Soa

ahhhhhhhhh

Hi

I've finally got everythign down in black and white and it's scary.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 3
Number of children in household......... 2
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 2113
Partners monthly income after tax....... 1764
Benefits................................ 137.6
Other income............................ 0
Total monthly income.................... 4014.6

Monthly Expense Details
Mortgage................................ 608
Secured/HP loan repayments.............. 250
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 123
Electricity............................. 75
Gas..................................... 45
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 20
Mobile phone............................ 100
TV Licence.............................. 13
Satellite/Cable TV...................... 30
Internet Services....................... 30
Groceries etc. ......................... 500
Clothing................................ 100
Petrol/diesel........................... 300
Road tax................................ 24
Car Insurance........................... 63
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 50
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 40
Pet insurance/vet bills................. 50
Buildings insurance..................... 20
Contents insurance...................... 20
Life assurance ......................... 25
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 40
Entertainment........................... 50
Holiday................................. 100
Emergency fund.......................... 100
Total monthly expenses.................. 2916


Assets
Cash.................................... 0
House value (Gross)..................... 275000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 280000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 87212....(608)......3
Secured Debt.................. 35829....(250)......3
Total secured & HP debts...... 123041....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
HSBC Loan......................7940.78...274.......3
Tesco Loan.....................10800.....272.......3
HSBC Loan......................8475......230.......3
CapitalOne.....................2000......40........20
MBNA...........................18000.....200.......24.9
Barclaycard....................3400......80........14.9
Barclaycard....................12100.....303.......14.9
RBS............................4900......110.......7.9
Total unsecured debts..........67615.78..1509......-


Monthly Budget Summary
Total monthly income.................... 4,014.6
Expenses (including HP & secured debts). 2,916
Available for debt repayments........... 1,098.6
Monthly UNsecured debt repayments....... 1,509
Amount short for making debt repayments. -410.4

Personal Balance Sheet Summary
Total assets (things you own)........... 280,000
Total HP & Secured debt................. -123,041
Total Unsecured debt.................... -67,615.78
Net Assets.............................. 89,343.22

DD265

There are people better qualified than me to comment, but added a few bits in red.

ahhhhhhhhh wrote: »

Hi

I've finally got everythign down in black and white and it's scary.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 3
Number of children in household......... 2
Number of cars owned.................... 2 - do you need both?
Monthly Income Details
Monthly income after tax................ 2113
Partners monthly income after tax....... 1764
Benefits................................ 137.6
Other income............................ 0
Total monthly income.................... 4014.6

Monthly Expense Details
Mortgage................................ 608
Secured/HP loan repayments.............. 250
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 123 - is this over 10 or 12 months?
Electricity............................. 75 - can this be reduced?
Gas..................................... 45 - can this be reduced?
Oil..................................... 0
Water rates............................. 40 - would a meter if you don't have one be cheaper?
Telephone (land line)................... 20
Mobile phone............................ 100 - can you get out of these?
TV Licence.............................. 13
Satellite/Cable TV...................... 30 - ditch this, NowTV if you want something for £8 a month
Internet Services....................... 30
Groceries etc. ......................... 500 - check out the Old Style board and meal plan to drop this down
Clothing................................ 100 - you're going to need to reduce this
Petrol/diesel........................... 300
Road tax................................ 24
Car Insurance........................... 63
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 50
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 40 - would a prepayment certificate (10.40 a month) help here?
Pet insurance/vet bills................. 50 - shop around
Buildings insurance..................... 20- shop around
Contents insurance...................... 20 - shop around
Life assurance ......................... 25
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50 - cut this for a while
Haircuts................................ 40 - find cheaper alternatives
Entertainment........................... 50 - what does this typically include?
Holiday................................. 100 - you can't afford this
Emergency fund.......................... 100 - where's this?
Total monthly expenses.................. 2916


