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Statement of Affairs - time to take back control

Hi,

I've finally taken my head out of the sand and put together my SOA. Some bad decisions when I had my own small business have led me to this point but it's time to take charge now. 

I am on an emergency tax code currently and that should be sorted out shortly. 

I plan to use the majority of my savings to clear down some of the credit card debt and then transfer the rest onto a 0% card so that there is only one payment. I have also identified ways of cutting my spending as well. 

I moved back with my parents when I had to relocate for a new job, clearly that is not a long term option but for now it will help. 

[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......... 0
Number of cars owned.................... 1[b]

Monthly Income Details[/b]
Monthly income after tax................ 2100
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0[b]
Total monthly income.................... 2100[/b][b]

Monthly Expense Details[/b]
Mortgage................................ 0
Secured/HP loan repayments.............. 296
Rent.................................... 200
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 45
TV Licence.............................. 13.25
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 300
Clothing................................ 25
Petrol/diesel........................... 210
Road tax................................ 12
Car Insurance........................... 32
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 15
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 7.5
Entertainment........................... 120
Holiday................................. 0
Emergency fund.......................... 0
Experian................................ 15
Gym..................................... 120[b]
Total monthly expenses.................. 1445.75[/b]
[b]

Assets[/b]
Cash.................................... 1855
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 18000
Other assets............................ 0[b]
Total Assets............................ 19855[/b]
[b]

Secured & HP Debts[/b]
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 25578.5..(296)......9.9[b]
Total secured & HP debts...... 25578.5...-.........-   [/b]

[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
BOS Card.......................2384.91...37.77.....11.9
RBS Card.......................1236.1....32........21.9
RBS Loan.......................13459.8...475.......16.9
Paypal.........................988.46....39.55.....21.9
Fintern Loan...................4416.82...201.......15[b]
«1

Comments

  • Brie
    Brie Posts: 14,439 Ambassador
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Well done on getting started on this. 

    And living with your folks explains the low rent and a number of other things too which was going to be my first question.

    Second question - why are you paying for a TV license?    Did your folks not have one? And not watch live TV?

    £25 a month for clothing?  Not a lot over all but is it really necessary while you're clearing debts?

    £15 for Experian?  Why??

    And £120 a month for the gym?  Is this a long term contract and something you actually use?  And another £120 for entertainment??  Now these 2 things may be what makes living with your parents bearable - been there, done that myself - so if that's the case then I suggest you stick with it.

    Is there a 0% card you can get or is there an offer on one of your current CCs?  I wonder if with the level of debt you have now if you would be successful in getting another card given that the provider will just assume (rightly or wrongly) that you will just use it for spending rather than to reduce your monthly payments overall.

    As for eliminating the debts - you've probably sussed already that hitting the ones with the highest interest is that right place to start.  So nuke Paypal and then RBS.  Meanwhile I'd suggest asking for settlement values for both Fintern and the HP just in case there's something that might be done with those.  

    Best of luck with it!!!
    I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe and Old Style Money Saving 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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  • HampshireH
    HampshireH Posts: 4,912 Forumite
    Seventh Anniversary 1,000 Posts Name Dropper
    edited 30 October 2022 at 4:44PM
    Are your cuts reflected before your SOA?

    300 on groceries for 1 person is very high. Could you be more efficient with your meal planning?

    £120 for the gym seems steep also. Do they offer alternative packages?

    What do you pay Experian for? You can get free credit checks with alternative providers

    What do you have left each month after your repayments?

    Goodluck with your journey


  • Brie
    Brie Posts: 14,439 Ambassador
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Second look at this....

    total monthly expenses = 1149.75
    total monthly debt payments = 1081.32
    which totals 2231.07

    total income 2100

    So something has got to go!  I'd start with the groceries and the gym.
    I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe and Old Style Money Saving 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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  • Grumpy_chap
    Grumpy_chap Posts: 18,126 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker

    Mobile phone............................ 45
    TV Licence.............................. 13.25
    Groceries etc. ......................... 300
    Life assurance ......................... 15
    Experian................................ 15
    Gym..................................... 120[b]

    Car(s).................................. 18000


    Well done on making a start.

    If I added correctly total debts are a little under £50k.

