Statement of Affairs

danuiseult

Hi all, I hope I am doing this right!
I have today been looking through my affairs to figure out a way to clear my debts faster and leave myself more money at the end of the month!
I watched Martin's debt solutions video and he mentioned this forum, suggesting pasting a SOA here and seeing what happens! Bit nervous, but here goes! Followed by some clarifications:-

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1444.09
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1444.09

Monthly Expense Details
Mortgage................................ 220.1
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 32.91
Council tax............................. 67
Electricity............................. 29
Gas..................................... 41
Oil..................................... 0
Water rates............................. 23
Telephone (land line)................... 18
Mobile phone............................ 50
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 23.48
Groceries etc. ......................... 180
Clothing................................ 15
Petrol/diesel........................... 30
Road tax................................ 0
Car Insurance........................... 30.18
Car maintenance (including MOT)......... 0
Car parking............................. 2
Other travel............................ 2
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 6
Pet insurance/vet bills................. 0
Buildings insurance..................... 6.46
Contents insurance...................... 0
Life assurance ......................... 0
GAP Car insurance......................... 11.46
Presents (birthday, christmas etc)...... 5
Haircuts................................ 10
Entertainment........................... 3
Holiday................................. 0
Emergency fund.......................... 0
Gym..................................... 102
Total monthly expenses.................. 907.59


Assets
Cash.................................... 0
House value (Gross)..................... 120000
Shares and bonds........................ 0
Car(s).................................. 10000
Other assets............................ 0
Total Assets............................ 130000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 52000....(220.1)....1.8
Total secured & HP debts...... 52000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Tesco Loan.....................1128.6....51.3......0
TEsco Credit Card..............4754.41...47........0
Barclaycard....................6306.53...141.8.....0
Ikano Sofa.....................500.......20........0
Skoda..........................10000.....113.......0
Credit Union Loan..............17219.....210.......0
Total unsecured debts..........39908.54..583.1.....-


Monthly Budget Summary
Total monthly income.................... 1,444.09
Expenses (including HP & secured debts). 907.59
Available for debt repayments........... 536.5
Monthly UNsecured debt repayments....... 583.1
Amount short for making debt repayments. -46.6

Personal Balance Sheet Summary
Total assets (things you own)........... 130,000
Total HP & Secured debt................. -52,000
Total Unsecured debt.................... -39,908.54
Net Assets.............................. 38,091.46

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

I live alone but my partner is here at weekends. It's a tiny Right to Buy ex council flat hence the cheap mortgage and half loan to value. Partner is moving in in August-ish.

I will be trying to reduce my mobile and broadband deals when the contracts come up in March and April.

I use Good Energy - I know I could get cheaper dual fuel, but I like knowing I am buying green energy...

In terms of assets, that £10k is rough value of my Skoda Citigo which is £113 monthly and no other costs except insurance. Suits me better than a second hand car going wrong and no budget to cover, plus all the service costs etc.

The debts:

Tesco Loan completes Nov 2018
Tesco Credit Card - the 0% interest deal ends August 2017, so I will need to do a switch to another 0% if I have improved my credit rating by then (very poor atm).
Barclaycard - £332.32 purchases ends 0% this month, rest of balance 0% til Sept 2019 so less urgent.
Credit Union deducts £210 from my salary to repay, with £10 going to savings I cannot access until debt repaid in 2022 - current saving balance approx £684).

My plan -

Try to first get rid of that £332 on the Barclaycard which will be 18.9% after this month.
Continue Barclaycard payments approx £140 until Sep 2019 and then place rest on another 0% deal.
Before Aug 2017, switch Tesco CC to 0% deal or creditcard shuffle to Barclaycard if credit limit allows (current slightly too much to do it just yet - Barclaycard limit is £11k, so by Aug should be ready - r a Barclaycard deal available).

I hope all this makes sense. Any questions, ask away. I think I might do the diary thing too - great motivation!

Thank you for reading and your patience. Please be gentle, I'm very guilty about this debt. x

Pixie5740

Looking at your SOA your mobile bill at £50 a month is high but I note you are looking to change or negotiate that down soon.

Your gym costs at £102 are very steep. Is there any scope to reduce that? Do you feel you get value for money from your membership?

GAP insurance also seems high. I'm sure I only paid something like £100 as a one off cost for Return-to-invoice GAP insurance for my Land Rover.

You have zero for your emergency fund. As a home owner you really need to something set aside just in case.

Things should get a little easier for you once your partner moves in but that could be wiped out, partially at least, when your 0% deals end.

