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SOA
bitingthebullet
Posts: 6 Forumite
Hi, not feeling to great about posting this but time to get it all sorted.
My husband pays some bills whilst I pay others. I do pay more because I earn more.
I have set up a new bank account and am starting to manually move direct debits in time for the next pay day.
I don't have a choice but to do a DMP, as my credit rating is dropping due to % of debts I have vs credit available on my credit cards. So not getting credit won't matter as I can't get it now anyway and a change of mindset about these debts will help me hugely. I spend most of my waking time thinking about them, and would love to be able to think about other things and improve my mental health generally.
A couple of notes, my husband pays for the car lease, I pay for insurance and fuel hence it may look like I have missed the car on there but I haven't. Benefits is child benefit. I haven't added my husband's finances on here as its separate.
Thoughts on the SOA? Thanks
My husband pays some bills whilst I pay others. I do pay more because I earn more.
I have set up a new bank account and am starting to manually move direct debits in time for the next pay day.
I don't have a choice but to do a DMP, as my credit rating is dropping due to % of debts I have vs credit available on my credit cards. So not getting credit won't matter as I can't get it now anyway and a change of mindset about these debts will help me hugely. I spend most of my waking time thinking about them, and would love to be able to think about other things and improve my mental health generally.
A couple of notes, my husband pays for the car lease, I pay for insurance and fuel hence it may look like I have missed the car on there but I haven't. Benefits is child benefit. I haven't added my husband's finances on here as its separate.
Thoughts on the SOA? Thanks
[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......... 3
Number of cars owned.................... 1[b]
Monthly Income Details[/b]
Monthly income after tax................ 3831
Partners monthly income after tax....... 0
Benefits................................ 287
Other income............................ 0[b]
Total monthly income.................... 4118[/b][b]
Monthly Expense Details[/b]
Mortgage................................ 1100
Secured/HP loan repayments.............. 220
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 220
Electricity............................. 100
Gas..................................... 100
Oil..................................... 0
Water rates............................. 80
Telephone (land line)................... 0
Mobile phone............................ 85
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 750
Clothing................................ 150
Petrol/diesel........................... 120
Road tax................................ 0
Car Insurance........................... 50
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 120
Buildings insurance..................... 25
Contents insurance...................... 25
Life assurance ......................... 100
Other insurance......................... 0
Presents (birthday, christmas etc)...... 100
Haircuts................................ 35
Entertainment........................... 100
Holiday................................. 0
Emergency fund.......................... 0[b]
Total monthly expenses.................. 3480[/b]
[b]
Assets[/b]
Cash.................................... 0
House value (Gross)..................... 525000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0[b]
Total Assets............................ 525000[/b]
[b]
Secured & HP Debts[/b]
Description....................Debt......Monthly...APR
Mortgage...................... 190000...(1100).....4.14
Secured Debt.................. 17000....(220)......7[b]
Total secured & HP debts...... 207000....-.........- [/b]
[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
Virgin Money...................6700......200.......21
MBNA...........................2400......110.......21
MBNA...........................4000......170.......21
118118.........................3750......202.......19
Admiral........................15200.....390.......8
Zopa...........................9500......275.......8
Zopa...........................3200......110.......21
Fluid..........................2500......120.......21[b]
Total unsecured debts..........47250.....1577......- [/b]
[b]
Monthly Budget Summary[/b]
Total monthly income.................... 4,118
Expenses (including HP & secured debts). 3,480
Available for debt repayments........... 638
Monthly UNsecured debt repayments....... 1,577[b]
Amount short for making debt repayments. -939[/b]
[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 525,000
Total HP & Secured debt................. -207,000
Total Unsecured debt.................... -47,250[b]
Net Assets.............................. 270,750[/b]
[i]Created using the SOA calculator at www.LemonFool.co.uk.
Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]
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Comments
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How old are your 'children'? £750 for groceries seems very high. Just the first thing that stood out to me...
Are you on a meter for water... or are you living in the South West....?
Mobile phone? Are you out of contract. Are you paying for a handset?#2 Saving for Christmas 2024 - £1 a day challenge. £325 of £3660 -
thanks for replying. Groceries also includes pet food (2 dogs, 2 cats), all toiletries but yes can think about reducing that.
My children are 15, 10 & 9
We are on a water metre in the South yes, I have upped it by £15 per month as I understand water bills are increasing soon for everyone. Trying to be cautious.
My husband pays all our mobile phones - we have talked through our finances and split things between us based on a fair share of each of our income (ie, not 50/50 as I earn more, its nearer to 65/35 split)0 -
Is £1100 the total amount of the mortgage repayment?
