SOA Help

bamgbost

Been sticking my head in sand for too long...
This is the situation laid bare....
Any advice???


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.................... 2
Monthly Income Details
Monthly income after tax................ 2300
Partners monthly income after tax....... 0
Benefits................................ 132 - Child Benefits
Other income............................ 0
Total monthly income.................... 2432
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 920 - Located in South East (Going rate)
Management charge (leasehold property).. 0
Council tax............................. 92 (12 months)
Electricity............................. 90 (based on last winters price)
Gas..................................... 0
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 18
Mobile phone............................ 30 (2 phones)
TV Licence.............................. 15
Satellite/Cable TV...................... 0
Internet Services....................... 0 (internet currently free, but due to run out in Nov16)
Groceries etc. ......................... 250
Clothing................................ 50
Petrol/diesel........................... 200
Road tax................................ 25
Car Insurance........................... 125 (2 cars)
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 100 ( in addition to Childcare vouchers already in use)
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 5
Life assurance ......................... 0 - Need to work on
Other insurance......................... 0
Presents (birthday, christmas etc)...... 15 (average)
Haircuts................................ 40 (average)
Entertainment........................... 40
Holiday................................. 25 (try to budget, not every month)
Emergency fund.......................... 0 - Need to work on
Total monthly expenses.................. 2090

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 400
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 3400

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Car Loan.......................3500......154.......15
Capital One Card...............2000......50........29
Barclaycard....................2500......110.......29
Credit Union Loan..............5000......220.......? (Not sure)
Barclaycard 2..................1100......40........29
Santander......................500.......20........29
Aqua Card......................1850......50........29
Total unsecured debts..........16450.....644.......-

Monthly Budget Summary
Total monthly income.................... 2,432
Expenses (including HP & secured debts). 2,090
Available for debt repayments........... 342
Monthly UNsecured debt repayments....... 644
Amount short for making debt repayments. -302
Personal Balance Sheet Summary
Total assets (things you own)........... 3,400
Total HP & Secured debt................. -0
Total Unsecured debt.................... -16,450
Net Assets.............................. -13,050
Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

marcsshell

bamgbost wrote: »

Been sticking my head in sand for too long...
This is the situation laid bare....
Any advice???


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.................... 2
Monthly Income Details
Monthly income after tax................ 2300
Partners monthly income after tax....... 0 does your partner not work? If not why 2 cars and the need for childcare? if so include partners income
Benefits................................ 132 - Child Benefits
Other income............................ 0
Total monthly income.................... 2432
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 920 - Located in South East (Going rate)
Management charge (leasehold property).. 0
Council tax............................. 92 (12 months)
Electricity............................. 90 (based on last winters price)
Gas..................................... 0Do you not use gas?
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 18
Mobile phone............................ 30 (2 phones)Sim only?
TV Licence.............................. 15
Satellite/Cable TV...................... 0
Internet Services....................... 0 (internet currently free, but due to run out in Nov16)
Groceries etc. ......................... 250
Clothing................................ 50
Petrol/diesel........................... 200
Road tax................................ 25
Car Insurance........................... 125 (2 cars)
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 100 ( in addition to Childcare vouchers already in use)
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 5
Life assurance ......................... 0 - Need to work on
Other insurance......................... 0
Presents (birthday, christmas etc)...... 15 (average)
Haircuts................................ 40 (average) Quite steep
Entertainment........................... 40
Holiday................................. 25 (try to budget, not every month)
Emergency fund.......................... 0 - Need to work on
Total monthly expenses.................. 2090

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 400
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 3400

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Car Loan.......................3500......154.......15
Capital One Card...............2000......50........29
Barclaycard....................2500......110.......29
Credit Union Loan..............5000......220.......? (Not sure)
Barclaycard 2..................1100......40........29
Santander......................500.......20........29
Aqua Card......................1850......50........29
Total unsecured debts..........16450.....644.......-

Monthly Budget Summary
Total monthly income.................... 2,432
Expenses (including HP & secured debts). 2,090
Available for debt repayments........... 342
Monthly UNsecured debt repayments....... 644
Amount short for making debt repayments. -302
Personal Balance Sheet Summary
Total assets (things you own)........... 3,400
Total HP & Secured debt................. -0
Total Unsecured debt.................... -16,450
Net Assets.............................. -13,050
Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

See above 😀

bamgbost

SO just to add. No wife doesn't work. She has the kids. Plan is for her to go back to work perhaps PT from March next year. When child 1 turns 3 and qualifies for free hours.


