My SOA

WrongTurnRight

Hey all,


Newbie here looking for advice. It started last year getting a CC, then on to loans and now we're in debt to the tune of about 40K. I've posted my SOA below.

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.................... 0
Monthly Income Details
Monthly income after tax................ 1400
Partners monthly income after tax....... 972
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2372
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 16
Rent.................................... 435
Management charge (leasehold property).. 0
Council tax............................. 127
Electricity............................. 43
Gas..................................... 0
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 0
Mobile phone............................ 88
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 20
Groceries etc. ......................... 300
Clothing................................ 20
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 112
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 20
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 20
Total monthly expenses.................. 1318.12

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

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 304......(16).......0
Total secured & HP debts...... 304.......-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Tesco..........................12480.....245.......0
Yorkshire Bank.................13900.....278.......0
Yorkshire Bank.................10920.....210.......0
Partners Parents...............1000......100.......0
My Parents.....................1000......100.......0
CC.............................1500......25........0
Total unsecured debts..........40800.....958.......-

Monthly Budget Summary
Total monthly income.................... 2,372
Expenses (including HP & secured debts). 1,318.12
Available for debt repayments........... 1,053.88
Monthly UNsecured debt repayments....... 958
Amount left after debt repayments....... 95.88
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -304
Total Unsecured debt.................... -40,800
Net Assets.............................. -41,104
Created using the SOA calculator at
Reproduced on Moneysavingexpert with permission, using other browser.


It always seems like we have more money on paper as we're 2 months behind with the rent. My partner has an overdraft of 300 and I have one for 200.


To be honest, the above is pretty much down to my gambling, obviously not very well. I've suffered anxiety in the past and started drinking a lot which seems to just be a cycle that I'm trying to get out of and am going in to this with confidence (kind of).


My wage as well is because I work an hours overtime every morning and at least 3 in 4 Sundays *4 hours) just so we're covered. I'd love to not have to but its my own stupid fault. My partner has only the one loan, the others are in my name only. We don't have a joint bank account but have recently thought about it as she's way better than me with money. I've been looking in to BR but have no idea if that's even a possibility and if we can both get BR even though we're not linked in together if that makes sense.


Sorry about the long post, a lot to get off my chest.

vlad

after a very quick look £88 for mobile(s)?

Debtslayer

WrongTurnRight wrote: »

Hey all,


Newbie here looking for advice. It started last year getting a CC, then on to loans and now we're in debt to the tune of about 40K. I've posted my SOA below.

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.................... 0
Monthly Income Details
Monthly income after tax................ 1400
Partners monthly income after tax....... 972
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2372
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 16
Rent.................................... 435
Management charge (leasehold property).. 0
Council tax............................. 127
Electricity............................. 43
Gas..................................... 0
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 0
Mobile phone............................ 88 = Wow; this is huge?! Can you change to sim only deals?
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 20
Groceries etc. ......................... 300 - This is high for just the 2 of you; could cut this back by at least £50
Clothing................................ 20
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 112 - What is this for?
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 20
Entertainment........................... 50 - You need to cut this right down until debts are paid
Holiday................................. 0
Emergency fund.......................... 20
Total monthly expenses.................. 1318.12

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

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 304......(16).......0 - What is this for?
Total secured & HP debts...... 304.......-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Tesco..........................12480.....245.......0
Yorkshire Bank.................13900.....278.......0
Yorkshire Bank.................10920.....210.......0
Partners Parents...............1000......100.......0
My Parents.....................1000......100.......0
CC.............................1500......25........0
Total unsecured debts..........40800.....958.......-

Monthly Budget Summary
Total monthly income.................... 2,372
Expenses (including HP & secured debts). 1,318.12
Available for debt repayments........... 1,053.88
Monthly UNsecured debt repayments....... 958
Amount left after debt repayments....... 95.88
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -304
Total Unsecured debt.................... -40,800
Net Assets.............................. -41,104
Created using the SOA calculator at
Reproduced on Moneysavingexpert with permission, using other browser.


