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SOA what would you do ?
mdh1977
Posts: 4 Newbie
Hi,
I'm after a bit of advice, well a lot really, I have been around for a while and I have reduced my outgoings some of the things I have done are below.
Things that I cannot change due to being tied in - my mobile phone the worst thing I did it's so expensive, I know this now how much I could save but now I am tied in for ages its because I got the phone and a contract! My car insurance has just been renewed and I made a saving, it's quite expensive but I did search for a long time before I went with that one that also includes breakdown cover which is important since I travel a lot, my house rent is reasonable for the area I have a small 2-bed house which I need as I have a son so two rooms are essential.
So I'm just wondering what would you do, I have a full layout of my Debts in an app called the Debt pay off plan this tells me what I need to pay with the surplus I have which is about £80 a month, I have managed to get together a small emergency fund which has taken a while it's at £600 I had to buy brakes and have them fitted on the car so this went down from £700, it seems endless I'm lucky that I can still keep up to date with everything but I feel like I am literally on the edge constantly, I rent and if I had to move I would be in a bit of trouble I think, I have looked at going on some kind of debt plan but im not sure if this is the best way, I just have no idea what to do, the cards are really taking up so much of my income, I'm lucky as I am still in work so I know it could be a lot worse, any advice welcome and thank you.
I'm after a bit of advice, well a lot really, I have been around for a while and I have reduced my outgoings some of the things I have done are below.
- Budget every month on a spreadsheet check all cards and amounts leaving my account that month
- Meal planning to save waste and overspending,
- Water Meter to reduce payments,
- Change of Electricity, and Gas to another provider,
- Bought clippers to save on haircuts.
Things that I cannot change due to being tied in - my mobile phone the worst thing I did it's so expensive, I know this now how much I could save but now I am tied in for ages its because I got the phone and a contract! My car insurance has just been renewed and I made a saving, it's quite expensive but I did search for a long time before I went with that one that also includes breakdown cover which is important since I travel a lot, my house rent is reasonable for the area I have a small 2-bed house which I need as I have a son so two rooms are essential.
So I'm just wondering what would you do, I have a full layout of my Debts in an app called the Debt pay off plan this tells me what I need to pay with the surplus I have which is about £80 a month, I have managed to get together a small emergency fund which has taken a while it's at £600 I had to buy brakes and have them fitted on the car so this went down from £700, it seems endless I'm lucky that I can still keep up to date with everything but I feel like I am literally on the edge constantly, I rent and if I had to move I would be in a bit of trouble I think, I have looked at going on some kind of debt plan but im not sure if this is the best way, I just have no idea what to do, the cards are really taking up so much of my income, I'm lucky as I am still in work so I know it could be a lot worse, any advice welcome and thank you.
[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]
Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 1
Number of cars owned.................... 1[b]
Monthly Income Details[/b]
Monthly income after tax................ 2300
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0[b]
Total monthly income.................... 2300[/b][b]
Monthly Expense Details[/b]
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 725
Management charge (leasehold property).. 0
Council tax............................. 123
Electricity............................. 37
Gas..................................... 37
Oil..................................... 0
Water rates............................. 35.61
Telephone (land line)................... 0
Mobile phone............................ 60
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 33
Groceries etc. ......................... 200
Clothing................................ 0
Petrol/diesel........................... 160
Road tax................................ 17.5
Car Insurance........................... 58
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 100
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 40
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 17.98
Holiday................................. 0
Emergency fund.......................... 0[b]
Total monthly expenses.................. 1644.09[/b]
[b]
Assets[/b]
Cash.................................... 600
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0[b]
Total Assets............................ 2600[/b]
[b]
No Secured nor Hire Purchase Debts[/b]
[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
Barclaycard ...................5778.3....145.1.....17.03
MBNA...........................7780.38...101.9.....20.93
MBNA...........................682.17....25........27.93
Monzo Loan.....................9804.79...191.8.....3
Virgin.........................4337......51.32.....0
RBS............................2121.62...57.23.....27.55[b]
Total unsecured debts..........30504.26..572.35....- [/b]
[b]
Monthly Budget Summary[/b]
Total monthly income.................... 2,300
Expenses (including HP & secured debts). 1,644.09
Available for debt repayments........... 655.91
Monthly UNsecured debt repayments....... 572.35[b]
Amount left after debt repayments....... 83.56[/b]
[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 2,600
Total HP & Secured debt................. -0
Total Unsecured debt.................... -30,504.26[b]
Net Assets.............................. -27,904.26[/b]
[i]Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]
0
Comments
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Small things, but just confirming you have the single person/adult council tax discount and have/will shopped around for life assurance too.But a banker, engaged at enormous expense,Had the whole of their cash in his care.