Assets
Cash.................................... 0
House value (Gross)..................... 275000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 280000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 87212....(608)......3
Secured Debt.................. 35829....(250)......3
Total secured & HP debts...... 123041....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
HSBC Loan......................7940.78...274.......3
Tesco Loan.....................10800.....272.......3
HSBC Loan......................8475......230.......3
CapitalOne.....................2000......40........20
MBNA...........................18000.....200.......24.9
Barclaycard....................3400......80........14.9
Barclaycard....................12100.....303.......14.9 - why are you paying more on this than MBNA, which has a higher balance and APR?
RBS............................4900......110.......7.9
Total unsecured debts..........67615.78..1509......-


Monthly Budget Summary
Total monthly income.................... 4,014.6
Expenses (including HP & secured debts). 2,916
Available for debt repayments........... 1,098.6
Monthly UNsecured debt repayments....... 1,509
Amount short for making debt repayments. -410.4

Personal Balance Sheet Summary
Total assets (things you own)........... 280,000
Total HP & Secured debt................. -123,041
Total Unsecured debt.................... -67,615.78
Net Assets.............................. 89,343.22

I think you can fairly easily find the £400 a month that you're short. Are the monthly figures for the credit cards minimum repayments? If not, I would look at dropping to minimum repayments on all but one (http://www.stoozing.com/calculator/snowball-calculator.php to work out which). I am guessing you are struggling for a 0% balance transfer deal?

You say you're putting £100 a month into an emergency fund - where's that cash listed? Does this SOA feel accurate or is it a best guess? If the latter, well in either case really, a spending diary would be useful.

Can you be honest with yourself about how you've racked up all the debt? What do you have to show for it, what did you spend it on? If you're £400 short on debt repayments does that mean you're still adding to the cards every month? Can you be confident that you're breaking those patterns now?

I won't lie, those numbers are a bit scary, but you'll definitely have options and somebody more knowledgeable than me will be along with some soon I'm sure.

midnight_express

Is the third adult working / contributing ?

National_Debtline

Hi there


Well done on taking the plunge and sharing your SOA, it's a great place to start dealing with your debts. DD265 has made some really useful points and there's scope to make some changes. However if after this you still can't cover the minimum repayments on your debts you may need to consider some kind of debt management which will reduce the payments and freeze the interest. You can get in touch with one of the free debt advice agencies for more advice on your options. Good luck with it all.


Susie
@natdebtline

Dobbibill

Hi ahhhhhhhhh - welcome to the forum.

Firstly, well done on getting it all down in writing on a SOA. This is a first step and often quite difficult.

Some really good points made already by DD265.

Question 1 - is this realistic? There is an allocated amount for an emergency fund but yet no cash recorded. So does that mean it's only now you are starting an EF or have you forgotten to add the total saved in an EF? It's quite easy to create a wish list when doing a SOA so make sure you monitor this over the coming weeks/months.

Do a comparison on your energy and see if you can switch to a better/cheaper deal. Make sure you do it by Kwhs/usage not the amount you pay as this gives a misguided saving. Check out sites like TCB/Quidco to see if there is a cashback option for your chosen supplier.

Get freeview or freesat. You can't afford satellite TV at the moment.

Ring your mobile provider, even if you are in mid-contract. It doesn't hurt to tell them you are struggling and ask if it can be reduced in any way. The worst that can happen is they say no, you are no worse off by making the call.

Cut down the clothes shopping. Use freebay, charity shops and so on unless it's underwear - that's way too much every month.

Your pet insurance is very high (although you don't state how many pets you have) based on price I would say several. See if you can get a better deal, check the small print for the right cover though.

You buildings/contents cover is high - at renewal ditch/switch and use TCB/Quidco again for this.

When you car insurance is due for renewal check out TCB/Quidco again.

You cannot afford a holiday at this moment - you need to make sacrifices to clear the debt.

While an emergency fund is needed to try and throw £100 a month at it while you have exisitng debts is too much too soon. Lower that amount and build it up consistently. Hide it away, it must only be used for an emergency.

You have a little wiggle room in your SOA but it will be a hard slog to do this. The debt won't disappear overnight (it didn't appear overnight either did it) so be prepared for some determination to do this.

