Debt is making me ill...........

Beautiful-Moose

Here is my SOA. I have split all our bills in half so it shows just my side of things. I have no TV cost because I pay for all the car stuff my BF does all the TV stuff so it evens things out.

[tt]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................ 1703.49
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1703.49

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 237
Rent.................................... 450
Management charge (leasehold property).. 0
Council tax............................. 55.5
Electricity............................. 13.5
Gas..................................... 15
Oil..................................... 0
Water rates............................. 10
Telephone (land line)................... 0
Mobile phone............................ 45
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 50
Clothing................................ 50
Petrol/diesel........................... 40
Road tax................................ 0
Car Insurance........................... 58.37
Car maintenance (including MOT)......... 0
Car parking............................. 20
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 18
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 125
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1197.37


Assets
Cash.................................... 2500
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 7500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 12000....(237)......0
Total secured & HP debts...... 12000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................13827.....350.......16.9
Natwest........................2000......45........18.9
Homebase.......................179.......20........0
Total unsecured debts..........16006.....415.......-


Monthly Budget Summary
Total monthly income.................... 1,703.49
Expenses (including HP & secured debts). 1,197.37
Available for debt repayments........... 506.12
Monthly UNsecured debt repayments....... 415
Amount left after debt repayments....... 91.12

Personal Balance Sheet Summary
Total assets (things you own)........... 7,500
Total HP & Secured debt................. -12,000
Total Unsecured debt.................... -16,006
Net Assets.............................. -20,506

[/tt]

dktreesea

I'm not sure about your emergency fund either. It's costing you £360 a year to have it, i.e. the interest cost of your Natwest credit card. I saw Osborne in his latest budget has a scheme whereby if you save £50 a month for two years, the government will top it up by 50%. How about using your emergency fund to pay off the Homebase and Natwest, and then setting up a standing order to replenish it by £50 a month from April onwards? At least that way it will be making you money rather than costing you money.

National_Debtline

Hi Beautiful-Moose


Thanks for posting and sharing your SoA. Can I clarify something? You present the car repayments as "secured debt", but this was a cash loan and as such I don't see how the debt can be secured against the car, meaning the loan should be listed alongside your other unsecured debts when assessing how to deal with them.


Again on the car - you haven't listed any figures for road tax or MOT/servicing - how are these covered? Are you exempt from road tax? Is the car under a service warranty?


Dennis
@natdebtline

Beautiful-Moose

Sorry I think I put the loan in the wrong section of the form. I have redone the SOA again.

As for the other things I don't pay for MOT or road tax on a monthly basis so I just pay out as and when I need them. For instance next month my MOT is due so I will just pay for it and have less in my entertainment fund for that month.

[tt]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................ 1703.49
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1703.49

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 450
Management charge (leasehold property).. 0
Council tax............................. 55.5
Electricity............................. 13.5
Gas..................................... 15
Oil..................................... 0
Water rates............................. 10
Telephone (land line)................... 0
Mobile phone............................ 45
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 50
Clothing................................ 50
Petrol/diesel........................... 40
Road tax................................ 0
Car Insurance........................... 58.37
Car maintenance (including MOT)......... 0
Car parking............................. 20
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 18
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 125
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 960.37


Assets
Cash.................................... 2500
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 7500

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................13827.....350.......16.9
Natwest........................2000......45........18.9
Homebase.......................179.......20........0
First Direct Loan..............12000.....237.......0
Total unsecured debts..........28006.....652.......-


Monthly Budget Summary
Total monthly income.................... 1,703.49
Expenses (including HP & secured debts). 960.37
Available for debt repayments........... 743.12
Monthly UNsecured debt repayments....... 652
Amount left after debt repayments....... 91.12

Personal Balance Sheet Summary
Total assets (things you own)........... 7,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -28,006
Net Assets.............................. -20,506

[/tt]

DCFC79

I think you should use your savings to clear the Natwest card and the Homebase account, use whats left from the £2500 and use the extra £65 towards the Barclaycard and the First Direct loan.

Out,_Vile_Jelly

Beautiful-Moose wrote: »

I
I can't tell my friend about my money situation. They are very judgmental about money and wouldn't understand so I think it is just best to not tell them or get them involved.

If true, then these people are not "friends" in the commonly understood definition. Why would you want such shallow people in your life?

anna_1977

Beautiful-Moose wrote: »

Sorry I think I put the loan in the wrong section of the form. I have redone the SOA again.

As for the other things I don't pay for MOT or road tax on a monthly basis so I just pay out as and when I need them. For instance next month my MOT is due so I will just pay for it and have less in my entertainment fund for that month.

[/tt]

You really need to calculate the car MOT and tax and divide by 12 and put figures in, even if you then reduce the entertainment cost....for example when it's due tax do you then have £0 entertainment that month and buy the tax ?

Also you have mentioned that your BF does TV and you do all the car costs, is your TV package that amount? The insurance, loan, maintenance etc will be a lot more I would have thought. The car bits added up including the loan are over £350 per month....

PasturesNew

Entertainment shouldn't be as high as £125. Entertainment is a luxury item. You've got each other for company and conversation.

Your food looks suspiciously low too. £50/month? I can believe that for one person living on beans on toast, but two?

National_Debtline

Hi again

Beautiful-Moose wrote: »

As for the other things I don't pay for MOT or road tax on a monthly basis so I just pay out as and when I need them. For instance next month my MOT is due so I will just pay for it and have less in my entertainment fund for that month.
[/tt]

That's fine in theory but if the cost of your MOT + service turns out to be greater than your entertainment fund...


I would suggest that you divide your annual road tax by 12 and put that figure in the SoA. As for a pot for MOT/servicing/repairs, I'd use what you've spent on a rolling 12-month basis and again divide that by 12.


It just makes more sense to allocate figures for specific items in your budget, rather than raiding different pots on an ad hoc basis. That is how many people end up going into overdrafts and the like. I understand that you have some wiggle room here with the savings etc. but the principle remains the same.


Dennis
@natdebtline

Butti

As others have said you need to use the emergency fund. If you feel you must have one then leave it at £500 and pay the Nat West card off in full.

B