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  • FIRST POST
    • Sofee3
    • By Sofee3 20th Feb 19, 7:30 PM
    • 16Posts
    • 11Thanks
    Sofee3
    On a mission to clear debt
    • #1
    • 20th Feb 19, 7:30 PM
    On a mission to clear debt 20th Feb 19 at 7:30 PM
    Hi all,

    Posting my SOA for comments please, we are looking to move house in 2/2.5 years but have to clear credit cards and car loan first, anything glaringly obvious to anyone that could help me?

    Household Information
    Number of adults in household........... 2
    Number of children in household......... 2
    Number of cars owned.................... 1

    Monthly Income Details
    Monthly income after tax................ 1537
    Partners monthly income after tax....... 1500
    Benefits................................ 137
    Other income............................ 625 (rent we receive)
    Total monthly income.................... 3799

    Monthly Expense Details
    Mortgage................................ 462
    Secured/HP loan repayments.............. 753
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 165
    Electricity............................. 45
    Gas..................................... 45
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 70
    TV Licence.............................. 12.5
    Satellite/Cable TV...................... 71
    Internet Services....................... 0
    Groceries etc. ......................... 340
    Clothing................................ 20
    Petrol/diesel........................... 200
    Road tax................................ 0 (free road tax on car)
    Car Insurance........................... 31
    Car maintenance (including MOT)......... 5
    Car parking............................. 0
    Other travel............................ 0 (I get train season ticket so comes out salary - 72)
    Childcare/nursery....................... 0 (childcare voucher come off my salary - will stop in August 98)
    Other child related expenses............ 30
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings & contents insurance..................... 19
    Life insurance ......................... 54
    Other insurance......................... 19 (landlord insurance)
    Presents (birthday, christmas etc)...... 20 (my husband gets cash tips which he saves for xmas)
    Haircuts................................ 60
    Entertainment........................... 50
    Holiday................................. 0
    Emergency fund.......................... 0
    Husbands football season ticket .......................... 55
    Money to mum ........................... 344
    Total monthly expenses.................. 2870.5

    Assets
    Cash.................................... 0
    House value (Gross)..................... 280000
    Shares and bonds........................ 0
    Car(s).................................. 9000
    Other assets............................ 0
    Total Assets............................ 289000

    Secured & HP Debts
    Description....................Debt......Monthly.. .APR
    Mortgage...................... 95000....(462)......3.99
    Secured Debt.................. 7500.....(169)......4<
    Mortgage for rental............116000...(584)......4.24
    Total secured & HP debts...... 218500....-.........-

    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Barclaycard....................5126......150...... .0
    Lloyds.........................3100......31....... .0
    M&S............................2949......78....... .0
    Barclaycard ...................520.......12........0
    Total unsecured debts..........11695.....271.......-

    Monthly Budget Summary
    Total monthly income.................... 3,799
    Expenses (including HP & secured debts). 2,870.5
    Available for debt repayments........... 928.5
    Monthly UNsecured debt repayments....... 271
    Amount left after debt repayments....... 657.5

    Personal Balance Sheet Summary
    Total assets (things you own)........... 289,000
    Total HP & Secured debt................. -218,500
    Total Unsecured debt.................... -11,695
    Net Assets.............................. 58,805
Page 1
    • Honeysucklelou2
    • By Honeysucklelou2 20th Feb 19, 9:36 PM
    • 1,558 Posts
    • 7,798 Thanks
    Honeysucklelou2
    • #2
    • 20th Feb 19, 9:36 PM
    • #2
    • 20th Feb 19, 9:36 PM
    Do you need to consider tax on the rent income received?
    paydbx2019 #93 572.38/10,100 .
    School trips 1016/1269..
    EF 210
    • Sofee3
    • By Sofee3 20th Feb 19, 9:41 PM
    • 16 Posts
    • 11 Thanks
    Sofee3
    • #3
    • 20th Feb 19, 9:41 PM
    • #3
    • 20th Feb 19, 9:41 PM
    Thanks, no as we pay for landlord insurance and money to fix or buy new appliances then we don't need to as don't make a profit on it.
    • Mnd
    • By Mnd 21st Feb 19, 7:01 AM
    • 1,177 Posts
    • 1,727 Thanks
    Mnd
    • #4
    • 21st Feb 19, 7:01 AM
    • #4
    • 21st Feb 19, 7:01 AM
    Your SOA doesn't look too bad at all, very good detail and well thought through, my only gripe would be your mobiles, that seems huge to me.

