Newbie - really need some help to be positive :(

mummymx

Hello everyone, I need some help as we've got ourselves into some trouble

We were sailiing along quite nicely until August of last year, when my husband was made redundant from a very well paid job, and when I was 5 months pregnant. We've gone from having an income more than big enough to support the 3 of us, to serious trouble in a year... although my husband is now back at work, and I'm going back in November part time, I just can't get our outgoings to match our incomings. Our depressing SOA is as follows:


Household Information

Number of adults in household 2
Number of children in household 1
Number of cars owned 2 (both needed as we work in different places, neither can be reached by public transport)
Income, Expense, Debt & Asset Details

IncomeAmount(£) Monthly income after tax 1043
Partners monthly income 2100
Benefits 110
Other income 0
Total monthly income 3253

ExpensesAmount(£) Mortgage 1512
Secured/HP loan payments 0
Rent 0
Management charge (leasehold property)0
Council tax 112
Electricity 60
Gas 37
Oil 0
Water Rates 25
Telephone (land line)17
Mobile phone 60
TV Licence 12
Satellite/Cable TV 71
Internet services 10
Groceries etc.210
Clothing 5
Petrol/diesel 120
Road tax 7
Car Insurance 58
Car maintenance (including MOT)18
Car Parking 0
Other travel 0
Childcare/nursery 601
Other child related expenses 0
Medical (prescriptions, dentists, opticians etc.)0
Pet Insurance/Vet bills 0
Buildings Insurance 17
Contents Insurance 15
Life Assurance 0
Other Insurance 0
Presents (birthday, christmas etc.)5
Haircuts 0
Entertainment 0
Holiday 0
Emergency Fund 0
Total monthly expenses2972

Secured & HP Debt DescriptionDebt(£)Monthly(£)APR(%)
Mortgage 210000(1512) 0
Secured & HP Debt totals210000- -

Unsecured Debt DescriptionDebt(£)Monthly(£)APR(%
Barclaycard 3358 72
HSBC 2533 61
Virgincard 6750 58
Hsbc Loan 93452090
Unsecured Debt totals 21986 400-

Asset DescriptionValue (£)
Cash5500
House Value (Gross)249000
Shares and bonds0
Car(s)5000
Other assets (e.g. endowments, jewellery etc) 0
Total Assets


259500
Monthly Budget SummaryAmount(£)
Total monthly income 3,253
Monthly expenses (incl. HP & secured loans)2,972
Available for debt repayments 281
UNsecured debt repayments 400
Amount short for making debt repayments -119

Personal Balance Sheet SummaryAmount(£)
Total Assets (things you own)259,500
Total Secured & HP Debt -210,000
Total Unsecured Debt -21,986
Net Assets 27,514


I can't reduce the satellite bill as we're mid contract... The thing that is killing us is the mortgage - which wasn't an issue when we both had full incomes... but if we sell now, we'll lose 30k on the value of the house, and I'm not sure we'll save that much on a new smaller house as we'll have lost a lot of our deposit?

This is all leaving me very depressed, and i'm now having trouble sleeping, so any advice at all would be very gratefully received.
Thanks in advance
mx

lynzpower

Hi there welcome to MSe .

Can you please see if you can restructure your info, its really difficult to read here- its best when it reads like a list.

You might not be able to get out of your contract, but can you downgrade it- any films or sports packages you can take off? I would get haggling, manyof us have had great success with getting our contracts reduced mid contract.

Do you really need two cars? Can you reduce down to one?

Are you really paying 600 a month nursery now even though you are not working?

thefoolonthehill

hi one thing that jumped out at me. you pay 600 pounds for child care yet you are not at work. can you not look after the child while you are off?

I also thought that even if you are ina contract with satellite tv you could reduce the package down to the minimum

featherstick

I thought that too, but there are two monthly incomes listed. Therefore both adults may work... one part time?

Mobile phone bill is steep, even for 2 people.

I'm not sure what the convention for this is but:
Is it normal to list your entire house value as an asset if you do not own it in full?
Surely it would make more sense to list the equity in the house?

Is the road tax correct? (£7x12=£84 for two cars?). Car maintenance looks too low.
Insurance and groceries good.

Edit: having re-read the OP, I assume she is forecasting for when she goes back to part time work (in terms of child care costs and second income).

Pippilongstocking

Firstly congrats on the baby and OH getting a job

Just a quick hello and a ((((hug))))) to say you are in the right place - why not pop over to OS (old style) board and look at the grocery challenge and meal planning - family of 3+1 in my house (plus pets) and we are now feeding everyone for around 100 (ish) a month

Shouldn't you perhaps be getting some ctc? check out benefit checks on entitled to - http://www.entitledto.co.uk/

Childcare - if you are really paying out 600 a month for childcare and needing an extra car - is it worth you working? Is this a mistake or can you reduce it? Or can you work when you have free childcare? Stupid question I know jsut thinkingn outloud.......

And the frist thing I was told is um - freeview is much cheaper than sky etc - think about it - can you actually afford it?

And how about changing your internet/phone provider - can you get a better deal (and cash back)

Not meaning to sound negative don't take it the wrong way honest - just trying to objectively help I know its hard (single mum to two little ones since they were 2 and 3 - now 13/14)

PS mob bills - can you switch these and get some cash back

PS if you have 5k cash and lots on CC's as much as its a 'cushion' its not making the most of your money work for you - can you use the 5k cash to cut down the highest of your cc's and help your monthly payments redcue - watch Martin's video at the start of the website about 'what's it all about' - I had savings and huge debts - now I have not so huge debts, payments are more manageable and the savings will come back when they can.

Its scary but it might immediately help your monthly outgoings and give you time to think and breathe

GOODLUCK!!!!!!

mummymx

Hi everyone,
sorry to be confusing - you're right, at the moment I don't pay any childcare costs, but will be once I go back to work (my income currently is smp so 500 per month, but will be going up to the amount on my SOA when I go back to work.

I'll give sky a call and see if I can reduce our package down at all - definitely worth a shot... I'll also take a look at how to get our grocery bill down - we have an Aldi round the corner yet I always seem to end up at Sainsburys!

Thanks for your input everyone - it honestly makes me feel better just to have it out in the open and to be talking about it. I feel like I can make a positive change from here

Thanks,
Mx

Tixy

Hello Mummymx and welcome to DFW

Have you considered switching your mortgage to an interest only mortgage for a short while? It may be worth investigating what this would cost, whether there are any redemptions fees and how much you would save monthly.

Sky should definatley be willing to help, even if you are in contract, its worth specifically saying you are having financial difficulties.

Try calling the mobile providers and dropping a tariff, or if you are not in contract look at cheaper providers or PAYG tariffs (which have improved a lot recently).

Your elec seems fairly high (although gas seems low), have you checked you are with the cheapest provider? Have you worked at trying to cut bills (making sure everything is switched off, minimising use of electric heaters, tumble driers etc).

Do either your work or OHs allow you to have childcare vouchers, instead of part of your salary, this is a tax efficent way of getting childcare.

What are the APRs on your debts. Unless all your cards are on 0% then consider paying at least one off (the most expensive one) with some of your cash.
What is your credit rating like? If you don't have 0% cards have you applied for one to balance transfer your current cards to?

You are not far off balancing, that £119 defecit can easily be made up from your figures. Then you just need to work on building up a small cushion to pay for items you have omitted such as haircuts, entertainment, medical etc.

Stay positive that you can do this, it may mean making some changes but the at least now OH is working you will be able to make some headway. And having children always leaves people with less money for the luxuries they used to have, but these pale in comparison to the joy your child will bring you.

Good luck