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2

Comments

  • ManyWays
    ManyWays Posts: 1,226 Forumite
    1,000 Posts Fifth Anniversary Name Dropper
    £100 a month on presents if you dont have children is a lot, suggest £20 instead
    I suggest you halve the entertainment but keep haircuts, holiday, emergency
  • kimwp
    kimwp Posts: 2,828 Forumite
    Fifth Anniversary 1,000 Posts Photogenic Name Dropper
    SilverBack42 said:
    kimwp said:
    SilverBack42 said:
    ..........

    Soo I have been saving about £465 I have not been spending past 6 months or so..... Realistic!! Sad but true yes  :(

    Other than that I am out of ideas.

    Thoughts please?
    Hiya, are you saying that you were spending these amounts before? What is your SOA based on (what accounts/bills have you used to calculate the numbers?)
    It is based on 12 months of statements, my DD's
    Last 6 months or so we have done nothing but work eat sleep....

    My SOA after going through Accounts and putting into lemonfool is above.

    The part you have quoted is what we used to spend sometimes but have not recently due to ever spiralling debt. My shortfall according to SOA is £1013.

    Never done an SOA, never looked at spending this closely.

    I was asking if I should include it or are they expecting me to keep going as we have been not doing any above!!
    Probably should not have put that last post as it will probably confuse things.

    Posted my SOA in the second post, which is what I am trying to focus on.

    The above is the not as absolutely essential things that I thought creditors would probably not accept on an SOA.

    I don't know it is new to me  :(  Sorry!
    Ok. So you don't need to show your creditors your SOA and get them to accept it, you simply tell them how much you can afford.

    But you do (as we all do)  need to have sensible amounts for each category in relation to our earnings and commitments. And if (as in your case), your outgoings are higher than your income, then there are amounts that are reasonable to expect to need to spend. For example £100 per month on presents is very high, (it would be high even if you had children). I get that you say you haven't been spending this recently, but you don't need to spend this ever. If everyone is spending £1.2k a year on presents, then everyone is receiving £1.2k a year on presents and how much of that really adds to their life?

    Some other quick points- £650 is a very high grocery bill for two adults- should be very doable for this to be under £400.
    And your energy bill seems very high.

    But there are some things that are necessary - dentist and prescription for example.

    Others will be along with a more detailed assessment of your SOA, but I wanted to make the points above.
    Statement of Affairs (SOA) link: https://www.lemonfool.co.uk/financecalculators/soa.php

    For free, non-judgemental debt advice, try: Stepchange or National Debtline. Beware fee charging companies with similar names.
  • SilverBack42
    SilverBack42 Posts: 12 Forumite
    10 Posts Photogenic
    ManyWays said:
    £100 a month on presents if you dont have children is a lot, suggest £20 instead
    I suggest you halve the entertainment but keep haircuts, holiday, emergency
    My Bad..  :(  That is supposed to be £10..  Sorry was doing it late at night and have been working on this reading forum etc.. Admin never my strong point! AND I have not brought any gifts past 6 months!
    I acatually posted it wrong twice!!!  Correcting now

    kimwp said:

    Ok. So you don't need to show your creditors your SOA and get them to accept it, you simply tell them how much you can afford.

    But you do (as we all do)  need to have sensible amounts for each category in relation to our earnings and commitments. And if (as in your case), your outgoings are higher than your income, then there are amounts that are reasonable to expect to need to spend. For example £100 per month on presents is very high, (it would be high even if you had children). I get that you say you haven't been spending this recently, but you don't need to spend this ever. If everyone is spending £1.2k a year on presents, then everyone is receiving £1.2k a year on presents and how much of that really adds to their life?

    Some other quick points- £650 is a very high grocery bill for two adults- should be very doable for this to be under £400.
    And your energy bill seems very high.

    But there are some things that are necessary - dentist and prescription for example.

