Worried how we will manage

jackie_w

Hello,

Im not sure if this is the correct board to post on or not, so apologise in advance if it is.

My husband used to be self employed and I worked for him. He had a business partner, and basically BP no longer wanted to be in a partnership, so my husband decided to sell his shares. So this mean both of us were out of a job. With the money we got from selling the shares and with the savings we had, we ploughed £130,000 into our mortgage so that we could reduce this. Our mortgage is now approx £50,000.

My husband now has a new job which is salary is £20686, and we get child benefit for 2 children. I did get a letter from the tax credits people telling me I would be entitled to £350 every 4 weeks, but then I got a letter through during the week to say I had to call them to renew my claim, and when I told them what me and my husband earned last year they told me they didnt think I would be entitled to anything until after April 2010.

We dont have any debt apart from our mortgage, and Im really worrying about how we will manage especially if we dont get any tax credits. I have been looking to get a job, but can only work 2 days per week due to childcare. I dont have anyone else to look after my kids if I work any longer. If |I do get tax credits I could probably work more days/hours other than that im working just to pay a childminder, then I have the problem as to who will look after my oldest hes 12 and hes too old for the after school care, and as we dont live near his school and there is no bus service to our home, he doesnt have anyway of getting picked up unless either me or my husband pick him up.

After all our bills are paid we are left with £450 per month which would be for food, petrol, clothing any extra bills that come in birthdays christmas etc.
We have 2 cars. we live out in the sticks and there is no bus service near us. My husband needs a car to get to work, and I need a car to get the kids to school, again we dont live near the school or the nursery for my little one. One of the cars we have is a Landrover, my husband got this as part of the deal for selling his shares. We did look at selling the landrover, however, his business partner hasnt paid off the bank loan for the car so we cant sell it. For the landrover Im about £50 per week in petrol.

I know there will be people out there who can manage on alot less than me, and Im wondering how you all do it. I have been in debt in the past a long time ago, and I dont want to go back there again,

Can anyone give me any advice?

Jackie

border_collie

If the landrover was part of the deal for the business splitting up it should have been sorted out properly. It shouldn't be anything to do with the former company which if there were shares must have been a limited company. Is it still "on the books" for the ltd co?

Bank loans aren't the same as car finance so it may not be tied to the outstanding bank loan.

There are loads of good money saving threads on here.

Can you get a part time job in a school or pub to fit in with husbands working hours or nursery hours?

Do you pay for nursery?

There is a SOA link on here somewhere, you need to fill it in and post it for the experts to have a look at your ins and outs.

Ames

Firstly, post up your Statement of Affairs - it's a list of all your income and outgoings. There's a template here -

http://www.makesenseofcards.com/soacalc.html

Then people will look and see if there's anywhere to cut back.

If the landrover's costing so much, would it be cheaper to buy a little runaround for, say, £500 and use that for the school run?

I'm sure someone will be along soon with better advice than me, but you're definitely in the right place!

urg123

Hi

A good place ot start is by posting a statement of affairs. It helps you to have a full picture of your finances and we can help you to shave bits off here and there.

It might be worth making an appointment with a benefits advisor at the CAB for help with your query about tax credits.

Was there an agreement about the LR and repayment of the loan that can be enforced? It's really unfair that you have to use such an expensive car!

Good luck

urg x x

jackie_w

Hi There,

Thanks for replying. Here is my SOA:-

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1252
Partners monthly income after tax....... 0
Benefits................................ 133
Other income............................ 0
Total monthly income.................... 1385
Monthly Expense Details
Mortgage................................ 314
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 215
Electricity............................. 20
Gas..................................... 75 5 bedroomed house and this is apparently correct, there is no arrears on this.
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 15
Mobile phone............................ 0
TV Licence.............................. 15
Satellite/Cable TV...................... 20
Internet Services....................... 5
Groceries etc. ......................... 200
Clothing................................ 10
Petrol/diesel........................... 320
Road tax................................ 20
Car Insurance........................... 10
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 15
Contents insurance...................... 15
Life assurance ......................... 27
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1326

Assets
Cash.................................... 0
House value (Gross)..................... 200000
Shares and bonds........................ 20000
Car(s).................................. 27000
Other assets............................ 0
Total Assets............................ 247000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 53000....(314)......5.59
Total secured & HP debts...... 53000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-

