Nowhere near as much debt as some here but enough to worry me...

EssexHebridean

OK let's take a look - comments in red as usual:

gemmajenkins0208 wrote: »

My SOA:

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 600
Partners monthly income after tax....... 0 This needs sorting ASAP! This would have been a great time of year for your OH to pick up even seasonal work - I'm surprised he wasn't able to find anything at all at this point in the year.
Benefits................................ 304
Other income............................ 0
Total monthly income.................... 904

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 475
Management charge (leasehold property).. 0
Council tax............................. 56 This seems very low indeed - is it definitely correct?
Electricity............................. 21.5 The electric and gas seems low - but if you're paying this amount monthly how have you got an outstanding bill needing paid?
Gas..................................... 21.5
Oil..................................... 0
Water rates............................. 10 This is astoundingly low particularly if you are in the South west - even if this is metered I think you'd be extremely optimistic to be able to get it that low!
Telephone (land line)................... 15 Do you have to have this allowing that you both have mobiles?
Mobile phone............................ 46 This is pricey - look to switch to SIM only as soon as you're out of contract.
TV Licence.............................. 25 This will drop once you're past your first 6 months
Satellite/Cable TV...................... 0
Internet Services....................... 15 Can you get by without paying for internet at home and using your mobile data?
Groceries etc. ......................... 0 Nope - you have to have something in here -
I understand what you've said about leaving this at 0 but it's not the right way to budget.
Let's say £130 to start off.
Clothing................................ 0
Petrol/diesel........................... 15 Really? I'd question whether it's worth you having a car if you're doing so few miles - the car is costing a lot to keep based on that sort of mileage. I get what you're saying about OH visiting his parents but perhaps they need to visit HIM until such time as you're in a better place financially
Road tax................................ 16
Car Insurance........................... 103 OK - that definitely makes the value of the car questionable!
Car maintenance (including MOT)......... 10 Almost certainly not realistic -
unless you're very fortunate indeed!
Car parking............................. 0
Other travel............................ 130 Can this be reduced if you're determined to keep the car by you using it for work travel wherever possible?
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 8
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0 You have to start getting something in here - aim for a £500 pot to start you off.
Total monthly expenses.................. 967


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 500
Other assets............................ 0
Total Assets............................ 500

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Littlewoods....................865.......0.........0 Is this a Buy Now Pay later type thing?
The overdraft should be in here somewhere
Total unsecured debts..........865.......0.........-


Monthly Budget Summary
Total monthly income.................... 904
Expenses (including HP & secured debts). 967
Available for debt repayments........... -63
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -63 OK - this is the extent of your problem - you are currently at a deficit without even paying for food - that is simply NOT sustainable not least as your calculations for your household bills are unrealistic in some cases.

Personal Balance Sheet Summary
Total assets (things you own)........... 500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -865
Net Assets.............................. -365

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

This is true and to the best of my knowledge.

Most of what I call the "non essentials" - groceries, clothing, food, haircuts, gifting etc are left at 0 as we will use any available cash left over to do them - food being the priority first then everything else, but if we can't afford it, we don't do it. You HAVE to eat -
that's not negotiable - and so it needs to go in the SOA. Even if the money runs out before we get paid again my and OH parents will keep us afloat. OK - I can't say this strongly enough - STOP THINKING LIKE THIS. If the pair of you are old enough to move into your own place then you HAVE to start standing on your own two feet and not assuming that handouts will be forthcoming.

Even tho according to this we have no leftover cash... It's worse than that -
you're in the region of £200 a month short of being able to meet your commitments

My mum sometimes helps me with my bus tickets for work too, usually that last week before we get paid. That's very lovely of her - but she really shouldn't have to be doing that, should she...especially not when you've got a car sitting outside...

You're all probably going to moan about the car too - "why does your oh need it while he's not working?" etc - well, without it, we can't get to see his parents(they live slap bang in the middle of nowhere), he can't get to interviews for the kind of jobs he's applying for(trust me, he's had loads of interviews these past couple months so the car's been a godsend!). You can't afford it though, is the bottom line. And people won't be "moaning about it" - they'll be pointing that fact out - as your SOA proves it. Either make it sing for its supper and earn it's worth, or get rid.

I know the car insurance is a bit high but this is his first car after writing his old one off, and that price was the cheapest one after scouring the comparison sites! We are hoping it will go down when it's up for renewal next August. It will go down a fraction if you're lucky, but don't bargain on it.

The gas and electric are with the same supplier and the bills are quarterly so I've done the sums to get a monthly amount for each. So you are actually putting this amount aside monthly are you? In which case, no problem with paying that bill

The water is also quarterly.

The telephone are internet are with the same provider so I split the price.

The mobile is for my mobile only. I have tried ringing EE to lower my plan but they won't let me, not while I'm still within my minimum term... How much longer on the contract?

You realise that 5 months like this will see you at least £1000 in debt? And by next Christmas if things don't change, that figure will be more than double that? Your current lifestyle is not sustainable - OH needs to stop applying for "the sort of jobs he wants" and start applying for absolutely ANYTHING that will pay the bills, and you need to stop thinking about the benefits and start grabbing any hours you can OR applying for full time work. Sorry if this comes across as blunt - but it's intended to - it's time top grow up and realise that you've got to pay your way in the world - both of you, or you're heading for one HELL of a slippery slope. You simply cannot live in your own home as a couple earning £600 a month between you - quite honestly there are kids out there with weekend jobs earning more.

