My first ever SOA - never had the courage to post it before.

GeekieGirlie

Even though had lots of help in here before, I’ve Never done a SOA as bothered what people will say to me about where I’m going wrong and my head can’t take much more upset and stress. But here it is. 😔 It’s long but I’m letting it all out as no longer know what to do. Before I started a DMP I was married. We spilt up 2024 and why I’m unable to pay all debts in my name since and the start of my debt journey. 

The debts have lowered a lot due to affordability wins. So I know there’s light at the end of the tunnel. I just can’t see it yet.

Statement of Affairs and Personal Balance Sheet

Household Information

Number of adults in household........... 4

(Me and my 3 young adult children. All 18 and just over. Youngest still at 6th form full time until June, middle child has new apprenticeship and eldest works part time 9 hours. She’s trying to get more hours.)

Monthly Income Details

Monthly income after tax................ 2082

Child Benefit................................ 104 until August 

Other income............................ 100 board from

Eldest adult child 

Total monthly income.................... 2286

Monthly Expense Details

Rent.................................... 850

Council tax............................. 162

Electricity/gas............................. 149

Water rates............................. 87 on meter 

Mobile phone............................ 180 contracted until December then can lower it. I pay for two of the children’s phones plus mine.

TV Licence.............................. 15

Internet Services/TV subs....................... 101

Groceries etc. ......................... 480 (120 a week)

Clothing................................ 0

Other travel............................ 140

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

Pet insurance/vet bills................. 52 can renew March and look for cheaper 

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

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

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

Presents (birthday, christmas etc)...... 0

Haircuts................................ 40 every 7/8 weeks 

Entertainment........................... 40 (this ends up going on food top ups)

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

Emergency fund.......................... 0

Total monthly expenses.................. 2296

No Assets

Unsecured Debts

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

Loan lantern- default..........3509......15........0

Loan Mal.......................2809......50........48%

Loan lendable .................688.......20........0

Overdraft x2...................1300......25........0

Newday CC x2 ..................8000......0.........0

PayPal ........................850.......32........0

Lloyds cc......................500.......11........0

Total unsecured debts..........17656.....153....

Monthly Budget Summary

Total monthly income.................... 2,286

Expense. 2,296

Available for debt repayments........... -10

Monthly UNsecured debt repayments....... 153

Amount short for making debt repayments. -163

Debt info:

Lendable loan won affordability now on a plan.

Mal loan they’ve taken it off credit file not sure why and I just pay reduced amount of £50 instead of £155. I have no arranged payment markers or missed payments or defaults for it. They have done an online bankng check and since then never asked for more higher payments. I darent make an affordability complaint with this one as they were thorough with checks. Even doing over phone checks. So can’t see me winning and scared will rock the boat and default if I complain.

Lantern/bamboo - didn’t uphold complaint thinking of taking to FOS its defaulted 

Lloyds and PayPal - I pay these as normal and haven’t missed payments. Wanted to keep Lloyds as my bank. 

Newday - just won affordability waiting to set plan up when they contact me. not paying them yet. 

I stopped paying all until the cards and loans defaulted. I don’t have an emergency fund as i had nothing to save even when was paying no debts. It just meant I was able to pay my priority bills without borrowing.

As you can see I’m short every month and now borrow off family for the short fall. That debt to them though is increasing. I know ideally I need to reduce the debt payments but worried they’ll never be paid off or go to ccjs etc. 

I do also do affiliate selling for a brand and make maybe £20 a month with that. I could work on that more to increase my income. That’s my plan as currently do a 40 hour week employed and the affiliate stuff I can do at home on an evening. So there are options if I get out of the black cloud in my head and work at it. 

My youngest two will shortly be starting to pay board too. So I won’t be in minus then for priority stuff. The middle one maybe £50/100 month from March and the youngest one, once she’s in full time employment September time the same value. But then obviously child Benefit stops later this year when that happens. So my income will be going up.

I really do not want a IVA or a DRO. As I rent and always will. And income will increase. So will be over the £75 surplus. So rather than a DRO I’d rather try increase my income to pay everything. That my preferred thing if can.

