New SOA - next steps

Grazeley

Hi all,

Just looking into next steps, bit of a stalemate - trying to follow this SOA but seem unable to overpay and clear any debt.
Next steps we are considering: part time extra job (we work full time) or a DMP.

SOA below, thank you

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 1876.72
Partners monthly income after tax....... 2601.62
Benefits................................ 137.6
Other income............................ 0
Total monthly income.................... 4615.94

Monthly Expense Details
Mortgage................................ 977.8
Secured/HP loan repayments.............. 601
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 123
Electricity............................. 48
Gas..................................... 52
Oil..................................... 0
Water rates............................. 47
Telephone (land line)................... 0
Mobile phone............................ 42
TV Licence.............................. 13.2
Satellite/Cable TV...................... 11.99
Internet Services....................... 43.24
Groceries etc. ......................... 400
Clothing................................ 30
Petrol/diesel........................... 250
Road tax................................ 20
Car Insurance........................... 100
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 170
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 60
Buildings insurance..................... 0
Contents insurance...................... 14.52
Life assurance ......................... 32.02
Other insurance......................... 0
Presents (birthday, christmas etc)...... 60
Haircuts................................ 20
Entertainment........................... 200
Holiday................................. 0
Emergency fund.......................... 0
Family entertainment/days out........... 100
Child gymnastics........................ 25
Amazon Prime............................ 10
National Trust.......................... 10
Gym/bootcamp............................ 50
Total monthly expenses.................. 3540.77


Assets
Cash.................................... 0
House value (Gross)..................... 320000
Shares and bonds........................ 0
Car(s).................................. 15000
Other assets............................ 0
Total Assets............................ 335000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 235225...(977.8)....2.09
Secured Debt.................. 32000....(371)......16
Hire Purchase (HP) debt ...... 13000....(230)......4
Total secured & HP debts...... 280225....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
CC 1 Barclaycard...............8320......184.......0
CC 2 Barclaycard...............7971......166.......0
CC 1 Sainsburys................4205......104.......12
Yorkshire Bank.................12000.....230.......5
Creation(ends May 20)..........640.......55........0
Clysdale (ends 2021)...........985.......55........0
Owe Family.....................2300......50........0
Paypal credit..................1500......40........0
Ratesetter.....................1700......59........12
CC 2 Sainsburys................7359......157.......0
Total unsecured debts..........46980.....1100......-


Monthly Budget Summary
Total monthly income.................... 4,615.94
Expenses (including HP & secured debts). 3,540.77
Available for debt repayments........... 1,075.17
Monthly UNsecured debt repayments....... 1,100
Amount short for making debt repayments. -24.83

Personal Balance Sheet Summary
Total assets (things you own)........... 335,000
Total HP & Secured debt................. -280,225
Total Unsecured debt.................... -46,980
Net Assets.............................. 7,795

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

tallyhoh

The thing that jumps out at me is entertainment & sport, £385.00 a month, nearly £400.00 of you count in amazon. You could shave off a few quid here & there on the rest of the budget but not huge amounts.

Did the debts accrue over major purchases or just general overspending?

Willing2Learn

I think there is definitely some 'wiggle room' in your budget. Money just needs to be reallocated.

£400 / month on groceries is extremely high. If you batch cooked, took pack lunches to work, and shopped at Aldi/Lidl then this could be halved.

£300 / month for entertainment between you and the kids plus gym, National Trust, Gymnastics comes to a grand total of £385 / month.

Nothing for an emergency fund. You need something here so that you don't need to spend on credit when an unknown rears its ugly head.

You also need building insurance (or is that contents and buildings combined?)

Is your mobile phone costs for the whole family combined?

Is your water metered?

I think that if you re-prioritised some of your spending, then you would be able to snowball those debts.

Grazeley

tallyhoh wrote: »

The thing that jumps out at me is entertainment & sport, £385.00 a month, nearly £400.00 of you count in amazon. You could shave off a few quid here & there on the rest of the budget but not huge amounts.

