Any advice welcome - SOA included

autumn2012_2

Trying to kick the debt!! Not much left over at the end of the month although this does vary as Im self employed.

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....................

Monthly Income Details
Monthly income after tax................ 1450
Partners monthly income after tax....... 300
Benefits................................ 410
Other income............................ 0
Total monthly income.................... 2160

Monthly Expense Details
Mortgage................................ 275
Secured/HP loan repayments.............. 220
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 110
Electricity............................. 70
Gas..................................... 50
Oil..................................... 0
Water rates............................. 50
Telephone (land line)................... 17.4
Mobile phone............................ 33
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 250
Clothing................................ 0
Petrol/diesel........................... 100
Road tax................................ 3
Car Insurance........................... 63
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 20
Buildings insurance..................... 12
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 25
Presents (birthday, christmas etc)...... 70
Haircuts................................ 5
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1420.52


Assets
Cash.................................... 0
House value (Gross)..................... 110000
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 2500
Total Assets............................ 118500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 64200....(275)......2.59
Hire Purchase (HP) debt ...... 6000.....(220)......3.2
Total secured & HP debts...... 70200.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
MBNA CC........................3800......80........0
Barclaycard....................2500......40........0
Santander......................2200......40........0
Hitachi Loan...................4500......260.......4.2
Santander Loan.................5300......230.......6.9
Very...........................550.......30........BNPL
HSBC...........................1500......40........0
Total unsecured debts..........20350.....720.......-


Monthly Budget Summary
Total monthly income.................... 2,160
Expenses (including HP & secured debts). 1,420.52
Available for debt repayments........... 739.48
Monthly UNsecured debt repayments....... 720
Amount left after debt repayments....... 19.48

Personal Balance Sheet Summary
Total assets (things you own)........... 118,500
Total HP & Secured debt................. -70,200
Total Unsecured debt.................... -20,350
Net Assets.............................. 27,950

enthusiasticsaver

The soa looks ok except the presents figure is a bit high and the mobiles could be moved to sim only. I also think you should pay into an emergency account so you don't need to resort to a credit card if car or house repair essential. Have you checked your gas and electricity supplier to see if you can get that cheaper as that is higher than average unless you in large older property.

As you say there is not much surplus. Is a second job or taking in a lodger possible? Your partner only earns £300 which presumably is part time so can they get additional hours?

Are the credit cards all on 0%?

sentientpoet

If you are self-employed and your income varies, is this SOA based on average or lowest monthly income? Also, I think that makes saving into an emergency fund even more important in the initial stages - I went self-employed a couple of years ago and all was going swimmingly until my main source of income inexplicably didn't pay my invoices for three months! I didn't have much of an emergency fund and it very nearly crashed my DMP.

fatbelly

It all looks do-able but a bit tight.

Use mse and cashback websites to get the best insurance deals (what's the other insurance?)

keep on top of best suppliers for electricity and gas.

Pay council tax over 12 months

The only thing I would look at more closely is the £220 per month you spend on HP. Is that on a car you think is worth 6k? Is it definitely hire purchase? How far into it are you?

autumn2012_2

Hi all, Sorry went off before as busy before santa arrives..

A) The other insurance is life insurance
Yes all cards are 0%
C) Gas and Electric is on cheapest
D) Car is financed - I dont know the difference. Our actual finance is through toyota financial services so not sure if thats secured or unsecured? Our settlement figure is actually 5400 but with remaining interest is 6k.. Car is worth 6.5k but being consevative as in use everyday. Its my income at 300 and thats minimum.. Im actually bringing in more than that most months but not guaranteed x

fatbelly

It'll be PCP if there's a large final payment or Hire Purchase if there isn't - either way the car is not yours until payments complete and you have voluntary termination as an option is things get tough.

It sounds like things may not be quite as tight as your soa shows (actually bringing in more than that most months but not guaranteed) and will get better as the loans and HP finish.

If circumstances change for the worse, then a debt management plan would be the way forward but I don't think you are there as things stand.

autumn2012_2

Yes its HP my husband says and we have 26 payments left - I am going to snowball the CCs and try my best to get them down as quickly as possible. 1 loan has 16 payments left and the other has 24 payments so once they are paid that will be an additional £490 to pay towards the cards every month. Im looking at a 2nd job but Im not sure on tax etc but Im going to really try to increase income to give us some breathing space! Im not sure if Im approaching it the right way but it kind of makes sense to me lol

enthusiasticsaver

Your plan sounds good to me.

fatbelly

autumn2012 wrote: »

Yes its HP my husband says and we have 26 payments left - I am going to snowball the CCs and try my best to get them down as quickly as possible. 1 loan has 16 payments left and the other has 24 payments so once they are paid that will be an additional £490 to pay towards the cards every month. Im looking at a 2nd job but Im not sure on tax etc but Im going to really try to increase income to give us some breathing space! Im not sure if Im approaching it the right way but it kind of makes sense to me lol

Sounds like you've got a tough 2017 and then things get better. Make lots of use of this site (and this board) to keep you on track

Happier_Me

Just a thought, as you earn significantly less than your personal tax allowance have you transferred £1,100 of it to your husband?

If not, it's worth looking at this link - it will reduce the amount of tax he pays and it can be backdated to April 2015:

https://www.gov.uk/marriage-allowance/how-it-works

Obviously, you will need to keep an eye on your earnings, if they increases above your personal tax allowance then it wouldn't be worth transferring in the future.

autumn2012_2

Yes 2017 and the start of 2018 will be tough but I dont want to consolidate and I really want to be debt free within 3 years which I know I can do if I just stay focused. On the plus side OH came home yesterday with a pay rise so thats another £100 per month extra and also a company profit scheme bonus is due in march which will go straight into EF! 2017 will be a good year!:beer: