My Mum's Money Troubles

freetobeme_2

Hi, I'm really sorry if I've posted this in the wrong place. I've been sat looking through the forum trying to decide whether to post or not.

I'm 22 and live with my mum who is a widow (my dad died in 2003) and my 17 year old sister who has just become a single mum.

I'm not in debt myself but my mum is and there just seems to be no let up. She owes money to catolgues, is in arrears with her rent and although we don't seem to use much electric and have our heating off our gas and electric bills seem really high.. they've gone from like £9-£11 to way over £30. I know she is in red with her bank and sometimes we go weeks without food in our cupboards because we simply can't afford to go shopping.

I know my mum is worrying and because of that I worry too. I want to help my mum, get out of this rut and to sort my mum's money problems out but I just don't know how. At the moment I am on Jobseeker's so can only give her my £90 a fortnight and I am applying for jobs but haven't been successful.

My mum's talking about getting a loan, but I don't think thats a good idea and what with Christmas round the corner we're just always on an all time low.

I'm really sorry for waffling but was just wondering if anyone had any tips or advice?

Thanks in advance.
Katie

savingholmes

Will your mum give you access to her financial records? Can you use maksenseofcards (a website) and post a statement of affairs - that's all your income, outgoings, liabilties and assets? We can then understand how big a problem it is your facing as a family and what you can do about it. You may then want to contact CCCS or a similar debt charity to help you.... Your mum will probably need to sign a letter or speak on the telephone authorising you to act on her behalf...

whitewing

(((hugs to you guys))) - how about you and your mum gather up all the bits of aperwork relating to debt, income etc and have a go at producing a Statement of Affairs (there is a 'sticky' thread on the debt free wannabe board, or someone will post a link to it).

If that's a bit scary, maybe go and see the Citizen's Advice Bureau with your mum.

Others will be along to offer suggestions too, but you will get the help you need, so keep coming back.

freetobeme_2

Hi, thank you.

I know my mum will let me look at her bills etc as we normally do go through everything together. We live in a council house so don't have anything such as assets I don't think. But I will sit down with my mum and go through all our out goings and incomes etc and try to do a statement of affairs.

After we have done that, will there be anyone on here who will be able to give us some advice on where to go next.

Thank you for you help.

KiKi

Hi Katie

Yes, if you post your SOA, then there will be plenty of people to advise you; I'll certainly come back with some suggestions. Until we have the picture of your finances it's very difficult to advise on a sensible steps to take.

Well done for wanting to help out your family, too - a lot of people your age who are still living at home wouldn't know where to start, or have an interest in it!

Comes back tomorrow with the SOA and you'll get plenty of (honest) replies and suggestions. Just make sure you factor in EVERYTHING - overestimate if you're not entirely sure.

HTH
KiKi

freetobeme_2

This is my mum's soa. We hope that we have done it right. We used that site, but took out the categories that weren't applicable to us like the car and road tax etc.
My mum now get's housing benefit, so the rent is the arrears that she has to pay off and she says her water rates come in with that. She also gets help towards her council tax so only pays £32.

The clothing/catalogues are different to the ones mentioned in other debt. Stupid of us, but we have 4 catalogues. :embarasse

We don't think we've missed anything off, but we're not really sure what the summaries are telling us or what to do next.

Monthly Income Details
Monthly income after tax................268
Other income.........................145.90 my JSA + money from my sister's godfather
Total monthly income.................... £413.90

Monthly Expense Details
Rent.................................... 60
Council tax............................. 32
Electricity............................. 59
Gas..................................... 35
Water rates............................. This is in with the rent
Telephone (land line)................... 150
Mobile phone............................ 20
TV Licence.............................. 11.61
Internet Services....................... 50
Groceries etc. ......................... 200
Clothing/Catalogues................. 250
Other travel............................ 90
Life assurance ......................... 10
Other insurance......................... 4.29
Total monthly expenses.................. 971.90

Assets
ISA Savings.................................... 7.41
Halifax Cardcash...............................13.95
Total Assets............................ 21.36

Other Debt
Kays Catalogue.........1411.17
Fashion World............900.21
Visa Card................ 22.73
Total other debts..........2334.11

Monthly Budget Summary
Total monthly income....................413.9
Expenses (including secured debts)....... 971.90
Available for debt repayments........... -558
Surplus(deficit if negative)............ -558

Personal Balance Sheet Summary
Total assets (things you own)........... 21.36
Total other debt.................... -2,334.11
Net Assets.............................. -2,327.53

penguin83

Hi free - welcome to DFW. Is your mum in receipt of all the benefits she is entitled to such as Housing Benefit and Council Tax Benefit - have a look at www.entitledto.com to see if she should get anything else.

Is your sister getting everything that she is entitled to as well such as Child Benefit and Child Tax Credit?

With Christmas just around the corner a lot of shops are taking on seasonal staff - it may be worth having a look in your local town to see if anyone is taking on yet.

Your telephone bill seems huge - have a look through your last bill and see were it is being spent.

One other thing is it may be worth googling homefront to see if you qualify for a warm front grant - your heating bills maybe big if you have an old heating system.

Good Luck with everything - the experts with SOA's will be along in the morning. x x

freetobeme_2

Hi Thank you for your tips.

My mum is getting council tax and housing benefit. My sister is just starting her claim for Child benefit and child tax.

Telephone bill is high, due to phoning mobiles - which we are going to cut out by getting a bar code thingy and thank you for your tip about the warmfront will mention that to my mum in the morning.

thank you
Katie

maytaurus

Telephone (land line)................... £150
Internet Services....................... £50

Have a look here;
http://www.moneysavingexpert.com/phones/home-phone-calls
http://www.moneysavingexpert.com/phones/cheap-broadband
http://www.moneysavingexpert.com/phones/cheap-calls-to-mobiles
Electricity............................. £59
Gas..................................... £35

Have a look here;
http://www.moneysavingexpert.com/utilities/you-switch-gas-electricity

and at these
http://www.moneysavingexpert.com/protect/grant-grabbing
http://www.moneysavingexpert.com/shopping/loyalty-scheme-tricks
http://www.moneysavingexpert.com/shopping/freebies-gold
http://forums.moneysavingexpert.com/showthread.html?t=353913&highlight=reclaim+catalogue+fees

How to completely overhaul your finances and save £1,000s
http://www.moneysavingexpert.com/protect/money-help
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/index.htm
This might be useful for your sister
http://www.healthystart.nhs.uk/
Hope they help ........

maytaurus

ooh forgot to say


to MSE

kate705

Hi Katie,

Sorry to hear about the problems with your Mum, you sound like a big support to her.

I'm not too good with all the figures but have noticed that your mobile, landline and internet bills are high. Travel is also taking a big chunk?

Is there any possibility of raising your income?
Kate xxxx