Baby Debt (He's nearly 6)!

BadBookkeeper · 9 August 2017 at 12:04PM

Hello!

I've been reading a few diaries and they have so far helped a lot so thank you!

We had our Son in Dec 2011. I took full 1 year maternity and then took redundancy. The payout lasted through 2013 and until September 2014. In this time I took my bookkeeping exams and tried to set up my own business (didn't work)! I didn't find a job until Dec 2015 part time of 20 hours (ds started nursery school 1/2 days) as a bookkeeper (!) paying 4 weekly. I used credit cards to pay my share of the bills and then my overdraft to top up my earnings. Until I increased my hours to 30 in Sept 2016.

So now my earnings cover my bills leaving £80 a month pocket money. This is really the child benefit money so ideally I want to get to a situation that this money is put in a pot for my ds expenses like clothes, school snack money, uniform, shoes, haircuts, party presents etc.

I'm currently looking for a better paid job for the same hours. If I could earn the money I need for debt repayments in addition to what I earn now I would have enough disposable income to be happy with.

I have joined survey sites, listed a few things on selling sites and become a distributor for a well known catalogue brand which seems to be going well.

My plan is:
Save £400 for Christmas to stop adding to debts - Currently have £62 and using the 1% grid to colour in increments of £4.

Pay off overdraft £2000 - Not sure to move this to credit card debt

Over pay MBNA CC - £6500 5.9% for life when reaches £5000 then move to my empty Barclaycard at 0%

Tesco Card - £6830 0% Until Aug 2018 - Make minimum payments then move to 0%

Car loan Bank of Mum & Dad 0% - £1500 left to pay should finish Nov 2018.

My husband refinanced his car loan and used that for my share of the bills too but he is happy with how he is repaying that and his disposable income goes towards entertainment, emergencies, haircuts, birthdays and pays more towards our house hold bills.

I'm a bit ashamed about my debts considering the job I do! I should know better! I kept all my high credit limits when I left work to have a baby and carried on spending even though I earn around £350 a month less than I did then!

Thanks for reading any suggestions greatly received (be gentle)!

[purplesignup][/purplesignup]

Hiddenidenity · 9 August 2017 at 2:23PM

Good luck

First step is always the hardest. Do your SOA would be the first step

BadBookkeeper · 9 August 2017 at 7:40PM

My SOA

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1040
Partners monthly income after tax....... 945
Benefits................................ 89.7
Other income............................ 0
Total monthly income.................... 2074.7

Monthly Expense Details
Mortgage................................ 800
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 169
Electricity............................. 55
Gas..................................... 55
Oil..................................... 0
Water rates............................. 56.13
Telephone (land line)................... 66
Mobile phone............................ 10
TV Licence.............................. 12.2
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 300
Clothing................................ 0
Petrol/diesel........................... 65
Road tax................................ 17
Car Insurance........................... 16.85
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10.5
Pet insurance/vet bills................. 0
Buildings insurance..................... 10
Contents insurance...................... 8.88
Life assurance ......................... 75.38
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 5
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1781.94

Assets
Cash.................................... 0
House value (Gross)..................... 200000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 203000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 140000...(800)......2.9
Total secured & HP debts...... 140000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Overdraft......................2000......0.........0
MBNA...........................6584.47...100.......5.9
Tesco..........................6948.75...70........0
Car Loan.......................1500......100.......0
Total unsecured debts..........17033.22..270.......-

Monthly Budget Summary
Total monthly income.................... 2,074.7
Expenses (including HP & secured debts). 1,781.94
Available for debt repayments........... 292.76
Monthly UNsecured debt repayments....... 270
Amount left after debt repayments....... 22.76

Personal Balance Sheet Summary
Total assets (things you own)........... 203,000
Total HP & Secured debt................. -140,000
Total Unsecured debt.................... -17,033.22
Net Assets.............................. 45,966.78

Partners income is just the amount he pays into my account for bills.

Lucylocks · 9 August 2017 at 8:47PM

Hi and welcome.

2 things immediately strike me - your life assurance is expensive, can you look around for cheaper? Secondly, are these joint debts? If they were accrued when you were on maternity leave and related to cost of living I would suggest your OH take some of the burden of repayment. It's an awful lot for you to carry on your own. I know you mention he pays for entertainment etc but even so could he help out a bit more?

BadBookkeeper · 9 August 2017 at 9:24PM

Hi Lucylocks,
Thanks for reading & replying. The life insurance includes income protection if either of us lost our jobs due to redundancy or sickness. Hubby already paying a £7k loan as well he took out to help. He's paying that back himself. I do feel its a fair split as he's paying more towards household bills & all the extras. Thanks though xx

Lucylocks · 9 August 2017 at 9:43PM

Ahhh ok - in our set up my OH pays mortgage and contribution towards bills. I pay majority of bills and child expenses.

Looking at your SOA you seem to be paying a lot for gas and electricity for 3 of you - that's more than I pay for 4 which includes 2 teens with constant chargers running.