    Others will be along with a more detailed assessment of your SOA, but I wanted to make the points above.
    £650 was including takeaway and meeting friends. Recently it has been lower than £400 sometimes, as I said this is 12 months, I am realistically aiming for around £450-400. But my partner does have to have a special diet so it does add a bit to the costs. Cooking separate meals too that will add the electricity.

    The electricity is high as I work from home, Old house, not efficient and working in IT I do have a few systems running.
    Not to go too far into it but have multiple Servers and Network gear for research!
    The actual DD for Gas and Electric is £244 but I am £312 in debit to them, and they have suggested upping my DD.

    Hard to judge Energy bill as it is the Gas that sky rockets during the winter. Old house, little insulation in the loft which is something I want to do but can't afford ATM, Double galzing is OK but it is OLD!

  • SilverBack42
    SilverBack42 Posts: 12 Forumite
    10 Posts Photogenic
    edited 24 June at 2:13PM
    NEW SOA following recent advice.

    • Checked Octopus app for the year and adjusted fuel including having to pay off debit.
    • Corrected mistake on Gifts.
    • Added life Insurance because we don't have one and in this situation, even though it is costly at this point it is probably wise.
    • Adjusted Food costs
    • Reduced TV as I am cancelling the package.
    • Thought about reducing Car Maintenance, but forgot Tyres and general wear and tear, only included yearly service and MOT, so that went up   :/

    [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......... 0
    Number of cars owned.................... 2[b]

    Monthly Income Details[/b]
    Monthly income after tax................ 2850
    Partners monthly income after tax....... 1250
    Benefits................................ 0
    Other income............................ 38[b]
    Total monthly income.................... 4138[/b][b]

    Monthly Expense Details[/b]
    Mortgage................................ 1050
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 210
    Electricity............................. 183
    Gas..................................... 82
    Oil..................................... 0
    Water rates............................. 35
    Telephone (land line)................... 0
    Mobile phone............................ 75
    TV Licence.............................. 15
    Satellite/Cable TV...................... 18
    Internet Services....................... 75
    Groceries etc. ......................... 450
    Clothing................................ 100
    Petrol/diesel........................... 180
    Road tax................................ 85
    Car Insurance........................... 95
    Car maintenance (including MOT)......... 180
    Car parking............................. 15
    Other travel............................ 40
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 45
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 14
    Contents insurance...................... 0
    Life assurance ......................... 110
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 10
    Haircuts................................ 15
    Entertainment........................... 100
    Holiday................................. 50
    Emergency fund.......................... 25
    Parental Assistance..................... 200[b]
    Total monthly expenses.................. 3457[/b]
    [b]

    Assets[/b]
    Cash.................................... 0
    House value (Gross)..................... 260000
    Shares and bonds........................ 0
    Car(s).................................. 7000
    Other assets............................ 0[b]
    Total Assets............................ 267000[/b]
    [b]

    Secured & HP Debts[/b]
    Description....................Debt......Monthly...APR
    Mortgage...................... 135000...(1050).....3.1[b]
    Total secured & HP debts...... 135000....-.........-   [/b]

    [b]Unsecured Debts[/b]
    Description....................Debt......Monthly...APR
    MBNA...........................3211......96........31
    MBNA...........................8180......245.......31
    VIRGIN.........................5514......165.......29
    PayPal.........................2430......104.......28
    LLOYDS.........................5410......162.......28
    TESCO..........................6393......191.......26
    TESCO..........................8169......245.......26
    VIRGIN.........................7800......234.......29[b]
    Total unsecured debts..........47107.....1442......-  [/b]

    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 4,138
    Expenses (including HP & secured debts). 3,457
    Available for debt repayments........... 681
    Monthly UNsecured debt repayments....... 1,442[b]
    Amount short for making debt repayments. -761[/b]

    [b]Personal Balance Sheet Summary[/b]
    Total assets (things you own)........... 267,000
    Total HP & Secured debt................. -135,000
    Total Unsecured debt.................... -47,107[b]
    Net Assets.............................. 84,893[/b]

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

    • Life insurance if the BIG addition at £110 a month. Still shopping around but at my age it will never be cheap. This is for both of us.
    Reading around as I want to prepare my affordability letters. Never done one of those. I am not great at those kind of things! Still getting comfortable with not paying and defaulting... It doesn't sit right with me and my old Ma is probably turning in her grave! BUT I have to do something.

