Pregnant wife, money worries etc.

wolsey_2

Hi all, my wife has just fallen pregnant and although delighted i am a bit concerned about our finances.

We already have a 5 yr old but i am after some advice. We both earn quite well but she will drop down to £400 a month on maternity pay( a large drop for her ), most of my money is spent on house and bills etc so i enquired about a mortgage holiday ( am with britannia) no luck. They will change to interest only but it only saves £200 p/month. Not trying to duck out of paying just would like not to struggle for the first yr or so. Also have a few debts etc too. We dont get tax relief only child benefit

Are there any options available to me??? .


Will sell my car to settle up the loan and am going to to have to take on her hpi agreement, if we cancel we have to pay around £2000 because to car is neg equity.

Does anyone know of any options on how to ease the burden apart from cutting back on things, which we will also do???

Thanks in advance

Glamazon

hi

congrats!!! My wages will drop to a quarter of my normal wage so I have been putting some money aside since January - I've saved £2300 so far just by doing some of the things in my sig!
If you both earn under approx £56K then you should get Child Tax credits as well.

At 25 weeks your wife will be eligible for the Heakth in Pregnancy Grant which is £190 and is not means tested.

Not sure what else to suggest - if you need to buy things for the baby then buy second hand. I've got the majority of my stuff from car boots and haven't spent more than £200 including most of the big stuff.

pretzelnut

put money aside now from her wages to use when you take the wage reduction because of maternity pay.

I know on paper things look pretty dire (were going through the same thing now im due in sept with number 3) but we planned ahead and were already living on 1 wage before i start maternity so its not such a big shock when it gets here.

MrsTinks

As said - put money aside between now and when the baby arrives - I was squirrelling away like a loon and have £4k in the bank to fall back on... Like Glam then I take a huge drop in wages later on (over 3/4 less to be exact!) and although I have alternative means of income (figured I'd give standing on the streetcorners a go LOL just kidding ) then how long I can stay home will depend on how long I can stretch the £4k...
I think you have to be realistic as a couple and realise that your wife might need to go back to work earlier than she'd like. It's not ideal but needs must and it isn't fair on you or all of you as a family if you all have to sacrifice everything for her to remain at home, nice for her though that would be.

Pee

Worth discussing and finding out her views on going back to work and how long this drop will be. I agree it wouldn't be fair but the childcare costs may in any event make this less worthwhile and if she doesn't intend to go back straightaway, you might as well know now. there are some great grocery reduction type hints on the old style board.

xmaslolly76

Hi wolsey and congratulations to you both

I notuiced you said her car was in negative equity. Is it on finanance secured against the car? If it is and you have paid at least half off you can do what me and my partner did and hand it back to the finance company the rest of the agreement is then cancelled yes you loose what you have paid but if you are really struggling for money it is an option to get rid of another debt read your T's & c's.

To be honest i wouldnt panic to much you will be surprised how much money you will have coming in each month i used to worry my self sick with the last two but always found i was actually better off than i thought i would be. Even if you cant claim Tax credits now with your wifes loss of earning during maternity leave you may find you will be able to claim more than you thought you could.

jenhug

I would be looking at reducing outgoings like sty tv etc where possible, anything thats a luxury can go, and sell all your old stuff on ebay!

diable

If you both earn quite well then there should be no problem in adjusting your finances to cope with your wife dropping down to maternity rates of pay.

Pee

If she is used to having her own money, do you also need to discuss how much "pocket money" each has out of joint finances and what are appropriate sums for children's clothes and toys etc?

emlou2009

diable wrote: »

If you both earn quite well then there should be no problem in adjusting your finances to cope with your wife dropping down to maternity rates of pay.

isnt that a bit of a pointless statement to make not knowing the complete ins and outs of their financial situation

we've been lucky in that we have coped ok, but i know many people who have struggled badly. its not always about whats coming in, its usually about commitments to whats going out thats the problem. commitments such as rent, food and bills.

Pee

The more you have, the more you are usued to spending usually - and the bigger the drop.