Really don't know what to do next

GeorgeUK

Mortgage...1127
Is this interest only or repayment?

Council tax...150
If paying over 10 months, can you ask to pay it over 12? Have you checked you are in the correct banding?

Electricity...61.5
Gas...61.5
Check the comparison sites to see if you can get a better deal (moneysupermarket, uswitch). Make sure you turn things off at the plug rather than just turning it off.

Mobile phone...100
Can you reduce the tariff on this or go PAYG?

Telephone (land line)...30
Satellite/Cable TV...35
Internet services...10
Is this combined in a package?

Groceries etc...400
This is quite high. Have you moved down a brand (shops own)? Have a look on the old style board for meal plan ideas and cooking in bulk.

Clothing...50
Every month? What about every other month?

Car Insurance...210
Buildings Insurance...33
Contents Insurance...33
Again, i'd look at the comparison sites.

Do you keep a spending diary? It might be worth doing this to get a better idea of where the money is going and to see if there are any alternatives you could use.

You seem to be only about £170 short each month so hopefully the savings are there to be found.

Katie-Kat-Kins

Ok I sympathise, my DH is self employed too and things are quiet at the moment...... it is a worry and that is why I'm here to try and get hints on how to live for less in case things don't pick up.

Presumably though if he is quiet this means he has free time on his hands, I suppose it depends what he does. Could he get some sort of second job to help out, maybe something flexible. That would up your income a little. Can you and even the kids do some extra work too? Delivering free papers isn't too onerous and can generate some pocket money.

Whilst your husband needs to get the business profitable again make sure it doesn't become a moneypit. My DH has a tendancy to buy loads of stock in tough times in the hope that he will be able to sell it and make some money when he should probably focus on selling what he has got.

Definitely enquire about switching the mortgage to interest only, this will make a big difference and if you explain to the mortgage company the situation you are in they should be fairly helpful. They don't want you to default.

Could you sell one or both of the cars and trade them for an older/smaller/more efficient model to keep costs down and get a bit of capital? You can get four door hatchbacks now that will do over 50mpg and cost less than £100 a year road tax, the seat ibiza ecomotive is tax and congestion charge free! If you can get one of these super efficient models you can always tell people you are doing it for environmental reasons not financial reasons and retain an air of smugness In the meantime make sure you drive efficiently and use the cheapest petrol.

You will be able to make changes to your supermarket shopping, downshifting a brand on everything will be an instant and painless change. If the family are reluctant save the old nescafe jars etc and top them up with own brand Visit the O/S board for help with cutting back. Try things like using half the recommended amount of wash powder etc too.

Take a meter reading and get your utility bills up dated so you are sure your direct debits are accurate, with luck they might be reduced which would help you out, but either way cut your usage to save money and keep taking regular readings to ensure you are paying enough and don't get stung by arrears. There aare lots of tips on cutting your usage but I can post a few that have worked for us if you like.

Consider whether expenses are Needs or wants and ditch the wants, that includes sky tv and mobile packages. Use freesat instead and PAYG mobile. If you are locked into a contract phone explain you are in financial hardship and ask them to reduce you to the cheapest tarriff. Ditch any other expenses that aren't necessary too.

Compare the prices for all your utility bill and insurances and switch them if you can get a better deal.

Until you are able to either sell the house or improve your income clothing budget needs to go to essentials only. Only buy things if you absolutely NEED them, shop from your wardrobe, or ebay things you don't wear to raise the money for new things. Wear your clothes more regularly, repair damaged items and alter them if they don't fit. the HB&F board has a couple of threads that might help, a £100 year clothes budget and a 365 days without buying clothes. If the kids are growing fast they will need replacements, but remember years ago, your school uniform would be bought a size or two big to grow into and would be worn until it was absolutely too small or completely worn out.

What are those "other child related expenses"? If it is pocket money cut it right back and get the kids earning money, same if it is fees for clubs etc.

Haircuts, do the kids (and maybe even DH) yourself, or get them to a cheap local barber for boys. For you find a college where you can have it done by students and get a style that requires little maintenance, such as a one length cut. If you have a daughter either do the same or be brave and cut it yourself, if she has long hair or even a one length bob you should manage with a sharp pair of scissors kept just for that purpose. I'm 30 and my mum still does mine with her dress making scissors!

Presents, try to cut back here, you and DH could agree not to buy each other anything other than a card until the house has sold. No spend presents can be fun! Set yourself a strict limit with the kids and stick to it, do not be tempted to overspend, they will have to learn at some point that they can only have what is affordable or they will have problems as adults, no is a good time to learn the lesson. With wider family, don't be afraid to confront the issue with parents and siblings say you are struggling until the house sells and so presents will stop/be smaller/be homemade. Or consider a secret santa between adults to limit the cost, or agree with siblings to buy for neices and nephews but not eachother, whatever works best for you. For the presents you do have to buy use save loyalty points and vouchers from daily clicks etc to pay for them without hitting the budget.

Be prepared to attack that entertainment budget for a while, leave it in your SoA but challenge yourselves to come in under budget by doing free or special offer things and use anything you don't spend to overpay a debt.

Use the snowball calculator to work out the best way to repay your debts and do everything you can to allow yourself to over pay your priority debt.

Consider selling all your unused stuff on ebay to raise cash.

You will get there, and you will learn a lot from the challenge, best of luck.