Scared - don't know what to do

Penpop

Sorry if this is long, I tend to waffle!

I have just found out that Im pregnant (in the early stages) and even though myself and my partner are over the moon I cannot help but worry about our money situation. This baby was not planned but my partner and I are in a long term relationship and we are going to love this baby so much.

I will just explain our current situation:

Me and OH are living together in my parents 2nd home - we are paying them £500 a month rent (inc. all bills) We will only be able to live there until my parents have sold their first home and then they will move in and we will have to find somewhere else.

OH owes £4000 on a credit card and a loan and
I owe £2000 on 3 credit cards which are all on 0% - so they are not a issue.

I worried about when Im off work how we are going to live and pay the bills - bearing in mind that we will soon be looking for somewhere else to rent which will be more money as our current rent is cheap.

Please, any advice welcomed

x

DrFluffy

Use every spare penny you have at the moment (given you yourself have admitted your rent is so low) to either clear your debts or save for you next move... The way the housing market is at the moment, you might have a long while to go...

Does your partner work?

PS: CONGRATUALTIONS!!!!

mspig

If you work, whilst you are on maternity leave you will get maternity pay(its not full pay but better than nothing), with my first i worked right up to my due date, then went back 6 weeks later, but i did have my mum to look after my son.

I would put yourselves on the housing register with your council and any local housing associations so that when the time comes for the parents to move back in your not left stranded.

Your debts aren't that bad, most people i know have a hell of alot more than that, why not try to pay the £2000 off whilst your still working a little each month/week etc to clear it or bring it down.

Look for baby items of freecycle theres always prams, cots etc on there - i would buy new mattress though, and car seat if you have a car.

Penpop

DrFluffy wrote: »

Use every spare penny you have at the moment (given you yourself have admitted your rent is so low) to either clear your debts or save for you next move... The way the housing market is at the moment, you might have a long while to go...

Does your partner work?

PS: CONGRATUALTIONS!!!!

Thanks DrFluffy. We both work a 40 hour week at the moment. I currently save money weekly and have a small amount saved up. We chuck alot of our money at debts now and Im frightened that when Im not working we wont be able to keep up the payments. We pay atleast £450 of these per month atm x

Penpop

mspig wrote: »

If you work, whilst you are on maternity leave you will get maternity pay(its not full pay but better than nothing), with my first i worked right up to my due date, then went back 6 weeks later, but i did have my mum to look after my son.

I would put yourselves on the housing register with your council and any local housing associations so that when the time comes for the parents to move back in your not left stranded.

Your debts aren't that bad, most people i know have a hell of alot more than that, why not try to pay the £2000 off whilst your still working a little each month/week etc to clear it or bring it down.

Look for baby items of freecycle theres always prams, cots etc on there - i would buy new mattress though, and car seat if you have a car.

Thanks, we were thinking that OHs mum would be able to look after little one if need be as she does not work now, only thing is, she lives a good half hour from us which would mean an hour commuting everyday which means petrol - but then again - i guess thats cheaper than child care? I am joined to freecycle so I will take a look xx

ginvzt

Penpop wrote: »

Thanks DrFluffy. We both work a 40 hour week at the moment. I currently save money weekly and have a small amount saved up. We chuck alot of our money at debts now and Im frightened that when Im not working we wont be able to keep up the payments. We pay atleast £450 of these per month atm x

You said before you have about £6000 debt in total. By paying £450 a month you would be debt free very soon!!!! You also have some money to put away for savings - maybe try and pay off all the debt? Can you try to get 0% credit card for you partner and transfer his credit card debt there - it would help with interest. How long is left to repay the loan? Try to go to Debt Free Wanabee board and there are lots of helpful people who might tell you how you can pay it off very quickly. It is not easy while you are on maternity leave, but you will manage!!! Lots of people do, and you just squeeze everything else. No takeaways, not meals out, no nights out...

Penpop

ginvzt wrote: »

You said before you have about £6000 debt in total. By paying £450 a month you would be debt free very soon!!!! You also have some money to put away for savings - maybe try and pay off all the debt? Can you try to get 0% credit card for you partner and transfer his credit card debt there - it would help with interest. How long is left to repay the loan? Try to go to Debt Free Wanabee board and there are lots of helpful people who might tell you how you can pay it off very quickly. It is not easy while you are on maternity leave, but you will manage!!! Lots of people do, and you just squeeze everything else. No takeaways, not meals out, no nights out...

Thank you. My partner isnt able to get 0% cards due to his credit rating, the 2 0% cards that I have was originally his, but becoz he couldnt get the 0% cards himself I got them in my name. I dont think I would be able to get any more, but it is something that I will look into. The loan will be paid in Feb09, there will then be another £220 to chuck at the cards a month. xx

pinkshoes

Pay off your debts in order of % rate (highest first), and you'll be debt free in no time!

For the two of you, limit your shopping budget to £50 a week by planning meals and cooking everything from scratch. Don't spend money on anything else!

Babies don't have to be expensive. You can go onto your local freecycle and pick up cots, pushchairs and clothes for free.

ginvzt

How much are you saving a month now? Can you put those money (or half of them) towards his CC debt? It is not easy, I know - but the more you pay off, the less interest it adds for the next month... And the CC interest can be unbelievable!!!!

When do the 0% cc run out? I am sure you thought of this, but are you paying off more of the credit cards that have interest on them or you are paying all of them at similar rate?

Penpop

pinkshoes wrote: »

Pay off your debts in order of % rate (highest first), and you'll be debt free in no time!

For the two of you, limit your shopping budget to £50 a week by planning meals and cooking everything from scratch. Don't spend money on anything else!

Babies don't have to be expensive. You can go onto your local freecycle and pick up cots, pushchairs and clothes for free.

Thank you, Thats what we are doing. We don't spend £50 a week on shoping now, we only have £150 for the month and we dont spend any money on hardly anything. We dont buy new clothes very often, we might buy a DVD now and again to keep us entertained whilst we are in every night. I also have £185 p/month that I have to pay for my car.

It just worries as Im looking at places to rent that suit us and they are so expensive - I want to give our baby the best home and to be settled

Penpop

ginvzt wrote: »

How much are you saving a month now? Can you put those money (or half of them) towards his CC debt? It is not easy, I know - but the more you pay off, the less interest it adds for the next month... And the CC interest can be unbelievable!!!!

When do the 0% cc run out? I am sure you thought of this, but are you paying off more of the credit cards that have interest on them or you are paying all of them at similar rate?

I only save £30 a week and have about £550 saved as I havent been doing it for long, I wanted to keep this as a deposit for when we need it for a rented place really. The 0% cards have 12 months on 2 of them and 14 months on the other. We are paying more off the higher interest cards but are paying enough off the others aswell so that when the 0% deals are up they will be clear (as it will go up to a stupid rate) xx