SOA and time to face the music

Daffodil2018

Hi everyone,
Finally bit the bullet and faced the music as far as my debts are concerned. I’m in over my head and it’s making me anxious, sick and I can’t sleep. I told OH on Friday and he was super supportive of getting on top of it all. Amazingly so in fact.

I’ve really screwed up and not managed my self control. I know that it’s my MH that’s driven a lot of this since my estranged father passed away. No excuse, but it’s the reason.
I’ve done an SOA. We have a joint mortgage for a shared ownership property, hence the rent and mortgage payments.

Statement of Affairs & Personal Balance Sheet

Summary

Monthly Budget Summary Amount(£)
Total monthly income 2,882
Monthly expenses (incl. HP & secured loans) 2,523.24
Available for debt repayments 358.76
UNsecured debt repayments 679.9
Amount short for making debt repayments -321.14
Personal Balance Sheet Summary Amount(£)
Total Assets (things you own) 325,000
Total Secured & HP Debt -119,500
Total Unsecured Debt -38,790
Net Assets 166,710
Household Information

Number of adults in household 2
Number of children in household 1
Number of cars owned 2
Income, Expense, Debt & Asset Details

Income Amount(£)
Monthly income after tax 1800
Partners monthly income 0
Benefits 82
Other income 1000 MY OH PAYMENT FOR HALF OUR JOINT HOUSEHOLD BILLS
Total monthly income 2882
Expenses Amount(£)
Mortgage 671
Secured/HP loan payments 0
Rent 430
Management charge (leasehold property) 0
Council tax 158
Electricity 35
Gas 35
Oil 0
Water Rates 20
Telephone (land line) 15
Mobile phone 0
TV Licence 12.12
Satellite/Cable TV 0
Internet services 35
Groceries etc. 300. THIS HAS BEEN A LOT MORE HENCE THE DEBT.
Clothing 25. I INTEND ON ONLY REPLACING ESSENTIALS AND BUYING WHAT LO NEEDS
Petrol/diesel 200 I COMMUTE AROUND 60 MILES A DAY FOR WORK
Road tax 13.12
Car Insurance 35
Car maintenance (including MOT) 15
Car Parking 0
Other travel 0
Childcare/nursery 200 THIS ACTUALLY COMES OUT OF MY SALARY BEFORE TAX IN CHILDCARE VOUCHERS
Other child related expenses 12 SONS YOGA CLASS
Medical (prescriptions, dentists, opticians etc.) 15
Pet Insurance/Vet bills 17
Buildings Insurance 0
Contents Insurance 8
Life Assurance 0
Other Insurance 0
Presents (birthday, christmas etc.) 40
Haircuts 15
Entertainment 17 APPLE MUSIC
Holiday 0
Emergency Fund 0
Repay family loan 200
Total monthly expenses 2523.24 LESS
CHILDCARE THIS IS 2333.24
Secured & HP Debt Description Debt(£) Monthly(£) APR(%)
Mortgage 119500 (671) 4.59
Secured & HP Debt totals 119500 - -
Unsecured Debt Description Debt(£) Monthly(£) APR(%)
Tesco Loan 15065 246.9 4
Halifax Cc 1958 58 21.2
Barclaycard Cc 2970 68 0
Loan from family 14000 200 0
Sainsburys Cc 4797 107 0
Unsecured Debt totals 38790 679.9 -
Asset Description Value (£)
Cash 0
House Value (Gross) 315000
Shares and bonds 0
Car(s) 10000
Other assets (e.g. endowments, jewellery etc) 0
Total Assets 325000
Comments on the results

We don’t have quite these assets as the mortgage is for a shared ownership property. We own a 40% share and pay rent on the other share.

