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    • BadBookkeeper
    • By BadBookkeeper 9th Aug 17, 12:04 PM
    • 83Posts
    • 430Thanks
    BadBookkeeper
    Baby Debt (He's nearly 6)!
    • #1
    • 9th Aug 17, 12:04 PM
    Baby Debt (He's nearly 6)! 9th Aug 17 at 12:04 PM
    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)!

    This Forum tip was included in MoneySavingExpert.com's weekly email!
    Last edited by MSE Andrea; 07-09-2017 at 4:28 PM.
Page 3
    • BadBookkeeper
    • By BadBookkeeper 31st Aug 17, 10:27 AM
    • 83 Posts
    • 430 Thanks
    BadBookkeeper
    DS drinks bottle went out of shape in the dishwasher (should have read the instructions)
    Just been to a!di and bought another then impulse bought another that has an emoji icon on (his thing at the moment), even though its not practical for school (opening too big) but I know he'll love it for at home (SIGH)!


    Am I beyond help!!!! That's £9 on water bottles in 3 days.


    Need to set some September goals I think to get me back on track.
    • BadBookkeeper
    • By BadBookkeeper 31st Aug 17, 2:23 PM
    • 83 Posts
    • 430 Thanks
    BadBookkeeper
    Okay so here are my 3 goals for September:


    1 - Put £100 in my xmas pot
    2 - Have 15 NSD
    3 - Lose 4lbs


    How to achieve:
    1 - New catalogue I distribute out so going to work hard to sell the products and earn commission / Sell 5 items on Eb@y / Any savings made on shopping, fuel put in the pot not my purse, limit my DS to sweet shop visits!!
    2 - Back to school so should be quite easy to achieve
    3 - Decide what plan I am following and stick to it instead of changing my mind every other day!! Park further away from school and walk some of the way instead of fighting for a car pack space right next to it.
    Take my DS for walks in the evening or a run around in the park



    My DS is nearly 6 yrs old. What does everyone do about pocket money at this age and teaching good habits?
    • wishingthemortgaheaway
    • By wishingthemortgaheaway 31st Aug 17, 6:56 PM
    • 585 Posts
    • 2,234 Thanks
    wishingthemortgaheaway
    I like your goals. Will be cheering you on.

    My little boy is only 1, but we've already set up 3 money boxes for him, spend, save. & give.

    When he gets given any money we split it 45% in spend & save 10% in give.

    He's not spent a penny of it yet, but the idea is that his 'spend' money is for the sweet shop trip, day out 'I want' from the gift shop, school fair type spending.
    Save is to save up for a big thing, maybe a big toy or clothes or something.
    Give is to be given away to charity. This could include the £1 schools are always asking for for non uniform days, or to buy something to go in a food bank box or for sponsorship.

    It takes a lot of setting up and 'training' but it can be very effective.

    Money is hard with young children.
    Some big coins are worth more than some little coins
    1 coin can be worth more than a whole handful of coins.
    You can pay for something with 1 coin and get the item and many coins back.

    It messes with children's heads.

    Friends of ours don't do pocket money (5&4 year olds) but when they go to 'I want'land - fairs, fates & festivals the children are allowed to do two things and eat/drink 1 thing. This works really well for them and the children now know it's pointless arguing.

    I'm sure there are lots of other ways, but these are the two I'm familiar with.

    Wish
    The 100 payment countdown (each payment = £400)
    2017 July : £36,800 8/100 Aug: £36,411.85 8/100 Sep: £35,945.66 10/100 Oct: £35,500 11/100
    Term Mortgage free date: October 2029
    Current mortgage free date: April 2025
    • BadBookkeeper
    • By BadBookkeeper 2nd Sep 17, 8:12 PM
    • 83 Posts
    • 430 Thanks
    BadBookkeeper
    Yay! Finally achieved a NSD
    • BadBookkeeper
    • By BadBookkeeper 3rd Sep 17, 9:34 PM
    • 83 Posts
    • 430 Thanks
    BadBookkeeper
    NSD 2 achieved so 2/15...
    • BadBookkeeper
    • By BadBookkeeper 6th Sep 17, 9:33 AM
    • 83 Posts
    • 430 Thanks
    BadBookkeeper
    Anyone else feel they don't get anywhere fast! Checked my bank this morning and one of my DDs was £2 less than budgeted for..... then I open email from Eb@y invoice for August £1.96!!


