Help Please - SOA

Beyondskint

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2 (aged 1 & 2)
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 597
Partners monthly income after tax....... 0
Benefits................................ 596
Other income............................ 0
Total monthly income.................... 1193

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 50
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 19
Electricity............................. 80
Gas..................................... 40
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 45 (includes internet, in contract)
Mobile phone............................ 43 (ends in Oct 2017)
TV Licence.............................. 10
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 400
Clothing................................ 0
Petrol/diesel........................... 80
Road tax................................ 19
Car Insurance........................... 63
Car maintenance (including MOT)......... 5
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 40
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 832


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1
Other assets............................ 0
Total Assets............................ 1


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 2428.....(50).......0
Total secured & HP debts...... 2428......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Credit union...................234.......44........0
Vanquis........................35........0.........0
Orange.........................39........0.........0
Barclaycard....................668.......0.........0
Lowell.........................776.......0.........0
Lowell.........................417.......0.........0
Vanquis........................91........0.........0
EE.............................1275......0.........0
Lowell.........................1192......0.........0
Pounds to pocket...............818.......0.........0
Lowell.........................436.......0.........0
Active securities..............398.......0.........0
Lowell.........................359.......0.........0
Lowell.........................231.......0.........0
My Jar.........................200.......0.........0
Uncle Buck.....................187.......0.........0
Ferratum.......................173.......0.........0
Nationwide.....................154.......0.........0
Orange.........................153.......0.........0
Vanquis........................133.......0.........0
Cabot..........................78........0.........0
Total unsecured debts..........8047......44........-


Monthly Budget Summary
Total monthly income.................... 1,193
Expenses (including HP & secured debts). 894
Available for debt repayments........... 299
Monthly UNsecured debt repayments....... 44
Amount left after debt repayments....... 255

Personal Balance Sheet Summary
Total assets (things you own)........... 1
Total HP & Secured debt................. -2,428
Total Unsecured debt.................... -8,047
Net Assets.............................. -10,474

We have been struggling so much with money and got into more debts to survive. It says we have £255 left per month but we dont, so will do a spending diary. We are aware that we have made numerous wong decisions but I now want to get sorted.

When i had our first child my partner was working so we agreed i'd change to part time and cover childcare. After this was accepted and new contract signed he lost his job and now struggling to find employment. He doesnt drive so not even able to apply for delivery jobs.

Sadly at the moment me going full time wouldn't actually give us more money as the money i earned we'd lose in benefits (ridiculous system for trying to get work).

I'm not looking for criticism of our situation as we're aware how silly we have been, we are looking for advice on how to move forward.

Thanks

Ebe_Scrooge

Sorry, this is not meant to be a dig, but I think you need to look again at your SOA.


1. You've put nothing down for either rent or mortgage - is this correct ?
2. You've said zero cars in the house, yet you've put down amounts for petrol etc.
3. You've put down nothing for clothing - whilst of course you don't want to be spending anything unnecessary on designer labels etc., you must have to buy some clothes occasionally for the kids at least ?
4. There's nothing for buildings or contents insurance - is this correct ?


Aside from that, it does appear that you're not living extravagently. But you need to keep a spending diary, as you say, to track down that missing £255 each month.


Are you claiming all the benefits to which you're entitled ?

National_Debtline

Hello and welcome to the forum. I've made a few notes below where I think things ought to be added or made a bit clearer.

Beyondskint wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2 (aged 1 & 2)
Number of cars owned.................... 0 shouldn't this read "1" as you list car expenses below - I am assuming you entered this in the wrong place

Monthly Income Details
Monthly income after tax................ 597
Partners monthly income after tax....... 0
Benefits................................ 596
Other income............................ 0
Total monthly income.................... 1193