    Here are my thoughts:
    1. Sell the car £18k.  Buy a runabout £1k.  Use the £17k to pay down debt.
    2. Mobile phone £45is very high.  No need for a fancy iPhone or Samsung.  My wife and I both use £150 Moto Gs and total monthly bill sim only is £18 for the two of us (£18 total, not each)
    3. TV Licence - double check the rules but you may not need this while living with your parents assuming they have a TV licence.
    4. Groceries £300 per month is a lot for one person.  My wife and I do a weekly shop at Tesco, we take a list but then buy what we want to achieve the list, no looking at prices or brands, the check-out is never more than £40.  So £160 - £200 per month for two.
    5. Life assurance - what is that covering and who benefits if it needs to pay out?  Your OP appears to indicate you are single person with no dependents.
    6. Experian- why do you need the paid for service?  All of the credit agencies have a free level of access (Clearscore, MSE Credit Club, Credit Karma, Totally Money)
    7. Gym - my wife and I pay £126 for joint membership and single membership is £70 (anytime access)
    Hope you can work through this and good luck.
  • enthusiasticsaver
    enthusiasticsaver Posts: 16,048 Ambassador
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Well done on making a start although you have a lot of debt on fairly high interest. I would start on the credit cards with the highest interest but the loans are high interest  too so doing something with those would help. You can make savings on groceries and the gym. I think you have over extended with the car too. Almost half your salary is going on debt and that does not even include a mortgage so you are sensible to address this now. 
    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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  • Brie said:
    Well done on getting started on this. 

    And living with your folks explains the low rent and a number of other things too which was going to be my first question.

    Second question - why are you paying for a TV license?    Did your folks not have one? And not watch live TV?

    £25 a month for clothing?  Not a lot over all but is it really necessary while you're clearing debts?

    £15 for Experian?  Why??

    And £120 a month for the gym?  Is this a long term contract and something you actually use?  And another £120 for entertainment??  Now these 2 things may be what makes living with your parents bearable - been there, done that myself - so if that's the case then I suggest you stick with it.

    Is there a 0% card you can get or is there an offer on one of your current CCs?  I wonder if with the level of debt you have now if you would be successful in getting another card given that the provider will just assume (rightly or wrongly) that you will just use it for spending rather than to reduce your monthly payments overall.

    As for eliminating the debts - you've probably sussed already that hitting the ones with the highest interest is that right place to start.  So nuke Paypal and then RBS.  Meanwhile I'd suggest asking for settlement values for both Fintern and the HP just in case there's something that might be done with those.  

    Best of luck with it!!!
    Morning,

    TV License was posted by mistake, but either way it’s been cancelled as has Experian this morning.

    I’ve also nuked PayPal with savings, so it’s gone. 

    I have an offer to balance transfer the entire RBS card into my other existing card for 11.9% with a 5% fee. I know that’s not ideal but at least it would cut down the cost of payments as I can’t get a 0% card. 

    I have asked about switching my gym contract but I use it regularly anyway. 
  • RAS
    RAS Posts: 35,317 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Brie said:
    Well done on getting started on this. 

    And living with your folks explains the low rent and a number of other things too which was going to be my first question.

    Second question - why are you paying for a TV license?    Did your folks not have one? And not watch live TV?

    £25 a month for clothing?  Not a lot over all but is it really necessary while you're clearing debts?

    £15 for Experian?  Why??

    And £120 a month for the gym?  Is this a long term contract and something you actually use?  And another £120 for entertainment??  Now these 2 things may be what makes living with your parents bearable - been there, done that myself - so if that's the case then I suggest you stick with it.

    Is there a 0% card you can get or is there an offer on one of your current CCs?  I wonder if with the level of debt you have now if you would be successful in getting another card given that the provider will just assume (rightly or wrongly) that you will just use it for spending rather than to reduce your monthly payments overall.

    As for eliminating the debts - you've probably sussed already that hitting the ones with the highest interest is that right place to start.  So nuke Paypal and then RBS.  Meanwhile I'd suggest asking for settlement values for both Fintern and the HP just in case there's something that might be done with those.  

    Best of luck with it!!!
    Morning,

    TV License was posted by mistake, but either way it’s been cancelled as has Experian this morning.

    I’ve also nuked PayPal with savings, so it’s gone. 

    I have an offer to balance transfer the entire RBS card into my other existing card for 11.9% with a 5% fee. I know that’s not ideal but at least it would cut down the cost of payments as I can’t get a 0% card. 

    I have asked about switching my gym contract but I use it regularly anyway. 
    Every little bit helps.

    So now you tackle the 16.9% card relentlessly.


    If you've have not made a mistake, you've made nothing
  • I was thinking your gym was a crossfit/PT one with that price. I take it that isn't the case. My local health club is around that price also. Plenty of great gyms for less than £40 a month.
    Debt £7976 | Savings £350Aims: Buy first home 2026-8. £20k deposit
  • RobM99
    RobM99 Posts: 2,698 Forumite
    Eighth Anniversary 1,000 Posts Photogenic Name Dropper
    My gym is £16 a month but only for afternoon use. Suits me.
    Now a gainfully employed bassist again - WooHoo!
  • DrEskimo
    DrEskimo Posts: 2,425 Forumite
    Seventh Anniversary 1,000 Posts Name Dropper
    Others have discussed your food bill and gym bill (does your job offer gymflex through salary sacrifice?), but I don't think you've detailed what the secured HP loan is for? Is this for the £18,000 car?

    Although it is for >£25k, so would indicate you are massively upside down if it was for the car.
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