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................ 2569-6000
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..................................... 0Oil..................................... 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................................. 0E
mergency 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)............ -1213-1500

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

xcat_girlx

dont really know a lot about this but maybe you can try and cut down on groceries? supermarket own brand/extra value maybe? though i know that is hard with a baby.

do you not qualify for tax credits?

also can you get all the cards swapped onto 0%?

xcat_girlx

also, maybe you can switch your lowest phone onto PAYG?

and when your baby is born, could you maybe get a part-time job working close to home in the evenings if someone could have the kids?

and do you not get any sort of maternity benefit?

imcognito

Tax credits - no his basic is 45K which means we would get maybe £3 a week? I think, but after he has been paid the overtime we would end up paying it back the next year so not worth it.

Groceries I struggle as it is, have already gone down a brand

I dont think we would get credit cards now either

imcognito

Hiya again!!

As for working evenings, we looked into it, because Dh is on call if he gets called he has to go into work. If I was working he would have to take them with him!!! Not possible really once they are in bed, family is all an hour away so they cant pop over either

No maternity benefit due to salary

xcat_girlx

imcognito wrote: »

Tax credits - no his basic is 45K which means we would get maybe £3 a week? I think, but after he has been paid the overtime we would end up paying it back the next year so not worth it.

Groceries I struggle as it is, have already gone down a brand

I dont think we would get credit cards now either

with regards to all the searches you had, it might be worth paying the £2 for you credit report to see what exactly went on there.

fingers crossed someone else who knows a bit more might be along in a moment.........

well done for putting this up and making a start on dealing with it though:T

Lizzybop

Hi there, well done for posting, I'm sure there will be loads of great advice along soon. I can't help too much but do have experience of pre-school. How many hours does your oldest attend pre-school? As you are a SAHM would it be possible for them to only attend for the funded 2.5 hours per day, and the funding should cover all if not the vast majority of the costs. Or is it a private expensive pre-school. I just seems like a lot of cost.

Best of luck
Liz

rizla01

Tear up your credit cards and sell both cars and buy second-hand (under £1000.00). My brother just bought a 2nd hand Rover deisel for £350.00. It has done only 78,000 miles and will probably not cost a penny in repairs for the next few years.

You have surely STILL been borrowing even though the present situation has been forseeable for the past 6Mths. Am I wrong?

Stop borrowing MORE money.

Wont cure your problem but your problem is the mindset of the pair of you.

Interest Only mortgage??? WHY? That will REALLY hurt in two years the way things are.

Your money is controlling you and not the other way around, it seems.

Relly Sorry to sound harsh, IMCOGNITO, (Good name) but your situation may be bad but could soon be very dire.

LilacPixie

what about looking for something internet based, online from home?? the up your income board has ideas like internet researcher etc.

lilac_lady

Could you become a childminder yourself, even if it's only taking children before and after school, leaving you free during the day to be with the new baby?

xcat_girlx

lilac_lady wrote: »

Could you become a childminder yourself, even if it's only taking children before and after school, leaving you free during the day to be with the new baby?

good idea but incredibly hard to set up

you need to adheer to all sorts of silly regulation like buying fire blankets for your kitchen etc