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Our Soa - help please we’re struggling
Comments
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Just to help out I work at coop and as my store closes at 11pm we do our final discounts at 7pm. Other stores which close at 10pm, do their final discounts at 6pm. I do often get good bargains and tend to stock up the freezer with reduced meat that we eat. I don’t buy anything reduced if it’s not something we usually eat.4
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HI, hope your journey is going well. Difficult circumstances but you need a bigger shovel to get yourself out of this hole and then start snowballing some of these debts, I cant imagine living as tight as this, I couldn't cope with the anxiety.
Have a listen to Dave Ramsey podcasts and start to dig yourself out.
Find a side hustle, start selling stuff at home and build yourself an emergency fund at this stage of £500, ideally £1000 but start with £500, then cut up your cards and stop using them, then start with your smallest balance and pay that off first.
Baby Step 6/7 - £65000 saved for emergency fund DEBT FREE !!!
Currently Negotiating with HMRC !1 -
Even if you stop paying the £76 you are still short by £10 so I suggest stopping the charity donation and the stationery. Why cant you email the letters to the creditors rather than forking out £10 a time for stamps? You are paying for internet so perfectly possible to do that and you have an email trail.Dom135246 said:Hi again,
I’ve had help from Stepchange and at the moment they’ve said I can’t afford payments and suffering ill health with a view to starting a DMP in 6mth to 1 year. My wife has a DMP already for 7 of the debts in the SOA.
I’ve tried to make savings where I can over the past few months and have posted a new SOA.
It’s so complicated working through everything but I’ve posted any details which might help.
Thank you[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]Household Information[/b]Number of adults in household........... 3Number of children in household......... 0Number of cars owned.................... 0[b]Monthly Income Details[/b]Monthly income after tax................ 726.5Partners monthly income after tax....... 0Benefits................................ 333.67Other income............................ 40[b]Total monthly income.................... 1100.17[/b][b]Monthly Expense Details[/b]Mortgage................................ 0 (Own property)Secured/HP loan repayments.............. 0Rent.................................... 0Management charge (leasehold property).. 93Council tax............................. 133 (Includes arrears)Electricity............................. 110Gas..................................... 0 (Electric only)Oil..................................... 0Water rates............................. 0 (Included in Scottish Council Tax)Telephone (land line)................... 0Mobile phone............................ 10TV Licence.............................. 13.37Satellite/Cable TV...................... 0Internet Services....................... 36.05 (Contracted until Dec 2022)Groceries etc. ......................... 350Clothing................................ 35Petrol/diesel........................... 0Road tax................................ 0Car Insurance........................... 0Car maintenance (including MOT)......... 0Car parking............................. 0Other travel............................ 70Childcare/nursery....................... 0Other child related expenses............ 0Medical (prescriptions, dentist etc).... 45Pet insurance/vet bills................. 81.79 (Because of health condition/age of pet)Buildings insurance..................... 23Contents insurance...................... 7Life assurance ......................... 0Other insurance......................... 0Presents (birthday, christmas etc)...... 16Haircuts................................ 10Entertainment........................... 20Holiday................................. 0Emergency fund.......................... 20Arrears................................. 22Stationery.............................. 10Charity................................. 5[b]Total monthly expenses.................. 1110.21[/b][b]Assets[/b]Cash.................................... 400House value (Gross)..................... 85000Shares and bonds........................ 0Car(s).................................. 0Other assets............................ 1500[b]Total Assets............................ 86900[/b][b]No Secured nor Hire Purchase Debts[/b][b]Unsecured Debts[/b]Description....................Debt......Monthly...APRFamily.........................5000......0.........0Cabot..........................7000......1.........0 (Defaulted paying £1 per month) This is very old from the 1990’sLink...........................1700......5.........0 (Defaulted and on DMP) (Wife’s)Paypal.........................2800......0.........0Capital One....................740.......40........30Next Account...................53........0.........0Starling Overdraft.............400.......0.........0Fluid Credit Card..............1400......0.........0Amazon Credit Card.............2400......0.........0Likely Loan....................1500......0.........57Monzo..........................950.......0.........0Monzo..........................700.......0.........0Monzo..........................2850......0.........0Tesco..........................90........5.........0 (Defaulted and on DMP) (Wife’s)M&S............................830.......5.........0 (Defaulted and on DMP) (Wife’s)PRA............................1300......5.........0 (Defaulted and on DMP) (Wife’s)Virgin.........................2600......5.........0 (Defaulted and on DMP) (Wife’s)Nationwide.....................1500......5.........0 (Defaulted and on DMP) (Wife’s)Cabot..........................3500......5.........0[b] (Defaulted and on DMP) (Wife’s)Total unsecured debts..........37313.....76........- [/b][b]Monthly Budget Summary[/b]Total monthly income.................... 1,100.17Expenses (including HP & secured debts). 1,110.21Available for debt repayments........... -10.04Monthly UNsecured debt repayments....... 76[b]Amount short for making debt repayments. -86.04[/b][b]Personal Balance Sheet Summary[/b]Total assets (things you own)........... 86,900Total HP & Secured debt................. -0Total Unsecured debt.................... -37,313[b]Net Assets.............................. 49,587[/b][i]Created using the SOA calculator at www.LemonFool.co.uk.Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]
What is the £22 arrears charge for?