Landline I guess includes broadband - again looks on high side. We pay 46 for TVs/phone/broadband so may be worth shopping around.

You could possibly trim a little off grocery bill - I aim for 60/70 per week for 4 of us.

Everything else looks good to me

BadBookkeeper · 9 August 2017 at 9:55PM

Oh god really re gas/elec? We just moved from SP to eDf seemed to be the cheapest!:eek: maybe I need to look at where we can use less....

I desperately try with the groceries. Try to stick to £70 a week. This weeks was £72.30 ( T online. Figured out they add the £2 delivery and 40p for bags on top of the checkout total

will remember that in future. I did try to get as much as poss from aLdi then going to T too but that month I was £60 over!!!

Landline includes broadband too. I'm hoping that reduces soon as we've used the phone a lot recently moving our mortgage through L&C very lengthy calls but done now.

Do you mind me asking where you grocery shop?

Lucylocks · 9 August 2017 at 10:01PM

I'm an Aldi convert - OH was dubious at first as he fancies himself as a Waitrose sort! Been going there for about 3 years. It was telling when they closed for refurb recently and I had to use Asda for the 'big' shop that my spend was well over 100 every time.

I do split out cleaning products as I find I've a tendency to stockpile these - once a month I try and do a one-off shop for these bits which removes temptation of sticking them in the trolley each week 'just in case'

Hiddenidenity · 9 August 2017 at 10:25PM

BadBookkeeper wrote: »

My SOA

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1040
Partners monthly income after tax....... 945 Does this make an equal share? IE do you earn more than him?
Benefits................................ 89.7
Other income............................ 0
Total monthly income.................... 2074.7

Monthly Expense Details
Mortgage................................ 800
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 169 OVer 12 months or the standard 10? If over 10 you could see if you can spread over 12?
Electricity............................. 55
Gas..................................... 55 This combined is very high! We where a family of 5 and use no where near this.
Look at the guides to cutting usage down etc
Oil..................................... 0
Water rates............................. 56.13 Again this is high are you on a meter?
Telephone (land line)................... 66 Can you guess my comment on this yet? Look around if you are getting the best deal. If in contract call and check you use everything.
Threaten to leave and see if they can do a good deal
Mobile phone............................ 10
TV Licence.............................. 12.2
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 300 Again we were a family of 5 with nappies etc needed and spend £40 a week.
Clothing................................ 0
Petrol/diesel........................... 65
Road tax................................ 17
Car Insurance........................... 16.85
Car maintenance (including MOT)......... 0 you need to save something for here
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10.5
Pet insurance/vet bills................. 0
Buildings insurance..................... 10
Contents insurance...................... 8.88
Life assurance ......................... 75.38 HAve you shopped around for the best deal? Don't forget cashback sites.
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 5
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1781.94

Assets
Cash.................................... 0
House value (Gross)..................... 200000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 203000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 140000...(800)......2.9
Total secured & HP debts...... 140000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Overdraft......................2000......0.........0
MBNA...........................6584.47...100.......5.9
Tesco..........................6948.75...70........0
Car Loan.......................1500......100.......0
Total unsecured debts..........17033.22..270.......-

Monthly Budget Summary
Total monthly income.................... 2,074.7
Expenses (including HP & secured debts). 1,781.94
Available for debt repayments........... 292.76
Monthly UNsecured debt repayments....... 270
Amount left after debt repayments....... 22.76 Do you actually have this left? If not keep a spending diary, its a real eye opener how that odd bar of chocolate or the odd coffee add up over the month.

Personal Balance Sheet Summary
Total assets (things you own)........... 203,000
Total HP & Secured debt................. -140,000
Total Unsecured debt.................... -17,033.22
Net Assets.............................. 45,966.78

Partners income is just the amount he pays into my account for bills.

A few things to think about

I shop at Sainsburys 90% of the time, Aldi once every 6 weeks or so to get condiments etc. I meal plan however not for set days just 7 mains/lunches/breakfast. I bake snacks on a Sunday and one day in the week when the oven is on.

I use own brand non bio washing powder/liquid but I won't compromise on comfort/lenor. Own brand ultimate washing up liquid because I don't like the cheapest. I use zoflora or a multi surface cleaner and make it up in spray bottles, so much cheaper and lasts ages!

Hope this helps and doesn't come across the wrong way

BadBookkeeper · 9 August 2017 at 10:57PM

Thank you! The car repairs/mot are paid by OH.
Council tax is over 10 months so use the 2 free months for clothes for me & ds.

Surprised how many things are high. We are not on a water meter.

The amount left over is £80 for my day to day spends as I don't save monthly for xmas but would cost £40 pm car tax is also an after thought and oh usually pays that.

Love club card points hence like T but maybe need to break the habit. Thanks for advice. Will look into a few things and let you know

BadBookkeeper · 10 August 2017 at 11:21AM

Morning!

One of my items has sold on fleabay only £5 but it will cover a £5 I need to pay as my contribution to a birthday collection so it has helped!

Posted another item on g/tree.

Baby Debt (He's nearly 6)!

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