Monthly Budget Summary
Total monthly income.................... 1,385
Expenses (including HP & secured debts). 1,326
Available for debt repayments........... 59
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 59
Personal Balance Sheet Summary
Total assets (things you own)........... 247,000
Total HP & Secured debt................. -53,000
Total Unsecured debt.................... -0
Net Assets.............................. 194,000


When I add in everything else like haircuts, mot car ins I actually have alot less. I have put the value of my house down at £200000. I dont know if this is the correct value or not, in 2007 we bought it for £242000. Im assuming that it will be down to approx £200000 because of the way things are now.

I have been looking for a job but there is nothing out there. I have tried the supermarkets, local pubs, basically everything but ive had no luck. I have been working since I was young enough to start a paper round, so I hate not working.

It was definetly a bank loan that the landrover was bought with I didnt realise that we could sell it on. Must look into this as it is the petrol thats eating into our money.

My husband is a bit of a problem too. He has his head in the clouds and trying to get him to really sit down and have a look at things is a nightmare. He isnt wanting to cash in the shares and pay them to the mortgage as we will have another penalty to pay, he doesnt really want to sell the landrover and go for a smaller car. I even suggested selling the house because it is a big house we are in and he doesnt want to do that either. I have to admit I dont want to sell the house either because I absolutely love my house, but if I move to something smaller we would be mortgage free.

I just dont know what to do and this is keeping me awake at night along with other stuff, and I really dont need this right now.

Husband has applied for another job which if he gets he will get a company van so he would be able to sell his car which would give us £10,000 approx.

Now before anyone says anything I know im better off than alot of people who come on this board, but if I dont ask for help just now I will end up in debt and as i say ive been there before and I dont want to go there ever ever again.

jackie_w

Just noticed I made a mistake with my monthly mortgage payment, it should actually be £341.00

Sorry

Jackie

jackie_w

urg123 wrote: »

Hi


Was there an agreement about the LR and repayment of the loan that can be enforced? It's really unfair that you have to use such an expensive car!

Good luck

urg x x

Urg,

When my husband and ex BP were settling everything, BP said (in front of accountant) that he would contact bank to discuss settling loan for vehicles, but, last time my husband spoke to him he said he wasnt settling the loans because he couldnt afford to !!!!!!!!
TBH we did think of contacting the bank and explaining that car was given to us as part of settlement of selling the shares of the company, but I dont know if thats a bit below the belt because that might mean they might force ex BP to settle loan. why we are even considering being nice about ex BP is beyond me!!!

Ames

jackie_w wrote: »

Hi There,

Thanks for replying. Here is my SOA:-

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1252
Partners monthly income after tax....... 0
Benefits................................ 133
Other income............................ 0
Total monthly income.................... 1385
Monthly Expense Details
Mortgage................................ 314
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 215
Electricity............................. 20
Gas..................................... 75 5 bedroomed house and this is apparently correct, there is no arrears on this. can you turn off the heating in rooms you don't use?
Oil..................................... 0
Water rates............................. 0 Are you in Scotland?
Telephone (land line)................... 15
Mobile phone............................ 0
TV Licence.............................. 15 Should be 12
Satellite/Cable TV...................... 20 You don't need this, you can get a freeview box.
Internet Services....................... 5
Groceries etc. ......................... 200
Clothing................................ 10 Are you sure this is right, with two children?
Petrol/diesel........................... 320 Ouch!
Road tax................................ 20
Car Insurance........................... 10
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0 Are you sure? They don't get pocket money, or go on school trips etc?
Medical (prescriptions, dentist etc).... 0 You should have something here, surely you buy the odd packet of lemsip or calpol?
Pet insurance/vet bills................. 0
Buildings insurance..................... 15
Contents insurance...................... 15
Life assurance ......................... 27
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 0 If you're planning to have haircuts then you need something here.
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0 You should have something - what if the boiler goes or something?
Total monthly expenses.................. 1326

Assets
Cash.................................... 0
House value (Gross)..................... 200000
Shares and bonds........................ 20000
Car(s).................................. 27000
Other assets............................ 0
Total Assets............................ 247000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 53000....(314)......5.59
Total secured & HP debts...... 53000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-