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 50 what do these payments go towards, please? Just to be sure that they are indeed HP items and that the goods would genuinely be at risk if not paid.
Rent.................................... 0 Presumably you get an award of full Housing Benefit - can you confirm?
Management charge (leasehold property).. 0
Council tax............................. 19
Electricity............................. 80
Gas..................................... 40
Oil..................................... 0
Water rates............................. 0 should there not be a figure here? Is it somehow included in the rent? Housing Benefit would not usually cover such an element.
Telephone (land line)................... 45 (includes internet, in contract)
Mobile phone............................ 43 (ends in Oct 2017)
TV Licence.............................. 10
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 400 Does this incorporate cleaning products, toiletries, nappies etc. as well as food? Plenty of tips for saving on grocery shopping, meal planning etc. on these boards which may help
Clothing................................ 0 You do need to put something by for this, especially as your children will be growing out of clothes at regular intervals!
Petrol/diesel........................... 80
Road tax................................ 19
Car Insurance........................... 63
Car maintenance (including MOT)......... 5
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0 Is the whole household exempt from prescription costs at present?
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0 matter of personal preference, but a basic policy should be available for <£15 and think about what you would have to spend to replace stolen/damaged household items
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 40
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0 some sort of emergency pot for these latter items is recommended otherwise you leave yourself no wiggle room if one-off expenses arise
Total monthly expenses.................. 832


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1 see comment further above - this is where you would put the value of the car, rather than the quantity you own
Other assets............................ 0
Total Assets............................ 1


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 2428.....(50).......0
Total secured & HP debts...... 2428......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Credit union...................234.......44........0
Vanquis........................35........0.........0
Orange.........................39........0.........0
Barclaycard....................668.......0.........0
Lowell.........................776.......0.........0
Lowell.........................417.......0.........0
Vanquis........................91........0.........0
EE.............................1275......0.........0
Lowell.........................1192......0.........0
Pounds to pocket...............818.......0.........0
Lowell.........................436.......0.........0
Active securities..............398.......0.........0
Lowell.........................359.......0.........0
Lowell.........................231.......0.........0
My Jar.........................200.......0.........0
Uncle Buck.....................187.......0.........0
Ferratum.......................173.......0.........0
Nationwide.....................154.......0.........0
Orange.........................153.......0.........0
Vanquis........................133.......0.........0
Cabot..........................78........0.........0
Total unsecured debts..........8047......44........-


Monthly Budget Summary
Total monthly income.................... 1,193
Expenses (including HP & secured debts). 894
Available for debt repayments........... 299
Monthly UNsecured debt repayments....... 44
Amount left after debt repayments....... 255

Personal Balance Sheet Summary
Total assets (things you own)........... 1
Total HP & Secured debt................. -2,428
Total Unsecured debt.................... -8,047
Net Assets.............................. -10,474

Thanks

The good news is that it looks resolvable to me - it's just a question of first making that budget of yours a little more comprehensive and robust so that we then have a more accurate picture of what (if any) spare money you have for debt repayments. That will guide us on whether you should be looking at debt repayment plans, or conversely getting the debts written off through insolvency options such as Debt Relief Orders.

Smodlet

Hello and welcome. First thing, breathe... that's better. You have done the first, most important thing in realising you need to take control and asking for help. That takes courage so well done.

Your SoA requires some clarification as you have no amounts under mortgage or rent yet do under council tax - can/do you get discount for this if your OH is not working?

It is your choice what you choose to share on here but, the more information you can provide, the more specific and accurate assistance you will receive.

At first glance, your electricity looks through the roof at twice as much as your gas. I appreciate you have debt with your provider but is there no room for negotiation/adjustment there?

Grocery bill is high for two adults and two tiny ones. Two teenagers eating you out of house and home should be able to be fed for a little less than £400 per month, I would have thought.

There will be plenty of others along shortly to help; let's hope EssexHebridean and Sanctioned Parts List are among them as their advice is always excellent.

Good luck. You will get out of this mess if you work together and just refuse to give up. Welcome again!

Smodlet

Beyondskint

1. You've put nothing down for either rent or mortgage - is this correct ? Yes i receive full housing benefit.

2. You've said zero cars in the house, yet you've put down amounts for petrol etc. Sorry it said cars owned, i don't own as such as still on hp. I did include it in that section.

