How do I get out of this mess?

curlytop12

https://www.lemonfool.co.uk/financecalculators/soa.php

Hi, this is the link to a full SOA, format for MSE when done.

are you not claiming child benefit and child tax credits ?

CLS90

Thanks for all your responses.

Please find attached my SOA. This has been done on my estimated take-home pay for my new position which starts in January.

Additionally, my rent includes all bills and so I pay an inclusive fee.
I am also leasing a car so have not listed it as an asset since I don't actually own it.
I have attempted to rid the car but have faced some difficulty in terminating the lease early which incurs heavy costs.
The car remains with my ex-partner who I have consented her use of it to use for our son so I don't pay for petrol.
I have not been claiming any form of child benefit due to fear that my now ex's benefits would be reduced. The child also does not live with me.

Thanks again in advance for any advice.

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 1428
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1428

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 420
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 25
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 300
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 98.6
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 200
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 22
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 0
Car Lease............................... 256.6
Total monthly expenses.................. 1372.2


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
American Express...............800.......25........57.6
Total unsecured debts..........800.......25........-


Monthly Budget Summary
Total monthly income.................... 1,428
Expenses (including HP & secured debts). 1,372.2
Available for debt repayments........... 55.8
Monthly UNsecured debt repayments....... 25
Amount left after debt repayments....... 30.8

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -800
Net Assets.............................. -800


Reproduced on Moneysavingexpert with permission, using other browser.[/i]

monetxchange

There are some gaps in your SOA, but the main thing that’s putting you in difficulty is the car. It’s frankly madness to pay an extortionate amount of lease and insurance a month so your ex can have the luxury of a car. They’ll have to buy their own I’m afraid, as I doubt this was part of an official court agreement. Yes, you will lose out from handing it back and there may be costs, but in the long run you can’t afford it. Nobody can afford cars that are valued more than their yearly salary. Guessing the same for your ex. That’s why I said take the hit on it now and get it over with. Dave Ramsey has some good videos telling people to get rid of costly leased cars on this subject if you need further inspiration.

£300 groceries for one person can also be cut hugely.

SusieT

How much longer does the lease have to run before you can hand the car back with no penalties? Also, what would the penalty be if you handed it back now rather than wait it out as that will be needed to make the decision.
If your wife has the car, I would be warning her now that it will be going back and that if she has not already done so to start saving for one.
It is also possible to trim £ from the groceries which will help, e.g. drop to store own and budget brands, menu plan and shop from a list rather than strolling around getting what you fancy at the time.

Karonher

Agree about the car and groceries - even while the car is in your ownership I would get your partner to pay her own insurance. I would also add that you could do with contents insurance and to look at cutting back on haircuts. Start an emergency fund as soon as possible.

Indout96

Does the insurance know that your wife is the main driver and that the car is not kept at your address (or you are not at the address you have it registered at) You could be storing up massive problems if you have not told them and she has an accident.
Also any damage she causes to the car - car park dings / scraped wheels will be down to you to pay for when it does go back.

pinkshoes

£22 a month haircut can go - a luxury!!

Can you change phone to a sim only contract?

£300 a month groceries for ONE person???? Try and half this!

Obviously the car is a huge expenditure on your salary.

CLS90

Thanks for your responses

I have another 2 years left on the lease. I was recently made aware of the option of selling/transferring a lease car to a cheaper one (novation) which I hope may be on the cards. Does anyone on here know much about that?

Also, she and I are on the insurance and we have spoken about taken me off it to find cheaper insurance for herself in the meantime, which would be something.

The haircuts are defiantly a luxury so they will have to go and I've started cutting down rapidly on the grocery budget since making this thread. My phone is pay as you go with giffgaff so it's not contractual, fortunately.

Thanks again for all your advice