Monthly Budget Summary
Total monthly income.................... 1,385
Expenses (including HP & secured debts). 1,326
Available for debt repayments........... 59
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 59
Personal Balance Sheet Summary
Total assets (things you own)........... 247,000
Total HP & Secured debt................. -53,000
Total Unsecured debt.................... -0
Net Assets.............................. 194,000


When I add in everything else like haircuts, mot car ins I actually have alot less. I have put the value of my house down at £200000. I dont know if this is the correct value or not, in 2007 we bought it for £242000. Im assuming that it will be down to approx £200000 because of the way things are now.

I have been looking for a job but there is nothing out there. I have tried the supermarkets, local pubs, basically everything but ive had no luck. I have been working since I was young enough to start a paper round, so I hate not working.

It was definetly a bank loan that the landrover was bought with I didnt realise that we could sell it on. Must look into this as it is the petrol thats eating into our money.

My husband is a bit of a problem too. He has his head in the clouds and trying to get him to really sit down and have a look at things is a nightmare. He isnt wanting to cash in the shares and pay them to the mortgage as we will have another penalty to pay, he doesnt really want to sell the landrover and go for a smaller car. I even suggested selling the house because it is a big house we are in and he doesnt want to do that either. I have to admit I dont want to sell the house either because I absolutely love my house, but if I move to something smaller we would be mortgage free.

I just dont know what to do and this is keeping me awake at night along with other stuff, and I really dont need this right now.

Husband has applied for another job which if he gets he will get a company van so he would be able to sell his car which would give us £10,000 approx.

Now before anyone says anything I know im better off than alot of people who come on this board, but if I dont ask for help just now I will end up in debt and as i say ive been there before and I dont want to go there ever ever again.

I've put a few thoughts in green, but I'm not very good at this so others will come along with better advice.

You have to include absolutely everything in the budget, if you don't then you'll find you can't stick to it and everything will fall apart, I know I've done that and found that the odd tiny expense can confound a budget.

Unfortunately, your husband needs to realise the situation. Could you sit down with him and show him the figures?

If it's a bank loan you can sell the car, I sold my old car and used the money to pay off the loan on it, but I didn't need permission to sell it, and I could have used the money for whatever I wanted.

Is your husbad on the paperwork for the business loans? You need to make sure that if the ex partner stops paying them you wont be liable.

jackie_w

Thanks Ames,

I have stopped the childrens pocket money for now. With regards to haircuts, my husband cuts his own hair and the boys' hair. Mine, well I get it done when it needs it which I have to say I neglect!!!!

For prescriptions etc, I usually take this out of the grocery fund. We have a good stock cupbard of medicines at the moment. This is the same with the school trips etc for the kids

With regards to the gas, I was actually told it wouldnt make any difference if I turned off the radiators in the rooms we didnt use. have I been told the wrong information?

Oh actually I do have an emergency fund, I forgot about that. I have £3000 sitting in an ISA at the moment.

the clothing, I know £10 per month is nothing with 2 children, but, im going to have to go to Asda, Tesco Primark etc for their clothes. If I need to up this then Im going to have to dip into the grocery fund.

We live in Scotland so we dont have water rates.

I have been onto the entitled to website, and it says that I should be entitled to tax credits of something like £4000 per year and also I should be entitled to help with my council tax. I didnt think I would get help with my council tax because my husband was working? Is this website usually correct? Ive never claimed any benefits before, so I dont know where i should apply to claim for them or how to claim for them. I have never been unemployed so I dont know if I can even claim for job seekers allowance or how I go about this. I dont even know where I go to claim for this?

jackieb

Have you tried to get a job as a support worker for adults with learning difficulties? They're always looking for people here - some people can't stick at it, but it's really okay. I do relief work and i'm trying for my employers to give me less hours! They've asked me to go to permanant hours, but relief suits me better.

Emmzi

you would be better off giving back the landrover, buying a supermini for a grand out of savings, and running this - cheaper petrol, cheaper to insure!

Try and sell LR to a dealer, assuming V5 in hubbies name - they will soon tell you wat kind of finance is on it, if it can't be sold!