    Checking the DMP mutual support thread part 13 but it is 556 pages loooong   :o
  • kimwp
    kimwp Posts: 2,828 Forumite
    Fifth Anniversary 1,000 Posts Photogenic Name Dropper
    edited 24 June at 2:28PM
    SilverBack42 said:
    NEW SOA following recent advice.

    • Checked Octopus app for the year and adjusted fuel including having to pay off debit.
    • Corrected mistake on Gifts.
    • Added life Insurance because we don't have one and in this situation, even though it is costly at this point it is probably wise.
    • Adjusted Food costs
    • Reduced TV as I am cancelling the package.
    • Thought about reducing Car Maintenance, but forgot Tyres and general wear and tear, only included yearly service and MOT, so that went up   :/

    [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......... 0
    Number of cars owned.................... 2[b]

    Monthly Income Details[/b]
    Monthly income after tax................ 2850
    Partners monthly income after tax....... 1250
    Benefits................................ 0
    Other income............................ 38[b]
    Total monthly income.................... 4138[/b][b]

    Monthly Expense Details[/b]
    Mortgage................................ 1050
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 210
    Electricity............................. 183
    Gas..................................... 82
    Oil..................................... 0
    Water rates............................. 35
    Telephone (land line)................... 0
    Mobile phone............................ 75
    TV Licence.............................. 15
    Satellite/Cable TV...................... 18
    Internet Services....................... 75
    Groceries etc. ......................... 450
    Clothing................................ 100
    Petrol/diesel........................... 180
    Road tax................................ 85
    Car Insurance........................... 95
    Car maintenance (including MOT)......... 180
    Car parking............................. 15
    Other travel............................ 40
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 45
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 14
    Contents insurance...................... 0
    Life assurance ......................... 110
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 10
    Haircuts................................ 15
    Entertainment........................... 100
    Holiday................................. 50
    Emergency fund.......................... 25
    Parental Assistance..................... 200[b]
    Total monthly expenses.................. 3457[/b]
    [b]

    Assets[/b]
    Cash.................................... 0
    House value (Gross)..................... 260000
    Shares and bonds........................ 0
    Car(s).................................. 7000
    Other assets............................ 0[b]
    Total Assets............................ 267000[/b]
    [b]

    Secured & HP Debts[/b]
    Description....................Debt......Monthly...APR
    Mortgage...................... 135000...(1050).....3.1[b]
    Total secured & HP debts...... 135000....-.........-   [/b]

    [b]Unsecured Debts[/b]
    Description....................Debt......Monthly...APR
    MBNA...........................3211......96........31
    MBNA...........................8180......245.......31
    VIRGIN.........................5514......165.......29
    PayPal.........................2430......104.......28
    LLOYDS.........................5410......162.......28
    TESCO..........................6393......191.......26
    TESCO..........................8169......245.......26
    VIRGIN.........................7800......234.......29[b]
    Total unsecured debts..........47107.....1442......-  [/b]

    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 4,138
    Expenses (including HP & secured debts). 3,457
    Available for debt repayments........... 681
    Monthly UNsecured debt repayments....... 1,442[b]
    Amount short for making debt repayments. -761[/b]

    [b]Personal Balance Sheet Summary[/b]
    Total assets (things you own)........... 267,000
    Total HP & Secured debt................. -135,000
    Total Unsecured debt.................... -47,107[b]
    Net Assets.............................. 84,893[/b]

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

    • Life insurance if the BIG addition at £110 a month. Still shopping around but at my age it will never be cheap. This is for both of us.
    Reading around as I want to prepare my affordability letters. Never done one of those. I am not great at those kind of things! Still getting comfortable with not paying and defaulting... It doesn't sit right with me and my old Ma is probably turning in her grave! BUT I have to do something.