Did the debts accrue over major purchases or just general overspending?

Thank you.
Usually overspending, some major purchases when we moved in but in general not saving properly for things like car tax and MOT so using a credit card, overspending on food shopping etc etc. Bad money management.

Grazeley

Willing2Learn wrote: »

I think there is definitely some 'wiggle room' in your budget. Money just needs to be reallocated.

£400 / month on groceries is extremely high. If you batch cooked, took pack lunches to work, and shopped at Aldi/Lidl then this could be halved.

£300 / month for entertainment between you and the kids plus gym, National Trust, Gymnastics comes to a grand total of £385 / month.

Nothing for an emergency fund. You need something here so that you don't need to spend on credit when an unknown rears its ugly head.

You also need building insurance (or is that contents and buildings combined?)

Is your mobile phone costs for the whole family combined?

Is your water metered?

I think that if you re-prioritised some of your spending, then you would be able to snowball those debts.

Thank you.
I am not sure how I can get food shopping much lower. there are 4 of us. I already shop majority in Aldi and then a half shop of other branded bits/toiletries in major supermarket.
We do meal plan. I am puzzled how to go much lower.

Yes entertainment, we have £100 each a month and I feel like how do people manage less than this! A drink at the pub, takeaway now and then, cinema trip, car parking when popping to town for the bank etc. £100 really doesnt go far?! How do people not spend?!

Yes agree, ideally I would budget £50 emergency fund but thats gone to paying back family (my mum)

Building insurance and contents insurance are combined, thanks for checking.

Mobile bills are both is us £20 each SIM only

Yes on water meter, its just gone up by £5 per mth again, unsure if I can do anything about that?

Thank you

Dobbibill

I agree things could be amended a little.

Is your council tax and water rates paid over the standard 10 months or 12? If the former, then contact them to get it changed to 12 - it makes budgeting easier anyway as you won't get the 'free months' so you have consistency.


Have you done a comparison for your energy - are you on the best deal?


The mobile phones are quite costly - are you still in contract? Me and my OH pay £22 for 2 of us on SIMO.

Can you reduce the internet costs at all? Ring them and ask - it only costs a phone call to ask
Groceries is high - try batch cooking.

Fuel is quite high each month yet the MOT and repairs seems disproportionate. This needs to be increased or a few minor repairs and you will be stuck.

Buildings is included with contents insurance? When due for renewal use TCB or Qu1dco for some cashback while shopping around for a better deal.

You can easily shave £10-£20 off the presents budget.


For haircuts can you use a local collage? And go less often.


Entertainment or family days out could be reduced if you have so many other things going on like gymnastics etc.

You need an emergency fund - allocate something here.

Have another look and see if you can/will make further adjustments as a family.

All the best.

dan958

Grazeley wrote: »

how do people manage less than this! A drink at the pub, takeaway now and then, cinema trip,

We just don't do those things when we have debts. Look at the cost of a takeaway for 4 people, they can be quite pricey when that money can be better spent on debts.If you want to pay off these debts faster, you are going to have to go frugal, and that isn't always fun to do.

It is more difficult to do when you have kids, but there are still plenty of free days out you can use for entertainment.

Grazeley wrote: »

.
Mobile bills are both is us £20 each SIM only
Thank you

Get that swapped. You can easily get something for under £10.

aimeemum

Grazeley wrote: »

Thank you.
I am not sure how I can get food shopping much lower. there are 4 of us. I already shop majority in Aldi and then a half shop of other branded bits/toiletries in major supermarket.
We do meal plan. I am puzzled how to go much lower.

Yes entertainment, we have £100 each a month and I feel like how do people manage less than this! A drink at the pub, takeaway now and then, cinema trip, car parking when popping to town for the bank etc. £100 really doesnt go far?! How do people not spend?!

Yes agree, ideally I would budget £50 emergency fund but thats gone to paying back family (my mum)

Building insurance and contents insurance are combined, thanks for checking.

Mobile bills are both is us £20 each SIM only

Yes on water meter, its just gone up by £5 per mth again, unsure if I can do anything about that?

