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Debt advice 40k

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  • Helloadviceplz
    Helloadviceplz Posts: 32 Forumite
    10 Posts Name Dropper
    Thank you so much everyone. I will do the SOA asap and paste here. 

  • Helloadviceplz
    Helloadviceplz Posts: 32 Forumite
    10 Posts Name Dropper
    Hello, 

    I have completed to SOA, unfortunately I dont have the interest rates for the two loans. Please let me know if you have any advice or if I can provide any further info here.

    I have declined an IVA. My priority is to pay my debts off, possibly move loans to reduce interest if possible in the future. Save money each month if possible to help with potential baby costs in the next couple of years. My partner also gives me £500 per month at the moment which I didnt include in the SOA. If you are wondering about home insurance, I live in a very secure apartment building so i dont have that at the moment to recude costs. I have also come out of my pension to help with paying debt. 

    Thank you so much

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

    Monthly Income Details[/b]
    Monthly income after tax................ 2891
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0[b]
    Total monthly income.................... 2891[/b][b]

    Monthly Expense Details[/b]
    Mortgage................................ 785.7
    Secured/HP loan repayments.............. 0
    Rent.................................... 200
    Management charge (leasehold property).. 106.52
    Council tax............................. 170
    Electricity............................. 45
    Gas..................................... 65
    Oil..................................... 0
    Water rates............................. 45
    Telephone (land line)................... 0
    Mobile phone............................ 30
    TV Licence.............................. 10
    Satellite/Cable TV...................... 0
    Internet Services....................... 10
    Groceries etc. ......................... 320
    Clothing................................ 0
    Petrol/diesel........................... 50
    Road tax................................ 10
    Car Insurance........................... 45
    Car maintenance (including MOT)......... 20
    Car parking............................. 20
    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 ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 10
    Entertainment........................... 100
    Holiday................................. 0
    Emergency fund.......................... 0[b]
    Total monthly expenses.................. 2042.22[/b]
    [b]

    Assets[/b]
    Cash.................................... 1000
    House value (Gross)..................... 180000
    Shares and bonds........................ 0
    Car(s).................................. 1
    Other assets............................ 0[b]
    Total Assets............................ 181001[/b]
    [b]

    Secured & HP Debts[/b]
    Description....................Debt......Monthly...APR
    Mortgage...................... 0........(785.7)....0[b]
    Total secured & HP debts...... 0.........-.........-   [/b]

    [b]Unsecured Debts[/b]
    Description....................Debt......Monthly...APR
    Credit card ...................3000......100.......22.47
    MBNA loan .....................9486.06...247.......0
    Marks and Spencer loa..........26000.....447.......0[b]
    Total unsecured debts..........38486.06..794.......-  [/b]

    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 2,891
    Expenses (including HP & secured debts). 2,042.22
    Available for debt repayments........... 848.78
    Monthly UNsecured debt repayments....... 794[b]
    Amount left after debt repayments....... 54.78[/b]

    [b]Personal Balance Sheet Summary[/b]
    Total assets (things you own)........... 181,001
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -38,486.06[b]
    Net Assets.............................. 142,514.94[/b]

    [i]Created using the SOA calculator at www.stoozing.com. 
    Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]
  • Helloadviceplz
    Helloadviceplz Posts: 32 Forumite
    10 Posts Name Dropper
    Sorry just to add - I own a 75% share in my apartment which is worth approx 260k in total. 
  • ManyWays
    ManyWays Posts: 1,387 Forumite
    1,000 Posts Fifth Anniversary Name Dropper
    That SoA looks a lot too thin to last for 5 years. The £500 extra from your partner may get you through until May if your partner can increase it a lot at that point, this needs to be discussed with him now as at the moment he is free-riding off you and that is not sustainable

    Lines which are unrealistic:
    Groceries etc. ......................... 320 That would be fine for one of you, but if it's for two, it is very skimpy as it has to cover toiletries and cleaning stuff and general things like light bulbs and printer ink, not just food.
    Clothing................................ 0
    Car maintenance (including MOT)......... 20
    Medical (prescriptions, dentist etc).... 0
    Contents insurance...................... 0
    Presents (birthday, christmas etc)...... 0
    Holiday................................. 0
    Emergency fund.......................... 0

    Also opting out of your pension scheme is very undesirable, perhaps OK for a few months but not a prolonged period.

    What is the interest rate on that large loan and was it for consolidation? How long ago was it taken and was it for consolidation?
  • RAS
    RAS Posts: 35,702 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Given you've also got your BF's contribution to add, you are in a good position to start tackling your debts. You are solvent so wouldn't be eligible for an IVA anyway. You'd just end up paying 100% plus £9k fees.

    You need to find out the APRs on the loans and whether you are allowed to repay extra without penalty. Some providers limit early repayments and some don't allow them.

    You do need contents insurance. What if there is a fire, or a leak from another part if the building. You lose stuff and can't afford to replace it. Even worse, someone gets hurt in your home and sues you. 

    Missing or underestimated items below. Sort those out and pay the excess towards the credit card and you should clear it in 7 months. Then save into your emergency fund until you have £3k. As a lease holder, you need to have access to money if there is a S20 bill and they could be large.

    Save you insurances, car maintenance and clothing into a budgeting fund, so it doesn't get lost and you have the readies.