It always seems like we have more money on paper as we're 2 months behind with the rent. My partner has an overdraft of 300 and I have one for 200. - You need to ensure you keep a roof over your heads and the rent is paid. Have you come to any agreement to make up the money you owe for 2 months rent?
Also are you both in your overdrafts; there is no mention of these in your debts listed above
You need to put the APR's against your debts in your SOA


To be honest, the above is pretty much down to my gambling, obviously not very well. I've suffered anxiety in the past and started drinking a lot which seems to just be a cycle that I'm trying to get out of and am going in to this with confidence (kind of). - Have you got any help with your addictions?


My wage as well is because I work an hours overtime every morning and at least 3 in 4 Sundays *4 hours) just so we're covered. I'd love to not have to but its my own stupid fault. My partner has only the one loan, the others are in my name only. We don't have a joint bank account but have recently thought about it as she's way better than me with money. I've been looking in to BR but have no idea if that's even a possibility and if we can both get BR even though we're not linked in together if that makes sense.
Do not get a joint bank account!! You will trash your partners credit history if you do this. If she is way better than you with money then you need to transfer a set amount of money to her each month to cover your share of living expenses. Leaving enough in your own account to make debt repayments. If she can budget then she can allocate you spending money. This may well also help with your addictions of gambling and drinking as you will not have access to spare cash.


Also if most of the debt is in your name then you may well be better off looking at a DMP for yourself. I've no knowledge of these though so I will let other more informed posters advise on this. You need to talk to a free debt company such as Stepchange and discuss your options



Sorry about the long post, a lot to get off my chest.

You've made the first big step to sorting this out. I've made some comments above where you could cut back your outgoings.
There will more be more posters along soon who will be able to offer some good informative advice regarding DMP's etc.

HappyMJ

Bankruptcy would be an option you would need to look into.

Forget paying any of the debts and get your rent arrears paid off.

Not paying your rent will cause you to lose the roof over your head so you need to prioritize that as priority number one.

WrongTurnRight

Debtslayer wrote: »

You've made the first big step to sorting this out. I've made some comments above where you could cut back your outgoings.
There will more be more posters along soon who will be able to offer some good informative advice regarding DMP's etc.

Thanks everyone for your replies.


The mobile phones are for 2 contracts, mine is up in May but as stupid as this sounds I was going to upgrade next month, sell the phone and pay the rent.


Other travel are 2 weekly bus tickets, £14 a week each. HP is a television. In the £300 on groceries I include things like toiletries, house stuff (Loo roll, washing up liquid etc.) which I thought wasn't too bad but understand its seen as a lot.


The reason I mention joint BR is the thought of another 54 months like this is unbearable. All my own fault thought. I've self excluded on every website I know to stop me going on there. The alcohol and gambling seem to go hand in hand so cutting gambling out will massively reduce my drinking.


I need to get my head round not being able to go out for entertainment but still feel I/We need a life. I haven't spoken to the rent people yet but am hoping a £50 month payment will be accepted.
The reason for the joint account would be to see if this makes BR an option, and as I pay rent, phones, all loans its difficult sometimes knowing where we're up to. I'll re do my SOA so I can add the APR, I'll have to find the paperwork.


I really appreciate the replies and time taken to offer advice.

lovehackney

DO NOT UPGRADE AND THEN SELL THE PHONE!
You will not get full value for the phone. All you are doing is getting more in to debt, eg take out contract worth £700 for phone, sell for £500 - yes you've paid rent that month but all you've done is increase your debt by £200!

Is your SOA a true reflection or is it wishful thinking? Do you really have money leftover at the end of the month?

£300 for groceries isn't loads, but in your situation it's too much - you need to prioritise keeping a roof over your head (without selling a new phone!) so need to trim where you can.

Do you have anything else you can sell to make up the shortfall on the rent arrears? Can you hand back the TV to the HP company?