Thank you

I spend £80 a week on groceries for 5 of us. That's 3 meals a day as I do packed lunches for husband and 2 of the children (one still gets free school dinners) and I'm a SAHM. I shop at Morrisons/Tesco too so no cheap supermarkets - controversially I don't find them cheaper as the shelf life isn't as good on the fresh at my local ones and I tend to buy more rubbish! lol :rotfl: On-line ordering...that's how I keep to my list!

Meal planning is an art.....you need to keep track on what's in your freezer, batch cook EVERY time you cook from scratch. Don't be afraid to try the basics ranges at the supermarkets and really eek out everything you buy. Examples are I will buy the cheapest mince and use it for bolognese or chilli...bulk out with veg, lentils, beans etc and then portion up to cover at least 2 meals. If I make meatballs, I'll make extra and portion up a couple of lunches for hubby. I'll make bread rolls and I'll have them with soup (either cheap tinned or made up from leftover veg that would otherwise go to waste. I particularly like HM mushroom soup!) for lunch at the weekend....also check out the yellow sticker sections and snap up bargains you'll use. Freeze meats when you get home or adapt your meal plan to make use of them.

Entertainment - You ask how people manage on less....We have a budget of £60 a month for entertainment. Hubby gets £10 a week, we have English Heritage membership and Now TV. That's it!! No take-aways, I make all our food! No trips to the pub unless we has surplus/saved up and budgeted well in advance. Cinema is once in a blue moon and usually a treat for the kids so we go to mini-mornings for £2.50 a head and take our own snacks! I do have a pot for school holidays for things like ice-creams or trips....I try to use our EH as much as possible (check out the members events as they're free or very cheap for members). As for everything else.....there'll be money for extras once your debt is paid off. If you simply cannot afford to do things because then it's time to prioritise the debts to get rid, then you can go to the pub to celebrate! :beer:

Water meters...check for a leak anywhere. Get the company out to check your levels and see if they can detect a leak.

Good luck

Jami74

Grazeley wrote: »

Thank you.
I am not sure how I can get food shopping much lower. there are 4 of us. I am puzzled how to go much lower.

There's four of us too and I can't get ours lower. My two teens don't stop eating! We also buy squash and hubby buys beer which comes out of our shop. It might seem excessive but we rarely eat out or have takeaways and go to the pub less than once a year.

Yes entertainment, we have £100 each a month and I feel like how do people manage less than this! A drink at the pub, takeaway now and then, cinema trip, car parking when popping to town for the bank etc. £100 really doesnt go far?! How do people not spend?!

We don't drink at the pub. The same alcohol from a supermarket is far cheaper. Takeaways are a very occasional treat, maybe for a birthday. You can do a mock-up supermarket takeaway for less, eg if you like Indian the supermarkets do a box for 2 with curry, rice, naan bread, bhajis etc often half price at £4-£5. A couple of choose-your-own toppings pizzas and a bag of frozen wedges/onion rings is cheaper than a Dominos. Our local cinema has a day where all showings are half price, it's an occasional treat but we never pay full price and sneak our own popcorn in. It probably explains why our supermarket is higher than the average MSE family. We've tried to keep the same treats but downgrade them so they cost less, if that makes sense.

Mobile bills are both is us £20 each SIM only

We're with Tesco at about £7 each for a GB. I've seen cheaper but I like the clubcard points and having a cap so it's not possible to accidentally go over.

Yes on water meter, its just gone up by £5 per mth again, unsure if I can do anything about that?

Our water was also £47 a month for the last six months. We double checked everywhere for leaks and adjusted the ballcock in the toilet, I think it was overflowing a tiny amount. We've also started using our bath water to fill the toilet cistern. We now have more baths than before, flush the toilet more often and our water bill is down to £20 a month. I don't know anyone else who does this so it might seem like a step too far but for us it's become habit.

MEM62

Grazeley wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2
Are 2 cars essential?