Also, I forgot my Bank Overdraft with Barclays. £1500... with monthly charge of approx. £45 ! I need to get rid of asap.

marcsshell

bamgbost wrote: »

SO just to add. No wife doesn't work. She has the kids. Plan is for her to go back to work perhaps PT from March next year. When child 1 turns 3 and qualifies for free hours.


Also, I forgot my Bank Overdraft with Barclays. £1500... with monthly charge of approx. £45 ! I need to get rid of asap.

Cancel the childcare then as if your wife is at home there is no need to pay someone to have your children. That could easily be £600 off one of your debts.

cms-help

Stopping paying for childcare would go a long way to making up the deficit you are showing every month in your budget. Your salary would increase a little and you wouldn't have the out of pocket expenses for the extra childcare costs.

Your car insurance is expensive but no idea how old you are or what cars you drive.

I suspect, given your circumstances, an emergency fund might be of more benefit than a holiday at the moment.

If you aren't willing to stop the childcare costs then you're going to have to look at a debt solution I would imagine. Contact an organisation such as stepchange.

bamgbost

mmm I hear u on the childcare.
I guess the idea has been to have her 2 days at childcare...to give mum a bit of freedom to get "stuff done". Maybe we'll reduce it down to 1 day. Just so that we don't lose the nursery place. good idea.

enthusiasticsaver

As your wife doesn't work I would cancel the childcare and get rid of one car. Those two things together would at least mean you can make minimum payments and the insurance would be reduced presumably too. I would sell the shares/bonds and make that the start of your emergency fund and maybe put half towards your debts. Forego holidays until your debt under control and look for free things to do instead.

Can your wife not do an evening or weekend job when you are around to look after the kids? I did that when ours were tiny and it helped a lot.

National_Debtline

Hi bamgbost


One observation re: your SOA - have you gauged how much you are likely to have to pay for an internet connection from November?


Also, do you have any inkling of how different your household finances would look if, as envisaged, your wife did resume some part-time work from March? It would just help us assess whether you are in need of some short/medium term-solutions with limited implications for your creditworthiness, as opposed to something more fundamental over a longer period.


At the moment, that -£302 looks like a big gap to bridge, even allowing for some of the observations and suggestions made by others above. I would at the very least get a brand new "basic" bank account open with an alternative provider - this would be a no-frills account but at least you wouldn't be credit-checked for it:


https://www.nationaldebtline.org/EW/factsheets/Pages/basicbankaccounts/openingabasicbankaccount.aspx


Over the next few months at least, agreeing reduced payments on these debts and a freeze on any interest and charges may be your best bet, whether you do that yourself or through some form of free debt management plan. Debt advice charities can guide you through setting one up either way.


Dennis
@natdebtline

pjcox2005

Interest rates and overdraft charges are causing serious damage. As above speak to all lenders and bank, perhaps also see what balance transfers ideally to 0% cards you qualify for.

I'd also multiply all your monthly expenses by 12 to get your annual cost then add 29% to each of those figures as that's what it's costing you whilst you have debt. So £100 month childcare, is £1,200 over the year, but costing you £1,548. May help make difficult cut backs but appreciate not an extravagant SOA.

cms-help

bamgbost wrote: »

mmm I hear u on the childcare.
I guess the idea has been to have her 2 days at childcare...to give mum a bit of freedom to get "stuff done". Maybe we'll reduce it down to 1 day. Just so that we don't lose the nursery place. good idea.

How old are the children? I took mine out of nursery when at home with my second as it was too expensive without a "proper" salary and seemed silly paying someone else to look after him when I was at home all day with another child anyway. He went back to nursery when I went back to work.

You just have to adjust to suit your lifestyle at the time. It's only temporary after all.

But as posted above, if you have the 2 children in need of childcare then how much of your wife's part-time earnings will be eaten up by the childcare? Increases in fuel costs etc. I know you've said your first child will be entitled to some free hours but what about the second one?

Is your wife on maternity leave and does she not get any maternity pay?

marcsshell

Cutting down to 1 day a week would still mean you paying out money for no reason. Cancel the childcare, anythingnthatnyour wife needs to do she can do with the children in tow or you can both do together evenings/weekends. Same for the 2 cars.
My husband took his car off the road as it worked out much cheaper for him to bug a train pass than to drive. So you getting rid of one of the cars would save a small fortune.

If she can see if your wife can get an evening/weekend job. It is hard work in the fact that you won't have much family time but needs must. I quit a steady office job to work weekend nights at a hospital. Did it for 3 years so I didn't have to pay any childcare. Was hard at times but worth it as it allowed extra money.