WrongTurnRight

I know deep down its a silly idea but don't know where to find the money other than that. I've already got rid of my cheap car, Xbox one so have nothing else of real value. I've no doubt I could hand back the tv (it's in the partners name) but then I'd genuinely not have a tv. If I were to have to do a flat month at work I'd only com out with around 1250 which just isn't enough to cover everything. I may email my first post to Stepchange and see what they suggest because at the minute I'm out of ideas and am sick to death of waking up worried!

lovehackney

Yes speak to Stepchange. The reality is your debts are very high for your level of income. A DMP might be the best way forward, you would be able to prioritise the important things (rent, council tax etc) and pay token payments to your creditors. I don't know much about bankruptcy / IVAs / DROs but they'll help you see what your options are. Good luck!


And seek help with your gambling!

Lemonsqueezer78

I'll never understand this attitude.... is there really something about these banks and credit card providers that it is genuinely scarier to miss a payment to them than lose your home? The actual roof over your head???

Pay your rent. ASAP. Pay it by not paying the banks! That is an easy choice to make.

If you are prioritising the banks because you are are somehow hoping to try and emerge from this situation with an impeccable credit score, I would forget that now, to be honest. The only realistic way out of this in my view is to contact your creditors and notify them that you are in financial difficulties, and offer them token payments until you can clear your rent arrears and clean up your finances.

Then contact a debt organisation - a free one - and get some advice urgently. I imagine they would at least suggest a DMP - but whatever they suggest, it is very likely that it will result in some kind of restructuring of your payments to something more affordable, which will affect your credit file but it will also give you a fighting chance to get out of this horrible situation. And credit files recover in time.

Lastly, you must ensure you have really conquered this gambling and drinking. Self exclusion is great, but it is superficial band aid in the grand scheme of things - and it is not the same thing as fully and properly dealing with a gambling addiction.

If all you do is try to cut yourself off, then at some point in the future an "opportunity" will come up that you simply cannot resist, and you will ruin any progress you have made.

HappyMJ

WrongTurnRight wrote: »

I know deep down its a silly idea but don't know where to find the money other than that. I've already got rid of my cheap car, Xbox one so have nothing else of real value. I've no doubt I could hand back the tv (it's in the partners name) but then I'd genuinely not have a tv. If I were to have to do a flat month at work I'd only com out with around 1250 which just isn't enough to cover everything. I may email my first post to Stepchange and see what they suggest because at the minute I'm out of ideas and am sick to death of waking up worried!

You will need to hand the TV back or not include that as a separate expense on your SOA. It's not an essential living expense and won't be allowed as an expense. You can pick up well used TV's for £5 from charity shops. It's not HD, it's probably not even widescreen...it's a TV. It does the job.

You have a very easy way out of this....stop paying your debts. You will then have more than enough money to pay the rent and your living expenses.

If you choose bankruptcy the contracts on your phones will end and the remaining months line rental become part of your bankruptcy. You'll need a PAYG SIM to continue using your phone. You will not need to return the phone. It's yours to keep whether you pay the £88 line rental or not.

If you had assets such as a house then I wouldn't recommend Bankruptcy at all as you would lose that...but you've not stated you own anything so you will lose nothing. Your debts will be wiped and you start again. In 6 years the records will drop off your credit report and if you've addressed your gambling problem hopefully you would have saved some money and you can get a loan to buy a house.

dylan2011

You are currently according to your soa solvent (just) as far as affording the debt repayments go. I would def look at groceries tho. We are a family of 4 and manage on £250. This includes cleaning, toiletries etc. as well as all food, drink etc. I have done it on less when needed as well. Start with small changes, meal plan every meal, only buy what you need, try and build a small stock cupboard of basics over time (eg pasta, rice, flour, tins, a few spices), shop at aldis, markets etc. see if you can get to a supermarket at yellow sticker time for reductions. Tbh with 2 kids I don't get loads of time for the shopping, so I just use aldis, but I meal plan, shop with a list and cook from scratch 95% of the time. We eat well and fairly healthily. Try to knock £50 a month off that to start. Good luck with everything. If you want more tips on the Groceries, I recommend the Old Style Boards for ideas. x