The groceries bill is large given you say you eat frugally. If you meal plan, shop at budget supermarkets and don't buy branded groceries you can cut that a lot.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.2 -
what does the 3rd adult pay, what is their income surely that isn't onincluded in the above SOA?Debt £7976 | Savings £350Aims: Buy first home 2026-8. £20k deposit1
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Thanks to all, I’ll stop the £5 to charity and also the £10 stationery, this seems to be a popular suggestion. I’m happy with that and happy to email I was just under the impression I was meant to write.The £22 arrears is my council tax arrears, what I did was copied the Stepchange budget, however you will notice I have already included the council tax arrears in the SOA – that’s because I also have arrears for the quarterly factor (the £93 mth in leasehold) and Stepchange said to pay the arrears which is £279 at £1 a month which I won’t be able to do (I have to pay this in August) because it’s a private freehold expense plus a new repair of £200 is expected so I thought I would keep the arrears in the budget and put it towards that to try and reflect what I have to do. I will use my emergency fund of £400 to pay the arrears and then build the fund back up using the £23 arrears and £20 emergency fund. Hope that makes sense.I think this is why I’m getting confused with the budget, stepchange allow a generous amount to live off but don’t seem to take into account quarterly/annual bills and most of ours were due all at once plus we have an allocation for things we don’t spend and not enough for what I actually spend so I have to make sure I don’t double account for things.I don’t always spend what they actually allow and other areas (like repairs and pet I spend more so borrow from the other areas) like clothing I don’t buy any we have plenty of good clothes and underwear that should last 2 or 3 years.So I’m trying to work out where I’m leaking money and where I should be saving it. I can see how good you all are with figures and spotting things so it’s really helped me in the last few months so I’m getting there plus it’s been an eye opener.The third adult is independent and helping me temporarily, and moving out soon.I’m getting there and appreciate your views.Looking at my SOA it should say 2 adults, that’s what was the case when I did the budget for Stepchange, it was based on two adults.The buildings insurance, leasehold payment, and emergency fund are for the factor and repairs.The grocery budget covers our food (for 2 adults), dog food for a giant breed dog, paracetomol, ibuprofen, etc, monthly/worming and flea prevention, toiletries and cleaning/laundry products. Looking at June I spend £295. I’ve been getting help to cut that more here and from the old style forum and my target is £200 month for July and same for August.I spent £6 on mobile so saved £4, and £8 on fun so saved £12. Nothing on dentist/optician but will need to soon. Nothing on haircuts so £10 saved there. Electric was £49 been trying to cut back for summer this will be higher in winter.I will hopefully be getting a few extra shifts in a few weeks time through to winter but can’t include that because it’s zero hours, no holiday pay or anything and not guaranteed, I think our tax credits are due to go down, definitely can’t have Universal Credit.I will be getting a tax refund of £400 soon and the cost of living payment in autumn.The council tax refund was taken off the council tax in April.My wife will hopefully be well enough to start earning again in autumn but will probably lose tax credits but would still be better off by about £600 or so a month but this isn’t guaranteed just yet.So typical monthly expenditure for us is as I’ve stated above, I’ve tried to be as real as I can, plus extras in June that were one offs, we had £250 on trains for non negotiable hospital appointment where we used to live. (GP told us to take the appointment we had). £30 for a blood pressure monitor. £66 for annual vaccinations for dog. Excess for vet bill of £200 (ish) though this excess is only paid once annually so if anything else happens will only have to pay 20 percent of bill not the £160 excess. This was an emergency appointment. Contents Insurance £54 paid annually.Commitments coming soon that I know of that’s not fully in the budget are:Repair £200, factor arrears £280, nothing else I know of.If I use the emergency fund that I built and taking into account tax refund I might be ok to cover that and have some left.I have a couple of questions please.Stepchange recommended we ask creditors for a payment suspension we have nothing for 6 to 12 months and apply for a moratanium if we do it jointly. Do you agree? based on reality right now.They also suggested (when I added estimated higher income for the next 6 months potentially) that I could do a DAS/DPP (Scottish) at £260 a month and wife do settlement figures if we do it separately. Not sure where the £260 came from though it seems the figure is always higher than what was actually leftover and it only covers my debts and not my wife’s so not keen on that option. A DMP at around £80 (I can’t remember and wife do settlement figures) or a joint DMP but I was advised not to include zero hours irregular income so as to get it right but looks like if things improve that could happen within a year. Worried with settlement figures they are suggesting we sell up.Should my wife carry on paying as hers have all defaulted to avoid legal action?If we save more on the groceries, stop charity, stop stationery and can get more income what is my next step.Would you snowball the Next and Tesco debts (both under £100) and get them paid in near future or take a break from it all with holidays and moratorium and build the emergency fund.Thanks for everything and sorry if this is long I can fill in the SOA again if it’s easier.0
