Newbie with SOA Questions

Jolin

Hi everyone,
I've just joined the forums but have been reading and subscribed to Martin's newletter for years.

I've decided that this year,I would like to get my finances in control. My New Years resolution was no unnecessary spending which is going well and to clear my debts. As of today,I've paid £1651 so far since January :j This was with the help of a compensation payout for delayed flights last year so won't be a continous thing at this rate but I feel I'm in a good place to clear my credit card and Very accounts this year :j

I've attempted to complete a SOA but am a bit unsure of how to answer a couple of the questions. If anyone could help,it would be much appreciated. The ones I'm stuck at are;
* House Value- I bought it in 2008 and have no clue as to what the market value is now. How do I find out or do I put what it was valued at then?
* Credit card and Very minimum payments - do I put what the lender is looking for or what I can afford to pay?
*Assets- I have an HP car but as I'm still paying for this should it be counted?

Sorry if these are stupid questions and thanks to those who read.

fatbelly

Jolin wrote: »

* House Value- I bought it in 2008 and have no clue as to what the market value is now. How do I find out or do I put what it was valued at then? Try Zoopla - you might be surprised at how much it's worth now
* Credit card and Very minimum payments - do I put what the lender is looking for or what I can afford to pay? The contractual minimum payment
*Assets- I have an HP car but as I'm still paying for this should it be counted? Nope, it's not an asset until the HP completes

Sorry if these are stupid questions and thanks to those who read.

Some ideas in red

EssexHebridean

Remember also with the SOA the initial version should include the way things are right now - if it's not then it will give a false picture. As an example, if you say you put aside £50 monthly for car repairs, and £100 for emergency fund, and your bottom line shows a £25 per month surplus, that only balances if you actually DO put those sums away already (in which case cash assets should also be showing) - if it's something you just intend to put away then that means the SOA doesn't balance in practice.

Jolin

Thank you fatbelly and EssexHebridean. What a fab tool Zoopla is even if its just an estimate. And EssexHebridean,I had put figures in boxes that I don't currently save for and just wing it so will ammend accordingly.

EssexHebridean

Jolin wrote: »

Thank you fatbelly and EssexHebridean. What a fab tool Zoopla is even if its just an estimate. And EssexHebridean,I had put figures in boxes that I don't currently save for and just wing it so will ammend accordingly.

Yes, if you use it firstly to work out where your money is currently going, that shows you what shortfall you currently have, or if in spite of everything you should have a surplus. If you should have a surplus but never do, you may want to start a spending diary to track down where your money is going. Once you know your true starting point, you can make conscious changes and know how they will impact.

National_Debtline

Hi Jolin

You could post your SOA figures here if you would like some feedback and spending tips from the other forum users.

James
@natdebtline

Drawingaline

Yes check zoopla for house value. I put our house value as 180k on my soa, then after a discussion with my sister checked zoopla and it is actually worth 250k:eek: had no idea!

But initially the SLA is just to look at income and outgoings, looking at net worth etc can come later

MrsTinks

Honestly house value is only relevant come re-mortgage time or if you are at a point of debt where things are really severe. Then it becomes very relevant as it can impact what debt solution to take etc...

For your purposes right now the value of your property won't affect your plans for your debt repayments I'm guessing?

fatbelly

Yes, it's not often a factor but the good thing about that soa calculator is that it does force people to give relevant information.

Jolin

Thank you everyone. My debt is manageable, £1233 on a credit card and £600 on Very BUT it's an ongoing thing...I clear it then get into it again lather,rinse repeat and I want to stop the cycle. I think only once in my adult life have I booked a holiday and paid it in cash. Any other time its booked on the credit card. The same with Christmas,I never budget for it. It goes on the Argos card though always interest free but instead of paying a bit off each month,I leave it till the last gasp before the interest free period runs out and have to use all my "spare" cash in October and November to clear it then resort to using it again for that years presents. When I get paid,I think I'm rich for a week or 2 and I want to change. Would it still be helpful to post my SOA do you think?

EssexHebridean

I'd have said so - it sounds as though you fall down on budgeting at the moment - and for someone who is in your situation that can be somewhere that the SOA can prove really helpful. If you post here we can take a look, pick up on anywhere that you seem to be spending more than the norm, and hopefully offer you some tips on budgeting too.