    Your grocery spend seems high to me, but I don't have to feed children.,

    Good luck,,I look forward to following your progress
    • MovingForwards
    • By MovingForwards 21st Feb 19, 7:45 AM
    • 777 Posts
    • 941 Thanks
    MovingForwards
    • #5
    • 21st Feb 19, 7:45 AM
    • #5
    • 21st Feb 19, 7:45 AM
    Nothing for water / prescriptions, you in Scotland?

    Also need to put something for dental.

    Car repairs budget seems very low.

    Haircuts a bit high.
    • enthusiasticsaver
    • By enthusiasticsaver 21st Feb 19, 8:04 AM
    • 8,373 Posts
    • 19,188 Thanks
    enthusiasticsaver
    • #6
    • 21st Feb 19, 8:04 AM
    • #6
    • 21st Feb 19, 8:04 AM
    Thanks, no as we pay for landlord insurance and money to fix or buy new appliances then we don't need to as don't make a profit on it.
    Originally posted by Sofee3
    I think you need to check this as under the new BTL income rules brought in 2017 there are restrictions on offsetting mortgage interest payments against income so you may be liable to pay tax even if no profit. It is being phased out gradually so I think we are at 50% this year.
    Last edited by enthusiasticsaver; 21-02-2019 at 8:53 AM.
    Early retired in December 2017

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • enthusiasticsaver
    • By enthusiasticsaver 21st Feb 19, 8:07 AM
    • 8,373 Posts
    • 19,188 Thanks
    enthusiasticsaver
    • #7
    • 21st Feb 19, 8:07 AM
    • #7
    • 21st Feb 19, 8:07 AM
    The other thing I would say is you need emergency savings so you don't have to put unexpected bills on a credit card undoing any repayments.

    Do you actually have a surplus each month as your soa indicates you should have 657 or do you overpay the debt?

    When do the 0% deals expire?
    Early retired in December 2017

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • blue_eyed_girl123
    • By blue_eyed_girl123 21st Feb 19, 8:08 AM
    • 98 Posts
    • 192 Thanks
    blue_eyed_girl123
    • #8
    • 21st Feb 19, 8:08 AM
    • #8
    • 21st Feb 19, 8:08 AM
    If you have 928 surplus a month, where is that money going? Also, how are you making sure you don't increase credit card debt?
    • Sofee3
    • By Sofee3 21st Feb 19, 9:52 AM
    • 16 Posts
    • 11 Thanks
    Sofee3
    • #9
    • 21st Feb 19, 9:52 AM
    • #9
    • 21st Feb 19, 9:52 AM
    Thanks for all the replies.

    Yes we over pay credit cards each month, so pay about 550 to them in total. The first 0% balance runs out in April 2020 so we will clear that first.

    Yes we are in Scotland so no money for water and prescriptions.

    Yes dental is a point.

    The car is in good nick but yes probably should be higher due to servicing cost too.

    I get my hair dyed every 5 weeks as get grey quickly :-0 and this amount include kids/hubby cuts every so often.

    We are going to be selling our property we rent too as will need to to get a higher mortgage.
    • Sofee3
    • By Sofee3 25th Feb 19, 8:44 PM
    • 16 Posts
    • 11 Thanks
    Sofee3
    So today the car went into the garage to get break discs and pads done and they told us about a couple of other things, now down 900, which I had to put on a 0% purchases credit card :-(
    • Sofee3
    • By Sofee3 8th Apr 19, 6:50 PM
    • 16 Posts
    • 11 Thanks
    Sofee3
    It's been a while, I need to update this more often! I have a spreadsheet for my credit cards that shows snowball amounts you can make and you can set which one you want to clear first etc and have worked out from that that I can clear the credit cards by October next year, fingers crossed!!

    We will also have to pay to get our bathroom re-done and the hall plastered before we move as well as a few other bits and bobs so we have about 2 years to do it all in and have the money to do it!

    I'm just so obsessed just now with saving money (needed for summer holiday) and paying money to credit cards, I love a spreadsheet too and get totally slagged for it, I have one that lists outgoings and income too :-D
    • Sofee3
    • By Sofee3 16th Apr 19, 6:07 PM
    • 16 Posts
    • 11 Thanks
    Sofee3
    Was told at the weekend by hubby that I need to stop going on about money!! He thinks I'm putting too much to cards that we can't live but we definitely can and could cut back more on take aways etc.

    But I do feel like I obsessively check spreadsheets etc and really wish we could move house asap not in 2 years when debt is gone, I'm impatient can you tell!!?

    Anyone else like this or just me??
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