Not sure if that’s the best idea?

I’ve come this far sorting the debts and now feel stuck and don’t know where to turn. I need to change what I’m doing with debt payments but my head can’t figure out the best thing. Is there a way out of this? 

Thank you for reading.

Grumpelstiltskin

One thing that jumps out is Internet and TV at £101 monthly, that is horrendous.

Surely you can get that reduced.

elsien

well done for plucking up the courage to post.

My first thought is the accuracy of SOA because you have nothing down for clothes, nothing down for presents, nothing for healthcare, and I’m not sure how realistic that is in practice?

Just to add that very few people get it right first time round - it’s a work in progress.

And you really shouldn’t be borrowing money off people to make unsecured debt payments. That doesn’t make any sense.
Is the child who is only working 9 hours not entitled to claim it universal credit as a top up while they look for more work?
And why is the child starting an apprenticeship not paying their own phone and giving you some keep as well?

MattMattMattUK

Going through the list

Phones at £180 is absolutely insane for three phones, as soon as you can get these on SIM only contracts, you will be able to get them under £10 per device, so a £150 per month saving.

TV and internet at £116 per month is also crazy in your position. Go streaming only and sign up to one service at a time, rotate through them. That means no TV license is needed and you should be able to pay £20-30 a month for your broadband and then one streaming service at a time of £5-10 per month, so an £80-90 a month saving.

With regard to income your eldest really needs to do more and get a full time job and your middle child only paying £100 a month is really not enough if they are on an apprenticeship, they are likely costing you more than that in just food, let alone other bills and rental costs. Even the youngest, everyone I know at six form worked/works part time as well.

The debts others can offer more detailed responses but I think you need a solid DMP, your debts are simply unaffordable.

Woodstok2000

£180 for phones, even 3 phones, is very very high. As soon as possible get onto sim only deals, there are plenty out there for £5 per month or less. And get your kids paying for their own.

elsien

is there no child maintenance for the youngest still in education?

GeekieGirlie

https://forums.moneysavingexpert.com/discussion/comment/81864662#Comment_81864662

Thank you. Yes I agree it’s with BT. When I go online it offers me the same for their lowest package. So I plan on calling to speak to someone as they’ve sent an email to say it’s going up £10!

ManyWays

480 a week for groceries (which I assume includes toiletries and cleaning stuff eg loo rolls, shampoo, deodorant, light buls, bleach) for 4 adults (plus some pet?) is VERY low. It is unrealistic unless the other 3 actually eat out a lot of the time. You will do well to manage on 700

The adult children need to start paying their own mobiles.

Available for debt repayments........... -10
this means you have NO money to set up payment plans. Affordability complaints may be getting the debt total down but you still have no money to pay the debt.

But definitely send bamboo/lantern to the Ombudsman. You have nothing to lose, bad credit lenders often reject good complaints.

Even quadrupling your small affiliate income is not going to make that much difference either. But it may help pay for things like clothes, medical and presents which are unrealistically not there at the moment

You have 17k in debts and an unrealistic budget. Either your children are all going to have to contribute a lot more (think £200 a month each) or you are in very deep water.

MattMattMattUK

https://forums.moneysavingexpert.com/discussion/comment/81864715#Comment_81864715

Do not speak to someone, just leave, get rid of the TV package and take the cheapest broadband deal you can get and use Topcashback or Quidco whilst doing that.

GeekieGirlie

https://forums.moneysavingexpert.com/discussion/comment/81864673#Comment_81864673

I haven’t put them on the soa as I pay nothing for clothes or meds. If kids need stuff they buy with their own money. I just go without so haven’t put anything down.

The eldest on 9 hours also gets PIP but she’s not looked at UC. Didn’t know she could do. Might be an option for it but there’s only certain jobs she can do due to her condition.

The middle child is full time apprenticeship earning £980 and I feel terrible asking for board when income is low but have been told it’s the right thing to be asking for so now I am having too ask for it.

MattMattMattUK

Your eldest can run her circumstances through this calculator and it will show what she will be able to claim. It should only take a few minutes at most.

https://www.entitledto.co.uk/