Any tips/pointers on my SOA welcome!!...

anni999

Removed my SOA on this account. Closing account now.

tori.k

You have no way of making up that short fall off your SOA, as it not even covering your monthly outgoings never mind the debts, is it a joint business can one of you go back into paid employment until you clear the debt, you could probably tweak your SOA so your income and outgoings match, by cutting mobile and internet cost but would still be painfully tight. Upping your income is the only way forward.

pmlindyloo

It looks like you are only receiving child benefit.

it is certainly worth applying for tax credits to see if you are eligible.

https://www.moneyadviceservice.org.uk/en/articles/claiming-tax-credits

theoretica

Is that income an average or a bad month? You need to prioritise your spending, for instance no spending on entertainment or presents in a bad month until the essentials are covered, and don't blow it all in better months until you have put something aside for really bad months.

mumtoomany

A quick check on the government tax credits calculator, using the detail s above, suggest s that you should be entitled to child tax credits and a small amount of working tax credits. Around £260 per month. Also have you checked to see if you could get council tax relief? M2m.

sourcrates

Theirs no way to make up a £400 shortfall unless you can earn more.

Check your benefits entitlement as suggested above.

Your budget is not extravagant, so not much can be cut from that.

I would say you need some sort of debt management plan putting in place, you appear to have some small savings, which is good, you should really speak to stepchange about starting a DMP.

Dont continue to borrow off those cards, cut them up, throw them away, get some debt advice as a priority.

19lottie82

Why are both you and your partners incomes so low?

Sorry ..... edit, just realised you are both self employed.
Unfortunately this isn't paying the bills. One or both of you need to get a different job, or an additional one so the bills can be paid.

[Deleted User]

anni999 wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 750
Partners monthly income after tax....... 750
Benefits................................ 89.7
Other income............................ 0
Total monthly income.................... 1589.7

Monthly Expense Details
Mortgage................................ 687
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 6.25
Council tax............................. 118
Electricity............................. 27.5
Gas..................................... 27.5
Oil..................................... 0
Water rates............................. 31
Telephone (land line)................... 0
Mobile phone............................ 72 (both mine & hubbys) - This is :eek: ASAP go PAYG/sim only for ~ £10 per phone.
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 58 (internet/tv and line rental. deal ends in october when we are going to switch) - You can't afford this, so don't switch, but instead, get rid of completely.
Groceries etc. ......................... 200 - You could probably trim a bit off this.
Clothing................................ 20
Petrol/diesel........................... 40
Road tax................................ 9.17
Car Insurance........................... 30
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 17
Pet insurance/vet bills................. 0
Buildings insurance..................... 12.09
Contents insurance...................... 0
Life assurance ......................... 17
Other insurance......................... 0
Presents (birthday, christmas etc)...... 70
Haircuts................................ 15
Entertainment........................... 100 - Halve this.
Holiday................................. 0
Emergency fund.......................... 20 - As a home owner, you could probably do with a bit more in here.
Professional subscriptions.............. 26
Total monthly expenses.................. 1645.63


Assets
Cash.................................... 1000
House value (Gross)..................... 230000
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 2500
Total Assets............................ 235500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 177000...(687)......0
Total secured & HP debts...... 177000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Tesco Loan.....................17011.....245.......0
Barclaycard 1..................2450......40........0
Barclaycard 2..................3301......70........0
Total unsecured debts..........22762.....355.......-


Monthly Budget Summary
Total monthly income.................... 1,589.7
Expenses (including HP & secured debts). 1,645.63
Available for debt repayments........... -55.93
Monthly UNsecured debt repayments....... 355
Amount short for making debt repayments. -410.93

Personal Balance Sheet Summary
Total assets (things you own)........... 235,500
Total HP & Secured debt................. -177,000
Total Unsecured debt.................... -22,762
Net Assets.............................. 35,738

Are all your unsecured debts really on 0%?

enthusiasticsaver

Your problem here is lack of income rather than cutting down. In the meantime the entertainment has to go as that is a nice to have rather than essential. The presents bill also is way too high on such a low income and you can reduce the groceries by meal planning and using Lidls or Aldi. That could maybe half the shortfall but is not going to eliminate it altogether. One or both of you will need to get paid employment until the self employment income rises sufficiently to cover your essential outgoings or your situation will rapidly get worse.

What was the Tesco loan for?

Cherry_Burton

Hi,

I agree that your problem is lack of income and this needs to be tackled through increasing wages and benefits. You need to "buy some time" while you sort this out and, perhaps enter a debt management plan.

I have few of other observations which might or might not be helpful,

1. In the long term, £20 isn't enough for clothes for three people particularly when one is a growing child. You will be able to go for a while but then you will end up putting clothes and shoes on your card.
2. Do you need the car? You only spend £40 on fuel, could you sell the car and perhaps use the money to pay down one of your debts?
3. What are the other assets worth £2500? Could you sell these and pay off card 1?

Best of luck

CB