Newbie - advice needed

squidgybum_2

Hi I’ve decided after the last week or so to pluck up the courage to post my SOA!!!!! Scary or what !! I’ve made a few changes over the last couple of months but realise that things are not looking too healthy at the moment and I want to try and sort them out before they get any worse. I’m employed with a full time permanent job and I’m single with no children or pets!! I’ve been as honest as I can going back over my most recent bank statement and CC statements. I have delved deep into the bottom of my handbag looking for receipts to give an honest idea of what I have spend in the supermarket over the last month and I am totally shocked and this will be changing this month without a doubt Not sure what some of the APR rates on some of my CCs are so I have included the monthly APR instead. I have sold a few things on Ebay recently and am looking to sell some more things in the next few weeks. Anything that needs explaining I have done and don’t think there is anything I have missed out.
Monthly Income Details
Monthly income after tax............ 1015.33
Other income............................ 14.20
Total monthly income................. 1029.53

Monthly Expense Details
Mortgage........................... 323.25
Secured loan repayments... 132.02
Council tax......................... 75.95 (inc 25% discount for single person also inc water rates also with 25% discount)
Electricity........................... 40 (-179.63 as of end Jan 2008 will reduce payment when this is lower)
Gas................................... 30 (-46.75 as of end Jan 2008 will contact company and ask to reduce payment)
Telephone (land line)........... 15 (in last few days have moved phone, tv and internet to diff service provider and will not know exact cost til end next month)
Mobile phone........................30 (recently cancelled a contract I was tied too saved myself 30.00 per month from April)
TV Licence...........................11.75
Satellite/Cable TV.................16 (see Telephone (land line)
Internet Services...................20.98 (see Telephone (land line)
Groceries etc. ......................... 285 (plan for April to spend 30 pw instead and already take packed lunch to work)
Clothing................................ 20
Petrol/diesel........................... 40 (petrol allowance of approx 25-30 paid by work each month)
Road tax................................ 9.80
Car Insurance........................... 20.85(ins only I don’t have recovery)
Car maintenance (including MOT)......... 10
Buildings insurance..................... 20.52 (inc contents insurance)
Presents (birthday, christmas etc)...... 20 (pay 5 per week Xmas club at work)
Entertainment........................... 60 (hard to work out as not out a lot but try and go for 241 cinemas nights, 241 deals on eating out also inc the gym at 29 but I will be looking to cancel this)

Total monthly expenses.................. 1181.12

Assets

Cash.............................. 3000 (amt leftover from a loan I'm paying back to egg that I want to pay off/put towards a debt but not sure which would be best – help)
House value (Gross)........ 78400 (flat)
Car(s).............................1000 (own this outright)

Total Assets............................ 82400

Secured Debts

Description....................Debt......Monthly...APR
Mortgage...................... 55000....(323.25)...4.94
Secured Debt.................. 10000....(132.02)...7.75

Total secured debts........... 65000

Unsecured Debts

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

MBNA...........................5416.32...36.09..... (cant find apr but monthly int rate 1.45)
British Airways ...............0.........0......... (cant find apr but monthly int rate 1.24)
Egg Credit Card................247.79....7.........19.9
Egg Loan ......................6161.87...110.......7.66

Total unsecured debts..........11825.98..153.09....-

Monthly Budget Summar

Total monthly income.................... 1,029.53

Expenses (including secured debts)....... 1,181.12
Available for debt repayments........... -151.59
Monthly UNsecured debt repayments....... 153.09
Surplus(deficit if negative)............ -304.68

theunknownstuntman

Hi Squidgybum (great name) welcome to the friendliest part of the forum.

I'm not great with the advice (I leave that to the great and clever on here) but well done on the scariest part - the SOA. IT's a great relief when you post one. Sit back and wait for the advice to come in.

And welcome (again!)

Stunty

squidgybum_2

lol yes im loving the name too - thanks for your very quick welcome

LilacPixie

welcome. my cc is a monthly rate of 1.27 which equates to 19.9 apr. Hope that helps a little.

BTW ispend £50 a week on groceries for 2 adults 1 child and 2 cats so i'm guessing you could pull that down lots too

theunknownstuntman

Anytime, I'm a sociable kinda guy! Ask the ladies on the "Sealed Pot Challenge" thead, and come and join us there for a laugh and a challenge if you feel up to it.

Bayblue

Hi,

You seem like you are in similar position to me, except that your debts are slightly higher. Then again you own your own home so you're much better off that way.
I'd also back up what LilacPixie says about groceries, you should easily be able to make good savings there without suffering. Also, I know it's only a small amount, but what is the £5 work Christmas club all about, and does it pay interest on your money? Because if it doesn't wouldn't it be better paid into a savings account or to pay off your debts?

Lots of very wise people will be along soon to offer good advice, but for starters, thinking about your credit cards debts, it might be an idea to use this site to help you work out which one to pay off first. I found it really helpful.
http://www.whatsthecost.com/snowball.aspx

Good Luck.

