Think I've had a light bulb moment .... SOA just Added

Sanctioned_Parts_List

EssexHebridean wrote: »

Sanctioned Parts List I can see where you're coming from, but in the OP's position (earning well, with a good surplus and lots of savings available, and only paying the amount they currently are on mortgage) I can't begin to agree with you that they should sell a house and move, with all the expenses that would entail. If they were hand to mouth it might be a different matter, but as it is...

Well yes... but... if there's a good surplus, whence cometh the debt? There's £4000 of other assets, but it's not clear what form those other assets take, but apparently neither cash nor shares.

Plus kazza's LBM will have been prompted by some financial distress - somebody with £400 to spare after all needs and debts are taken care of isn't in financial distress and wouldn't think to have an LBM. So I think there's a little more work needed on the SOA to paint an accurate picture, and that it's worth keeping the option on the table for when the remaining £400 is accounted for.

kazza292_2

thanks everyone, sanctioned parts list... i see your point too but this would be very difficult.
i do need my car as i am kind of a "district nurse" and husband commutes to a police custody cell unit which is isolated and not near to a housing estate to walk.
i feel i can cut chunks out of my outgoings which is plan A... get water meter, reduce groceries bill,phone, sky and set up direct debit for savings.. how many savings accounts can i get,i have 1 but would like a few to separate things out savings wise like car, xmas etc,,

going to look at getting mortgage cover but worried this may be expensive. more than £10. as i said we do have good death in service cover for each other ( me x2 annual wage ,husband x3 annual wage) not covering mortgage of 108000 though) but getting there ish
my husband smokes, me being a naggy nurse desperately trying to get him to stop , i worry all the time that something will happen to him as he is a smoker and becomes ill and not able to work... he says work payout will cover illness payment but i have argued otherwise

enthusiasticsaver

Smoking is expensive. Where does that appear in your soa or is this where the missing money is going? Also there is a limit to sick pay even in the public sector. 6 months full then 6 months half then nothing.

kazza292_2

assets are a caravan of 4000...
my LBM was Sunday night early hours no particular reason.. it was like a message from above.. mad but true. i honestly do have around 400 spare each month,, i have just worried about debts spiralling out of control.

my husband has say 200 after about 200 of other things like a birthday, xmas, mot etc , school uniform .... spare which is dwindled away to nothing and includes tobbacco
and i have about the other 200 which i equally spend on fresh air

[Deleted User]

kazza292 wrote: »

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 1650
Partners monthly income after tax....... 1950
Benefits................................ 82
Other income............................ 0
Total monthly income.................... 3682

Monthly Expense Details
Mortgage................................ 590
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 130 - If this is over 10 months, changing it to 12 months will reduce it to £108-33 pm.
Electricity............................. 45 - This is high. Check comparison sites.
Gas..................................... 45 - This is high. Check comparison sites.
Oil..................................... 0
Water rates............................. 55
Telephone (land line)................... 10
Mobile phone............................ 70 - Even if it's for 3 phones, this is high. Get on PAYG/sim only, ASAP.
TV Licence.............................. 10
Satellite/Cable TV...................... 45 - Get rid and go Freeview/Freesat.
Internet Services....................... 12
Groceries etc. ......................... 400 - You should be able to reduce this. Meal plan, drop a brand, etc.
Clothing................................ 50
Petrol/diesel........................... 250
Road tax................................ 5
Car Insurance........................... 75 - Check comparison sites for a better deal.
Car maintenance (including MOT)......... 30 - this doesn't seem very much, for 2 high mileage cars.
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 40
Other child related expenses............ 10
Medical (prescriptions, dentist etc).... 8
Pet insurance/vet bills................. 10
Buildings insurance..................... 20
Contents insurance...................... 20
Life assurance ......................... 0
Other insurance......................... 10
Presents (birthday, christmas etc)...... 60 - With only one child, £720 pa seems a lot. Give token gifts to non-resident people.
Haircuts................................ 40
Entertainment........................... 100 - Look to reduce this, by looking for cheap/free options.
Holiday................................. 50 - This would be better going into the Emergency Fund.
Emergency fund.......................... 0
Total monthly expenses.................. 2190