My credit score on Noddle is 2/5 and Experian ‘fair’.
It makes for terrifying reading. I have been contemplating doing a DMP, as things feel quite unsustainable. But if I can avoid that I’d like to. I’m worried about the impact on our mortgage. The fixed rate ends in November and I don’t think we’ll have any other option than to go on to the SVR which is 4.2% at the moment. My credit is shot so I don’t think they’ll let us remortgage will they? If I did a DMP will I ever be able to remortgage? Will I lose my house? We’ve never missed a payment on any of the mortgage payments or household bills. And I’ve never missed any on my unsecured debt either.

Please help, I know there’s a lot of inspiration and support on here.

Mollycat13

Hi,
Well done for making the first step and facing the facts.

Your soa is a little tricky to read (maybe because I'm using a tablet) however, you seem to have included the £200 family loan payment in household bills and credit repayments. This will make a difference to your budget.

Is there any reason why your partner is only contributing £1000 to the household? What is their income and what personal expenses do they have.

I'm sure the others on this board will be along shortly with much more helpful advice.

cms-help

Daffodil2018 wrote: »

Hi everyone,
Finally bit the bullet and faced the music as far as my debts are concerned. I’m in over my head and it’s making me anxious, sick and I can’t sleep. I told OH on Friday and he was super supportive of getting on top of it all. Amazingly so in fact.

I’ve really screwed up and not managed my self control. I know that it’s my MH that’s driven a lot of this since my estranged father passed away. No excuse, but it’s the reason.
I’ve done an SOA. We have a joint mortgage for a shared ownership property, hence the rent and mortgage payments.

Statement of Affairs & Personal Balance Sheet

Summary

Monthly Budget Summary Amount(£)
Total monthly income 2,882
Monthly expenses (incl. HP & secured loans) 2,523.24
Available for debt repayments 358.76
UNsecured debt repayments 679.9
Amount short for making debt repayments -321.14
Personal Balance Sheet Summary Amount(£)
Total Assets (things you own) 325,000
Total Secured & HP Debt -119,500
Total Unsecured Debt -38,790
Net Assets 166,710
Household Information

Number of adults in household 2
Number of children in household 1
Number of cars owned 2
Income, Expense, Debt & Asset Details

Income Amount(£)
Monthly income after tax 1800
Partners monthly income 0
Benefits 82
Other income 1000 MY OH PAYMENT FOR HALF OUR JOINT HOUSEHOLD BILLS
Total monthly income 2882
Expenses Amount(£)
Mortgage 671
Secured/HP loan payments 0
Rent 430
Management charge (leasehold property) 0
Council tax 158
Electricity 35
Gas 35
Oil 0
Water Rates 20
Telephone (land line) 15
Mobile phone 0
TV Licence 12.12
Satellite/Cable TV 0
Internet services 35
Groceries etc. 300. THIS HAS BEEN A LOT MORE HENCE THE DEBT.
Clothing 25. I INTEND ON ONLY REPLACING ESSENTIALS AND BUYING WHAT LO NEEDS
Petrol/diesel 200 I COMMUTE AROUND 60 MILES A DAY FOR WORK
Road tax 13.12
Car Insurance 35
Car maintenance (including MOT) 15
Car Parking 0
Other travel 0
Childcare/nursery 200 THIS ACTUALLY COMES OUT OF MY SALARY BEFORE TAX IN CHILDCARE VOUCHERS
Other child related expenses 12 SONS YOGA CLASS
Medical (prescriptions, dentists, opticians etc.) 15
Pet Insurance/Vet bills 17
Buildings Insurance 0
Contents Insurance 8
Life Assurance 0
Other Insurance 0
Presents (birthday, christmas etc.) 40
Haircuts 15
Entertainment 17 APPLE MUSIC
Holiday 0
Emergency Fund 0
Repay family loan 200
Total monthly expenses 2523.24 LESS
CHILDCARE THIS IS 2333.24
Secured & HP Debt Description Debt(£) Monthly(£) APR(%)
Mortgage 119500 (671) 4.59
Secured & HP Debt totals 119500 - -
Unsecured Debt Description Debt(£) Monthly(£) APR(%)
Tesco Loan 15065 246.9 4
Halifax Cc 1958 58 21.2
Barclaycard Cc 2970 68 0
Loan from family 14000 200 0
Sainsburys Cc 4797 107 0
Unsecured Debt totals 38790 679.9 -
Asset Description Value (£)
Cash 0
House Value (Gross) 315000
Shares and bonds 0
Car(s) 10000
Other assets (e.g. endowments, jewellery etc) 0
Total Assets 325000
Comments on the results