Good luck on your debt free journey.

-taff

Get rid of the gym and get a cheaper one or excercise outside of the house/inside the house.

tallyhoh

£102 for gym :eek::eek: is that a typo?

EssexHebridean

Welcome aboard! Comments in red as usual...

danuiseult wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1444.09
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1444.09

Monthly Expense Details
Mortgage................................ 220.1
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 32.91
Council tax............................. 67 Single person discount I take it? Remember this will go up when your OH moves in. Is this currently paid over 12 months or 10?
Electricity............................. 29
Gas..................................... 41
Oil..................................... 0
Water rates............................. 23 Metered?
Telephone (land line)................... 18
Mobile phone............................ 50 If you're as close as you are to your contract ending then a phone call to your provider now is probably worthwhile,. I was just under three months away from the end of my contract when I got EE to pricematch to a SIM only deal (It was a PlusNet one if that helps) - I'm now paying £10.99 a month.
TV Licence.............................. 0 No?
Satellite/Cable TV...................... 0
Internet Services....................... 23.48Yes - again look to use the "comparison" trick to knock this down, or just change providers to a cheaper one if that's less hassle!
Groceries etc. ......................... 180 For one of you (I'm assuming your partner contributes to food when they're there too) that's quite high. Take a look at the Old Style board on here for inspiration, and also think about switching to shopping at Aldi or Lidl. Their special offers on fruit & veg can be a great basis for your meal plan. Oh yes - meal plan - start using one. And a shopping list too! For just you I reckon you can take £50 off this
Clothing................................ 15 Bin this for the time being - sorry but your income is currently outstripped by your outgoings!
Petrol/diesel........................... 30
Road tax................................ 0
Car Insurance........................... 30.18 Take it you do actually pay this in monthly installments?
Car maintenance (including MOT)......... 0
Car parking............................. 2
Other travel............................ 2
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 6
Pet insurance/vet bills................. 0
Buildings insurance..................... 6.46 For a leasehold property? You are sure this isn't covered in your service charge? Most ex Local Authority properties are run under a central block policy.
Contents insurance...................... 0 You need this - if the worst should happen then not having contents insurance is a real false economy.
Life assurance ......................... 0
GAP Car insurance......................... 11.46
Presents (birthday, christmas etc)...... 5
Haircuts................................ 10
Entertainment........................... 3
Holiday................................. 0
Emergency fund.......................... 0 As a home owner start budgeting £50 a month here ideally
Gym..................................... 102 You KNOW this is too high bearing in mind you debts, right? Martin has a guide on the main site to lowering gym membership costs - take a look and see what you have locally, I would. Also remember options like ParkRun and running clubs locally.
Total monthly expenses.................. 907.59


Assets
Cash.................................... 0
House value (Gross)..................... 120000
Shares and bonds........................ 0
Car(s).................................. 10000
Other assets............................ 0
Total Assets............................ 130000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 52000....(220.1)....1.8
Total secured & HP debts...... 52000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Tesco Loan.....................1128.6....51.3......0
TEsco Credit Card..............4754.41...47........0
Barclaycard....................6306.53...141.8.....0
Ikano Sofa.....................500.......20........0
Skoda..........................10000.....113.......0
Credit Union Loan..............17219.....210.......0
Total unsecured debts..........39908.54..583.1.....-


Monthly Budget Summary
Total monthly income.................... 1,444.09
Expenses (including HP & secured debts). 907.59
Available for debt repayments........... 536.5
Monthly UNsecured debt repayments....... 583.1
Amount short for making debt repayments. -46.6

Personal Balance Sheet Summary
Total assets (things you own)........... 130,000
Total HP & Secured debt................. -52,000
Total Unsecured debt.................... -39,908.54
Net Assets.............................. 38,091.46

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

I live alone but my partner is here at weekends. It's a tiny Right to Buy ex council flat hence the cheap mortgage and half loan to value. Partner is moving in in August-ish. So that presumably will reduce your living costs. Tough question - but, if the flat is tiny,. you are sure it's sustainable for you both to be living there full time? The answer is almost certainly yes, but if you have any doubts, or haven't thought about that aspect, now is the time to go through things.

I will be trying to reduce my mobile and broadband deals when the contracts come up in March and April. Deal with the mobile now - you may be able to negotiate staying with your current provider but getting a much better deal. check out the best of Martin's recommended SIM only deals and use those as bargaining tools.