Lewis Carroll2 -
Usual advice - clear the highest APR first.Now a gainfully employed bassist again - WooHoo!2
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No child benefit?
0 -
No child benefits / maintenance?
Council tax spread over 12 months?
Nothing for vehicle maintenance?
Nothing for presents?
How old is your child?Mortgage started 2020, aiming to clear 31/12/2029.0 -
If it was me I would see what the minimum payment for each debt is this month and set a standing order for minimum plus £5 so that is what is going out each month and you know that is what you have to pay and does not reduce over the life of the debt so you are paying more off as the debt goes on. Then decide whether you are going to tackle the highest apr first or the smallest debt. It’s entirely up to you which way you do it. I’m generally doing smallest to largest. I do surveys and am putting any extra on the smallest. As that’s paid off I put the standing order to up the payment of the next debt I’m clearing and bung any extra money I make on that. Then when that’s cleared the upped SO payment goes on the next debt and I put any spare money on that. I think it’s called snowballing but I’m sure someone will be able to confirm.I’M NO EXPERT LIKE SOME OF THESE CHAPS (excuse the capitals I’m not shouting I’m just trying to make a difference between yours and my writing) BUT THIS IS WHAT STOOD OUT TOO ME.
mdh1977 said:Hi,
I'm after a bit of advice, well a lot really, I have been around for a while and I have reduced my outgoings some of the things I have done are below.- Budget every month on a spreadsheet check all cards and amounts leaving my account that month
- Meal planning to save waste and overspending,
- Water Meter to reduce payments,
- Change of Electricity, and Gas to another provider,
- Bought clippers to save on haircuts.
Things that I cannot change due to being tied in - my mobile phone the worst thing I did it's so expensive, I know this now how much I could save but now I am tied in for ages its because I got the phone and a contract! My car insurance has just been renewed and I made a saving, it's quite expensive but I did search for a long time before I went with that one that also includes breakdown cover which is important since I travel a lot, my house rent is reasonable for the area I have a small 2-bed house which I need as I have a son so two rooms are essential.
So I'm just wondering what would you do, I have a full layout of my Debts in an app called the Debt pay off plan this tells me what I need to pay with the surplus I have which is about £80 a month, I have managed to get together a small emergency fund which has taken a while it's at £600 I had to buy brakes and have them fitted on the car so this went down from £700, it seems endless I'm lucky that I can still keep up to date with everything but I feel like I am literally on the edge constantly, I rent and if I had to move I would be in a bit of trouble I think, I have looked at going on some kind of debt plan but im not sure if this is the best way, I just have no idea what to do, the cards are really taking up so much of my income, I'm lucky as I am still in work so I know it could be a lot worse, any advice welcome and thank you.[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]Household Information[/b]Number of adults in household........... 1Number of children in household......... 1Number of cars owned.................... 1[b]Monthly Income Details[/b]Monthly income after tax................ 2300Partners monthly income after tax....... 0Benefits................................ 0 NO CHILD BENEFIT? HOW OLD IS YOUR CHILD? OR TAX CREDITS?Other income............................ 0[b]Total monthly income.................... 2300[/b][b]Monthly Expense Details[/b]Mortgage................................ 0Secured/HP loan repayments.............. 0Rent.................................... 725Management charge (leasehold property).. 0Council tax............................. 123Electricity............................. 37Gas..................................... 37Oil..................................... 0Water rates............................. 35.61Telephone (land line)................... 0Mobile phone............................ 60TV Licence.............................. 0 NO LIVE TV?Satellite/Cable TV...................... 0 DO YOU JUST HAVE FREEVIEW? NO STREAMING OPTIONS LIKE AMAZON PRIMEInternet Services....................... 33Groceries etc. ......................... 200Clothing................................ 0 YOU HAVE TO BUY CLOTHES SOMETIMES SURELY.Petrol/diesel........................... 160Road tax................................ 17.5Car Insurance........................... 58Car maintenance (including MOT)......... 0 DOES YOUR CAR NOT NEED AN MOT OR SERVICING?Car parking............................. 0Other travel............................ 0Childcare/nursery....................... 0Other child related expenses............ 100Medical (prescriptions, dentist etc).... 0 NO PRESCRIPTIONS, DENTIST OR OPTITION?Pet insurance/vet bills................. 0Buildings insurance..................... 0Contents insurance...................... 0 YOU REALLY NEED THIS ESPECIALLY WITH ACCIDENTAL DAMAGE.Life assurance ......................... 40Other insurance......................... 0Presents (birthday, christmas etc)...... 0 DO YOU NOT BUY YOUR CHILD OR ANYONE BIRTHDAY PRESENTS?Haircuts................................ 0Entertainment........................... 17.98Holiday................................. 