Soa

poppyc

Have prepared SOA

a few notes on this:

Although it says 2 adults in the house, I'm a single parent and the other adult is my mum who is 73. Not sure if this makes a difference?
council tax - wasn't able to manage so this is the debt that I am paying off.

buildings insurance - house has subsidence and I can't get an affordable quote for insurance.
Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 400
Partners monthly income after tax....... 0
Benefits................................ 870
Other income............................ 0
Total monthly income.................... 1270

Monthly Expense Details
Mortgage................................ 644
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 40
Gas..................................... 100
Oil..................................... 0
Water rates............................. 2
Telephone (land line)................... 80
Mobile phone............................ 20
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 50
Petrol/diesel........................... 30
Road tax................................ 12
Car Insurance........................... 78
Car maintenance (including MOT)......... 35
Car parking............................. 0
Other travel............................ 40
Childcare/nursery....................... 0
Other child related expenses............ 50
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 25
Entertainment........................... 0
Holiday................................. 30
Emergency fund.......................... 0
Total monthly expenses.................. 1468


Assets
Cash.................................... 0
House value (Gross)..................... 170000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 170000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 68800....(644)......0
Total secured & HP debts...... 68800.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
council tax....................2000......60........0
Total unsecured debts..........2000......60........-


Monthly Budget Summary
Total monthly income.................... 1,270
Expenses (including HP & secured debts). 1,468
Available for debt repayments........... -198
Monthly UNsecured debt repayments....... 60
Amount short for making debt repayments. -258

Personal Balance Sheet Summary
Total assets (things you own)........... 170,000
Total HP & Secured debt................. -68,800
Total Unsecured debt.................... -2,000
Net Assets.............................. 99,200

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.[

HappyMJ

You still need to put council tax as part of your day-to-day budget.

Put down 1/12th's of the annual council tax bill and when April comes around prioritize that above almost all other bills. Only rent, food and electricity comes first. The car should never come first. If you do not pay your council tax they can take the car away and even if they don't they'll add some quite significant fees onto the debt.

Even mortgage payments are a lower priority than council tax as you can reduce the mortgage payment to interest only and still keep a roof over your head. A payment of £688 per month means you are saving money. The interest on that size mortgage should only be about £300. Ring the bank and extend the term. You don't earn enough to make full repayments. The child benefit and child tax credits you get should be going on the children's expenses and not on the mortgage.

You should be entitled to a little more in benefit on £400 a month. You are entitled to job seekers allowance despite actually working. That will get you help with your mortgage interest after a period of time.

You need to speak to a experienced benefits advisor.

If all else fails though you can always sell to clear the debt.

Are you in breach of your mortgage terms and conditions by not having buildings insurance? Not having buildings insurance with a mortgage is usually not an option. I really would consider selling.

Newlywed_Saving_Ninja

Your telephone at £80 seems very high, who are you with? I'm pretty sure you could get that a lot cheaper

Newlywed_Saving_Ninja

Also, have you looked at price comparison sites for your electricity and gas? You could get a cheaper deal

Fosterdog

poppyc wrote: »

Have prepared SOA

a few notes on this:

Although it says 2 adults in the house, I'm a single parent and the other adult is my mum who is 73. Not sure if this makes a difference?
council tax - wasn't able to manage so this is the debt that I am paying off.

buildings insurance - house has subsidence and I can't get an affordable quote for insurance.
Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 400
Partners monthly income after tax....... 0
Benefits................................ 870
Other income............................ 0
Total monthly income.................... 1270

Monthly Expense Details
Mortgage................................ 644 this is very high considering your income
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0 what should this be monthly?
Electricity............................. 40
Gas..................................... 100 this seems a bit high
Oil..................................... 0
Water rates............................. 2 this seems too low
Telephone (land line)................... 80 I'm assuming this is a full landline, calls, Internet and tv package?
Mobile phone............................ 20
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 50
Petrol/diesel........................... 30
Road tax................................ 12
Car Insurance........................... 78 this also seems quite high
Car maintenance (including MOT)......... 35
Car parking............................. 0
Other travel............................ 40
Childcare/nursery....................... 0
Other child related expenses............ 50 what are these other expenses?
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 25
Entertainment........................... 0
Holiday................................. 30 A holiday shouldn't be put ahead of paying council tax
Emergency fund.......................... 0
Total monthly expenses.................. 1468


Assets
Cash.................................... 0
House value (Gross)..................... 170000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 170000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 68800....(644)......0
Total secured & HP debts...... 68800.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
council tax....................2000......60........0
Total unsecured debts..........2000......60........-


Monthly Budget Summary
Total monthly income.................... 1,270
Expenses (including HP & secured debts). 1,468
Available for debt repayments........... -198
Monthly UNsecured debt repayments....... 60
Amount short for making debt repayments. -258

Personal Balance Sheet Summary
Total assets (things you own)........... 170,000
Total HP & Secured debt................. -68,800
Total Unsecured debt.................... -2,000
Net Assets.............................. 99,200

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.[

I've added a few questions and comments in red, just to clarify though, is any of the income from your mother? Does she get a pension?

Can you cut your phone package down? Get rid of some part of the bundle, stick to free view or free sat for tv

Gas is very high, what uses so much?

When is your car insurance renewal due? Maybe it's the area you live of claim history but that over £70 a month is high.

Even if you haven't been paying council tax and getting into problems with it you still need to add a figure for what you should be paying.

Have you checked if you are entitled to any more help at all?

ETA: does your mortgage provider require you to have buildings insurance? If not you should at least get a basic contents insurance.
What about maintenance for the children? Do you get anything?

Niv

One thing I don't think anyone else has mentioned yet. What about your mums income? If she is taking from the services / eating the food she should be contributing, that would also help balance the books

HappyMJ

Niv wrote: »

One thing I don't think anyone else has mentioned yet. What about your mums income? If she is taking from the services / eating the food she should be contributing, that would also help balance the books

In that case I would increase the grocery spend of £200. £200 between 4 people is only £11.30 per person per week which is very low. It might be enough for a short period of time whilst running down stocks held but long term that isn't going to maintain a healthy diet. £400 a month would be a better figure offset by the mother contributing £200 towards the groceries. I don't think it will make any difference.

Niv

HappyMJ wrote: »

In that case I would increase the grocery spend of £200. £200 between 4 people is only £11.30 per person per week which is very low. It might be enough for a short period of time whilst running down stocks held but long term that isn't going to maintain a healthy diet. £400 a month would be a better figure offset by the mother contributing £200 towards the groceries. I don't think it will make any difference.

@HappyMJ, if all you were requesting was food money then yes, but surely the mother is also using gas / electric / tv / phone / living there therefore some rent is not out the question. I know if I were struggling to get by I would be asking for a contribution to more than cover just food.

Anyhow, its all moot as the OP has now reposted this on the bankruptcy thread.

HappyMJ

Niv wrote: »

@HappyMJ, if all you were requesting was food money then yes, but surely the mother is also using gas / electric / tv / phone / living there therefore some rent is not out the question. I know if I were struggling to get by I would be asking for a contribution to more than cover just food.

Anyhow, its all moot as the OP has now reposted this on the bankruptcy thread.

I wouldn't ask for much though from a pensioner on a fixed income.

Bankruptcy? Are you kidding me? There's a house involved with bucket loads of equity. Why....I must be missing something.