I use Good Energy - I know I could get cheaper dual fuel, but I like knowing I am buying green energy... In which case, your goal is to cut down what you use, instead. As a clue, we pay £40 a month currently for our energy - that's gas for cooking only with a small not-for-profit provider called Ebico (that ticks my ethical box too!) and electric for everything else with Flow. Switch off stuff that's not being used, if you have a smart meter use it, if not use freecycle to blag an OWL monitor or similar to see what your useage is and track reducing it that way.

In terms of assets, that £10k is rough value of my Skoda Citigo which is £113 monthly and no other costs except insurance. Suits me better than a second hand car going wrong and no budget to cover, plus all the service costs etc. Is the servicing etc covered for the life of the car? if not then you need to get a plan in place now to be ready to start setting money aside when required.

The debts:

Tesco Loan completes Nov 2018
Tesco Credit Card - the 0% interest deal ends August 2017, so I will need to do a switch to another 0% if I have improved my credit rating by then (very poor atm).
Barclaycard - £332.32 purchases ends 0% this month, rest of balance 0% til Sept 2019 so less urgent.
Credit Union deducts £210 from my salary to repay, with £10 going to savings I cannot access until debt repaid in 2022 - current saving balance approx £684).

My plan -

Try to first get rid of that £332 on the Barclaycard which will be 18.9% after this month. Yes - correct first step IMO
Continue Barclaycard payments approx £140 until Sep 2019 and then place rest on another 0% deal.
Before Aug 2017, switch Tesco CC to 0% deal or creditcard shuffle to Barclaycard if credit limit allows (current slightly too much to do it just yet - Barclaycard limit is £11k, so by Aug should be ready - r a Barclaycard deal available). In my experience there is ALWAYS a Barclaycard deal available! :rotfl:

I hope all this makes sense. Any questions, ask away. I think I might do the diary thing too - great motivation! Yep - they really are good for making you accountable, too!

Thank you for reading and your patience. Please be gentle, I'm very guilty about this debt. x

I reckon if you find a low cost local gym or better still drop it altogether for freebie options, batter your phone contract down, cut your food spend and make a few tweaks else where you can cover your shortfall and free up £100 a month as a surplus. If your council tax is paid over 10 months then you have this month and next with nothing coming out for that - shift that sum straight to the Barclaycard.

Are you still using a credit card by any chance? The reason I ask is that you are showing a deficit on this SOA, yet no overdraft? This usually points to someone using credit to live - not good.

Is there any way you can increase your income? Even stuff like doing surveys might help a bit - you can potentially clear £30 or so a month that way, which would cover a cost elsewhere to free up some of your salary for debt busting.

National_Debtline

Hi

Good advice from the others so far. Just to add that if you do actually have a tv licence but pay it annually it’s wise to budget an average monthly amount for it, and ideally put that money aside each month. Otherwise you’ll have to find a large sum when it comes to new bill.

I also think it's worth you completing a projected budget for yourself based on when your partner moves in to see how your finances will change.

James
@natdebtline

anna_1977

will you own the car or is it HP? If it's HP it needs to go into the HP debts section.
Is zero car tax correct, I'm assuming if so it's under a year old ?

How much will your partner be contributed when they move in? This will really help you out with long term budgeting

heartbreak_star

I suspect if the services and things are covered, the car is leased

Good luck OP - you can do it!!

HBS x

Former_MSE_Andrea

Great to hear Martin's video's helped. Good luck

danuiseult

Thank you so much for this amazing, thorough going through of my post everyone! I am so humbled at everyone's generosity of time.

Hopefully these comments on EssexHebridean's commentary will serve to respond to everyone. Here goes!

[Welcome aboard! Comments in red as usual...
Quote:
Originally Posted by danuiseult View Post

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1444.09
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1444.09