If so why are you paying it and not getting anything towards it from your husband.If you go down to the woods today you better not go alone.0 -
It looks like a situation where you will need a debt management plan. There is room to trim the expenses but not by £939. If you can pay £600 under a dmp that would complete in 80 months so not a lot of advantage going for an IVA0
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Thanks for the comments
That is my share of the mortgage, my husband does contribute his fair share too
I think DMP is my best option too, I have completed the Stepchange on line bit and it recommends that too.
Do Stepchange get grumpy if you default on everything first before officially starting your DMP? And what will stepchange ask me for? Evidence of costs/bills etc?0 -
For context, the OP has said previously that they have tried consolidation which has not worked - so the need for a robust budget is a clear priority IMO.
@bitingthebullet you said before that you earn "a little" more than your OH - is that 65/35 split definitely right for you both still? Also, one of those loans is a joint one, yes? is that the consolidation - and if so, was that the only joint debt, with everything else being for your personal spending rather than for household expenses?
I think you need to do the SOA again as currently there are things there which you say your husband pays - but with no income showing for him that doesn't give a clear picture of what your income and expenditure actually are.
Some questions in bold above - I think your priority is to stop paying the unsecured debts though as right now the sums simply don't balance. Then re-work through the SOA to get it accurate.bitingthebullet said:[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......... 3Number of cars owned.................... 1[b]Monthly Income Details[/b]Monthly income after tax................ 3831Partners monthly income after tax....... 0Benefits................................ 287Other income............................ 0[b]Total monthly income.................... 4118[/b][b]Monthly Expense Details[/b]Mortgage................................ 1100Secured/HP loan repayments.............. 220 Is this car finance? If so is there a balloon payment to be planned for?Rent.................................... 0Management charge (leasehold property).. 0Council tax............................. 220 If this is paid over 10 months remember that there is none to pay this month and next - so ensure that money is set aside into savings to start building your emergency fund. It is probably also worth contact your local authority to ask to split it across 12 months next year to help with budgeting.Electricity............................. 100 Just make sure that these are being billed on accurate readings - and yes, even if you have smart meters, you need to check that those readings are being recorded correctly!Gas..................................... 100Oil..................................... 0Water rates............................. 80 This is high for metered water - have a good look at your bills to see how you fall on the comparison with similar households - and if you are high, then think where you can cut back.Telephone (land line)................... 0Mobile phone............................ 85 Even if this is for 5 phones that is higher than it needs to be - diarise when contracts end and make sure that each one is taken to a SIM only deal as it ends. Play the eco card with the children - "we'll be using phones until they break now as it avoids sending plastics and electronics to landfill" ;-) Also - you say your husband pays this?TV Licence.............................. 0 You never watch live TV, or your husband pays this so you have left it off?Satellite/Cable TV...................... 0Internet Services....................... 0Groceries etc. ......................... 750 Yes - probably a bit of tweaking possible here but maybe not much allowing for pet food as wellClothing................................ 150 Now this is a lot. You need to think socks and pants only budget for you & husband, and maximising the use of what the older children in particular have. Designer stuff is not an option for you right now, no matter how much younger folk hassle for the latest label!Petrol/diesel........................... 120Road tax................................ 0Car Insurance........................... 50Car maintenance (including MOT)......... 0 Is this included in a finance deal, or does your husband set money aside for this?Car parking............................. 0Other travel............................ 0Childcare/nursery....................... 0Other child related expenses............ 0Medical (prescriptions, dentist etc).... 0Pet insurance/vet bills................. 120Buildings insurance..................... 25Contents insurance...................... 25Life assurance ......................... 100Other insurance......................... 0Presents (birthday, christmas etc)...... 100 Is this realistic? Birthday presents for 3 children (plus a token something at least each for you two) and the same for Christmas, plus christmas food etc? I mean there isn't scope to increase it, but if you would normally spend more than this, you want to start managing expectations now.Haircuts................................ 35Entertainment........................... 100Holiday................................. 0 You never go anywhere at all? not even a weekend visiting family or friends?Emergency fund.......................... 0 You need to start setting aside at least something here[b]Total monthly expenses.................. 3480[/b][b]Assets[/b]Cash.................................... 0House value (Gross)..................... 525000Shares and bonds........................ 0Car(s).................................. 0Other assets............................ 0[b]Total Assets............................ 525000[/b][b]Secured & HP Debts[/b]Description....................Debt......Monthly...APRMortgage...................... 190000...(1100).....4.14Secured Debt.................. 17000....(220)......7[b]Total secured & HP debts...... 207000....-.........