Debz66 SOA, Where Next?

Debz66

Hi Everyone,

I have lurked for a long time and recently begun posting a bit. I have known for a while my finances weren't good with a bit less coming in than out, but this month everything has hit the skids. I am about £70 short on paying my little boys nursery fees (he loves it there and I would hate to lose his space, I *may* be able to borrow this) but I also cannot pay my rent.

I have just started a new job (old one was less wages hence too little coming in), and according to entitled2 I should be about £200 a month better off, which I *think* would make me level each month. However with the rent unpaid and waiting for a) a full months wage from new job (end December) and b) housing benefit now suspended while they work it out for new job (god knows how long) I don't know whether there is a way through any more, especially starting with a minus figure. I think I would only be level if starting at zero.

I am on my own with my ds (3) and there doesn't seem to be any one in the family or friends who I can ask for help beyond the nursery fees, so the rent at least is still outstanding.

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 582.63
Partners monthly income after tax....... 0
Benefits................................ 1176
Other income............................ 0
Total monthly income.................... 1758.63

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 575
Management charge (leasehold property).. 0
Council tax............................. 85
Electricity............................. 20
Gas..................................... 13
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 0
Mobile phone............................ 30
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 15
Groceries etc. ......................... 60
Clothing................................ 5
Petrol/diesel........................... 40
Road tax................................ 15
Car Insurance........................... 24
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 320
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 6
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1280

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 500
Other assets............................ 25
Total Assets............................ 525

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card....................1760......39........23.9
Professional Loan..............22000.....335.......6.9
Personal Loan..................4500......125.......0
Total unsecured debts..........28260.....499.......-

Monthly Budget Summary
Total monthly income.................... 1,758.63
Expenses (including secured debts)....... 1,280
Available for debt repayments........... 478.63
Monthly UNsecured debt repayments....... 499
Surplus(deficit if negative)............ -20.37

Personal Balance Sheet Summary
Total assets (things you own)........... 525
Total Secured debt...................... -0
Total Unsecured debt.................... -28,260
Net Assets.............................. -27,735

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

I would be grateful for help from any one, I have been considering bankruptcy, IVA's etc, but i'm not sure I need these. Sometimes the amount of my debt just feels so crushing i'm not sure there is another way.

If anyone has been in a similar position or not and has some advice to give I would be so grateful.

Thanks,
Debz

morgani

As your son is three he may well qualify for 15 hours paid for at nursery/pre school. You need to look on your local council website as some places do vary slightly on how many hours & how much per hour they will pay.

You must inform tax credits though asobviously they will not fund the 80% of what is not paid by you.

Only a smll amount but could you change internet provider Plusnet is £10 only a small saving but it all counts. Also others as listed on the main site.

Could you cut the mobile phone down abit if possible?

Do you claim housing benefit? for a rough guide look at www.entitledto.com

Naomim

Hi,

I can't really give any advice on the money front but I was wondering about your childcare. When was your ds 3? Children are entitled to 5 x 2.5 hours of free nursery the term following their 3rd birthday. My ds was 3 in June so he started nursery in Sept for 5 afternoons a week. I'm assuming from your wages you only work part time, can you fit this around your ds's time at nursery at all?

Naomi x

Debz66

morgani wrote: »

As your son is three he may well qualify for 15 hours paid for at nursery/pre school. You need to look on your local council website as some places do vary slightly on how many hours & how much per hour they will pay.

You must inform tax credits though asobviously they will not fund the 80% of what is not paid by you.

Only a smll amount but could you change internet provider Plusnet is £10 only a small saving but it all counts. Also others as listed on the main site.

Could you cut the mobile phone down abit if possible?

Do you claim housing benefit? for a rough guide look at www.entitledto.com

Hi and thanks for replying.

Ds will get his 15 hours from January, as only just turned three.

I am in contract with ISP at the moment (can't remember when to but is about 6 months to go) as when gave up BT line took on mobile broadband.

I have just cut mobile from £35 to £30, which was all they would let me do, and again in contract until March when I will be ditching current deal very very quickly!

I do claim housing benefit, have used entitled 2 and do get everything meant to, although having it suspended at the moment while waiting for changes to go through is a nightmare.

morgani

Tell me about it. HB is obviously meant for those who cannot/struggle to afford their rent yet if you inform of the slightest change they just suspend your payments. Makes you not want to tell them!

Can't myself see many other places you could cut many costs.

Could you speak to nursery and explain that due to a change of job you are not getting full pay until end Dec. Ask if you could pay what you can now and make up in Dec? Also you would have extra in Feb & mar as no council tax.

At the end of the day they will need the money and should be fairly accommodating.

Quietgirl

I just wanted to say Hi, I am not as experienced as alot of people on this site. But as far as bancrupcy is concerned, I did that about just over six years ago for 30k's worth of debt. But if I had read this site then I would of gone about things differently, firstly I had gone into a debt management program with Baines and Earnst which I now know was a big no no. And knowing what I know now rather than the bancrupcy I would of gone on a debt management program with people like CCCS or Payplan.

Also, are you getting help with tax credits towards your nursery fees? The reason I ask is because they now pay 90% of your childcare bill, or they do for me. It was 80% before but I got mine changed as my child care provider had put her fee's up £10 per week and the only way to get 90% of the fees paid by tax credits were if there was a change in fees by £10 a week.

Sorry I am waffling hope this helps.

Also I believe IVA's are for people who own there own property.

Debz66

Thanks for all the replies.

Morgani - that is my view exactly about the housing benefit, not giving you anything I find completely insane, and they had written to me end of October telling me had over £200 in overpayments, which they were supposed to have reviewed when I took all my payslips in to them but still hadn't touched when I went back in to say about job change, sigh.

I know from reading some other SOA's on here that mine doesn't look that bad income against outgoing, but I have struggled now for several years to make ends meet, and sometimes it just feels so neverending.

I really don't want to go bankrupt though, some of my family seem to think you just do it and that it easy all over with, but its not as straightforward and has more of an impact than they seem to realise