You've said above there:

I don't intend to borrow anymore.

but currently you won't have a choice about it - and you're already said that you rely on parents bailing you out - which they shouldn't have to.

You are currently in a great place to get this sorted out - and you both need to work together as a partnership to do that. Being an adult sometimes means having to do stuff we don't like - and it also comes with responsibilities which have to be met.

National_Debtline

Hi Gemma


I'd say that you're in a tough situation at the moment as your income does not cover your basic outgoings. It's essential that you budget for your food shopping, that always comes before considering what you can afford to offer towards your debts. Even with the suggestions above it could prove difficult to balance your SOA, and almost certainly you are not going to be in a position to pay your debts unless your partner gets a job very soon.


I would recommend you to get in touch with one of the free debt advice agencies for advice on your options. In the meantime you can send your creditors a hold action letter, asking them to freeze everything for 30 days while you decide what to do next https://www.nationaldebtline.org/EW/sampleletters/Pages/Hold-action-on-your-account-%28sole-name%29.aspx.


Also make sure you are banking somewhere you have no debt. If you still use the account with the overdraft you can't afford for your wages to be swallowed up by interest & charges, and there's always a risk the bank could withdraw your facility if you are slipping into financial difficulties. Good luck with it all.


Susie
@natdebtline

MMC87

Hi Gemma

I sympathise with your situation. Interestingly, my parents were in a lot of debt growing up and I’m sure thinking that it’s normal has had an effect on my own reliance on credit. Compared to my friends who never had catalogues etc who are all now in much better positions to me financially.

Regarding travel to interviews, has your partner asked about flexible support fund from the Jobcentre? He can claim back public transport expenses to interviews and in some cases, ask for the money in advance. They can also help with travel for about a month when he does get into work.

I used to rely on my parents when the well started running dry and it’s been really hard now that they’re both retired. Normally my mother would be the first to offer me £60 for a train to hers for Christmas but this year, she can’t help out so I’m home alone over the holidays. I wish I’d been more proactive before reaching this point.

I know it might sound a bit harsh wuth people saying you should move...Last year, if someone said that to me I would (and did) tell them to sod off. Now that’s exactly what I’m planning to do because I know that it will be better for me in the long run, even though I’d be leaving 7 years of my life behind. You’ve got your partner though so whenever you go, you have each other.

Silver_Queen

I hope this doesn't sound rude, but what do you do in the time that you're not working? What does your OH do? Why don't you work full time? Can OH not even find a minimum wage job doing bits and pieces, since that would bring in over £1k per month and greatly help your situation?

Edit: I've just seen that you said you can't work full time as it would affect your benefits. Surely the extra £500ish, if not more, per month, would outweigh the loss of housing benefit?

fatbelly

The difficulty with variable income and Housing Benefit is that the council can't keep up with the changes and then you get overpayments, underpayments and a general mess.

I can't say how well it works but in theory you can manage a claim online through Cornwall Council's website.

https://www.cornwall.gov.uk/advice-and-benefits/benefits/manage-your-benefit-claim-online/

You can also ask for a short-term top-up of HB, and an 'Exceptional Relief Award' to top up your Council Tax support.

https://www.cornwall.gov.uk/advice-and-benefits/benefits/claiming-housing-benefit-and-council-tax-support/discretionary-housing-payments/

tori.k

In fairness and as much as it galls me to admit, Cornwall council are pretty good at housing benefit and variable income, if you can manage to stay on top of turning in your payslips now they have shut or reduced the hours of so many one stop shops. I guess it down to variable incomes being so common in coastal areas.
But I have no idea how this will be now that they are starting to roll out the new universal credit in the area

louby40

My partner joined an employment agency when he was out of work and got work straight away. If you’re willing to do anything it’s a good way forward.

Also in my area, people ask for work on Facebook - it’s a good way of finding it.

Hope you get sorted. People only want to help you.

Phreaky

gemmajenkins0208 wrote: »

Hello

So I have a little bit of debt, as the title says not as much as some here but it's enough to worry me, especially when I've been in debt before and got myself out of it...

So the main debt I have is a Littlewoods credit account at about just under £900, a £240 overdraft on my current account, oh and a letter has just come through with my latest energy bill of £130.

My partner and I have just moved into our own flat(a first for either of us) in September. I work part time and he is looking for work. His JSA has been stopped due to us living as a couple and I earn too much for him to be entitled to anything. We also get housing benefit help.

I cannot get full time hours right now nor can I pick up any overtime at work as it effects the housing benefit, so I will still be getting the same amount regardless. I am currently looking for a job both with more hours and closer to where I live to cut on commute costs.

I would happily do an SOA but I don't know how

I'm sympathetic to your situation but the fact that this is even a thing is obscene, nobody should be disincentivised from working because their benefits are equal or higher than potential working income. Is this pre or post Universal Credit?

Back to your situation though, it looks more than manageable if both of you have jobs, even if they are fairly low paid.

fatbelly

You're always better off by working extra hours. Housing Benefit has a taper of 65%. The problem is that means that the effective hourly rate of the extra hours is very small and if you've had a bad experience with the council some people conclude that the hassle isn't worth it, particularly if the extra hours mean more transport or childminding.

In theory UC is better set up for changes in income but then, theory and practice...