My SOA

chrisdanish

Hello,

I'm new to budgeting but have spent the last two days trying to work a plan to pay back my debts. I have put together a SOA. I'm looking for someone with a better eye than me to see if what I'm proposing is feasible. Please go gently, it's been a tough couple of days .

Many Thanks

Chris

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.................... 1

Monthly Income Details
Monthly income after tax................ 1249
Partners monthly income after tax....... 242 (in receipt of JSA, just off ESA this month)
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1491

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0 ( I'm currently Living with Parents, Partner is receipt of DSS)
Management charge (leasehold property).. 0
Council tax............................. 20 (parents, Parents pay CT for their property)
Electricity............................. 20 (SSE Metered at partners, no contribution at parents)
Gas..................................... 45 (British Gas at partners, no contribution at parents)
Oil..................................... 0
Water rates............................. 20 (At Partners, no contribution at parents)
Telephone (land line)................... 0
Mobile phone............................ 45 (Mine 30, contract for next 18mnths, Partner 15 2g data, 5k txt, 600 min)
TV Licence.............................. 12 (at partners, no contribution at parents)
Satellite/Cable TV...................... 15 (for next 5 months, then cancel)
Internet Services....................... 0
Groceries etc. ......................... 300
Clothing................................ 20
Petrol/diesel........................... 200 (Petrol to work, shopping and social outings)
Road tax................................ 12.5
Car Insurance........................... 25
Car maintenance (including MOT)......... 41
Car parking............................. 0
Other travel............................ 20 (Partners Bus for job seeking)
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20 (contact lens and appointment)
Pet insurance/vet bills................. 15 (partners dog)
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 33
Haircuts................................ 0
Entertainment........................... 200 (golf membership + round, painting)
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1063.5


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 2000

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Virgin Credit Care.............4000......50........0
Halifax........................3500......35........0
Lloyds.........................2000......20........0
HSBC Overdraft.................1250......0.........19.9
Total unsecured debts..........10750.....105.......-


Monthly Budget Summary
Total monthly income.................... 1,491
Expenses (including HP & secured debts). 1,063.5
Available for debt repayments........... 427.5
Monthly Unsecured debt repayments....... 105
Amount left after debt repayments....... 322.5

Personal Balance Sheet Summary
Total assets (things you own)........... 2,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -10,750
Net Assets.............................. -8,750

Jacko_amz

A little more info on your circumstances is needed, you have nothing for rent/mortgage? Also 1 adults income is low why is this? Well done for working out your budgets �� Amy x

chrisdanish

Hay Amy,

Thanks for the reply. I apologies I'll go back and edit in some more details.

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By partner is hopefully returning back to work after several years of not working due to a serious injury. I hope it won't take long before she finds a suitable job that she can manage. It has made budgeting a little difficult as although we don't live together at present I do try assist her financial otherwise I'm not sure she would manage.

concrete_kid

Hi Chris

Well done for starting to get on track.

Do you usually have around £300 at the end of each month? If not use the next month to keep track of EVERY penny you spend, try to do normal spending so it's realistic rather than massively cutting back. It's helpful to see how much your normal lifestyle is, then it becomes apparent what can easily get the chop. You can either use pen and paper or there are plenty of mobile apps you can use.

Council tax seems low, is this just your contribution?

You could cut spend on presents by using ebay, charity shops, or thoughtful cheaper presents, or even just being honest with family and freinds telling them you are paying off debt and to expect less.

Entertainment could be easily cut. I love going out, socialising etc, so I know how hard it is to miss out. Instead of not going out, set an amount each month and when it's spent you either decline or offer a cheaper alternative. When I'm struggling but have the urge to go out I just usually invite freinds over for pizza and beer nights, even I buy all the food it's still way cheaper than a night out. I budget £150 which I know is a lot for some peaople but is a massive reduction for me.

Food budget isn't bad but could be cut with meal planning, batch cooking or shopping at Aldi etc if you don't already. I used to be a massive food snob and wouldn't even set foot in Aldi until my flatmate introduced me. Quality is as good if not better than the other big four.

Good luck

ellen_vannin

Personally we spend less on food and petrol for 2 people.
Food can be cut if you do not spend on ready made meals.
Petrol it depends how far between home and work?, but you should be able to reduce.
Extra income ? - Do you have anything you can sell?
Any extra hours overtime? Maybe your partner can do surveys etc when not job hunting?
It's the overdraft that you need to clear first. Throw everything you can to reduce, once you are not paying any interest on debts it gets slightly easier.,
HTH

ellen_vannin

Another couple of thoughts,
you don't have any amount for repayment of overdraft , yet this attracts the most interest why is this?
Have you tried to cancel the TV Subscription or the mobile contract. Sometimes you can haggle even if in contract.

Vikipollard

200 a month on golf membership and a round of golf?

That would be the first place I would look to reduce costs.

Can I ask why you are not contributing to rent/bills at your parents' house?

Am I right in thinking your partner lives on her own? If so, how is she managing on 242 a month? (Just trying to understand )

enthusiasticsaver

The groceries bill looks high. We pay less than £200 per month for 2 of us (around £40-£50 per week mostly at Lidl with the odd purchase at Waitrose).


Also the entertainment figure looks high. My brother plays golf so I know that is expensive but if you have debts I would get on top of those and maybe do the odd round at the local municipal course or a session at a driving range which is a lot cheaper.


You don't seem to have included a figure for the overdraft which is quite a high rate of interest so that should be the first thing you paid off.


Also do you really have that amount left over each month and why did you get into debt in the first place? Until you address that the SOA is irrelevant. I would suggest you record every penny you spend for a month to see if the SOA is really accurate as I would hazard you are underestimating.


I would also cut right back on presents until your debts are cleared. With your income which is not huge you would be better sticking with just one credit card so I would snowball and pay them all off one at a time. I am betting you are overspending and most of the debts are from consolidation which never works and in fact makes the matter worse. As the only asset you have is your car which I assume you need then selling something is not an option. Can you take on a second job or look to upskill to get a better paid job?


You have made an important step in realising you need to get on top of the debt you have but the next thing is to understand how you got in debt in the first place and take steps to remedy it. For most people it is spending money they don't have on credit cards which is the problem so I am guessing you are the same? Not criticising but it is important to realise how you got into this position.

theoretica

If the sums you have put down are your assistance to your partner and you are not sharing finances otherwise I think you would get a clearer view of your own situation by taking your partner's income out of the sum. That would give you £80 not accounted for every month.

beanielou

As has been said entertainment & groceries are high.

DCFC79

If it were me Id lose the golf membership, cut down on food shopping and watch the petrol consumption and consider ditching the tv license and either get a now tv box or watch catchup via pc/laptop.

I hope your going to get reimbursed for the various payments you have made for your partner.