Merlot

squidgybum wrote: »

Monthly Income Details
Monthly income after tax............ 1015.33
Other income............................ 14.20
Total monthly income................. 1029.53

Monthly Expense Details
Mortgage........................... 323.25 IS THIS INTEREST ONLY - IF NOT, CAN YOU CHANGE FOR A WEE WHILE
Secured loan repayments... 132.02
Council tax......................... 75.95 (inc 25% discount for single person also inc water rates also with 25% discount)
Electricity........................... 40 (-179.63 as of end Jan 2008 will reduce payment when this is lower) - THIS IS RATHER HIGH FOR A SINGLE PERSON - CHANGE TO LOW ENERGY BULBS AND SWITCH THINGS OFF
Gas................................... 30 (-46.75 as of end Jan 2008 will contact company and ask to reduce payment) -
Telephone (land line)........... 15 (in last few days have moved phone, tv and internet to diff service provider and will not know exact cost til end next month)
Mobile phone........................30 (recently cancelled a contract I was tied too saved myself 30.00 per month from April)
TV Licence...........................11.75
Satellite/Cable TV.................16 (see Telephone (land line)
Internet Services...................20.98 (see Telephone (land line)
Groceries etc. ......................... 285 (plan for April to spend 30 pw instead and already take packed lunch to work) - WOW, THATS HIGH, I SPENT THAT 4 4 PERSONS AND THAT INCLUDES WINE.
Clothing................................ 20
Petrol/diesel........................... 40 (petrol allowance of approx 25-30 paid by work each month)
Road tax................................ 9.80
Car Insurance........................... 20.85(ins only I don’t have recovery)
Car maintenance (including MOT)......... 10
Buildings insurance..................... 20.52 (inc contents insurance) - THAT SEEMS A WEE BIT HIGH TO ME, USE QUIDCO AND SEEK A CHEAPER INSURANCE
Presents (birthday, christmas etc)...... 20 (pay 5 per week Xmas club at work)
Entertainment........................... 60 (hard to work out as not out a lot but try and go for 241 cinemas nights, 241 deals on eating out also inc the gym at 29 but I will be looking to cancel this) - YOU NEED TO CUT DOWN ON THIS A WEE BIT, I KNOW ITS DIFFICULT, BUT ITS NOT FOR EVER.

Total monthly expenses.................. 1181.12

Assets

Cash.............................. 3000 (amt leftover from a loan I'm paying back to egg that I want to pay off/put towards a debt but not sure which would be best – help) i WOULD PERSONALLY PAY OFF MBNA, THEN CLOSE THE ACCOUNT. IN A FEW MONTHS TIME CHECK YOUR CREDIT RATING AND THEN APPLY FOR A 0% CARD TO BALANCE TRANSFER THE REST, AGAIN USE QUIDCO FOR CASH BACK
House value (Gross)........ 78400 (flat)
Car(s).............................1000 (own this outright)

Total Assets............................ 82400

Secured Debts

Description....................Debt......Monthly...APR
Mortgage...................... 55000....(323.25)...4.94
Secured Debt.................. 10000....(132.02)...7.75

Total secured debts........... 65000

Unsecured Debts

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

MBNA...........................5416.32...36.09..... (cant find apr but monthly int rate 1.45)
British Airways ...............0.........0......... (cant find apr but monthly int rate 1.24)
Egg Credit Card................247.79....7.........19.9
Egg Loan ......................6161.87...110.......7.66

Total unsecured debts..........11825.98..153.09....-

Monthly Budget Summar

Total monthly income.................... 1,029.53

Expenses (including secured debts)....... 1,181.12
Available for debt repayments........... -151.59
Monthly UNsecured debt repayments....... 153.09
Surplus(deficit if negative)............ -304.68

Welcome to the board, I too love your name, that really should be my name:rotfl:

I have added comments in above, can you do a second job for a wee while to increase your income?

You have done a great job so far trimming lots off your soa.

The short term answer is to EBay anything that is not stuck down or carboot it, every little helps.

I am sure the other peeps more experience will be along soon to offer you more advice.

Merlot.x.

Poosmate

I thought your APR's were your monthly rate x 12, so 1.45% pcm = 17.4% apr and 1.24% pcm = 14.9% apr. I'm sure someone will correct me if I'm wrong.

Hope your £3k cash is in a nice ISA albeit for a short time. If it's not I wouldn't advise you putting all of it into one now as you can only save £3600 in this tax year and we still have 11 months to go!

I am very cautious and would like to keep some of the £3k back as an emergency fund (unexpected bills i.e. new washing machine eek!). My emergency fund is actually a scary £200 minimum (I cautiously live on the edge lol).

I would definitely pay off the Egg CC as that looks like your highest interest rate and it's such a paltry amount - get rid of it. Yay!

I think then I would pay maybe £2k off the MBNA CC at least that will bring your monthly payments down a wee bit so your expenditure wouldn't be quite so much.

How are you funding your £304 deficit each month?

£285 is way too much for groceries for one - glad to see you are cutting that back - I got mine down to about £80 per month before my lodger moved back in last week. There's loads of support on the Grocery Challenge thread (I don't think there is a new one for May yet but join in, it'll be fun! May will be my first month too).

Could you take in a lodger to generate some more income?

There's loads of support here on various threads throughout the forums and I'm sure you'll get loads of advice about your SOA.

Good luck

Poo