Monthly Expense Details
Mortgage................................ 220.1
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 32.91
Council tax............................. 67 Single person discount I take it? Remember this will go up when your OH moves in. Is this currently paid over 12 months or 10? I believe I currently pay over ten months, so this will free some pennies up for debt repayments as you mention
Electricity............................. 29
Gas..................................... 41
Oil..................................... 0
Water rates............................. 23 Metered? I am on a funny set bill as they can't fit a meter. It looks as though no payments due now til April, so some more pennies spare for debt repayments
Telephone (land line)................... 18
Mobile phone............................ 50 If you're as close as you are to your contract ending then a phone call to your provider now is probably worthwhile,. I was just under three months away from the end of my contract when I got EE to pricematch to a SIM only deal (It was a PlusNet one if that helps) - I'm now paying £10.99 a month. I will try o2 again but currently I'd have to pay £60 to break out. I am thinking of going SIM only as my phone is still fab. £13 of this £50 is what I pay on my mum's mobile contract as she is on DLA
TV Licence.............................. 0 No? Nope - I don't watch TV!
Satellite/Cable TV...................... 0
Internet Services....................... 23.48Yes - again look to use the "comparison" trick to knock this down, or just change providers to a cheaper one if that's less hassle! Virgin refuse to haggle with me anymore, so I will be leaving them - unfortunately not til August I've discovered. Break out would be £189 so I will have to bide my time
Groceries etc. ......................... 180 For one of you (I'm assuming your partner contributes to food when they're there too) that's quite high. Take a look at the Old Style board on here for inspiration, and also think about switching to shopping at Aldi or Lidl. Their special offers on fruit & veg can be a great basis for your meal plan. Oh yes - meal plan - start using one. And a shopping list too! For just you I reckon you can take £50 off this You are absolutely right - I can tend to be frivolous with food. I do the bulk at Aldi & Morrisonsbut also do the big 2 and Waitrose. I do use comparison sites when I have time and will do so more. I do have a very specialist diet however due to my health issues, so some of my items are more pricey. I also included cost of all my supplements, vitamin D, B12 and omegas as without them I get very poorly. I have set up a PiggyBank of £150pcm for groceries so will do all this within those means hereonin
Clothing................................ 15 Bin this for the time being - sorry but your income is currently outstripped by your outgoings! Agreed! I was just being honest divided down over a year. my weight fluctuates a lot due to health so clothes are a nightmare
Petrol/diesel........................... 30
Road tax................................ 0
Car Insurance........................... 30.18 Take it you do actually pay this in monthly installments? Yep, I do, I will look to get an annual price this year
Car maintenance (including MOT)......... 0
Car parking............................. 2
Other travel............................ 2
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 6
Pet insurance/vet bills................. 0
Buildings insurance..................... 6.46 For a leasehold property? You are sure this isn't covered in your service charge? Most ex Local Authority properties are run under a central block policy. This is my contribution on DD to the council mandated insurance
Contents insurance...................... 0 You need this - if the worst should happen then not having contents insurance is a real false economy. Agreed, but literaly can't see where the funds would come from right now?
Life assurance ......................... 0
GAP Car insurance......................... 11.46
Presents (birthday, christmas etc)...... 5
Haircuts................................ 10
Entertainment........................... 3
Holiday................................. 0
Emergency fund.......................... 0 As a home owner start budgeting £50 a month here ideally Okay - eek - not sure where from
Gym..................................... 102 You KNOW this is too high bearing in mind you debts, right? Martin has a guide on the main site to lowering gym membership costs - take a look and see what you have locally, I would. Also remember options like ParkRun and running clubs locally. I agree it is a lot. It is teh best gym in the world! It is my treat, containing an amazing spa and so on and is very much part of my health treatment for my various illnesses and conditions. I would be lost without those saunas! I cannot easily exercise like running and so on, because of my disabilities, so this is my way of trying to keep healthy. Moot point anyway because no way out of contract til Sept.
Total monthly expenses.................. 907.59


Assets
Cash.................................... 0
House value (Gross)..................... 120000
Shares and bonds........................ 0
Car(s).................................. 10000
Other assets............................ 0
Total Assets............................ 130000


Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 52000....(220.1)....1.8
Total secured & HP debts...... 52000.....-.........-

Unsecured Debts
Description....................Debt......Monthly.. .APR
Tesco Loan.....................1128.6....51.3......0
TEsco Credit Card..............4754.41...47........0
Barclaycard....................6306.53...141.8.... .0
Ikano Sofa.....................500.......20........0
Skoda..........................10000.....113...... .0
Credit Union Loan..............17219.....210.......0
Total unsecured debts..........39908.54..583.1.....-


Monthly Budget Summary
Total monthly income.................... 1,444.09
Expenses (including HP & secured debts). 907.59
Available for debt repayments........... 536.5
Monthly UNsecured debt repayments....... 583.1
Amount short for making debt repayments. -46.6

Personal Balance Sheet Summary
Total assets (things you own)........... 130,000
Total HP & Secured debt................. -52,000
Total Unsecured debt.................... -39,908.54
Net Assets.............................. 38,091.46

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

I live alone but my partner is here at weekends. It's a tiny Right to Buy ex council flat hence the cheap mortgage and half loan to value. Partner is moving in in August-ish.