    Checking the DMP mutual support thread part 13 but it is 556 pages loooong   :o
    Is road tax really over £1000 a year? And car maintenance over £2k a year?
    Statement of Affairs (SOA) link: https://www.lemonfool.co.uk/financecalculators/soa.php

    For free, non-judgemental debt advice, try: Stepchange or National Debtline. Beware fee charging companies with similar names.
  • SilverBack42
    SilverBack42 Posts: 12 Forumite
    10 Posts Photogenic
    From the Debits in account DVLA Tax was £1015 (This is included my late mothers old Peugeot that is getting sold on reluctantly.) So yes! That is now £750 a year. Yeah! Tax stinks but the government don't like Old cars on the road, and I can not afford a new one!  

    Tyres last year were £210 fitted
    Will need two more this year.
    Screen was fixed twice not sure that will get through MOT this year possible another £100
    Services for two were £440, but needs major this year and I suspect a new clutch, tried to find a quote for that and it is probably going to be £250 - £350 range. Maybe I can skip the clutch this year.. I do not know.
    Other car needs front discs and pads as it has had an MOT advisory..  I am tired not slept well two days and all these cost questioning is getting me down!

    If this is what it's like I have no chance when I have to start justifying costs to creditors. My head is spinning

    Think I need to step away for a few days!   


  • ManyWays
    ManyWays Posts: 1,226 Forumite
    1,000 Posts Fifth Anniversary Name Dropper
    People can be very evangelical about where you can/should reduce costs. 
    You can hide a lot in other categories if creditors ever start asking closely, eg 700 for groceries for 2 adults wouldnt be queried. 
    What matters is that you have a workable budget you know you can manage comfortably on, taking account of all the odd things that crop up from time to time, so you wont need to borrow. 
    Hopefully these comments have made you think about different bits of your budget, and it would be a good idea to start keep records of what you do spend going forward eg in a spreadsheet.
  • SilverBack42
    SilverBack42 Posts: 12 Forumite
    10 Posts Photogenic
    Another try!

    [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......... 0
    Number of cars owned.................... 2[b]

    Monthly Income Details[/b]
    Monthly income after tax................ 2850
    Partners monthly income after tax....... 1250
    Benefits................................ 0
    Other income............................ 38[b]
    Total monthly income.................... 4138[/b][b]

    Monthly Expense Details[/b]
    Mortgage................................ 1050
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 210
    Electricity............................. 183
    Gas..................................... 82
    Oil..................................... 0
    Water rates............................. 35
    Telephone (land line)................... 0
    Mobile phone............................ 75
    TV Licence.............................. 15
    Satellite/Cable TV...................... 18
    Internet Services....................... 75
    Groceries etc. ......................... 450
    Clothing................................ 0
    Petrol/diesel........................... 180
    Road tax................................ 60
    Car Insurance........................... 95
    Car maintenance (including MOT)......... 56
    Car parking............................. 15
    Other travel............................ 40
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 45
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 14
    Contents insurance...................... 0
    Life assurance ......................... 110
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 10
    Haircuts................................ 15
    Entertainment........................... 100
    Holiday................................. 50
    Emergency fund.......................... 25
    Parental Assistance..................... 200[b]
    Total monthly expenses.................. 3208[/b]
    [b]

    Assets[/b]
    Cash.................................... 0
    House value (Gross)..................... 260000
    Shares and bonds........................ 0
    Car(s).................................. 7000
    Other assets............................ 0[b]
    Total Assets............................ 267000[/b]
    [b]

    Secured & HP Debts[/b]
    Description....................Debt......Monthly...APR
    Mortgage...................... 135000...(1050).....3.1[b]
    Total secured & HP debts...... 135000....-.........-   [/b]

