Cleaning up for parents. Loans + SOA Calculator

enthusiasticsaver

A zoopla estimate is fine.

The solar panels will be secured loan.

The income can be separated out and detailed in the soa.

kylos

What does it mean under the field 'Minimum Pay' for Unsecured debts? Almost done here with the SOA.


Edit: Nevermind I figured it out, although I think it only applies to credit cards when stated

enthusiasticsaver

the minimum payment only applies to credit cards as you have already realised. For loans put the normal payment.

kylos

Deepest apologies if any of this is erroneous or incomplete, it's the first time doing one of these and I tried my hardest to gather all the relevant data and used calculators to ensure anything quarterly or annually were converted in to monthly rates. Here's some notes, just in case anything is confusing or looks totally wrong. Thank you very much for taking the time to help us with these issues, I can't describe how much it means.

Edit: Will post new SOA after getting more information.

sew_what

kylos wrote: »

Buildings insurance..................... 579.36
Contents insurance...................... 0
Life assurance ......................... 11000
Other insurance......................... 40

Life assurance & building insurance figures look high - you need the monthly payment amount!

kylos

Thanks. My Father just told me how much he had in the life assurance, not how much he is paying towards it. So I'll have to get some more details on that. Otherwise, I can change the building one now, dividing by 12. I'll need to wait about an hour to get the life assurance details. I got my Mother's life assurance which is £30 a month. Once I got his I can add them together. I'm also going to add my Mother's pension to the 'Other Insurance' field. Will add his too when I find out.

enthusiasticsaver

kylos wrote: »

Deepest apologies if any of this is erroneous or incomplete, it's the first time doing one of these and I tried my hardest to gather all the relevant data and used calculators to ensure anything quarterly or annually were converted in to monthly rates. Here's some notes, just in case anything is confusing or looks totally wrong. Thank you very much for taking the time to help us with these issues, I can't describe how much it means.

-Electric & Gas are one package with a Smart meter reading. We took the last four quarterly bills and calculated the monthly.

-Telephone includes the monthly rate for landline+BT internet+calls on average.

-Satellite/Cable TV is Sky+ with Sky Protect added on top.

-Groceries (etc) is an estimation, which also includes food for when me and my daughter visit. Mother and other adults pay monthly towards this total, while my Father focuses on almost everything else.

-One adult spends roughly 300 on rent, child maintenance and other things. The other roughly 580 (although she's lowering it). So 880 could be deducted from 'Other Income'

-Clothing/Presents etc is difficult to quantify as there's no records, but safe to say no one is going crazy with these. Zero holidays. Haircuts are extremely cheap (£10 every few months) so didn't add. Mobiles are pay as you go, so they top up super rarely for 10-20 pound a pop.

-Medical is an estimation as prescriptions are random, as are my Mother's dentist appointments.

-Included building+contents insurance under the same (building), but we're figuring out a new deal as the current expires on the 28th. We determined this rate is pretty extreme and my Father has never switched supplier.

-Life assurance is my Father's only. Yet to get Mother's details, but if it's super important? I can add it later.

-Overall Cash is a rough estimation after certain bills/debits being paid from all four adults this month.

-House value is an estimation from Zoopla.

-The Secured debt is a loan for Solar paneling.

-Consolidation Loan is through Prestige. My Father was sold this under the impression it would help him to pay off bills/mortgage/other things, but I found out these are nasty and should be avoided. The credit card is MBNA, and was used by my Father to buy presents and stuff when he couldn't really afford it.

-No one is currently in the red. My Father is hovering over 2k at the moment in cash, as he made some changes last year which helped a tiny bit, but it seems there's a lot more to do.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 4
Number of children in household......... 0
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 1210.84
Partners monthly income after tax....... 600
Benefits................................ 0
Other income............................ 1842.17
Total monthly income.................... 3653.01

Monthly Expense Details
Mortgage................................ 225
Secured/HP loan repayments.............. 135
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 129
Electricity............................. 94.28
Gas..................................... 0
Oil..................................... 0
Water rates............................. 16.3
Telephone (land line)................... 68.23
Mobile phone............................ 0
TV Licence.............................. 13.3
Satellite/Cable TV...................... 53.88
Internet Services....................... 0
Groceries etc. ......................... 580
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 22.8
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 80
Pet insurance/vet bills................. 16
Buildings insurance..................... 579.36 This is extremely high even if annual
Contents insurance...................... 0
Life assurance ......................... 11000 This has got to be wrong
Other insurance......................... 40
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 13053.15

Assets
Cash.................................... 11100
House value (Gross)..................... 174813
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 185913

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 18811....(225)......2.33
Secured Debt.................. 6536.....(135)......9.9
Total secured & HP debts...... 25347.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Consolidation Loan.............8676......0.........10.07
Cashback Credit Card...........930.82....42.12.....29.92
Total unsecured debts..........9606.82...42.12.....-

Monthly Budget Summary
Total monthly income.................... 3,653.01
Expenses (including HP & secured debts). 13,053.15
Available for debt repayments........... -9,400.14
Monthly UNsecured debt repayments....... 42.12
Amount short for making debt repayments. -9,442.26

Personal Balance Sheet Summary
Total assets (things you own)........... 185,913
Total HP & Secured debt................. -25,347
Total Unsecured debt.................... -9,606.82
Net Assets.............................. 150,959.18

I think there are a few errors in this on the life insurance and buildings and contents insurance and I would say the groceries figure could be lowered. With that amount of savings and at the interest rate the cashback credit card is charging that should be paid off and closed.

elsien

You need to put something in for all spends even if they are infrequent; so haircuts, presents, entertainment etc should all be in there.
No-one ever does any social activities or buys each other birthday or christmas presents.
And they need to start budgetting for an emergency fund going forwards - saves having to hit the credit cards if something needs repairing, for example.

kylos

The buildings and contents insurance is legit lol, I can even take a picture of the statement for you and prove it. This is because my Father never, ever changed supplier, despite them literally BEGGING him to shop around. You should see some of the letters, they are laughable and also terrible. Even they knew they were charging way too much, yet it was down to someone to follow through on that.

As described, yeah I screwed up the life assurance part. It should be what he's paying per month, not what he has saved up. I'll correct that soon as I'm planning on talking to him after he finishes work. Paying off the credit card? That was my first thought too.

Adding other expenses is difficult as they are so random. My sister who lives there has a rough idea, but she's the only one who really goes out and does things socially, everyone else stays in, watches TV or plays games etc. It would be a very wild guess, that's for sure. I guess I could put in the haircuts seeing as I have the figures. Xmas presents I'd have to look back and find out what everyone spent, which is almost impossible because they didn't exactly hang on to receipts. Also saving money and putting some away for emergencies?? Never been their style really,

What comes after that though? The consolidation loan or the solar paneling? Both seem to be big drains.

enthusiasticsaver

Presumably as your parents no longer have financial dependents they don't need life assurance any more? Don't they have death in service on their pensions? On that income I am not sure why they are not able to meet the mortgage payment which is not huge. You also need the consolidation loan monthly repayment. Why would it be repossessed in 2024?

With regards to the other income are you saying that the £3653 should have £880 deducted due to (presumably your adult siblings) other commitments by the 2 additional adults living there with your parents? I am certainly confused why 4 presumably working adults cannot manage to pay £225 mortgage payment and you certainly should not allow the property to be repossessed when there is so much equity there.