So that presumably will reduce your living costs. Tough question - but, if the flat is tiny,. you are sure it's sustainable for you both to be living there full time? The answer is almost certainly yes, but if you have any doubts, or haven't thought about that aspect, now is the time to go through things. You are absolutely spot on, it is going to be hard work sharing such a small space, but we really have no choice. I am here til 2020 if I want to have a healthy deposit for the next place. It's not ideal, but it will be worth it in the end. I am just comforting myself that people I have known lived in vans and caravans and were okay!

I will be trying to reduce my mobile and broadband deals when the contracts come up in March and April. Deal with the mobile now - you may be able to negotiate staying with your current provider but getting a much better deal. check out the best of Martin's recommended SIM only deals and use those as bargaining tools. As above, I'll have another go

I use Good Energy - I know I could get cheaper dual fuel, but I like knowing I am buying green energy... In which case, your goal is to cut down what you use, instead. As a clue, we pay £40 a month currently for our energy - that's gas for cooking only with a small not-for-profit provider called Ebico (that ticks my ethical box too!) and electric for everything else with Flow. Switch off stuff that's not being used, if you have a smart meter use it, if not use freecycle to blag an OWL monitor or similar to see what your useage is and track reducing it that way. Yep, cutting back essential. Also, after I wrote this, i switched to Octopus saving £20pcm from next month

In terms of assets, that £10k is rough value of my Skoda Citigo which is £113 monthly and no other costs except insurance. Suits me better than a second hand car going wrong and no budget to cover, plus all the service costs etc. Is the servicing etc covered for the life of the car? if not then you need to get a plan in place now to be ready to start setting money aside when required. I will be returning it and leasing a new one in about two years. It's covered til then. This seems the best way to budget for a car in my circs

The debts:

Tesco Loan completes Nov 2018
Tesco Credit Card - the 0% interest deal ends August 2017, so I will need to do a switch to another 0% if I have improved my credit rating by then (very poor atm).
Barclaycard - £332.32 purchases ends 0% this month, rest of balance 0% til Sept 2019 so less urgent.
Credit Union deducts £210 from my salary to repay, with £10 going to savings I cannot access until debt repaid in 2022 - current saving balance approx £684).

My plan -

Try to first get rid of that £332 on the Barclaycard which will be 18.9% after this month. Yes - correct first step IMO Fab! Thank you! I have tonight set up a spreadsheet to help me figure out this plan
Continue Barclaycard payments approx £140 until Sep 2019 and then place rest on another 0% deal.
Before Aug 2017, switch Tesco CC to 0% deal or creditcard shuffle to Barclaycard if credit limit allows (current slightly too much to do it just yet - Barclaycard limit is £11k, so by Aug should be ready - r a Barclaycard deal available). In my experience there is ALWAYS a Barclaycard deal available! Hehe, yep!! I have a feeling there wll be something

I hope all this makes sense. Any questions, ask away. I think I might do the diary thing too - great motivation! Yep - they really are good for making you accountable, too! Thank you!

Thank you for reading and your patience. Please be gentle, I'm very guilty about this debt. x

I reckon if you find a low cost local gym or better still drop it altogether for freebie options, batter your phone contract down, cut your food spend and make a few tweaks else where you can cover your shortfall and free up £100 a month as a surplus. If your council tax is paid over 10 months then you have this month and next with nothing coming out for that - shift that sum straight to the Barclaycard. Great plan - thank you! I hadn't thought of that

Are you still using a credit card by any chance? The reason I ask is that you are showing a deficit on this SOA, yet no overdraft? This usually points to someone using credit to live - not good. I was up until this month still dependent on the card for emergency bits, but I think I have that in hand now. Definitely not good - hence wanting to straighten all this out

Is there any way you can increase your income? Even stuff like doing surveys might help a bit - you can potentially clear £30 or so a month that way, which would cover a cost elsewhere to free up some of your salary for debt busting. I am going to look into this. if I have the energy after work, I definitely need to boost my earnings. I am looking around actively for promotion too. Would prefer to stay with employer as so many good perks etc.

Thank you so much again for this really thorough examination. I will share my journey here. Appreciate so much everyone's gentle and yet direct approach. Just what I need.

DrWatson1

danuiseult wrote: »

Telephone (land line)................... 18
Mobile phone............................ 50
Internet Services....................... 23.48

You should be able to make some savings here. As an example, i'm currently paying £35 per month with BT for all of these. For that I get mobile (250 mins, 500gb data unlimited texts), BTTV entertainment package (including BT Sport) plus its fibre.