SOA Advice

zoodelt

Hello,

This is my SOA, I have an appointment on 4th Feb with Citizens Advice to apply for a DRO - Should this SOA be adjusted in any way?

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

Household Information[/b]

Number of adults in household........... 3

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

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

Monthly Income Details[/b]

Monthly income after tax................ 0

Partners monthly income after tax....... 0

Benefits................................ 698.87

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

Total monthly income.................... 698.87[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 0

Secured/HP loan repayments.............. 0

Rent.................................... 75

Management charge (leasehold property).. 0

Council tax............................. 0

Electricity............................. 75

Gas..................................... 50

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

Water rates............................. 0

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

Mobile phone............................ 75

TV Licence.............................. 0

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

Internet Services....................... 25

Groceries etc. ......................... 220

Clothing................................ 10

Petrol/diesel........................... 0

Road tax................................ 0

Car Insurance........................... 0

Car maintenance (including MOT)......... 0

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

Other travel............................ 52

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

Other child related expenses............ 0

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

Pet insurance/vet bills................. 32

Buildings insurance..................... 0

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

Life assurance ......................... 0

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

Presents (birthday, christmas etc)...... 15

Haircuts................................ 5

Entertainment........................... 30

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

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

Total monthly expenses.................. 664[/b]

[b]

Assets[/b]

Cash.................................... 0

House value (Gross)..................... 0

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

Car(s).................................. 0

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

Total Assets............................ 0[/b]

[b]

No Secured nor Hire Purchase Debts[/b]

[b]Unsecured Debts[/b]

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

Aqua Credit....................1170......0.........0

Capital One....................548.47....0.........0

JD Williams....................1987.83...0.........0

Zilch..........................143.......0.........0

Very...........................494.73....0.........0

Next Pay.......................278.21....0.........0

Littlewoods....................535.......0.........0

Fashion World..................182.64....0.........0

Creation.......................1605.48...0.........0

Halifax........................186.65....0.........0

Argos..........................404.52....0.........0[b]

Total unsecured debts..........7536.53...0.........-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 698.87

Expenses (including HP & secured debts). 664

Available for debt repayments........... 34.87

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

Amount left after debt repayments....... 34.87[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 0

Total HP & Secured debt................. -0

Total Unsecured debt.................... -7,536.53[b]

Net Assets.............................. -7,536.53[/b]

[i]Created using the SOA calculator at www.LemonFool.co.uk.

Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

elsien

Why is your rent only £75 and why are the two other adults not contributing to the household? 

zoodelt

Rent is £75 as I live with parents - and the other adults do contribute. They already cover more than I do in terms of bills. I just bank transfer them £200 every month to go towards rent, gas, electric. 

MFWannabe

Why do you then list £200 for groceries and amounts for gas and electric and internet? 

If you transfer them £200 for rent, gas electric etc what does that actually include? Should you not just put £200 in rent? 

Does this include food or do you then buy your own? 

Do you pay for internet for the whole house? 

Mobile - I guess you’re in an expensive contract? When does that contract end? 

Are you looking for employment? Are you likely to find a job soon? 

EssexHebridean

zoodelt said:

Rent is £75 as I live with parents - and the other adults do contribute. They already cover more than I do in terms of bills. I just bank transfer them £200 every month to go towards rent, gas, aelectric. 

Got you - context like this is helpful at the start when posting an SOA as it saves people having to ask for clarity on what otherwise looks like a completely “cloud cuckoo land” SOA! 

 So your £200 is shown in the SOA under Rent, Gas, electric, yes? 

Your mobile phone is very high - when does your contract end? Regardless of what happens about the debt, you need to make a diary note (phone reminder) for when the contact is drawing to an end and swap to a SIM onky deal at that time.Allowing that your current contract presumably pays for the handset as well as the line, your current phone should be fine to keep at that stage, you don’t need a new phone every time you get a new phone deal! 

On the internet, I assume this is just for you? Allowing your mobile contract presumably comes with data can you switch to using that to avoid paying separately for internet?  

I take it on groceries you buy all your own and keep those totally separate from the rest of the household? If so, and assuming it also covers toiletries and some cleaning materials that figure looks about realistic. There would be a saving to be made there if you wanted to do so, but nobody will quibble at that spend for the purposes of an SOA for a DRO I wouldn’t have thought. 

Realistically, your current income compared to your “rent” figure is very reasonable indeed - and even allowing for things like that phone contract you should be able to live within it. Going forwards - and again whatever haoooens about the debt - you need to learn about budgeting, and ensure that you live within your income. I’d strongly suggest stopping using catalogues  as that appears to be where a lot of your problems lie.  

Make sure you do ringfence the money you save monthly for things, and when you start to look at making savings in particular areas ensure that you immediately use those savings to start building yourself an emergency fund - yes, you DO need this even living with parents - what happens if you need to make an emergency (unbudgeted) replacement if a cost or a pair of shoes, or if your phone gets lost of damaged? You don’t need the sort of level a homeowner would, where we are factoring in things like needing to replace appliances unexpectedly, or suddenly being told we require a new boiler, but you do need something saved in case if unforeseen but necessary spending. 

Grumpelstiltskin

OP Has another thread here which explains a bit more.

DRO Question — MoneySavingExpert Forum

zoodelt

My phone contract ends in over a year.

The internet bill is £50 in total as I opted for high speed when we first moved in- but there is an early termination charge so I can’t leave. We go halves on that hence the £25.

Yes, I buy my own food / toiletries. 

And yes, the £200 is a contribution to rent, gas and electricity. 

—

And yes forgot to mention from my other thread, UC deduct £30 a month from me due to a budgeting advance. So my UC would be £730 a month, but on my SOA, I have put it at £700 including the deduction.

And for a student finance maintenance loan, I was overpaid and required to pay it back immediately, so I have to pay £20 a month to them too which is not included in my SOA as there wasn’t an option for it. 

RAS

Just list the student loan as a debt.

zoodelt

RAS said:

Just list the student loan as a debt.

A student loan isn’t a debt that can be written off though? I would be left paying it DRO or not 

ManyWays

The UC look like a single person plus a child, plus CB - so the child is yours? In that case a lot of your expenses lines look too small:

Groceries etc. ......................... 220

Clothing................................ 10

Other child related expenses............ 0 

Somewhere you need nappies and children's clothing and shoes showing

The UC budgeting advance can be listed in your DRO so that deduction will stop, increasing your income a bit, but then its going to drop when you put in more realistic numbers. 

Are you likely to go back to work during the DRO year? You need to talk to the DRO adviser about this. 

zoodelt

My UC is the standard allowance for under 25 and Limited Capability for Work and Work-Related Activity (LCWRA), the child isn’t mine, he’s my brother.

It is highly unlikely I’ll be employed anytime soon.