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I think as far as all the debts go you cannot afford to pay any of them at present on that level of income. The only debt which should be priority is council tax. I am not sure why stepchange are suggesting you ask for a suspension of payments. I would just default and say at present you are unable to make payments given your low level of income. Saving for emergencies given you will have no access to credit is a priority. Certainly I would not be looking into snowballing at this stage. I would say your priority is to increase your income and get on track with a budget and save for emergencies as a starter. Review in 6 months as to whether you can then start paying towards a DMP.
It is irrelevant how much stepchange allow in terms of expenditure as it seems as if you cannot afford anything towards a DMP anyway. I would say your next step is get your budget sorted within your income, inform your creditors by email you have low income and cannot afford to pay anything at the moment and start an emergency fund with a bank you do not owe money to. As for annual or quarterly bills work them out annually then divide by 12 and put that aside to pay for them. That is what you should allow in your SOA as a monthly cost.
If your wife has no income either then she should stop repayments especially as they have already defaulted. I don't know much about the Scottish system so cannot advise on a DAS/DPP or factor arrears but again with your income barely covering essentials it seems you are not in a position to move forwards on that.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.2 -
I think it might be helpful for you to have two different SOAs. I think you would probably get the most useful comments here if you didn't have spending juggled into strange categories, but add as many as you need (dog food, leasehold repair bills, 1/12 of annual bills...) and reflect your real spending. You may also need one for arranging a DAS or similar which may need to have a few things moved about.
But a banker, engaged at enormous expense,Had the whole of their cash in his care.
Lewis Carroll1 -
[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]Household Information[/b]Number of adults in household........... 2Number of children in household......... 0Number of cars owned.................... 0[b]Monthly Income Details[/b]Monthly income after tax................ 726.5Partners monthly income after tax....... 0Benefits................................ 333.67Other income............................ 40[b]Total monthly income.................... 1100.17[/b][b]Monthly Expense Details[/b]Mortgage................................ 0Secured/HP loan repayments.............. 0Rent.................................... 0Management charge (freehold property).. 92 (Factor) £276 due quarterlyCouncil tax............................. 133 (Includes arrears agreed with Council Tax Office over 12 months)Electricity............................. 55 (Electric Only) variableGas..................................... 0Oil..................................... 0Water rates............................. 0 (included in Scottish Council Tax)Telephone (land line)................... 0Mobile phone............................ 6TV Licence.............................. 13.37Satellite/Cable TV...................... 0Internet Services....................... 36.05 (Contracted until Dec 2022)Groceries etc. ......................... 220 (Groceries/toiletries/laundry/cleaning)Clothing................................ 2 (Have enough, don’t need more, usually gifted at Christmas)Petrol/diesel........................... 0Road tax................................ 0Car Insurance........................... 0Car maintenance (including MOT)......... 0Car parking............................. 0Other travel............................ 50Childcare/nursery....................... 0Other child related expenses............ 0Medical (prescriptions, dentist etc).... 45 (plan to save monthly)Pet insurance/vet bills................. 81.79Buildings insurance..................... 0Contents insurance...................... 7 (1/12 towards annual bill)Life assurance ......................... 0Other insurance......................... 0Presents (birthday, christmas etc)...... 16Haircuts................................ 0Entertainment........................... 15Holiday................................. 0Emergency fund.......................... 40Dog Food................................ 75 (Giant breed dog)Dog Worming/flea prevention/vaccine plan.... 23[b]Total monthly expenses.................. 910.21[/b][b]Assets[/b]Cash.................................... 400House value (Gross)..................... 95000Shares and bonds........................ 0Car(s).................................. 0Other assets............................ 1500[b]Total Assets............................ 