    Helloadviceplz said:

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

    Monthly Income Details[/b]
    Monthly income after tax................ 2891
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0[b]
    Total monthly income.................... 2891[/b][b]

    Monthly Expense Details[/b]
    Mortgage................................ 785.7
    Secured/HP loan repayments.............. 0
    Rent.................................... 200 - is this the precise figure?
    Management charge (leasehold property).. 106.52
    Council tax............................. 170
    Electricity............................. 45 have you read the meters and ensured that you are up to date on costs
    Gas..................................... 65
    Oil..................................... 0
    Water rates............................. 45 - check whether a meter would be cheaper.
    Telephone (land line)................... 0
    Mobile phone............................ 30
    TV Licence.............................. 10 This is 14.12
    Satellite/Cable TV...................... 0
    Internet Services....................... 10
    Groceries etc. ......................... 320
    Clothing................................ 0 - even if you only buy knickers, socks and shoes and frequent chazzers, you need something in here. What did you spent in total last year, divide by 12.
    Petrol/diesel........................... 50
    Road tax................................ 10
    Car Insurance........................... 45 - is this the precise figure?
    Car maintenance (including MOT)......... 20 - way to low
    Car parking............................. 20
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0 - you need to put something here and save it I to a budgeting account. If only for the odd scaling.
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0 - never, ever?
    Haircuts................................ 10
    Entertainment........................... 100
    Holiday................................. 0 never go away, even to visit family?
    Emergency fund.......................... 0[b] - If you've got an existing vehicle and an excess on essentials, you need to save something each month towards the new car. Or you'll end up with a panicked nasty deal in a couple of years.
    Total monthly expenses.................. 2042.22[/b]
    [b]

    Assets[/b]
    Cash.................................... 1000
    House value (Gross)..................... 180000
    Shares and bonds........................ 0
    Car(s).................................. 1
    Other assets............................ 0[b]
    Total Assets............................ 181001[/b]
    [b]

    Secured & HP Debts[/b]
    Description....................Debt......Monthly...APR
    Mortgage...................... 0........(785.7)....0[b]
    Total secured & HP debts...... 0.........-.........-   [/b]

    [b]Unsecured Debts[/b]
    Description....................Debt......Monthly...APR
    Credit card ...................3000......100.......22.47
    MBNA loan .....................9486.06...247.......0
    Marks and Spencer loa..........26000.....447.......0[b]
    Total unsecured debts..........38486.06..794.......-  [/b]

    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 2,891
    Expenses (including HP & secured debts). 2,042.22
    Available for debt repayments........... 848.78
    Monthly UNsecured debt repayments....... 794[b]
    Amount left after debt repayments....... 54.78[/b]

    [b]Personal Balance Sheet Summary[/b]
    Total assets (things you own)........... 181,001
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -38,486.06[b]
    Net Assets.............................. 142,514.94[/b]

    [i]Created using the SOA calculator at www.stoozing.com. 
    Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

    If you've have not made a mistake, you've made nothing
  • Helloadviceplz
    Helloadviceplz Posts: 32 Forumite
    10 Posts Name Dropper
    Thank you @ManyWays and @RAS.

    My boyfriend owns his own flat too and is renting that out to cover the mortgage. His mortgage is a lot less than mine plus I have more expensive council tax and service charge/ rent. He has just finished a masters degree for a career change so when the job starts he will be supporting more. However, for now this is all he can give. We will definitely reasses his contribution when the new job starts. 

    The large loan started last August, it was actually for surgery and consolidation. The surgery I do not regret but consolidating on top I might now regret!

    I will re do the SOA.

    Thanks
    Nat 




  • EssexHebridean
    EssexHebridean Posts: 24,424 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    RAS has summed up the issues currently with the SOA pretty well I think. I will echo the comments about your electric and gas - you need to make sure that you are being billed on accurate readings - and yes, that applies even if you have smart meters!  what is the state of your energy account currently too - are you in credit still or is it beginning to balance out...? Definitely one to keep a keen eye on going forwards. 

    Yes - you're far from the first to regret consolidating - sadly it very rarely works and is best avoided. 

    On the emergency fund - you are a homeowner with a car so it's really important you have this. The usual suggestion is aim for somewhere about £1500 as a basic emergency fund to start off - and the money that goes to that should be ring-fenced and ONLY used in actual emergencies - so that is the fridge or washing machine going kaput, rather than "I really wanted this night out with pals but forgot to budget for it!" 

    What I will say is that by the time you've budgeted for the bits you have missed things are going to be fairly squeaky - there's not a massive amount you can cut back on so the sooner your OH can begin to contribute a fairer share of the household costs, the better really! 
    🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
    Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
    Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
    £100k barrier broken 1/4/25
    SOA CALCULATOR (for DFW newbies): SOA Calculator
    she/her
  • Helloadviceplz
    Helloadviceplz Posts: 32 Forumite
    10 Posts Name Dropper
    Thank you @EssexHebridean. I have just checked my energy account and I am in credit and my monthly amount has now been reduced as of next month to £19.93 , my electricity however has increased to £71.07 per month. 

    I currently have £800 in savings so I may build this up over the next two months to get it to £1500 and then tackle the debts head on with anything else I have. 
  • RAS
    RAS Posts: 35,702 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Well at least that enough to get some contents insurance!
    If you've have not made a mistake, you've made nothing
  • RAS
    RAS Posts: 35,702 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    HANG ON, please.

    You are solvent even without your partner's contribution!

    Why are going going for defaults, wrecking your credit record unnecessarily?
    If you've have not made a mistake, you've made nothing
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