We don’t have quite these assets as the mortgage is for a shared ownership property. We own a 40% share and pay rent on the other share.

My credit score on Noddle is 2/5 and Experian ‘fair’.
It makes for terrifying reading. I have been contemplating doing a DMP, as things feel quite unsustainable. But if I can avoid that I’d like to. I’m worried about the impact on our mortgage. The fixed rate ends in November and I don’t think we’ll have any other option than to go on to the SVR which is 4.2% at the moment. My credit is shot so I don’t think they’ll let us remortgage will they? If I did a DMP will I ever be able to remortgage? Will I lose my house? We’ve never missed a payment on any of the mortgage payments or household bills. And I’ve never missed any on my unsecured debt either.

Please help, I know there’s a lot of inspiration and support on here.

Your childcare bill/salary is confusing. Do you take home that 1800 every month or is it 1800 minus the 200 childcare. If you take home that 1800 and have no extra childcare bill to pay then you need to remove that £200 expense from your SOA.

Try using this version as it's much easier to read:
http://www.stoozing.com/calculator/soa.php
format for MSE

Daffodil2018

Thanks for your replies
I take home 1800, childcare is through the childcare voucher scheme and taken before tax, so I should remove that from the soa

Partner pays half the joint house bills (which total £2000) from his salary then what he has left he uses for his own bills

Daffodil2018

Amended one here:
Thanks

Statement of Affairs & Personal Balance Sheet

Summary

Monthly Budget Summary Amount(£)
Total monthly income 2,882
Monthly expenses (incl. HP & secured loans) 2,143.24
Available for debt repayments 738.76
UNsecured debt repayments 682
Amount left after debt repayments 56.76
Personal Balance Sheet Summary Amount(£)
Total Assets (things you own) 136,500
Total Secured & HP Debt -119,500
Total Unsecured Debt -38,790
Net Assets -21,790
Household Information

Number of adults in household 2
Number of children in household 1
Number of cars owned
Income, Expense, Debt & Asset Details

Income Amount(£)
Monthly income after tax 1800
Partners monthly income 0
Benefits 82
Other income 1000
Total monthly income 2882
Expenses Amount(£)
Mortgage 671
Secured/HP loan payments 0
Rent 430
Management charge (leasehold property) 0
Council tax 158
Electricity 35
Gas 35
Oil 0
Water Rates 20
Telephone (land line) 15
Mobile phone 20
TV Licence 12.12
Satellite/Cable TV 35
Internet services 0
Groceries etc. 300
Clothing 25
Petrol/diesel 200
Road tax 13.12
Car Insurance 35
Car maintenance (including MOT) 15
Car Parking 0
Other travel 0
Childcare/nursery 0
Other child related expenses 12
Medical (prescriptions, dentists, opticians etc.) 15
Pet Insurance/Vet bills 17
Buildings Insurance 0
Contents Insurance 8
Life Assurance 0
Other Insurance 0
Presents (birthday, christmas etc.) 40
Haircuts 15
Entertainment 17
Holiday 0
Emergency Fund 0
Total monthly expenses 2143.24

cms-help

Do you run the house as a family? It's just a little confusing as this only seems to be part of the picture as your partner has additional income that he uses for "his bills" so is there more debt than you're illustrating with this SOA? If you add up anything that could be construed as a "household" bill (including the 2 fairly large loans) then it comes to more than £2,000 (you say he contributes half). Can he contribute more to help pay the debt off quicker? When do all your 0% credit card deals end?

