SOA and getting a loan

A-Low

Hello

I have been over in the Loan section of the website and some helpful people directed me here. The situation is i have 2 CC, both around £2000, an OD of about £1400 and i am paying back a wage over payment and my mum both £20 a month. One of my CC is 0% but that runs out in December, the other was 0% but has now reached 1.8% per month. I was thinking of getting a loan to cover all three things (2 CC and OD) and i found one with M&S but i have not applied yet. I was thinking of getting another 0% card to transfer money to but when i applied i was rejected so i am now waiting to decide what to do as i can't really keep applying for things!

I have done a SOA which is below. I think its as accurate as possible. Some months there are extras like booking a train to go see family but that happens only once every 4 - 5 months.

I guess what i am after is can i be saving? Any questions to clarify anything just ask.

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.................... 0

Monthly Income Details
Monthly income after tax................ 1498.25
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1498.25

Monthly Expense Details

Rent.................................... 475
Council tax............................. 77
Electricity............................. 15
Gas..................................... 15
Mobile phone............................ 35
Satellite/Cable TV...................... 10
Internet Services....................... 19
Groceries etc. ......................... 200
Clothing................................ 30
Other travel............................ 54
Pet insurance/vet bills................. 20
Entertainment........................... 80
Gym..................................... 20
Total monthly expenses.................. 1050


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Halifax CC.....................2000......30........0
Tesco CC.......................2130......55........21.6
OD.............................1400......0.........20
Mum............................1000......20........0
SG.............................400.......20........0
Total unsecured debts..........6930......125.......-


Monthly Budget Summary
Total monthly income.................... 1,498.25
Expenses (including HP & secured debts). 1,050
Available for debt repayments........... 448.25
Monthly UNsecured debt repayments....... 125
Amount left after debt repayments....... 323.25

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -6,930
Net Assets.............................. -6,930

Pixie5740

Do you actually find that you have £323.25 left at the end of each month? If not start a spending diary to see where that money is going and then start throwing it at your most expensive debt first.

£200 on groceries for just one person has scope to be reduced. The Old Style Money Saving board is a good place to help with meal planning.

Your internet services are also on the high side. Are you in contract or can you change provider or get a retention deal?

Ilona

Hi. Your debts don't look too bad, with some tweaking of your outgoings there are ways to free up some money to put towards them. What jumps out at me is £200 a month for food. I am single with 3 cats and a dog and I can manage on £100 a month. I shop at night for yellow stickers and search out the bargains in the discount stores. I buy fresh veg when it's cheap, cook into meals and freeze, saves on utilities. More useful information on the Old Style board.

My mobile phone costs me £5 a month on PAYG, can you change yours? Are you on single person council tax rate? I don't have a TV so save on the licence.

With a few months of belt tightening you should be able to free up some money to pay off your debts quicker. Try keeping a spending diary to see where all your money goes. No impulse buying, limited treats, shopping at charity shops and car boot sales is the way to go. Good luck.

Ilona

Cross posted with Pixie.

A-Low

Yeah the £200 on food is a tricky one. I spend half my time at my BFs and half my time at home, so i end up buying food on the go rather than being able to plan as it seems like i am split between 2 homes! I have brought that up with the BF and we are trying to be more aware of that. That money also includes cat food as i have 2 cats.

I am with Tesco for my internet. I am not sure when my contract ends! I have been in my flat about a year so i will check that out and see if i can find a better deal somewhere. I have a feeling its 18 months though.

A-Low

I definitely dont have money left over. In fact my problem is i end up increasing my OD or using my CC.

I probably spend more on eating out than i have accounted for. My BF and i enjoy the dating life it seems Again its something we have recognised and at the start of each month we work out what friends we want to catch up with and see if it can be a house dinner rather than going out. We love our food (sushi! Yum!) and tend to eat out for lunch at least once a week at the weekend.

HappyMJ

A-Low wrote: »

Yeah the £200 on food is a tricky one. I spend half my time at my BFs and half my time at home, so i end up buying food on the go rather than being able to plan as it seems like i am split between 2 homes! I have brought that up with the BF and we are trying to be more aware of that. That money also includes cat food as i have 2 cats.

I am with Tesco for my internet. I am not sure when my contract ends! I have been in my flat about a year so i will check that out and see if i can find a better deal somewhere. I have a feeling its 18 months though.

If your internet at £19 includes your line rental then you're on a pretty good deal.

I would take the cost of the train ticket you buy every 4 months and divide that by 4 and put that on your SOA as an expense. There's quite a few expenses that only come up every now and again that can be inserted into your SOA. You haven't included anything for dentist visits. At £18 each visit and about once per year you could put £1.50 per month.

The amounts you have for Electricity £15 and Gas £15 are also very low. Do you not use it very much? That amount only barely covers my standing charges and I pay the same rent as you. If you're in credit then get the credit back and pay off your CC's.

Ilona

If your gas and electricity are realy that low, you might be better off with a company that has no standing charge. I am a low user and find Ebico just right for me. I pay quarterly with no penalty for that.

So you like eating out and socializing with friends, you don't need to stop doing that but just be aware how much it is costing you. Fish and chips is just as good as a posh restaurant when there is a group of you. My social life is around activities that don't cost much, I would cry if I had to pay £15 for a meal out, knowing that I could get a weeks food for that.

You need to decide what is more important, trying to keep up with the 'in' crowd or paying off your debts, the choice is yours.
Ilona

A-Low

I have a credit meter in my flat for gas and electric. It was there when i moved in and despite reading that it was more expensive than an account i quite like knowing exactly what i am paying each month. That £30 a month has been over summer so it will get higher as it gets colder.

I don't really have such a thing as an 'in' crowd. We just have a few separate friends who are all couples who we try and see every month. As they are all individual friends its not like we see them all at once. (its only really about 3 different couples so its not like i have loads of pals!) Its mostly just the two of us who eat out together too much. We try and keep our entertainment down to going to the cinema (we have monthly cards) and the gym (woo...!), but occasionally we like to go out too. Like once a month.

HappyMJ

A-Low wrote: »

I have a credit meter in my flat for gas and electric. It was there when i moved in and despite reading that it was more expensive than an account i quite like knowing exactly what i am paying each month. That £30 a month has been over summer so it will get higher as it gets colder.

I don't really have such a thing as an 'in' crowd. We just have a few separate friends who are all couples who we try and see every month. As they are all individual friends its not like we see them all at once. (its only really about 3 different couples so its not like i have loads of pals!) Its mostly just the two of us who eat out together too much. We try and keep our entertainment down to going to the cinema (we have monthly cards) and the gym (woo...!), but occasionally we like to go out too. Like once a month.

A credit meter is one in which you are billed and pay for the energy after you've used it.

A prepayment meter is one in which you top up a key or a card and pay for energy before you use it.

I would double the figures you have on your SOA and start loading that extra credit onto your meter now ready for winter so you won't feel the shock of the winter top ups being triple what you are topping up in summer. If you don't feel comfortable leaving the money on the meter then put the extra aside ready for winter but at the very least double those figures you have on your SOA.

Loosepockets

Good luck with your debt busting journey

rockm87

If you're still using credit because you dont have your finances in order getting a loan is a bad idea. Paying debt with debt will not make your problem disapear, in fact its more likely to make it worse.

Keep a spend diary and document everything, I spend £200 a month on groceries for two people and two cats (1 has special food), so it is acheivable you just need to meal plan, youre paying for convenience!

lots of lovely suggestions here too, good luck!