- [/b][b]Unsecured Debts[/b]Description....................Debt......Monthly...APRVirgin Money...................6700......200.......21 How do these debts break down as "Yours" "Joint" "His"?MBNA...........................2400......110.......21MBNA...........................4000......170.......21118118.........................3750......202.......19Admiral........................15200.....390.......8Zopa...........................9500......275.......8Zopa...........................3200......110.......21Fluid..........................2500......120.......21[b]Total unsecured debts..........47250.....1577......- [/b][b]Monthly Budget Summary[/b]Total monthly income.................... 4,118Expenses (including HP & secured debts). 3,480Available for debt repayments........... 638Monthly UNsecured debt repayments....... 1,577[b]Amount short for making debt repayments. -939[/b][b]Personal Balance Sheet Summary[/b]Total assets (things you own)........... 525,000Total HP & Secured debt................. -207,000Total Unsecured debt.................... -47,250[b]Net Assets.............................. 270,750[/b][i]Created using the SOA calculator at www.LemonFool.co.uk.Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]🎉 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 1/4/25SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0 -
Thanks EssexHebredian,
The only joint debt we have is the mortgage and the £220 which is a secured loan used for home improvements, everything else you see is in my name (debt wise)
Will look at all the other comments for when I do my next SOA, thanks again0 -
Just checking again - so the other debts, they all relate to personal spending on your part, yes? So not bridging the balance between reduced income while on maternity leave and household costs remaining the same for example, or paying things for the household which weren't budgeted for from income between you? I ask because we see a lot of cases where when one party thinks of it, they realise that in fact the debt that "they" have incurred is actually household costs, and should be being more equally shared between them and a partner. No judgement either way - if you spent the lot having your nails and hair done, then all cool, but it does sometimes just pay to think things through a bit!🎉 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 1/4/25SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0 -
Hi, we have not been a good team moneywise. Every bill/ cost has gone into one pot, every excel budget spreadsheet I have made has been wrong and we have consistently exceeded our budget. I wish I had been having my nails done, but I haven't. We don't live an extravagant lifestyle at all. I have been overseeing all finances because hubby gets stressed out by them, and we both admit we should have been working it through together. He has debt in his name, which is affordable to him, its my debts we can't afford hence the SOA above (and as I said, percentage wise of each of our salary)
We also lost our young son to cancer 11 years ago and the debt started growing then. I started a bit of debt knowingly by taking extra maternity leave with him, but never saw that we would have a year of hospital trips / stays / the emotional rollercoaster we had to endure. I had two maternity leaves in the 2 years following which of course financially never helps. However we should have got on top of the original debt but never did, it has spiralled. And in truth my attitude has been a bit 'live in the moment' with the kids, which hasn't helped. They aren't spoilt by material things but we have had plenty of trips out /zoo passes etc/ holidays (here and abroad)/ newish cars. Moving house upped our mortgage, which was fine but our fixed rate came to an end and we ended up on a very high interest rate. I was hoping rates would fall so stuck with it for a bit waiting for lower rate I could fix for 5 years. I have just got that down to 4.14% and fixed for 5 years. So then food bills started going on credit cards....
I don't want both of us to go down the DMP route, so hoping hubbys debts will fall if we have a sensible, agreed budget that we both monitor and are accountable for.
I should also say that when the debt started, we earned a lot less. We earn more now, but it feels like every pay increase has been sucked up by debt payments, which seem to get more expensive rate wise, probably due to our credit file. Enough is enough, we need control and less money stress.
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OK - it sounds like the best approach now is probably to attack things as a household then, rather than individually. It's a different situation where debt is truly a "personal" thing - so frittering on "stuff" - or those hair do's and nails, or as we've seen here before often things like gambling - but where debt is really as a result of both parties taking their eye off the budgeting ball generally, then two heads (and incomes) are better than one when it comes to getting things straight.
I'm so sad to hear you've been through what you have with your son - I think that's a scenario in which case just about anyone might get a bit derailed as far as the finances are concerned - it must have been so far from the forefront of your minds at that stage. Also the "live in the moment" attitude - having had to say goodbye to one, it must feel doubly important to do "all the things" with the others. The key thing to note here is that nobody is going to tell you to cut everything to the bone - that's not sustainable - but it's about setting a budget for the fun stuff that is acceptable within your income and expenditure and then making sure that you stick to that, and part of that is maximising the free stuff too, there is SO much you can do out there with kids for nothing!
Taking things a step at a time then - a discussion with your husband about teamwork, going forwards, and the two of you sitting down to really refine that SOA - and THEN we will see where you are at. You also need to get your house in order with what you can pay - so the priority stuff first, then anything else which "needs paying" at the moment but is not unsecured debt - so setting money aside for car servicing etc, that entertainment budget, anything towards a holiday which is already booked...you get the picture? If that means you don't pay the unsecured debts this month, that is how it is - your aim is to NOT reach for the credit cards to pay for anything though, as that just digs the hole deeper. You HAVE to get the books balancing though - that is what the SOA is all about.🎉 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 1/4/25SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0
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