Debt... incoming

LBincoming

My first baby is only nine months and can’t even crawl yet, I think he’ll need his pushchair for a while unfortunately (or we’d just use the one we’ve already got for the new baby). I haven’t yet been able to find a double pushchair for under £900 on Facebook, but I’m keeping an eye!

fatbelly

Yes, please do a soa because the devil's in the detail here

LBincoming

ratrace said:

Hi, i agree with others in that you need to do a proper soa listing our income and expenses

i mean this in a nice way but you think you have £1,100 but i would would say you are in thousends of pounds in the debt, just from the cars alone yes they on pcp etc.. but you still own that money to the finance company

this is why its important to do a proper soa becasue it give you a true reflection of your finances and things we may think are assets may be liabilitys

What’s a SOA please?

The cars are both on HP, rather than PCP, so we’ve always viewed it as the same kind of debt as having a mortgage? As we’ll own them outright in a few years with no lump sum payment. Both were used cars too. Is this not the right way to look at it? My last car I had until the bitter end when I was forced to replace it when it broke down and couldn’t be repaired, hoping to do the same with this one. The cars definitely aren’t financial assets, as we’re only ever going to lose money with them, but at the moment they’re necessities.

Granted, if I was to include the remaining mortgage and the amount left on the cars, then the figure would be HUGE in comparison. 

LBincoming

fatbelly said:

Yes, please do a soa because the devil's in the detail here

What’s a SOA please?

Grumpelstiltskin

Statement of Affairs  I linked you to it in post 6

ratrace

A soa is a statement of affairs ie: a spreadsheet of all your income and expenses

hopefully one of the other posters put a link in to it, what you have to do is fill it in and post it on here so we will be able help you better and point out where you could save money as at the moment its not clear cut, once you see the soa it will make more sense

in terms of the cars sorry i thought they were pcp, but nevertheless i would still class them as debt some may not but i do the reason being is that they do lose money over time plus the cost every month in payments plus running costs 

i would not class them the same as a mortgage as houses generally go up in price plus we need a roof over our heads etc....

but fill out the soa and that will give you a true picture of where you are, this is important as once the income drops you dont then want to be struggling so now is the time where cut back can be made etc....

ratrace

this is the link to the soa

Giving a full breakdown of your situation.

SOA Calculator (lemonfool.co.uk)

Format for MSE and put it on here.

LBincoming

ratrace said:

this is the link to the soa

Giving a full breakdown of your situation.

Format for MSE and put it on here.

Think I’ve managed! Thank you! I did a similar one earlier for my figures, just the MSR budget planner excel sheet, but here’s the lemon fool one.

[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]

Number of adults in household........... 2

Number of children in household......... 1

Number of cars owned.................... 2[b]

Monthly Income Details[/b]

Monthly income after tax................ 1633

Partners monthly income after tax....... 1830

Benefits................................ 82

Other income............................ 0[b]

Total monthly income.................... 3545[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 675

Secured/HP loan repayments.............. 762.74

Rent.................................... 0

Management charge (leasehold property).. 0

Council tax............................. 215

Electricity............................. 223

Gas..................................... 0

Oil..................................... 0

Water rates............................. 29

Telephone (land line)................... 0

Mobile phone............................ 47

TV Licence.............................. 12.5

Satellite/Cable TV...................... 0

Internet Services....................... 29

Groceries etc. ......................... 250

Clothing................................ 50

Petrol/diesel........................... 300

Road tax................................ 5

Car Insurance........................... 70

Car maintenance (including MOT)......... 10

Car parking............................. 0

Other travel............................ 0

Childcare/nursery....................... 0

Other child related expenses............ 40

Medical (prescriptions, dentist etc).... 0

Pet insurance/vet bills................. 14

Buildings insurance..................... 22

Contents insurance...................... 0

Life assurance ......................... 62

Other insurance......................... 0

Presents (birthday, christmas etc)...... 80

Haircuts................................ 70

Entertainment........................... 80

Holiday................................. 0

Emergency fund.......................... 0[b]

Total monthly expenses.................. 3046.24[/b]

[b]

Assets[/b]

Cash.................................... 200

House value (Gross)..................... 217000

Shares and bonds........................ 0

Car(s).................................. -4500

Other assets............................ 0[b]

Total Assets............................ 212700[/b]

[b]

Secured & HP Debts[/b]

Description....................Debt......Monthly...APR

Mortgage...................... 165600...(675)......3.02

Hire Purchase (HP) debt ...... 20124....(385)......7<

Hire Purchase (sofa)...........998.14...(90.74)....0<

Hire Purchase 2nd car..........16000....(287)......7[b]

Total secured & HP debts...... 202722.1.-.........-   [/b]

[b]Unsecured Debts[/b]

Description....................Debt......Monthly...APR

Owed to parents................1100......0.........0[b]

Total unsecured debts..........1100......0.........-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 3,545

Expenses (including HP & secured debts). 3,046.24

Available for debt repayments........... 498.76

Monthly UNsecured debt repayments....... 0[b]

Amount left after debt repayments....... 498.76[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 212,700

Total HP & Secured debt................. -202,722.14

Total Unsecured debt.................... -1,100[b]

Net Assets.............................. 8,877.86[/b]

Please bear in mind however, that our income will drop by £890(ish) when I have to go on maternity leave later in the year.

LBincoming

ratrace said:

A soa is a statement of affairs ie: a spreadsheet of all your income and expenses

hopefully one of the other posters put a link in to it, what you have to do is fill it in and post it on here so we will be able help you better and point out where you could save money as at the moment its not clear cut, once you see the soa it will make more sense

in terms of the cars sorry i thought they were pcp, but nevertheless i would still class them as debt some may not but i do the reason being is that they do lose money over time plus the cost every month in payments plus running costs 

i would not class them the same as a mortgage as houses generally go up in price plus we need a roof over our heads etc....

but fill out the soa and that will give you a true picture of where you are, this is important as once the income drops you dont then want to be struggling so now is the time where cut back can be made etc....

Thank you! I’ve posted above. I did a similar one earlier to get my figures - just used the MSE budget tracker. 

MovingForwards

You've got a few months to save hard and cover the loss for may leave.

Is the council tax spread over 10 or 12 months? It's still the same amount to be paid, but eases the financial pressure over 12 months.

Look for better SIM only contracts, they start from about £6pm.

Delay haircuts and have them every 12 weeks instead as you can't afford £70pm.

Cut back on the entertainment, the weather is nicer and you can do picnics and things with your mates / family.

TV licence, do you watch BBC / iPlayer? 

You know what people will say about the two cars on HP, especially as it's more than your mortgage.

Edit to add - run a benefit check based on 2 kids and paying nursery fees, see what you may be able to claim.