On a mission to clear debt

Sofee3

Hi all,

Posting my SOA for comments please, we are looking to move house in 2/2.5 years but have to clear credit cards and car loan first, anything glaringly obvious to anyone that could help me?

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

Monthly Income Details
Monthly income after tax................ 1537
Partners monthly income after tax....... 1500
Benefits................................ 137
Other income............................ 625 (rent we receive)
Total monthly income.................... 3799

Monthly Expense Details
Mortgage................................ 462
Secured/HP loan repayments.............. 753
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 165
Electricity............................. 45
Gas..................................... 45
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 70
TV Licence.............................. 12.5
Satellite/Cable TV...................... 71
Internet Services....................... 0
Groceries etc. ......................... 340
Clothing................................ 20
Petrol/diesel........................... 200
Road tax................................ 0 (free road tax on car)
Car Insurance........................... 31
Car maintenance (including MOT)......... 5
Car parking............................. 0
Other travel............................ 0 (I get train season ticket so comes out salary - £72)
Childcare/nursery....................... 0 (childcare voucher come off my salary - will stop in August £98)
Other child related expenses............ 30
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings & contents insurance..................... 19
Life insurance ......................... 54
Other insurance......................... 19 (landlord insurance)
Presents (birthday, christmas etc)...... 20 (my husband gets cash tips which he saves for xmas)
Haircuts................................ 60
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 0
Husbands football season ticket .......................... 55
Money to mum ........................... 344
Total monthly expenses.................. 2870.5

Assets
Cash.................................... 0
House value (Gross)..................... 280000
Shares and bonds........................ 0
Car(s).................................. 9000
Other assets............................ 0
Total Assets............................ 289000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 95000....(462)......3.99
Secured Debt.................. 7500.....(169)......4<
Mortgage for rental............116000...(584)......4.24
Total secured & HP debts...... 218500....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................5126......150.......0
Lloyds.........................3100......31........0
M&S............................2949......78........0
Barclaycard ...................520.......12........0
Total unsecured debts..........11695.....271.......-

Monthly Budget Summary
Total monthly income.................... 3,799
Expenses (including HP & secured debts). 2,870.5
Available for debt repayments........... 928.5
Monthly UNsecured debt repayments....... 271
Amount left after debt repayments....... 657.5

Personal Balance Sheet Summary
Total assets (things you own)........... 289,000
Total HP & Secured debt................. -218,500
Total Unsecured debt.................... -11,695
Net Assets.............................. 58,805

Honeysucklelou2

Do you need to consider tax on the rent income received?

Sofee3

Thanks, no as we pay for landlord insurance and money to fix or buy new appliances then we don't need to as don't make a profit on it.

Mnd

Your SOA doesn't look too bad at all, very good detail and well thought through, my only gripe would be your mobiles, that seems huge to me.

Your grocery spend seems high to me, but I don't have to feed children.,:eek:

Good luck,,I look forward to following your progress

MovingForwards

Nothing for water / prescriptions, you in Scotland?

Also need to put something for dental.

Car repairs budget seems very low.

Haircuts a bit high.

enthusiasticsaver

Sofee3 wrote: »

Thanks, no as we pay for landlord insurance and money to fix or buy new appliances then we don't need to as don't make a profit on it.

I think you need to check this as under the new BTL income rules brought in 2017 there are restrictions on offsetting mortgage interest payments against income so you may be liable to pay tax even if no profit. It is being phased out gradually so I think we are at 50% this year.

enthusiasticsaver

The other thing I would say is you need emergency savings so you don't have to put unexpected bills on a credit card undoing any repayments.

Do you actually have a surplus each month as your soa indicates you should have £657 or do you overpay the debt?

When do the 0% deals expire?

blue_eyed_girl123

If you have £928 surplus a month, where is that money going? Also, how are you making sure you don't increase credit card debt?

Sofee3

Thanks for all the replies.

Yes we over pay credit cards each month, so pay about £550 to them in total. The first 0% balance runs out in April 2020 so we will clear that first.

Yes we are in Scotland so no money for water and prescriptions.

Yes dental is a point.

The car is in good nick but yes probably should be higher due to servicing cost too.

I get my hair dyed every 5 weeks as get grey quickly :-0 and this amount include kids/hubby cuts every so often.

We are going to be selling our property we rent too as will need to to get a higher mortgage.

Sofee3

So today the car went into the garage to get break discs and pads done and they told us about a couple of other things, now down £900, which I had to put on a 0% purchases credit card :-(

Sofee3

It's been a while, I need to update this more often! I have a spreadsheet for my credit cards that shows snowball amounts you can make and you can set which one you want to clear first etc and have worked out from that that I can clear the credit cards by October next year, fingers crossed!!

We will also have to pay to get our bathroom re-done and the hall plastered before we move as well as a few other bits and bobs so we have about 2 years to do it all in and have the money to do it!

I'm just so obsessed just now with saving money (needed for summer holiday) and paying money to credit cards, I love a spreadsheet too and get totally slagged for it, I have one that lists outgoings and income too :-D