SOA Help

19lottie82

I know it's for 2 cars but even so your insurance is expensive. Why?

Also you say the 2 cars are only worth a total of 3k but budget just £170 pa between them for maintenance. This would be lucky to cover an MOT test (without any repairs) and 1 tyre per car....... it doesn't seem realistic for 2 cars circa £1500 value? Is it?

Likewise £170 for 2 kids birthday and Christmas presents plus how ever much you spent on each other and other people during the year? Kids friends birthday parties? How much did you spend last year?

sugarcube84

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 How much would this go up if you weren't getting childcare vouchers?
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)do you need the internet?
Groceries etc. ......................... 250
Clothing................................ 50 -Some money could be saved here even with 2 children, look on ebay/charity shops and buy in the sales.
Petrol/diesel........................... 200 How much would this go down if you only had the one car
Road tax................................ 25
Car Insurance........................... 125 (2 cars)How much would this go down if you only had 1 car
Car maintenance (including MOT)......... 15 as others have said is this realistic
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 100 ( in addition to Childcare vouchers already in use) I would be taking the child out of nursery.
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)This needs to go down have you looked at the local colleges
Entertainment........................... 40 Cut this
Holiday................................. 25 (try to budget, not every month)Not at the minute use it for an emergency fund
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 Could selling one of the cars get rid of this?
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.

You have a significant overspend and from what I can see you don't have an emergency fund. What this means is that your debt is increasing each month and every time you have an unexpected bill that gets added on as well. I was where you are and you have some tough decisions to make I would run a draft SOA next to this one in excel and make the changes noted by everyone eg to the childcare and allow for only 1 car and see where that leaves you.

[Deleted User]

bamgbost wrote: »

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 - Do you really need two cars?

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) - This is £1,080 pa, which is high, even for an all electric house. Check comparison sites, and make sure to turn off unused devices, only do full washing loads, etc.
Gas..................................... 0
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 18
Mobile phone............................ 30 (2 phones)
TV Licence.............................. 15 - This should be £12.12, unless you've only just started paying by installments.
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) - Is there a reason one or both of you is paying so much?
Car maintenance (including MOT)......... 15 - This is only £180 pa, which doesn't seem much for 2 cars.
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 100 ( in addition to Childcare vouchers already in use)
Other child related expenses............ 0 - Nothing?
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.[/FONT]

My comments in red.

You really need to do something about the Capital 1 card.

Based on your current payments, it is going to cost you twice as much in interest as the current balance, and take 10 years to clear.

foolofbeans

have you looked into tax credits? your income may be high but it could be worth applying and also for housing benefit.
If you are married you can apply for married persons allowance which is a tax break worth a few hundred pounds. Not a lot but every little helps.

micky2phones

foolofbeans wrote: »

have you looked into tax credits? your income may be high but it could be worth applying and also for housing benefit.
If you are married you can apply for married persons allowance which is a tax break worth a few hundred pounds. Not a lot but every little helps.

Hi, Think the op is earning too much to apply for Married Persons Allowance ?

FBaby

About £350 is spent on what you don't need counting only the car and childcare. That alone will mean being to pay the debts and keep you out of trouble. Then when your children are at school, your OH can consider a job and the debts can be fully repaid.

itchyfeet123

Does your SOA reflect your actual spending, or is it aspirational? Excluding debt repayments, you spend less than you earn. So how did the debt come about? You don't have to answer here, but if you don't know where that 13k (total debt minus car loan) went then you might need to redo the SOA to reflect your real spending.

kindofagilr

I'm sorry but you need to cancel the childcare, its seems very silly to pay someone to have the kids when your wife isn't working, yes we would all love some free time, but while you are short of money every month it's a unnecessary expense.

ViolaLass

I quite understand your wife wanting a break each week. Why don't you take them for a day at the weekend and give her time off then?

Does she know that the childcare is pushing you into debt? Do you accept that it is?

bobcat2

Amount of debt is not extremely high compared with income, but the APRs are nasty. 29% is way too much interest to be paying. I would look at ways to get this down. Is there a way you can refinance this, can you transfer any of this 0% on existing cards. If you have alvailble credit on the Barclaycard's they seem to always have balance transfer offers, if so you can find these in online banking and use to pay off one of the other cards. Once done see if you can get a balance transfer offer from the card you have just cleared. If you can do this it would substantially reduce your monthly repayments.