Assets
Cash.................................... 0
House value (Gross)..................... 145000
Shares and bonds........................ 0
Car(s).................................. 12000
Other assets............................ 4000
Total Assets............................ 161000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 108000...(590)......2.39
Total secured & HP debts...... 108000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
loan tesco.....................20.5......281.......3.4
loan nationwide................20000.....370.......3.9
cc mbna........................5800......87........18.9
santander car..................5000......125.......NaN
barclaycard cc.................8100......165.......0
barclaycard cc.................2200......50........17.9
Total unsecured debts..........41120.5...1078......-


Monthly Budget Summary
Total monthly income.................... 3,682
Expenses (including HP & secured debts). 2,190
Available for debt repayments........... 1,492
Monthly UNsecured debt repayments....... 1,078
Amount left after debt repayments....... 414

Personal Balance Sheet Summary
Total assets (things you own)........... 161,000
Total HP & Secured debt................. -108,000
Total Unsecured debt.................... -41,120.5
Net Assets.............................. 11,879.5

My comments in red.

As to your debts, you need to hit the MBNA card REALLY HARD, as you're currently not even covering the interest, with the result that the balance is going up each month.

According to your SOA, you have over £400 left.

If you put £300 of that toward the MBNA card, you could have it cleared in 17 months.

[Deleted User]

kazza292 wrote: »

and husband commutes to a police custody cell unit which is isolated and not near to a housing estate to walk.

As a police officer, he needs to be careful about his finances.

Unmanageable debt is a disciplinary matter, in the police service.

Sanctioned_Parts_List

kazza292 wrote: »

i honestly do have around 400 spare each month,, i have just worried about debts spiralling out of control.

my husband has say 200 after about 200 of other things like a birthday, xmas, mot etc , school uniform .... spare which is dwindled away to nothing and includes tobbacco
and i have about the other 200 which i equally spend on fresh air

OK, this goes back to my point about your SOA needing work. I'm sorry to be blunt but you do not have £400/month spare - you just haven't allocated correctly within your SOA!

So say your husband spends say £100 on cigarettes - you should create a cigarettes item on the SOA and detail this as an ongoing expense. School uniform gets added to the clothing line, birthdays and Christmas gets added to the gifts line, MOT gets added to the car maintenance line. Miscellaneous unaccounted spending that that you can't place your finger on goes into Entertainment... It is not surplus if it's used for ongoing expenses or wasted, and it's not helping you to pretend that it is!

Once you have created a complete an accurate assessment of your financial status, then you'll be able to see if your fears are justified or not.

kazza292_2

my soa not accurate at all i see that now.. i will re do it..

caravan is a tourer , had it 2 years ( gift from my lovely dad) ,not sure of depreciation , have no maintenance cost ,although know should have service perhaps.. use it approx 4 times year

husband works as" police staff" in custody,, frightened now about him perhaps being disciplined in some way

tori.k

Really don't worry on that score, you have nothing to worry about with DH.
SOA looks pretty good to me with room to tweak with grocery ect, anything with a surplus means your budgeting your essentials needs within your means, and it's the life's luxuries that need curbing.
Keep a spending diary for a month find the the other £300 goes then take a harsh look at what it being spent on some of it will need to be included in your SOA most will be avoidable extras.

Take a life laundry at home do you really need anymore things like clothes & shoes, do you have a bathroom of products that need to be used up, make a list of what you need and shop from home first.

My own SOA showed it had a surplus left for debt repayment I kept chipping away and plugged the holes in my spending until I found the money I was supposed to have it does take a while, but now we are making massive strides.
Good luck

enthusiasticsaver

kazza292 wrote: »

assets are a caravan of 4000...
my LBM was Sunday night early hours no particular reason.. it was like a message from above.. mad but true. i honestly do have around 400 spare each month,, i have just worried about debts spiralling out of control.

my husband has say 200 after about 200 of other things like a birthday, xmas, mot etc , school uniform .... spare which is dwindled away to nothing and includes tobbacco
and i have about the other 200 which i equally spend on fresh air

So this is where the £400 spare is going on? If you and your OH are spending it on tobacco/fresh air it is not spare and needs to be accounted for in the soa unless you are going to stop buying the stuff. If you really spend £200 on nothing each how is the debt to be reduced?