0Emergency fund.......................... 0[b] YOU NEED TO KEEP YOUR EMERGENCY FUND GOING. YOU HAVE ALREADY SEEN HOW USEFUL IT IS. EVEN £20 or £30 iIS USEFUL TO HELP GROW IT.Total monthly expenses.................. 1644.09[/b][b]Assets[/b]Cash.................................... 600House value (Gross)..................... 0Shares and bonds........................ 0Car(s).................................. 2000Other assets............................ 0[b]Total Assets............................ 2600[/b][b]No Secured nor Hire Purchase Debts[/b][b]Unsecured Debts[/b]Description....................Debt......Monthly...APRBarclaycard ...................5778.3....145.1.....17.03MBNA...........................7780.38...101.9.....20.93MBNA...........................682.17....25........27.93Monzo Loan.....................9804.79...191.8.....3Virgin.........................4337......51.32.....0RBS............................2121.62...57.23.....27.55[b]Total unsecured debts..........30504.26..572.35....- [/b][b]Monthly Budget Summary[/b]Total monthly income.................... 2,300Expenses (including HP & secured debts). 1,644.09Available for debt repayments........... 655.91Monthly UNsecured debt repayments....... 572.35[b]Amount left after debt repayments....... 83.56[/b][b]Personal Balance Sheet Summary[/b]Total assets (things you own)........... 2,600Total HP & Secured debt................. -0Total Unsecured debt.................... -30,504.26[b]Net Assets.............................. -27,904.26[/b][i]Created using the SOA calculator at www.stoozing.com.Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]0 -
HI,
Try not to worry. You're tackling the debts now and they can only go one way.
What's the insurance for? Tackle the highest apr debt first as any other order will cost you more in interest, although I do understand that if there's a small debt it can be motivating to pay that off and have one fewer on the list.
CCs @0% £24k Dec 05 £19,621.41 Au £13400 S 12600 Oct £11,981 £9481 £7500 Nov £7250 D £7100 Jan 6950 F £5800 Mar£5400 May £4830 June £4660 July £4460 Aug £3200, S £900, £0 18/9/07 DFW Nerd 0421 -
Personally I would think about a DMP as you have allowed nothing for emergencies although I know you have a small emergency fund but it is not enough if you rent as you will need to find a deposit if you have to move. You have allowed nothing for car maintenance when you have a low value car and high mileage this is essential and ideally should not be coming out of your emergency savings and you have a child and have allowed nothing for clothes or shoes etc. Do you really have no tv? You need contents insurance although I disagree you need accidental damage. I have never gone down that route. Just make sure you and your son take care of your things but if you have a fire or burglary you would need to replace stuff. The landlord will take care of buildings insurance presumably. I also doubt you never buy presents so that needs budgeting for.
Although you have a decent income too much of it is swallowed up by debt. Is this due to years of overspending or is there a reason you have incurred that much? Does your sons father not pay any maintenance and why no child benefit?
When you have addressed the gaps in your soa I think you will have a deficit rather than a surplus and the advantage of a DMP is that lenders will generally freeze the interest, the monthly payment to your creditors is more affordable so you can allow for the gaps in your soa and it forces you to live off your income rather than depend on borrowing. The biggest reason though is that out of that £572 you are paying towards debt each month almost £307 of that is just paying the interest so the debt is only decreasing by around £265 a month. With over £30k of debt it will take you such a long time to get anywhere with it and with the soa so tight you will be tempted to borrow more on cards which is the worst thing you could do.I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
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The 365 Day 1p Challenge 2025 #1 £667.95/£451.50
Save £12k in 2025 #1 £12000/£124501 -
I have the single person discount its still a lot though,theoretica said:Small things, but just confirming you have the single person/adult council tax discount and have/will shopped around for life assurance too.
I pay £100 a month and he's with me 60/40 she gets the child benefit and its not even worth asking, we get on and I'd like to keep it that wayMovingForwards said:No child benefits / maintenance?
Council tax spread over 12 months?
Nothing for vehicle maintenance?
Nothing for presents?
How old is your child?
Not sure about the 12 months I will check that one, I don't have anything for maintenance luckily I have a friend who is a mechanic so it costs me next to nothing to get things done, and presents I tend to leave until the last minute I know it should be budgeted, my child is 5.
I have looked at the highest and lowest and there's a couple of thousand in it and about 5 months less,
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I'd second enthusiasticsaver's advice. One of the aspects of debt is that there's a tipping point which if you go beyond it's very difficult to claw your way back. With 30k's worth of debt on your income and commitments I'd suggest that's probably where you're at. With interest frozen on a dmp you should at least be able to start making some headway hopefully.1
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