Monthly Income Details
Monthly income after tax................ 1876.72
Partners monthly income after tax....... 2601.62
Benefits................................ 137.6
Other income............................ 0
Total monthly income.................... 4615.94

Monthly Expense Details
Mortgage................................ 977.8
Secured/HP loan repayments.............. 601
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 123
Electricity............................. 48
Gas..................................... 52
Oil..................................... 0
Water rates............................. 47
Telephone (land line)................... 0
Mobile phone............................ 42
TV Licence.............................. 13.2
Satellite/Cable TV...................... 11.99
Internet Services....................... 43.24
Groceries etc. ......................... 400
Way too expensive
Clothing................................ 30
Petrol/diesel........................... 250
Road tax................................ 20
Car Insurance........................... 100
£1,200 per year is really high. Why? Can this not be improved?
Car maintenance (including MOT)......... 20
For two cars this is unrealsitic
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 170
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 60
Buildings insurance..................... 0
Contents insurance...................... 14.52
Life assurance ......................... 32.02
Other insurance......................... 0
Presents (birthday, christmas etc)...... 60
Can this be reduced?
Haircuts................................ 20
Entertainment........................... 200
This is too extravagant in your circumstances.
Holiday................................. 0
Emergency fund.......................... 0
Something needed here
Family entertainment/days out........... 100
Again, a little extravagant in your situation.
Child gymnastics........................ 25
Amazon Prime............................ 10
National Trust.......................... 10
Gym/bootcamp............................ 50
Total monthly expenses.................. 3540.77


Assets
Cash.................................... 0
House value (Gross)..................... 320000
Shares and bonds........................ 0
Car(s).................................. 15000
Other assets............................ 0
Total Assets............................ 335000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 235225...(977.8)....2.09
Secured Debt.................. 32000....(371)......16
Hire Purchase (HP) debt ...... 13000....(230)......4
Total secured & HP debts...... 280225....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
CC 1 Barclaycard...............8320......184.......0
CC 2 Barclaycard...............7971......166.......0
CC 1 Sainsburys................4205......104.......12
Yorkshire Bank.................12000.....230.......5
Creation(ends May 20)..........640.......55........0
Clysdale (ends 2021)...........985.......55........0
Owe Family.....................2300......50........0
Paypal credit..................1500......40........0
Ratesetter.....................1700......59........12
CC 2 Sainsburys................7359......157.......0
Total unsecured debts..........46980.....1100......-


Monthly Budget Summary
Total monthly income.................... 4,615.94
Expenses (including HP & secured debts). 3,540.77
Available for debt repayments........... 1,075.17
Monthly UNsecured debt repayments....... 1,100
Amount short for making debt repayments. -24.83

Personal Balance Sheet Summary
Total assets (things you own)........... 335,000
Total HP & Secured debt................. -280,225
Total Unsecured debt.................... -46,980
Net Assets.............................. 7,795

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

My two cents worth. The long and the short of it is that having £46K in unsecured credit is what is killing you. You have listed may of those debts at 0% interest. Is that right?


From further comments that you have made it seems that you have an understanding as to how you got here. That is a good thing. The difficulty is that the tally man has come to call and you have to pay now for all the previous overspending. You will need to make some lifestyle changes in order to reduce your spending and there are areas where this can be achieved - particularly in your grocery shop and entertainment costs. I appreciate that may not seem a palatable prospect but clearing the debt needs to be your priority - particularly if you want to be in a good position later in life. If you are able to get a part-time job this will help significantly.


I hope you manage to improve your situation.

getmore4less

What's the hp for?

The £32000 secured loan at 16% £375pm is a killer.

probably wrong as interest only is £421pm

Mobiles go PAYG on someone like 3 and cut usage back to essential or SIMO under £10.

Cars £15k could free up cash there with cheaper ones.

Cold turkey on all the discretionary spending for 6 months would kick start getting the debt down.

If you could extend the mortgage term you could free up about £200pm this has the effect of moving the debt to the mortgage but allows you to throw money at the high rate debt.