Help really Worried we are going to go under!

imcognito

Hello!! Im new and worried.

Bit of Background then will post my SOA.

I am a SAHM 2 boys (ahh!) one is in preschool (part funded) the other will be starting in December (he needs the interaction and noise!! - but we will have to pay) I am also pregnant with baby no 3 (a girl we think!) due in January.

I used to work up until baby no 2 but the cost of 2 in childcare plus my commute to London meant it cost me £140 a day just to go to work, I ended up with nothing so decided it was better for me to stay at home with them.

DH works full time and has a great job with great prospects. Great basic salary with opportunity to earn on-call rates of £1000-3000 net on top.

We bought a house last year (right before the credit crunch hit - VERY bad tming!) unfortunately we had a Mortgage advisor who was utterly useless and despite us giving him copies of our credit reports and explaining our history (we had very slight adverse credit nothing serious tho DH's bad stuff was 6 years old!! we waited!) he applied for over 15 mortgages for us!!! I mean 15!!! Do your work and apply for one they are likely to get yes?? But no so when we finally got a mortgage the rate was crippling 7.9! so we are paying interest only for now and hoping in 2 years when we can get out things may have improved a little.

Im just worried we wont see the next two years out now.

So here is our SOA Hope its right, I might have to come back and edit some rates if I dont have them all.

Monthly Income Details




Monthly income after tax................ 2569-6000Partners monthly income after tax....... 0Benefits................................ 0Other income............................ 124 (child Benefit)Total monthly income.................... 2693-6124Monthly Expense DetailsMortgage................................ 1386 (Interest Only)Secured loan repayments................. 0Rent.................................... 0Management charge (leasehold property).. 0Council tax............................. 125Electricity............................. 100 (duel Gas & Electric)Gas..................................... 0Oil..................................... 0Water rates............................. 48 (were not charged for 1st year here so paying extra to cover)Telephone (land line)...................11.99Mobile phone............................ 45 (2 Phones 1 on lowest contract DH cant change till Feb 09)TV Licence.............................. 11Satellite/Cable TV...................... 48 (sky sports! Have asked Dh to get rid)Internet Services....................... 0Groceries etc. ......................... 200 (for 4 soon to be 5 Needs to include Nappies!!!! Struggling wit this!)Clothing................................ 50(try to reply on my parents for boys clothesPetrol/diesel........................... 400 (Dh gets thru a tank a week £80 for him I use a tank a month) Road tax................................ 20Car Insurance........................... 28 (only mine at moment DH paid in full at beginning)Car maintenance (including MOT).........20 (due to milage DH does car needs service 2 x a year!)Car parking............................. 0Other travel............................ 0Childcare/nursery.......................124 (currently for DS1, part funded) when I send DS2 in Dec will add an extra £168 to that)Other child related expenses............ 0Medical (prescriptions, dentist etc)....0Pet insurance/vet bills................5Buildings insurance.....................15Contents insurance...................... Life assurance ......................... REALLY Need this tho!Other insurance......................... 0Presents (birthday, christmas etc)...... 15Haircuts................................ 30 (only boys and DH Mum treats me usually!)Entertainment........................... 0Holiday................................. 0Emergency fund.......................... 0Total monthly expenses.................. 2681.99AssetsCash.................................... 0House value (Gross).....................235000 (bought for 242000 am guessing its gone down tho!)Shares and bonds........................ 0Car(s).................................. 12000 (2 cars guesses!)Other assets............................ 0Total Assets............................ 247000Secured DebtsDescription....................Debt......Monthly.. .APRMortgage...................... 230000...(1386).....7.9Total secured debts........... 230000....-.........- Unsecured Debts SCARYDescription....................Debt......Monthly.. .APRLoan 1 Dh's name ........25000......532.....7.7Credit Card ............4000.....90.....Currently 0 but will raise to 14 (AA?)Credit Card ............6000....120.....17.9 (Egg)Egg Loan............3800 (remaining) 174 .... 7.9Car Finance ........4000...........132.....4.5Car Finance 2 .......8000.........254......4.5Overdraft......................4800......(this is my old bank account no longer used the child benefit money gets paid in here to try and clear it!!)Total unsecured debts.........55600..... 1426Monthly Budget SummaryTotal monthly income.................... 2693-6124Expenses (including secured debts)....... 2681Available for debt repayments...........13-3000Monthly UNsecured debt repayments....... 1426Surplus(deficit if negative)............ 13-1500Personal Balance Sheet SummaryTotal assets (things you own)..........247000Total Secured debt...................... -230000Total Unsecured debt.................... -55600Net Assets.............................. -50,600






So as you can see if DH has a good month we can afford to pay everything BUT if he doesnt then we cant even afford to pay debt. Since my maternity and sick pay ended in january we have only had 2/3 months where no oncall was received. It was these months we had to reduce to using my egg card to pay for general living so that things could be paid.

DH thinks tat until the end of this year he "should" be fine and get £3500 net a month. But come January it can all change (new hires less on call etc) he is polishing up his CV and looking at contracting, but thats a HUGE step tho there is the possibilty of earning up to £600 a day doign that. I have said to give till end of year and see how things are but am worried things will fall apart losing out home new baby boys losing out on school etc etc etc..