Finally make sure you address the reason you have the debt - if you fail to do this bit then it may keep increases as the cause hasn't been addressed.

All the best.

cms-help

ahhhhhhhhh wrote: »

Hi

I've finally got everythign down in black and white and it's scary.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 3 *does the third adult contribute financially?
Number of children in household......... 2
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 2113
Partners monthly income after tax....... 1764
Benefits................................ 137.6
Other income............................ 0
Total monthly income.................... 4014.6

Monthly Expense Details
Mortgage................................ 608
Secured/HP loan repayments.............. 250
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 123 *spread over 12 months if do not already do so
Electricity............................. 75 *this is high - switch supplier/tarrif/watch usage
Gas..................................... 45 *as above
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 20
Mobile phone............................ 100 *how many phones? This is very high if 2! Could half.
TV Licence.............................. 13
Satellite/Cable TV...................... 30 *get rid
Internet Services....................... 30 *high when combined with phone
Groceries etc. ......................... 500 *could easily save over 100 a month here
Clothing................................ 100 *need to reduce for the moment
Petrol/diesel........................... 300 *this is high per month - how many miles, on average?
Road tax................................ 24
Car Insurance........................... 63
Car maintenance (including MOT)......... 50 *are you putting this away every month?
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 50
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 40 *seems a lot
Pet insurance/vet bills................. 50 *how many animals?
Buildings insurance..................... 20 *this is high when combined with contents, shop around
Contents insurance...................... 20
Life assurance ......................... 25
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 40
Entertainment........................... 50
Holiday................................. 100 *are you putting this away every month?
Emergency fund.......................... 100 *are you putting this away every month?
Total monthly expenses.................. 2916


Assets
Cash.................................... 0
House value (Gross)..................... 275000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 280000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 87212....(608)......3
Secured Debt.................. 35829....(250)......3
Total secured & HP debts...... 123041....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
HSBC Loan......................7940.78...274.......3
Tesco Loan.....................10800.....272.......3
HSBC Loan......................8475......230.......3
CapitalOne.....................2000......40........20
MBNA...........................18000.....200.......24.9
Barclaycard....................3400......80........14.9
Barclaycard....................12100.....303.......14.9
RBS............................4900......110.......7.9
Total unsecured debts..........67615.78..1509......-


Monthly Budget Summary
Total monthly income.................... 4,014.6
Expenses (including HP & secured debts). 2,916
Available for debt repayments........... 1,098.6
Monthly UNsecured debt repayments....... 1,509
Amount short for making debt repayments. -410.4

Personal Balance Sheet Summary
Total assets (things you own)........... 280,000
Total HP & Secured debt................. -123,041
Total Unsecured debt.................... -67,615.78
Net Assets.............................. 89,343.22

I am guessing this is your SOA in a perfect world, rather than an accurate one, as a lot of your figures are round numbers, no pence anywhere (only our power and water are round numbers in our house!)

You need to look at where you can reduce your expenses and make a concerted effort to do so. It will be tight to save 400 a month to be honest. Do you have any way to increase income? Overtime? Income from third adult? Someone getting an evening/weekend position somewhere?

Are you paying over the minimum on your credit cards? It looks like you are. Whilst admirable you need to reduce most of them to a little over the minimum payment and then re-direct the money to the higher interest rate cards in order to reduce you interest liability.

theoretica

Is the third adult a grown child? Do they pay all their own expenses? clothes, phone, contact lenses, car insurance etc? If you can't charge them keep, this would be an intermediate step.

datlex

ahhhhhhhhh wrote: »

Hi

I've finally got everythign down in black and white and it's scary.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 3
Number of children in household......... 2
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 2113
Partners monthly income after tax....... 1764
Benefits................................ 137.6
Total monthly income.................... 4014.6[/b]

