Help please - dont know how i will cope!

sylvia9121

Hi everyone,

I am looking for some advice or some way out of this mess!
I am currently working full time and so is my husband. We have 2 children age 6 and 18 months, My son is at school and my mum and dad look after the baby during the week whist I work (my hours are 830 until 4pm monday to friday.

I have to leave the house at 7am and dont get home until about 5pm..it is a long day and I am always greated by stroppy tired children. My mum and dad are finding it increasingly difficult to look after the children. But we are in a lot of debt. It looks as though I will not have any option soon but to change to part time. My husband has 3 children from his previous marriage and is paying weekly for them.

We have a £20k loan secured on the house which I know will have to be paid. How would we stand with the other non secred debts. I mean if I had to go part time then I wouldnt be able to pay them.

Sorry for the long post, any advice would be greatly appreciated.
Thanks

GeorgeUK

Have you posted a SOA in a previous post?
https://www.makesenseofcards.com/soacalc.html

Have you reclaimed any bank charges or credit card charges?
Is there PPI on any of the loans/cards - was this missold?
http://www.moneysavingexpert.com/reclaim/

You may be able to make some savings from your current expenditure and you may also be able to reduce the interest you are paying by using 0% creditcards or life of balance cards.

Do you keep a spending diary, so you know exactly how much you are spending and on what each month?

sylvia9121

Thanks, have managed to do a quick SOA




Monthly income after tax................ 1300
Partners monthly income after tax....... 1800
Benefits................................ 120
Other income............................ 0
Total monthly income.................... 3220

Monthly Expense Details
Mortgage................................ 968
Secured loan repayments................. 330
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 125
Electricity............................. 50
Gas..................................... 50
Oil..................................... 0
Water rates............................. 33
Telephone (land line)................... 9
Mobile phone............................ 70
TV Licence.............................. 33
Satellite/Cable TV...................... 21
Internet Services....................... 15
Groceries etc. ......................... 200
Clothing................................ 15
Petrol/diesel........................... 30
Road tax................................ 15
Car Insurance........................... 23
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 50
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 15
Contents insurance...................... 15
Life assurance ......................... 68
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
CHILD MAINTENANCE....................... 370
Total monthly expenses.................. 2555

Assets
Cash.................................... 0
House value (Gross)..................... 205000
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 207000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 154000...(968)......0
Secured Debt.................. 20000....(330)......0
Total secured debts........... 174000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
NATIONWIDE.....................2000......40........0
ALLIANCE AND LEICESTE..........6000......60........0
NATIONWIDE.....................2500......80........0
HSBC LOAN .....................2500......80........0
AA LOAN........................3500......68........0
Total unsecured debts..........16500.....328.......-

Monthly Budget Summary
Total monthly income.................... 3,220
Expenses (including secured debts)....... 2,555
Available for debt repayments........... 665
Monthly UNsecured debt repayments....... 328
Surplus(deficit if negative)............ 337

Personal Balance Sheet Summary
Total assets (things you own)........... 207,000
Total Secured debt...................... -174,000
Total Unsecured debt.................... -16,500
Net Assets.............................. 16,500

frasersmum123

What about Tax credits - are you entitled to anything?

Someone will be along shorthly to give you some advice - there are loads of great people on this forum!

Just wanted to say your not alone, I had a similar situation with my toddler and had to go part-time. It was a real struggle and I dont really know how we managed!

milliemonster

sylvia9121 wrote: »

Thanks, have managed to do a quick SOA




Monthly income after tax................ 1300
Partners monthly income after tax....... 1800
Benefits................................ 120
Other income............................ 0
Total monthly income.................... 3220

Monthly Expense Details
Mortgage................................ 968 this and your secured loan are a massive proportion of your joint income, could you go interest only for a while?
Secured loan repayments................. 330
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 125
Electricity............................. 50
Gas..................................... 50
Oil..................................... 0
Water rates............................. 33
Telephone (land line)................... 9
Mobile phone............................ 70 can you reduce this?
TV Licence.............................. 33 this is a lot, have you just gone on DD? can you speak to them and ask to reduce to £13 a month?
Satellite/Cable TV...................... 21 get rid of this and get freeview
Internet Services....................... 15
Groceries etc. ......................... 200
Clothing................................ 15
Petrol/diesel........................... 30
Road tax................................ 15
Car Insurance........................... 23
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 50 what is this for?, is this what you pay your parents?
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 15 you could get joint B&C much cheaper than this
Contents insurance...................... 15
Life assurance ......................... 68 this is a lot, can you get this cheaper?, mine is £15 for both of us for £150k
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
CHILD MAINTENANCE....................... 370
Total monthly expenses.................. 2555

Assets
Cash.................................... 0
House value (Gross)..................... 205000
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 207000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 154000...(968)......0
Secured Debt.................. 20000....(330)......0
Total secured debts........... 174000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
NATIONWIDE.....................2000......40........0
ALLIANCE AND LEICESTE..........6000......60........0
NATIONWIDE.....................2500......80........0
HSBC LOAN .....................2500......80........0
AA LOAN........................3500......68........0
Total unsecured debts..........16500.....328.......-

Monthly Budget Summary
Total monthly income.................... 3,220
Expenses (including secured debts)....... 2,555
Available for debt repayments........... 665
Monthly UNsecured debt repayments....... 328
Surplus(deficit if negative)............ 337

Personal Balance Sheet Summary
Total assets (things you own)........... 207,000
Total Secured debt...................... -174,000
Total Unsecured debt.................... -16,500
Net Assets.............................. 16,500

I have added in some comments above, if you went PT to say 3 days a week, you would probably bring home around £950 a month, so you would lose £350 of your income, if you can make the savings I have suggested, this would give you at least another £100, do you get child tax credit and your child benefit?, this should give you around £167 a month, more than the £120 benefits you have put in your SOA

If you did this, yes it would be tight for a while, but it's not forever, your little one will be at school in 3 years and you would then be able to maybe increase your hours again

Pippilongstocking

How about you shift to flexi and split your hours if you can, go in later when hubbyhome.

Or take two part time jobs, maybe one at home?? Or do part time school hours, then part time evening or weekend work? A pain I know, kids get benefit of you both being around more and some individual time.

Or just weekend work, and something at home when baby around, that way you get kids all week, they less stressed and tired and you get to do a weekend stint hubby does kids, in the short term?

Or take part time job and look at making up some money with 'the up your income things' on here, might even make up the difference.

Other points valid too - ditch sky, change insurance and use quidco or something as well ? Buy as much as you can online and make some cash back that way?

Goodluck, not easy and hugs to you!xx

GeorgeUK

Council tax............................. 125
If paying over 10 months, can you ask to pay over 12 (from start of year)

Electricity............................. 50
Gas..................................... 50
check the price comparison sites to see if you are getting a good deal (uswitch, moneysupermarket)

Mobile phone............................ 70
PAYG?

Telephone (land line)................... 9
Satellite/Cable TV...................... 21
Internet Services....................... 15
Can you combine in a package?

Groceries etc. ......................... 200
Check the old style board for meal plan ideas.

I realise this is a rough SOA, but if you don't have the £337 left over (or whatever it would be if using the correct figures) at the end of each month, you should keep a spending diary to see where the money is going and try to budget for these extras and possibly cut back.

Do you know the APR's of the debts? You should pay the minimum to all debts and throw anything left over at the debt with the highest APR.

RAS

Check out www.entitledto.com for information on tax credits.