A question about : Help with SOA
Hi all. I have a debt of Ј1500 which is my student overdraft therefore no charges at present. I know it doesn't seem like an awful lot but I am on benefits and am looking for a way to bring this down.
I have done a SOA but there are a few things I didn't or couldn't add in.
Firstly, I have a mortgage but the SOA calc wouldn't allow me to enter any payment in so I had to put it in the rent box instead. I pay this in addition to the mortgage interest the benefits agency pay directly to my bank.
I have not added my contents/buildings insurance or my car tax as this is because my family give me money for birthday and christmas which pays for these and allows me to pay for the whole year in one go. I am very lucky to have such a brilliant family.
The telephone includes landline, telephone calls, broadband, tv. This is usually around the Ј50 mark but on occasion has gone up to Ј60 which is why I put that amount. In contract so can't leave Sky.
Groceries include ALL food, cleaning, presents, clothes for me and 2 children.
Entertainment includes days out, money for school trips etc. I try and do as much free stuff as I can.
I think my main problem is that I can't cook at all so end up spending more than I should on food and end up throwing a lot of fresh food away.
Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 880.04
Other income............................ 0
Total monthly income.................... 880.04
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 276.27
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 65
Gas..................................... 52
Oil..................................... 0
Water rates............................. 46
Telephone (land line)................... 60
Mobile phone............................ 20
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 160
Clothing................................ 0
Petrol/diesel........................... 70
Road tax................................ 0
Car Insurance........................... 34.13
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 30
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 875.52
Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 800
Other assets............................ 0
Total Assets............................ 800
No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly.. .APR
Student OD.....................1500......0.........0
Total unsecured debts..........1500......0.........-
Monthly Budget Summary
Total monthly income.................... 880.04
Expenses (including HP & secured debts). 875.52
Available for debt repayments........... 4.52
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 4.52
Personal Balance Sheet Summary
Total assets (things you own)........... 800
Total HP & Secured debt................. -0
Total Unsecured debt.................... -1,500
Net Assets.............................. -700
Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.
Best answers:
- clearly your budget is tight, so you will need to cut down your outgoings abit, as you have no excess money.
you seem to be missing a few things from your SOA, which would most likly cause you to be overspending.
things like haircuts, presents and clothing, which i assume you do pay for ?
also having something toward an emergency fund should be budgeted in.
while your student overdraft is currently free, it wont stay that way and once it starts having interest, thats going to cause you problems as well.
you could potentially get rid of your car, using the money to start clearing the overdraft and free up alot of money per month - Any chance of getting rid of the car?
Head over to the old style money saving for help with food etc, they never throw anything away. - Firstly, we'll done on a good effort at the SOA! And your attitude towards the debt!
It took me a few drafts to get it pretty much right - and be prepared to change it as circumstances change!
A few suggestions from me:
Your Sky looks like a big expenditure to me - have you seen Martin's latest e-mail about haggling in your contract?? Sometimes you don't even have to drop channels to get a significantly better deal... Worth a try??
Utilities (gas, water, electric) seem on the high side... Turn things off at the plug, don't waste, as suggested - get the kids on board!!
Again, would be worth ringing supplier and checking you are on the cheapest tariff, then do some comparisons??
Re: cooking... There are some AMAZING resources out there, even for those not particularly gifted in the kitchen department! Try google "A Girl Called Jack" simple, healthy and very cheap!!!!
Hope that helps xxx - Thank you everyone for your replies.
CAR - The car is a huge cost but unfortunately is absolutely necessary for the time being. I won't need it by summer next year so can get rid of it then.
UTILITIES - I never thought these were high but will contact utility company to see if I can change tariff. SKY too.
ENTERTAINMENT - This goes on trips to cinema (cineworld is cheap on weekend mornings), having an ice cream in the park, etc. Plus school trips - I have already had to spend Ј14.50 this month on 2 school trips.
So I definitely need to learn how to cook from scratch. I'm a jars kind of girl. I usually buy whatever is on offer for Ј1 or less.
Unfortunately nothing left to sell as I already did that to pay off my other small debts which is why I only have this one debt left. Kids toys have been totally cleared out, all excess furniture gone, pretty ornaments all sold...I have a pretty empty house now and I must say it's a lot easier to clean.
Last year people bought the kids presents which they were too young for, but I've kept and will be giving them these this year as presents from Father Christmas and from me. Cheeky but needs must! - Why not pop over to the oldstyle board on here and ask for some simple, cheap meal ideas? You don't have to try them all at once.
How about beans on toast, eggs on toast, omelettes, soup (chop veg and onion, add stock and water and cook, maybe liquidise), sausage and veg, etc. I'm sure the Oldstyle board will have loads of ideas for you.
Best of Luck
df - Your car is costing you over 150 a month, which on your income is crippling you. Have you looked into taxis, or food shopping online, car sharing, cycling, getting the bus etc etc?
df - Hi Scoobysnacks
I think Ј160 a month on groceries including clothes and presents for 3 people is low. Are you certain you are only spending that amount? I doubt you will be able to cut much from that and would look to see if you can make some small cutbacks elsewhere.
If you do decide that the car is essential are you able to cut down on the petrol cost at all? either by reducing the mileage or by ensuring you always by the cheapest fuel and following these tips - https://www.moneysavingexpert.com/travel/cheaper-fuel
Regarding the utilities - don't just check what tariffs your current companies have, also look at other suppliers https://www.moneysavingexpert.com/uti...as-electricity
Hopefully you will be able to reduce the cost with sky - if they don't sound willing maybe explain you are currently on benefits and may end up having to default on the payments to them.
If you can free up even Ј20 or so a month it will help you start to build up a cushion so that you can reduce the overdraft when they start charging interest.
Have you doublechecked you are getting all benefits you are entitled to? - Are you still studying?
- Can I ask if you're children are school age or younger? Are you actively seeking work or could you work a few hours a week to boost your income without incurring daycare costs or reducing your benefits?
I think your budget is quite tight, to be honest, which is why I think you may be better off trying to boost your income if you can. There might be some room if you negotiate your sky package and gas/electric but I can't see where you can make any significant savings as it stands now.
Good luck and I really like your name, wish I'd thought of that one - Hi all
Just wanted to let you all know what's happening...
I sold my car and a family member gave me their old car completely free which is a lot cheaper than the one I had. So I put that money towards a years home insurance, a years car insurance and a years car tax. This has saved me about Ј100 a month. I feel I can breathe a little easier now.
Well, I say saved...I could have put all the money I made from the sale of the car straight into my overdraft but as I'm not being charged for it I thought it would be better to pay off the insurance and tax.
I have not yet looked into changing my utilities however, I have a Ј110 electric rebate due to having a faulty meter and in the next week will be getting Ј147 back from the water company, both of which will pay my overdraft. I am on a meter but had been paying the same DD for the last two years since my ex left so I have overpaid. In addition to this, they are lowering my monthly DD by Ј10 which will also go towards my overdraft. I have changed the way I shop and cook and am confident I can really make an effort to bring my student overdraft down to a more manageable amount before they start charging me for it which the bank said they wouldn't do for another year.
I feel so happy as this is the only debt I have and it will soon be gone. - Well done scooby!! Sounds like you've made some great in-road already and have a plan for moving forward. Bet it feels great to know that everything will be sorted.
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