Monthly Expense Details
Mortgage................................ 608
Secured/HP loan repayments.............. 250
Council tax............................. 123
Electricity............................. 75
Gas..................................... 45
Water rates............................. 40
Telephone (land line)................... 20
Mobile phone............................ 100 As soon as you go SIM only on each phone, you will save a lot of money.
TV Licence.............................. 13
Satellite/Cable TV...................... 30 Now TV has been mentioned, You can get this for £5 a month if you use gift vouchers. It does however depend on what you watch
Internet Services....................... 30
Groceries etc. ......................... 500 Do a blind test of cheaper brands and see if you like them, if you do use those.
Clothing................................ 100
Petrol/diesel........................... 300
Road tax................................ 24
Car Insurance........................... 63
Car maintenance (including MOT)......... 50
Childcare/nursery....................... 50
Medical (prescriptions, dentist etc).... 40 given that children are free how many of the adults does this cover.
Pet insurance/vet bills................. 50
Buildings insurance..................... 20
Contents insurance...................... 20
Life assurance ......................... 25 this seems a bit high
Presents (birthday, christmas etc)...... 50 let the kids know you are going to have less money so you can clear debts in the short term, so you can afford nicer things in the future let them be involved- this effects them.
Haircuts................................ 40 extend times between hair cuts e.g if go every 8 weeks go every 9 or 10 weeks or even if you have long hair every 13 weeks
Entertainment........................... 50 This seems very low considering you have 2 children a month
Holiday................................. 100 have you actually researched what you can do for £1200 for a family of 5?
Emergency fund.......................... 100 this should take priority over the holiday- What is your target for your emergency fund? Are you putting aside £1000 in total or aiming for 3 months buffer. If it is £1000 that's good. If 3 months buffer, you will be better off putting any money after you have your £1000 towards debt payment
Total monthly expenses.................. 2916


Assets
House value (Gross)..................... 275000 unless you are selling the house and the buyer has had a mortgage valuation done or you are remortgaging then actually the house is worth £0 as it cannot be used unless liquidated
Car(s).................................. 5000 again cars depreciate, value is only what someone pays for it
Total Assets............................ 280000[/b] ignore your assets unless you plan to move, adjust your mortgage or sell your cars


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 87212....(608)......3
Secured Debt.................. 35829....(250)......3
Total secured & HP debts...... 123041....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
HSBC Loan......................7940.78...274.......3
Tesco Loan.....................10800.....272.......3
HSBC Loan......................8475......230.......3
CapitalOne.....................2000......40........20
MBNA...........................18000.....200.......24.9
Barclaycard....................3400......80........14.9
Barclaycard....................12100.....303.......14.9
RBS............................4900......110.......7.9
Total unsecured debts..........67615.78..1509......-


Monthly Budget Summary
Total monthly income.................... 4,014.6
Expenses (including HP & secured debts). 2,916
Available for debt repayments........... 1,098.6
Monthly UNsecured debt repayments....... 1,509
Amount short for making debt repayments. -410.4

Personal Balance Sheet Summary
Total assets (things you own)........... 280,000
Total HP & Secured debt................. -123,041
Total Unsecured debt.................... -67,615.78
Net Assets.............................. 89,343.22

DD265 wrote: »

There are people better qualified than me to comment, but added a few bits in red.



I think you can fairly easily find the £400 a month that you're short. Are the monthly figures for the credit cards minimum repayments? If not, I would look at dropping to minimum repayments on all but one (http://www.stoozing.com/calculator/snowball-calculator.php to work out which). I am guessing you are struggling for a 0% balance transfer deal?

You say you're putting £100 a month into an emergency fund - where's that cash listed? Does this SOA feel accurate or is it a best guess? If the latter, well in either case really, a spending diary would be useful.

Can you be honest with yourself about how you've racked up all the debt? What do you have to show for it, what did you spend it on? If you're £400 short on debt repayments does that mean you're still adding to the cards every month? Can you be confident that you're breaking those patterns now?

I won't lie, those numbers are a bit scary, but you'll definitely have options and somebody more knowledgeable than me will be along with some soon I'm sure.

Just one point if you are paying £8 for Now TV you are not taking advantage of the fact you can buy gift vouchers which work out to £5 a month....... For £10 you could have Now and TV Player (if pay for annual), giving a good range of channels https://tvplayer.com/plus

Good luck clearing your debts