SOA - Need help!

geekachu

Hi

I've done an SOA and it's coming up short (Which I knew it would). We are currently on a payment plan for our debts through Stepchange. We have two children under 4 that attend nursery and our eldest gets 30 hours free (but the nursery just increased their fees).

We have two clapped out old cars between my partner and I work opposite ends of the city and both work too far from home to commute on public transport.

We are really struggling and any advice would be massively appreciated.
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................ 1196
Partners monthly income after tax....... 1500
Benefits................................ 550
Other income............................ 0
Total monthly income.................... 3246

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 350
Rent.................................... 550
Management charge (leasehold property).. 0
Council tax............................. 130
Electricity............................. 32
Gas..................................... 32
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 0
Mobile phone............................ 35
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 32
Groceries etc. ......................... 400
Clothing................................ 60
Petrol/diesel........................... 250
Road tax................................ 40
Car Insurance........................... 187
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 1150
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 13
Life assurance ......................... 20
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 3319


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 800
Other assets............................ 0
Total Assets............................ 800


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 0........(250)......0 - Stepchange payment plan
Hire Purchase (HP) debt ...... 0........(100)......0 - Paypal
Total secured & HP debts...... 0.........-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Owed to parents -car...........1000......100.......0
Total unsecured debts..........1000......100.......-


Monthly Budget Summary
Total monthly income.................... 3,246
Expenses (including HP & secured debts). 3,319
Available for debt repayments........... -73
Monthly UNsecured debt repayments....... 100
Amount short for making debt repayments. -173

Personal Balance Sheet Summary
Total assets (things you own)........... 800
Total HP & Secured debt................. -0
Total Unsecured debt.................... -1,000
Net Assets.............................. -200

ViolaLass

You could cut the groceries spend, easily. Do you cook from scratch? Buy from Aldi/Lidl?

When will the other child get the free hours? Soon?

You've got nothing set aside for car maintenance. What if something breaks?

Could you parents wait a few months or take less per month?

Fosterdog

Is there a possibility of you taking a career break or a change of jobs? Right now between childcare and transport you are spending more than you earn just to be able to go to work.

Your grocery bill could be lowered £300 for two adults and two children under 4 should be plenty. Head over to the old style board to get ideas on meal plans and cutting the grocery bill.

Clothes are way too high £720 a year on new clothes? Wear what you have and only buy essentials or sell something (eBay/car boot etc.) before replacing it with something new. Children's clothes can be very cheap, most local areas have groups for passing things on (you give your 6-9 month clothes to someone and someone else gives you a bundle of 9-12 and just keep passing them on) charity shops are great for kids clothes (and adults) and many items still have the tags on. Most kids get some clothing for birthdays and xmas too so there will be some new.

Car insurance is pretty high are either of you new drivers or has there been a claim? Car tax is on the high side but possibly due to ages of cars. Nothing down for car maintenance, you need to budget for this.

You really should have something down for emergencies too and entertainment.

tallyhoh

:eek::eek::eek: When do the nursery fees end, one of you is actually paying to go to work after fees & transport is taken into account

thepurplepixie

I know it seems drastic but if the lower paid person gave up work you would save almost as much in childcare fees, could get rid of one car and reduce maintenance, petrol, insurance. If you saved half on insurance, tax and petrol you would belance the SOA, not sure if it would work out like that. Benefits might increase as well.

I know working might be better in the long run but you have to live now.

Fosterdog

thepurplepixie wrote: »

I know it seems drastic but if the lower paid person gave up work you would save almost as much in childcare fees, could get rid of one car and reduce maintenance, petrol, insurance. If you saved half on insurance, tax and petrol you would belance the SOA, not sure if it would work out like that. Benefits might increase as well.

I know working might be better in the long run but you have to live now.

That's exactly why I asked about career breaks, where I work I can take up to a six month unpaid career break and still have my job to go back to at the end of it. A lot of companies offer similar schemes, usually people use it to extend maternity/paternity leave or to go travelling. Sometimes even to try out a new job with the security of knowing you can go back to your old job in six months if things don't work out. If the cost of clidcare is likely to go down in that time it would be an ideal solution.

sourcrates

Hi,

Your SOA is only showing £2000 worth of debt, that cant be correct ?

Your stepchange payment is not a secured payment, totally the opposite.

In your other post you wrote you had £11,000 of debt, where is it all ?


Agree with the others, one of you is working for nothing at present.


You need to re-visit your SOA, fill in the gaps if you can please.

[Deleted User]

Fosterdog wrote: »

Is there a possibility of you taking a career break or a change of jobs? Right now between childcare and transport you are spending more than you earn just to be able to go to work.

tallyhoh wrote: »

:eek::eek::eek: When do the nursery fees end, one of you is actually paying to go to work after fees & transport is taken into account

I noticed this too.

When you factor in travel costs, as well as childcare, the OP is working for less than nothing.

[Deleted User]

Fosterdog wrote: »

most local areas have groups for passing things on (you give your 6-9 month clothes to someone and someone else gives you a bundle of 9-12 and just keep passing them on)

Also, if the children are of the same gender, the younger one can have the "hand-me-downs" the older one has grown out of.

[Deleted User]

geekachu 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

Monthly Income Details
Monthly income after tax................ 1196
Partners monthly income after tax....... 1500
Benefits................................ 550
Other income............................ 0
Total monthly income.................... 3246

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 350
Rent.................................... 550
Management charge (leasehold property).. 0
Council tax............................. 130 - If this is over 10 months, switching to 12 months will reduce it to £108-33 pm.
Electricity............................. 32
Gas..................................... 32
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 0
Mobile phone............................ 35 - This seems a bit high for just 2 phones. PAYG/sim only should get it down to ~ £20 pm.
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 32 - I'm assuming this is Broadband? Check comparison sites for a cheaper deal.
Groceries etc. ......................... 400 - You should be able to reduce this.
Clothing................................ 60
Petrol/diesel........................... 250
Road tax................................ 40
Car Insurance........................... 187
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 1150 - See my earlier comment, about working for less than nothing.
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 13
Life assurance ......................... 20
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0 - You need something here.
Total monthly expenses.................. 3319


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 800
Other assets............................ 0
Total Assets............................ 800


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 0........(250)......0 - Stepchange payment plan
Hire Purchase (HP) debt ...... 0........(100)......0 - Paypal
Total secured & HP debts...... 0.........-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Owed to parents -car...........1000......100.......0
Total unsecured debts..........1000......100.......-


Monthly Budget Summary
Total monthly income.................... 3,246
Expenses (including HP & secured debts). 3,319
Available for debt repayments........... -73
Monthly UNsecured debt repayments....... 100
Amount short for making debt repayments. -173 - With a little effort, you should easily be able to eliminate this shortfall.

Personal Balance Sheet Summary
Total assets (things you own)........... 800
Total HP & Secured debt................. -0
Total Unsecured debt.................... -1,000
Net Assets.............................. -200
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My comments in red.

You need to eliminate the shortfall ASAP, because each month that passes, puts you £173 further into debt.

Deep_In_Debt

Bedsit_Bob wrote: »

Also, if the children are of the same gender, the younger one can have the "hand-me-downs" the older one has grown out of.

Yes, exactly this. I used to get a lot of my brother's hand me downs and I'm female. At that age, we didn't care and weren't fashion conscious either.