm87

Do you really have money left over at the end of the month? Or is that a guess?

With yoru numbers, to be honest. I'd quit work and look after the children and cut out nursery fees, and work at reducing grocery spends (batch cook etc). Your paying out money for your children and your wages barely cover it.

Obviously I know this is temporary, and you may be looking for work.

also I'd ditch british gas as soon as possible, complete rip off!!

MallyGirl

if the £400 pcm on child costs is for clubs for 4 kids then I can understand how that comes about.


I would drop the lottery & charity donation, would shop around for life assurance as that seems high, focus on the grocery costs as you should be able to trim that a bit, cut the entertainment/presents budget back for a bit and throw any money you can at the credit card to get rid of it before the 0% runs out.

Sharon87

£97 a month on clothes, are those all the kids clothes? Could this be reduced in anyway? eBay for new clothes and/or sell old clothes the kids no longer on eBay. Same for your clothes too!

£8.99 - is that Netflix? Do you need the higher end package? You can get the package where you can still have 2 users watching at the same time. Alternatively read this article, it explains cheaper alternatives:
http://www.mirror.co.uk/money/netflix-price-rises-cheapest-way-to-stream-tv-shows-5886982

I would try to go with someone other than British Gas for Gas. Go to uSwitch and compare costs - 10 minutes of form filling could save you a lot of money. - Also compare costs on other products including insurances.

I would reduce birthday spends too. My parents didn't spend much on me at Christmas on some years, but I didn't feel like I lost out! Be creative with presents and buy second hand. My brother got a second hand TV when he was younger, I got a second hand MP3 player. There are ways to save and still treat your kids.

aznlayer

It's wonderful that you donate to charity!

There are always people who face real life problems unlike rather unimportant ones such as "should I cancel sky.."

Keep it up.

peaceandfreedom

Sox77 wrote: »

To explain a couple of things, pay our Mortgage to Bank of Mum and Dad. A fixed amount was agreed upon for repayment when we borrowed the money but I want to pay back as quick as possible as I don't like owing my parents money, particularly since I worry they are not covered if anything happens.

Have you taken out a joint life insurance policy, written out in trust to your Mum & Dad, that will pay out the mortgage sum owed if either you or your partner were to pop off? This is the best way of ensuring that your parents will get their money back, come what may. I can see there is a life insurance premium on your SOA but you should certainly have a policy specifically for the mortgage, as well as one that will cover your children's needs if the worst were to happen.

I don't agree with the suggestions that you get rid of your charitable donations - it is a small sum and overall you have a good income. Even when I hit my rockest-bottom, I continued my small charitable donations as it was important to me to continue to help others. Many people are in horrible situations and would give anything to have my life, skint as I was.

Good luck with it all .

theoretica

Have you run all your insurances through the comprison sites? See the links on this site. They can be an easy win of paying less money out with no reduction in lifestyle.

Your entertainment and present budget look like good targets too - can you find ways of getting similar enjoyment for less money? Some of the kids' clubs could probably be thought of as entertaining/fun too so you aren't cutting their life to the bone.

Sox77

chocolatelover93 wrote: »

Personally I would get rid of the lottery and try something like freepostcodelottery which is free obviously and there are 5 chances a day to win.



...Me and my OH made a "date night" jar with different things in, maybe you could do something similar and one for the children too, ask them to write down things they like to do?

Maybe you should sell your car and pay off the finance and buy one that you own outright, that would save quite a bit too.

Have a look around different shops and supermarkets for your shopping and buy in bulk it works out cheaper - not all the time though so do your math.

xx

Hi chocolatelover93, you are quite right about the lottery. It's ridiculous, every month I tell myself I'm not doing it and then I think what if... I will definitely have to work on that one!


Re our car, funny thing is we never wanted a new car but at the time did not have enough money for a second hand one - we need a seven-seater... so got a new one. Unfortunately it's been used as a work horse for our DIY etc and been crashed into more than one bollard (not me honest... well not all me) so we wouldn't get back even what we owe on it


The entertainment this year covered a new computer so is abnormally high but love your idea about the jar, thanks will definitely do that! Oh and the buying in bulk and cooking, I'm a shocking cook and hubby used to do it all so I struggle with it and never know quite what to buy so need to pull my socks up!


Thanks again, Sox xx

Sox77

greensalad wrote: »

I think with a 6 person family most of your spends do make sense. Very high on the mortgage payments, but then what can you do.

Do you have a new job? Are you looking?

You have quite a lot of HP debt. Is that a car?

Charity begins at home! Bin it.

Lottery, why are you spending £23+ a month on the lottery?! Bin!

£67 seems an awful lot a month for presents. £804 a year on presents!

I would also try to decrease the cost of kids clubs.

Hi greensalad


I have managed to find a new job but only for 15 hours a week - at the weekends. I can't find anything to fit in the rest of the time. It's something though so I'm happy at the moment - hoping as the kids get older I can increase my hours there.


HP debt is a car, it's 0% interest which is good but car is now probably worth way less than we bought it for which is less good


Lottery - yes I know, it's ridiculous and I'm silly, will try and remember exactly what you said in those words everytime I get tempted!



£804 does sound like a lot on presents doesn't it? I don't know how that happens, we have five children between us, DH's eldest is 17 and lives with her mum so I suppose we spend roughly £100 on them each a year, and the £300 on other things - they get invited to a lot of parties for example so it's a £5 here and a £5 there... still there must be ways to bring it down.


As for the clubs, you're right about that too, I just get a bit carried away and want them to do everything... the main cost at the moment is swimming and I've paid for a year of that for two of them so hopefully once that's done they will be able to swim adequately and I won't do it again... promise


Thanks for your help!! xx