It would be helpful to know if the balances on the loans are correct or was that the amount when they were taken out and now some has been paid down? What were they for?

There isn't much to be saved on your SOA in all honesty, probably just a few pounds here and there but you are showing that you're in credit by a small amount every month.

Daffodil2018

My partner makes around 1600 a month, of which he gives 1000 to me for the bills. His remaining budget is £100 on his own credit card, (balance of £6k) overdraft fees at around £50, Petrol at £240 a month, car insurance for his car at £50. Should the soa include all his stuff too?
He can’t afford to pay more. And the debts are mostly mine, apart from the family loan which I’ve accounted for in his payment
The 0% cards end in 2019 (Barclaycard) and 2020 (sainsburys). The balance of both of these does go down, so at least that’s something. I think these will be cleared in 3-4 years. I’ve calculated that The Tesco loan has another 6 years to go. And hopefully I can reduce that time once the ccds are done.

starting_again_in_the_sun

Hi Daffodil and welcome to the forum.

As others have said, there isn't too much to cut from your SOA.

The main things that jump out to me are the high cost of housing ( South East I guess) and the amount you are both spending on fuel. Is there anyway you could travel together? I would say look into public transport but that would probably cost more .

Good luck!

cms-help

You need to find your mortgage paperwork and find out what your repayments would increase to if you had to switch to the SVR. If you stay with the same provider, you may just be offered another fixed rate.

You could make a few small savings: spread your council tax over 12 months instead of the usual 10, get rid of the music, shave a little from groceries etc.

You need to target the Halifax card. At the amount you are currently repaying every month then you're going to paying around £900 in interest - almost half the current balance of the card.

If you don't really want to consider a debt management plan then is there any way either of you could increase your income? A second job, overtime? Even if it's only for a short period of time, it could make all the difference. Or any likely changes to expenses? You mentioned childcare, is your little one at school? Due to start? Or getting their free hours of childcare?

pmlindyloo

cms-help wrote: »

Your childcare bill/salary is confusing. Do you take home that 1800 every month or is it 1800 minus the 200 childcare. If you take home that 1800 and have no extra childcare bill to pay then you need to remove that £200 expense from your SOA.

Try using this version as it's much easier to read:
http://www.stoozing.com/calculator/soa.php
format for MSE

If your OH is on board then it would be sensible to add his income and expenditure to your SOA.

I understand that you say the debt is in your name. Do you mean that these debts were before you got together or do you feel you have used the money solely for yourself?

Is your OH keen to help you clear all the debt?

Please use the SOA in the above link. This gives everybody the opportunity to see the debt and the interest rates and, perhaps make more relevant suggestions.

enthusiasticsaver

Going on to a DMP will affect your credit rating but if you stay with your current lender you may still be able to get a mortgage deal but no guarantee. A DMP though would ignore your family loan which means of the amount they calculate you have to pay each month they will not allow you to keep back £200 to pay the loan. I am sceptical therefore as to whether you will be much better off.

The car is expensive but if you do 60 miles daily for work having a reliable car is important so I don't think it is worth changing that either unless you can go down to one car between you and your husband?

When does your DC get their free hours or is that £200 for wrap around care? It looks lowish anyway so I am guessing they are at school for at least part of the day?

Isn't the SVR on your mortgage lower than the current fixed rate anyway? 4.79 is a fairly high mortgage rate.

Are your family in a position to suspend the family loan payments until you have repaid the credit cards? Halifax is the one you need to get rid of first. I hope you do not have an overdraft too but this is sometimes ignored on soas.

I do think that although the debt situation is serious it is possible for you to get out of with a tightly controlled budget. If your family agree to suspend the family loan for 2 years then I think you could clear or almost clear the credit cards within that period so you then only have the Tesco loan and the family loan. You have to stop using credit cards though and start building an emergency savings account.