SOA questions

ArtyJ931

hello

I am trying to complete an SOA to inform next steps and just have some queries if anybody can help.

My partner is joint owner of the property however we have been living separately for over two years due to a severe mental health crisis and during that time (and ongoing) I am paying the mortgage and all bills in our house and living there whilst my partner pays for the rent and bills where they live and whilst having ongoing intensive MH support. (Without going into too much detail)

Would my SOA be just me and my disabled adult son in our house? Or would I take my partners income into account still?

Many thanks

Brie

I would say that if they aren't in the property and you aren't intermingling finances then your SOA is just for you (and your child).

Just out of interest does your partner have debts too? if so then you might encourage them (or assist) them to get a Debt and Mental Health Evidence Form completed and submitted to their creditors. It may help.

details here….Debt and mental health | National Debtline

DaedricPrince

https://forums.moneysavingexpert.com/discussion/6659310/soa-questions

Hi again. I don't have any answer or advice, but your situation sounds familiar to me, so just popping by to say I understand how a situation like that can be so hard and money is the last thing you want to be dealing with, especially being ND as well. I hope things become easier and I wish you and your partner the best in overcoming all your challenges 😊

ArtyJ931

https://forums.moneysavingexpert.com/discussion/comment/81920860#Comment_81920860

it has been challenging to say the least! Thank you

ArtyJ931

Hello. So I have completed an SOA - I think. Does this look reasonable/ is anything jumping out at anybody? I live with my disabled adult son who gets PIP and the £300 additional payment is his contribution to groceries (he has dietary needs etc) out of his PIP - I am unsure if that is ok to include in that part?

This has been sobering to say the least. I have been putting emergencies, one offs and presents etc on credit for so long and juggling and increasing credit that I had thought I could afford my credit but now I'm seeing that the reason it has been stuck at the level it is for the last 5 + years despite £1k per month payment is because I can't afford it.

I would appreciate feedback on the SOA and also whether people think a DMP is an appropriate option?

Thank you

[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.................... 1[b]

Monthly Income Details[/b]
Monthly income after tax................ 2909
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 300[b]
Total monthly income.................... 3209[/b][b]

Monthly Expense Details[/b]
Mortgage................................ 850
Secured/HP loan repayments.............. 41
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 165
Electricity............................. 50
Gas..................................... 110
Oil..................................... 0
Water rates............................. 51.21
Telephone (land line)................... 0
Mobile phone............................ 30
TV Licence.............................. 15
Satellite/Cable TV...................... 40
Internet Services....................... 0
Groceries etc. ......................... 360
Clothing................................ 50
Petrol/diesel........................... 75
Road tax................................ 10
Car Insurance........................... 24
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 25
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 30
Pet insurance/vet bills................. 50
Buildings insurance..................... 18.24
Contents insurance...................... 0
Life assurance ......................... 24.68
Other insurance......................... 0
Presents (birthday, christmas etc)...... 100
Haircuts................................ 25
Entertainment........................... 100
Holiday................................. 100
Emergency fund.......................... 300
Pet costs............................... 80[b]
Total monthly expenses.................. 2774.13[/b]
[b]

Assets[/b]
Cash.................................... 0
House value (Gross)..................... 275000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0[b]
Total Assets............................ 276000[/b]
[b]

Secured & HP Debts[/b]
Description....................Debt......Monthly...APR
Mortgage...................... 163000...(850)......3.5
Hire Purchase (HP) debt ...... 1000.....(41).......0[b]
Total secured & HP debts...... 164000....-.........- [/b]

[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
Loan 1.........................24879.....303.......10.5
Loan 2.........................9871.12...352.5.....4.7
Loan 3.........................19903.....216.......8.5[b]
Total unsecured debts..........54653.12..871.5.....- [/b]

[b]
Monthly Budget Summary[/b]
Total monthly income.................... 3,209
Expenses (including HP & secured debts). 2,774.13
Available for debt repayments........... 434.87
Monthly UNsecured debt repayments....... 871.5[b]
Amount short for making debt repayments. -436.63[/b]

[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 276,000
Total HP & Secured debt................. -164,000
Total Unsecured debt.................... -54,653.12[b]
Net Assets.............................. 57,346.88[/b]

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

ArtyJ931

I also have another question - one of the loans I took out in November last year to consolidate credit card debt that was reaching the end of it's 0% as I had nowhere with 0% to move them to. I read on here that if a bank thinks you took out a loan without intending to pay then it's illegal which has scared me because I did intend to pay but it was only 4 months ago and I'm only now having my lightbulb moment. Will they think I took it out in bad faith if I start moving towards a DMP after only a few months of payments?

For the record I have not defaulted on any debts before. I have an additional £30k roughly of credit card balance open to me which I haven't used. Not sure if that is relevent.

ManyWays

Who are the large loan lenders?

Please do not start using those credit cards to fill the gap to be able to carry on repaying these loans, that is an endless debt cycle that has to stop.

ArtyJ931

Two are first direct and one is tesco

ArtyJ931

https://forums.moneysavingexpert.com/discussion/comment/81921214#Comment_81921214

I have now realised that this is the endless debt cycle I have been in. It does have to stop.

sourcrates

" I read on here that if a bank thinks you took out a loan without intending to pay then it's illegal which has scared me because I did intend to pay but it was only 4 months ago and I'm only now having my lightbulb moment. Will they think I took it out in bad faith if I start moving towards a DMP after only a few months of payments?"

Please try not to overthink things, I don`t know were you read that, but its not true, the collection/default process is all automated, and is exactly the same no matter the circumstances behind your non payment.

Debt is a civil matter, has been for a few hundred years now, if a bank suspected deliberate fraud, that may be a different matter, but fraudsters usually leave behind a trail of bad debts over many years, with no intention of ever repaying any of it, that is a world away from a debtor struggling to pay due to their financial circumstances and the cost of living, banks can tell the difference quite easily, so no, what you have done is not illegal, you have just been unlucky, like many others in the world today.

Smudgeismydog

Firstly well done on completing your SOA, I know this can be hard. I do have a couple of questions/observations;

£300pm into emergency fund, but you don’t have any cash savings, so where is this going?

£100pm for presents is £1,200 per year, can this be reduced as it looks unaffordable?

£200pm for entertainment and holiday might also need to be cut back