    [b]Unsecured Debts[/b]
    Description....................Debt......Monthly...APR
    MBNA...........................3211......96........31
    MBNA...........................8180......245.......31
    VIRGIN.........................5514......165.......29
    PayPal.........................2430......104.......28
    LLOYDS.........................5410......162.......28
    TESCO..........................6393......191.......26
    TESCO..........................8169......245.......26
    VIRGIN.........................7800......234.......29[b]
    Total unsecured debts..........47107.....1442......-  [/b]

    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 4,138
    Expenses (including HP & secured debts). 3,208
    Available for debt repayments........... 930
    Monthly UNsecured debt repayments....... 1,442[b]
    Amount short for making debt repayments. -512[/b]

    [b]Personal Balance Sheet Summary[/b]
    Total assets (things you own)........... 267,000
    Total HP & Secured debt................. -135,000
    Total Unsecured debt.................... -47,107[b]
    Net Assets.............................. 84,893[/b]

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


    Up and coming car bills I know are coming will have to come from Emergency fund i guess.
    But that surplus to debts does not feel correct. But hey! at this point I have no clue!
  • SilverBack42
    SilverBack42 Posts: 12 Forumite
    10 Posts Photogenic
    edited 24 June at 4:26PM
    ManyWays said:
    People can be very evangelical about where you can/should reduce costs. 
    You can hide a lot in other categories if creditors ever start asking closely, eg 700 for groceries for 2 adults wouldnt be queried. 
    What matters is that you have a workable budget you know you can manage comfortably on, taking account of all the odd things that crop up from time to time, so you wont need to borrow. 
    Hopefully these comments have made you think about different bits of your budget, and it would be a good idea to start keep records of what you do spend going forward eg in a spreadsheet.
    Have pulled my accounts, pushed through excel and pulled them into categories, using some excel .csv shenanigans last night added the Direct Debts.  But that left me with very little. So that was not a cunning plan on my part.

    So I am just trying to take my situation and push an SOA as best I can

    Have 2 cm of insulation in the loft in a 1940's house that needs a new boiler with cars I am just keeping on the road. A kitchen nearly 40 years old with doors hanging off and an irate neighbour that wants my side of the fence fixed as it was abandoned for so many years.

    Looking at it all and the ever spiralling debts along with my already missed Credit card payments last week, I thought I really need help!

    I am just trying to hold it together, pull up a plan and try to move forward.

    I am not trying to pull for sympathy here, that is not me, but at my age i have had to go back to working 12 hour shifts rotating days and night, it is in a Cyber security environment. That if I say is PRESSURE everyday would be a vast understatement. And it is not conducive to my current health.

    Sorry, the current SOA is the best I can do ATM..

    Will be back in a day or two to check things in, as my shift starts tomorrow and usually just try and sleep once it's finished.

    If someone could advise on the Car loan from Hastings, assume it's unsecured as they deposited the money into my account and I brought the car, should I default on it.

    After that it is waiting until defaults come in and then letters of affordability.  Which I am dreading.

    Peace and stay safe, thank you for all the help so far. Will check in in a couple of days depending how the shifts go! But with the new war I doubt it will be quieter!
  • Smudgeismydog
    Smudgeismydog Posts: 300 Ambassador
    100 Posts Second Anniversary Photogenic Mortgage-free Glee!
    Well done for posting and addressing this, a few observations on your SOA;

    - mobile phone £75, are you in contract? Aim for SIM only at under a tenner a month each
    - entertainment £100, can you find cheaper things to do and a treat once in a while?
    - internet services £75, you should be able to get a better deal here
    - partner’s income, does she have scope to increase this e.g overtime? or side hustle?


    Regarding the Hastings car loan, this sounds like an unsecured loan. If this is the case, then yes, it should be treated like the other unsecured debts.

    As others have noted, you need to focus on building an emergency fund as a priority. Life happens and you will need access to money without resorting to credit
    I’m a Forum Ambassador and I support the Forum Team on the Pension, Debt Free Wanabee, and Over 50 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 e-mailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
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