    Hoping for a NSD today to make me feel I'm doing something positive so no sweets on the school run.
    • wishingthemortgaheaway
    • By wishingthemortgaheaway 6th Sep 17, 9:57 AM
    • 585 Posts
    • 2,234 Thanks
    wishingthemortgaheaway
    But that's a 4p win rather than a loss of any size.

    Keep plodding.
    The 100 payment countdown (each payment = £400)
    2017 July : £36,800 8/100 Aug: £36,411.85 8/100 Sep: £35,945.66 10/100 Oct: £35,500 11/100
    Term Mortgage free date: October 2029
    Current mortgage free date: April 2025
    • BadBookkeeper
    • By BadBookkeeper 6th Sep 17, 10:31 AM
    • 83 Posts
    • 430 Thanks
    BadBookkeeper
    Of course! thank you
    • JimmyTheWig
    • By JimmyTheWig 6th Sep 17, 12:13 PM
    • 11,512 Posts
    • 11,165 Thanks
    JimmyTheWig
    Personally I find it odd that you don't seem to be in a partnership with your husband and have separate money, but I understand that many couples do that. You seem to be coping just about, so no real reason to change this arrangement unless you want to.

    I do have a couple of comments, though.


    Over pay MBNA CC - £6500 5.9% for life when reaches £5000 then move to my empty Barclaycard at 0%
    Originally posted by BadBookkeeper
    Are you saying that you're currently paying 5.9% on £6500 and have a 0% deal on your Barclaycard which has a £5000 limit and no balance at the moment?
    Do you know that you don't have to transfer the whole balance? You could transfer £5000 (technically it would have to be less than this as they don't let you transfer your whole limit, but it should be close enough for rough figures) now, leaving you with £5000 at 0% and £1500 at 5.9%. That would save around £25 a month in interest.
    Check the deal with minimum repayments, but it should work out fine.

    Pay off overdraft £2000 - Not sure to move this to credit card debt
    Though having said that, this might be the priority. Is this your everyday account, or an old overdraft that you are paying off? How much does it cost you each month?
    • terill
    • By terill 6th Sep 17, 2:05 PM
    • 36 Posts
    • 28 Thanks
    terill
    Hello, I was in a very similar position a few year ago when my son was a little-un. You seem to have very good plans in place but the things that stand out to me are:

    GROCERIES- I swapped to Lidl/Aldi for most of my shopping and it saved at least £100 per month. I ended up putting money in envelopes every week for certain things to keep me to my budget

    GAS/ELEC- seems a little high

    LANDLINE- seems very high. I am sure you could improve on this. Maybe a 'free calls' service if you don't use mobiles so much or change to a 'free calls' on your mobile and use that and cxl the landline if don't use broadband

    BENEFITS- Are you sure you don't qualify for Working tax credit, child tax credit or Universal credit as your combined incomes appear to be less than £40,000 before tax?

    Good luck and I can't stress enough about the cash in envelopes every week. EG £50 food; £15 entertainment etc. It made me make do xx
    • BadBookkeeper
    • By BadBookkeeper 7th Sep 17, 10:25 AM
    • 83 Posts
    • 430 Thanks
    BadBookkeeper
    I need to revisit this... The reason I haven't transferred the MBNA to Bcard is that bcard minimum payment is 225% and mBNA is only 1%. I couldn't afford to meet the minimum with the high balance. But maybe I could look at shifting some of it. Thanks
    • BadBookkeeper
    • By BadBookkeeper 7th Sep 17, 11:00 AM
    • 83 Posts
    • 430 Thanks
    BadBookkeeper
    On a positive note NSD 3/15 yesterday and should be another today

    Yes another NSD today 4/15
    Last edited by BadBookkeeper; 07-09-2017 at 10:43 PM.
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