Determined to be debt free!!

NathalieDay

Hi I have been lurking on these forums for about 2 months and seeing the invaluable support this community provides for one another is amazing! I thought Its about time I made a post to see If anyone has any advice for me. I live with my fiance and our son who is 15 months old, I am also pregnant, due in july! Our Debts on CC's total £3218.80 and we also have £1600 in overdrafts jointly. We got into this mess when i was on maternity leave and I was so used to a high income we were just stupid and carried on living as we did previously. I had a big LBM about 2 months and cut up all credit cards and we have sorted a lot out, I also feel we are much better with our money and know that it wont be a repeat performance with our next baby. I have recently left work as it was night work and I just couldnt rely on family for childcare anymore so we are just on my partners income, I am awaiting a new award from tax credits so not sure how much extra we will be entitled to but got a figure using online calculators that I know we can survive on.
What we really really really want is to get rid of this debt in 2010 and hopefully the majority of it before our new one is here! I know it isnt massive so it is possible but with me not working will require hard work.
Oh and just for anyone who might judge me on my pregnancy it was planned as we want a close family and know we can provide for our son and new baby even with the debt, we just know it will be ten times better if the debt is gone, for a million reasons!!
I am wondering If there is anyone here who has been in a similar situation with children and trying to prepare? Or if anyone has any advice on doing this with one income? All help would be so appreciated!

Snowmoredebt

Hi, most people will require a SOA to look at your income and outgoings. If you could post I'm sure someone will help.

Congratulations with the pregnancy, our youngest in 9 months and we are planing another next year and look at our debt! To be fair the only extra we pay out on baby is £52 monthly we use the local freecycle, and have happily accepted hand me downs.

Also check out the site entitledto.com.

Tixy

Hi Nathalie

As snow suggests a statement of affairs is a really good starting place for you and for us to see what your position is - this calculator is the recommend format - http://www.makesenseofcards.com/soacalc.html

Congrats on the pregnancy - as your little one is still fairly small do you still have a lot of equipment / clothes etc for you new arrival? If not then start listening out for people who have hand me downs going spare to get ready for your new one - and freecycle and ebay are great for baby stuff. Also sign up for any and all babay freebies you find - look on the freebie board there are usually quite a few.

Also have a look at the 'up your income board' for ideas of bringing in a little cash whilst you are not working.

The good thing is you are planning financially before the baby arrives this time round. Good luck