96900[/b][b]No Secured nor Hire Purchase Debts[/b][b]Unsecured Debts[/b]Description....................Debt......Monthly...APRNext...........................53........0.........0Tesco Credit Card..............85........0.........0Starling Overdraft.............400.......0.........0Family.........................5000......0.........0Paypal.........................2800......0.........0Cabot..........................7000......0.........0Cabot..........................3495......0.........0Monzo Loan.....................2850......0.........0Amazon Credit Card.............2400......0.........0Virgin Credit Card.............2595......0.........0Link...........................1700......0.........0Nationwide.....................1495......0.........0PRA ...........................1295......0.........0Likely Loan....................1500......0.........0Fluid Credit Card..............1400......0.........0Monzo Flex.....................950.......0.........0Monzo Overdraft................700.......0.........0M&S Credit Card................825.......0.........0Capital One....................740.......0.........0[b]Total unsecured debts..........37283.....0.........- [/b][b]Monthly Budget Summary[/b]Total monthly income.................... 1,100.17Expenses (including HP & secured debts). 910.21Available for debt repayments........... 189.96Monthly UNsecured debt repayments....... 0[b]Amount left after debt repayments....... 189.96[/b][b]Personal Balance Sheet Summary[/b]Total assets (things you own)........... 96,900Total HP & Secured debt................. -0Total Unsecured debt.................... -37,283[b]Net Assets.............................. 59,617[/b][i]Created using the SOA calculator at www.LemonFool.co.uk.Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]
Thanks for your help enthusiasticsaver and theoretica.
I’ve updated our SOA to reflect our actual realistic spending each month, including saving 1/12 each month for quarterly and annual bills.
Strangely I have money left over, and I’m confident this looks accurate. I will have to increase the electric again in a few months the figure I’ve used is the average over the last 12 months usage, we’re fixed until 2023.
Thanks for helping me get to this point, hope you think it’s starting to look better.1 -
What I did do was in March, I set up payment plans with the creditors varying from £7 pm to £39 pm but wasn’t expecting our circumstances to change back so soon, these were arrangements to pay. I preferred to try and prevent any court action if I could help it.I want to pay what I owe as soon as possible.The creditors have mainly put us on holiday breaks for a few months and have been good. We’ve informed them of the circumstances and told Stepchange of the serious illness and they were good too, offered that we should speak to them because they can help but wife prefers to stay strong and refuses applying for PIP because she knows how hard it is to get, even when people are debilitated she’s seen them refused on the forum she’s on. She has to stay strong and focussed and as a team we both get stuck in. She can continue as normal by pushing hard but that doesn’t get you recognised as needing help, I agree with her though she knows one day it will be very real so I can understand her strongwill and when she can she’ll help again, that’s why we downsized considerably in the first place to pay off debt and not take on a new mortgage and got rid of car to try be more sustainable and shop locally. Stuff happens though I could go into detail but won’t but it’s tough at times it’s like everything happens at once and you just think NOOOO give us a break please lol.I’m not sure if we should apply for a moratorium or not, I read it was best to use it only when chances of getting court action are higher, or whether to not at all or take Stepchanges advice.As since I’ve revised the SOA I’ve some money left over now should I be best still building the emergency fund or try and set up those payments with the creditors again to avoid court rather than default. Some are 5 months in now because some creditors kept marking the file as missed payment with reduced payment and others marked it as paid and have seemed to help. We don’t care about our credit files anymore, done with debt now, it takes hold and I saw it is credit rather than debt that it is and it soon spirals out of control.All I want now is to pay it all back asap at a manageable rate and avoid any sheriff knocking at the door to deliver papers and to avoid CCJ on others.Is there a possibility that charging orders will go on our property or we can be forced to sell, I just wondered why Stepchange suggested settlements, unless they mean with the £1500 asset which is jewellery and bikes but the debt for settlements is £12000 ish so would think they mean sell up.The reason I’m worried about court is I believe the Scottish system is cheaper for creditor to apply for than a CCJ is for English debts so have been really worried about it.0
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Are you still being charged interest? The advantage of having an account defaulted is that interest changes stop.No court is going to make you sell your home, and few debtors will take you to court if they believe you are paying what you can - because it wouldn't benefit them. They are also very unlikely to do anything other than send automated letters for a long time, they have so many accounts to deal with. Basically a LOT of barking before maybe any bite.Common advice is to stop paying while your accounts get defaulted (and interest stops) and you build up both an emergency savings pot and experience with your new budget - see how it plays out in reality. Then start communicating with your debtors and asking for accounts to be written off/paying what you can afford.
But a banker, engaged at enormous expense,Had the whole of their cash in his care.
Lewis Carroll1
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