3. You've put down nothing for clothing - whilst of course you don't want to be spending anything unnecessary on designer labels etc., you must have to buy some clothes occasionally for the kids at least ? I buy ow and again as part of my shopping, however my first born received a bag of clothes from a friend that will do him until he's prob 4, and little girl just turned one and was lucky to get nearly a full wardrobe in gifts.


4. There's nothing for buildings or contents insurance - is this correct ? Yes this is correct as can't afford contents just now

Are you claiming all the benefits to which you're entitled ? Yes claiming everything

Beyondskint

My car payments are already in default and the have agreed to accept £50 per month based on my income and expenditure.

The £400 includes, food, cleaning and nappies. I should maybe also say i have 2 step kids who come once a month so need extra when they come.

I live in scotland so no water rates, this is included with the council tax amount.

I don't owe any electricity, i am on a prepaid meter, and it requires £80 per month put in it.

Smodlet

Then is changing to a credit meter a possibility, even if you have to give them a deposit? You must be paying a fortune for your electricity, even for Scotland, if it costs £80 per month.

Katzen

Hi, think you probably need some kind of debt solution that I can't help you with but you can certainly cut that grocery bill at least in half

National_Debtline

Hi again

Beyondskint wrote: »

My car payments are already in default and the have agreed to accept £50 per month based on my income and expenditure.

The £400 includes, food, cleaning and nappies. I should maybe also say i have 2 step kids who come once a month so need extra when they come.

I live in scotland so no water rates, this is included with the council tax amount.

I don't owe any electricity, i am on a prepaid meter, and it requires £80 per month put in it.

Thanks for the clarifications - I don't know why it didn't occur to me that you might live in Scotland.


How much of the overall balance owing on the car have you repaid since the agreement began? I'm guessing it is more than one-third as this means the lender would need a court order to recover its vehicle, hence they can be a bit more flexible once you are over that threshold.


It may take a few weeks before that spending diary of yours starts to yield some answers about where that £255 is going. In the meantime, I would recommend doing the following:


- Ensuring you have a "safe" bank account i.e. one with a bank you owe no money to. This includes any "authorised" overdrafts - the only way to be 100% in control is to operate an account in credit. Easy-to-open accounts can be found at https://www.nationaldebtline.org/S/factsheets/Pages/basicbankaccountsscotland/openingabasicbankaccount.aspx


- Suspending existing payments towards unsecured debts (or at least paring them down to token amounts of, say, £1) and asking that they give you at least 30 days' breathing space while you plan your next steps.
https://www.nationaldebtline.org/S/sampleletters/Pages/Hold-action-on-your-account-(sole-name).aspx


Dennis
@natdebtline

determined_new_ms

sorry to hear that you are having such a tough time. I can totally relate as I was out of work for a year and we were just living off my oh's income which after our mortgage we were on a similar income/expenditure. We already were pretty frugal but it did make us change how we were with money. I now spend £150-180 on groceries, cleaning products, nappies & alcohol a month. There are 2 adults and a 3 1/2yo in our household.

I cook everything from scratch and we eat pretty well. I shop at Aldis or Lidls.

I also committed to a year of not buying anything new. Which I've been doing now for 4 months. It really has changed my attitude to consuming things. I still do lots of things with our lo but only 1 paid activity a week (she goes to childcare 3 days a week as I have started p/t work again).

For the first time ever I have managed to keep a little pocket notebook as a spending diary. It is split up into different sections (personal, lo, groceries, bills) so at the end of the month I know exactly what I have spent and on what.

A little perseverance and you will get there and hopefully your oh will find work soon. Good luck

Alwaysskint2016

Hi, Can I ask a question please, Are there payment arrangements on your unsecured debts to freeze your monthly payments at zero? Looking at your SOA above the only debt repayments included are the £50 secured debt and the £44 for Credit Union. The others are down as Zero payments per month and are therefore not included in the £255 which is currently showing as being left over each month. If the SOA hasnt been completed correctly and you are in fact paying towards these debts each month then this could be the reason why you haven't got any money left at the end of each month.