Oh and cars - yes unfortunately we need 2 he works an hour away so I cannot drop him off and I cannot do school run without it. (Walking its 1.5 round trip! Im pregnant buggy a 3 year old!)

I try and be good but the boys do need t go out sometimes, we usually have lunch out with them so will stop that but will still need about £10 a week to take them places.

So any ideas? What can we do. its the mortgage and debt thats the big things.

HELP! Worried me

X

GeorgeUK

I'll just try to tidy this up a bit first.

Monthly income after tax................ 2569-6000
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 124 (child Benefit)
Total monthly income.................... 2693-6124

Monthly Expense Details
Mortgage................................ 1386 (Interest Only)
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 125
Electricity............................. 100 (duel Gas & Electric)
Gas..................................... 0
Oil..................................... 0
Water rates............................. 48 (were not charged for 1st year here so paying extra to cover)
Telephone (land line)...................11.99
Mobile phone............................ 45 (2 Phones 1 on lowest contract DH cant change till Feb 09)
TV Licence.............................. 11
Satellite/Cable TV...................... 48 (sky sports! Have asked Dh to get rid)
Internet Services....................... 0
Groceries etc. ......................... 200 (for 4 soon to be 5 Needs to include Nappies!!!! Struggling wit this!)
Clothing................................ 50(try to reply on my parents for boys clothes)
Petrol/diesel........................... 400 (Dh gets thru a tank a week £80 for him I use a tank a month)
Road tax................................ 20
Car Insurance........................... 28 (only mine at moment DH paid in full at beginning)
Car maintenance (including MOT).........20 (due to milage DH does car needs service 2 x a year!)
Car parking............................. 0
Other travel............................ 0
Childcare/nursery.......................124 (currently for DS1, part funded) when I send DS2 in Dec will add an extra £168 to that)
Other child related expenses............ 0
Medical (prescriptions, dentist etc)....0
Pet insurance/vet bills................5
Buildings insurance.....................15
Contents insurance......................
Life assurance ......................... REALLY Need this tho!
Other insurance......................... 0
Presents (birthday, christmas etc)...... 15
Haircuts................................ 30 (only boys and DH Mum treats me usually!)
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2681.99

Assets
Cash.................................... 0
House value (Gross).....................235000 (bought for 242000 am guessing its gone down tho!)
Shares and bonds........................ 0
Car(s).................................. 12000 (2 cars guesses!)
Other assets............................ 0
Total Assets............................ 247000

Secured Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 230000...(1386).....7.9
Total secured debts........... 230000....-.........-

Unsecured Debts SCARY
Description....................Debt......Monthly.. .APR
Loan 1 Dh's name ........25000......532.....7.7
Credit Card ............4000.....90.....Currently 0 but will raise to 14 (AA?)
Credit Card ............6000....120.....17.9
(Egg)Egg Loan............3800 (remaining) 174 .... 7.9
Car Finance ........4000...........132.....4.5
Car Finance 2 .......8000.........254......4.5
Overdraft......................4800......(this is my old bank account no longer used the child benefit money gets paid in here to try and clear it!!)
Total unsecured debts.........55600..... 1426

Monthly Budget Summary
Total monthly income.................... 2693-6124
Expenses (including secured debts)....... 2681
Available for debt repayments...........13-3000
Monthly UNsecured debt repayments....... 1426
Surplus(deficit if negative)............ 13-1500

Personal Balance Sheet Summary
Total assets (things you own)..........247000
Total Secured debt...................... -230000
Total Unsecured debt.................... -55600
Net Assets.............................. -50,600

GeorgeUK

Right - i think you need to plan on the basic salary and if there is a bonus or overtime, you can use the funds for the highest debt or to save for an emergency.

Council tax............................. 125
If paying over 10 months, can you ask to pay over 12?

Electricity............................. 100 (duel Gas & Electric)
Check you are getting the best deal - look at some of the comparison sites

Half your income is going on the mortgage which is really going to make you struggle. If there is no oncall then you are really going to be struggling.

Have a look at your credit reports (free at experian if you cancel within 30 days). You can have about 3 searches i na 6 month period before your credit score is affected so make sure you don't apply for too many cards. I suggest trying for the Virgin money card for the 0% promotion. This also has a lower monthly minimum payment (£25).

Hopefully you'll be able to clear the credit cards and then possibly get started on the loans. Just remember never to spend on a card you have at 0% for BT's. Are some of those loans consolidation loans?

supersavershal

If you are applying for a new 0% credit card try tesco, my OH and I were both approved for these with decent credit limits after being turned down by others.Its a 15 month BT at 0% deal and I think there is deals to be had if you have a clubcard.
Could you not think of the lowest income as your income and when it is higher put the extra away to cover the months when you are short.If the money accumulates then pay a lump sum of your debt with the highest interest rate, have a play around with the snowball calculator at www.whatsthecost.co.uk to see where extra payments are best aimed.
Have a look on freecycle for bundles of boys and baby clothes, I put my childrens old ones on there and some are hardly worn so there are good freebies to be had.
Try not to worry it appears that over the year your husbands salary would average out to cover your outgoings, you just need to manage it differently.