Debt and Babies

Introuble28

Hello everyone.

I was hoping someone out there may be able to help me.
My husband and I really want to have a baby as we are both in our late 20s and have recently got married.
The only problem is that we have quite a lot of debt (the majority is in my huband's name) and I am worried that if one of us was out of work and looking after the baby then we absolutely couldnt survive on one wage. Our debt is approx £32,000 including a car on finance. Our monthly payments are about £800 all together and We only earn about £1200 each per month.
We couldnt afford out rent and I just dont know what we can do. I dont want to put off havign a baby as I have some minor medical conditions which means I need to have children sooner rather than later.
Has anyone else been in this position? What did you do?
Thanks for reading.

kingfisherblue

If you post a SOA, I'm sure someone will be able to help more than I can, but just to let you know that there is never a 'right' time financially to have a baby. I had my first when I was 22 and was convinced that we wouldn't be able to manage - but we did.

Hope everything works out for you x

Sarahsaver

if in doubt then do not bring a baby into a situation where there may be a lot of stress and anxiety about the debt.
Could you live without the car?
could you work more whilst trying to conceive/pregnant and save or pay off some debts?
I think you may need to do a statement of affairs (SOA) and put it on here if you feel able to do so, so people can help you more.
As for actual cost of babies, breast milk is totally free of charge, you do NOT need new clothing or a brand new cot, charity shops and freecycle are good for those. You may find being a stay at home mum cheaper than working, no canteen lunches, work clothes, travel to work and so on...
As for health problems/babies, I had a stroke in 2001 and went on to have babysaver in 2008 and I am an oldie in comparison to you, lets just say i am *ahem* reaching a milestone this year :rolleyes:

Introuble28

I think I have done this correctly. Hopefully I havent missed anything off.

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1277
Partners monthly income after tax....... 1400
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2677
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 400
Management charge (leasehold property).. 0
Council tax............................. 116
Electricity............................. 25
Gas..................................... 35
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 20
Mobile phone............................ 60
TV Licence.............................. 11
Satellite/Cable TV...................... 50
Internet Services....................... 10
Groceries etc. ......................... 200
Clothing................................ 30
Petrol/diesel........................... 80
Road tax................................ 10
Car Insurance........................... 45
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 86
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 6
Pet insurance/vet bills................. 20
Buildings insurance..................... 0
Contents insurance...................... 9
Life assurance ......................... 6
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 15
Entertainment........................... 60
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1304

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 5000

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Loan Halifax...................9000......180.......24
Loan Lloyds....................15000.....418.......23
Barclaycard....................2000......60........6.3
Car Payment....................5000......101.......16
AMEX...........................1500......40........24
Total unsecured debts..........32500.....799.......-

Monthly Budget Summary
Total monthly income.................... 2,677
Expenses (including HP & secured debts). 1,304
Available for debt repayments........... 1,373
Monthly UNsecured debt repayments....... 799
Amount left after debt repayments....... 574
Personal Balance Sheet Summary
Total assets (things you own)........... 5,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -32,500
Net Assets.............................. -27,500

surreybased

Hi,

Always tough when to decide to have children. I've been a mum at different stages in my life - early 20's and late 30's. First time around I needed to go back to work as we had just taken on a new mortgage and 1 week before baby was born my hubby lost his job. Horrible time as maternity leave wasn't generous and I felt I didn't really enjoy those early times with my child as the money worries were signifcant. I had to go back to work when my baby was 3 months and dh was a stay at home dad until he oculd find alternative work. My latest pg - I was able to give up work before the baby was born, we had savings and it was lovely to be able to relax and enjoy being at home with my baby.

You don't need lots of money to have a baby but I feel you should have some savings behind you as you don't know what could happen - mostly it's the loss of income. Also when you go back to work do factor in childcare, it shocks most parents to find out what the costs will be and it will certainly take up 50% or more of your current income.
Do you know what your work's policy is for maternity leave payments? Could you manage with no or reduced income for say a minmum of 8 months?

My feeling would be that you'd be better off waiting for a few years - pay down some of the debt but that's the sensible approach and parethood isn't often about rational decisions.

Introuble28

I have quite a good maternity plan at my work. I get full pay for 6 months which will be handy. Its just such a huge decision. I cant get any savings together at the moment as any surplus income is goign straight towards my debts and my DFD is not for another 6 years when I will be 35 so I am worried that its leaving it too late.

Quenastoise

I sort of agree with Sarah about the cost of babies: you don't need to buy everything that is recommended, most of the stuff can be bought second-hand and you will find that family and friends will be more than happy to donate the stuff that their own children have outgrown.

In the early years, the main costs are formula if you are not BF'ing (babies can switch to cow's milk at age 1) and nappies (your toddler may be ready for potty training around 2). So, let's say 2 years of main additional costs.

I found the main cost was actually childcare, as I was working full-time and using a nursery. This can be mitigated by tax credits, the lower the income, the bigger the contribution from the Inland Revenue.

Ignoring costs, I would say that, even if you are young and heathy, you can never assume that conceiving will come easy, so it's better to have time on your side and not leave it too late, just in case. Could you and your husband discuss a timeline for getting the debt under control/starting a family ? You will also need to think about whether you want to be a full-time mum, work PT or FT.

I wish you and your husband well for the future.

firestronaut

Introuble28 wrote: »

I think I have done this correctly. Hopefully I havent missed anything off.

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1277
Partners monthly income after tax....... 1400
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2677
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 400
Management charge (leasehold property).. 0
Council tax............................. 116
Electricity............................. 25
Gas..................................... 35
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 20 Can you combine with your internet/satellite company?
Mobile phone............................ 60 as you both have mobiles (I assume this is two) AND a landline, I would suggest reducing your tariff and making phone calls from home when possible.
TV Licence.............................. 11
Satellite/Cable TV...................... 50 You can easily save money by reducing this package
Internet Services....................... 10 Can you combine with your phone aqnd satellite company?
Groceries etc. ......................... 200 My household consists of 4 adults and 2 children (13 and 1). We spend less than £400 on food and never go hungry. Try meal planning and dropping a brand or two.
Clothing................................ 30 Is it REALLY necessary to buy new clothes? Can you not survive with the ones you have? If only for a short while...
Petrol/diesel........................... 80 Walk or use public transport at least once a week. combine errands to save petrol
Road tax................................ 10
Car Insurance........................... 45 Always make sure you're getting the best deal at renewal and always use cashback sites.
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 86 What is this used for?
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 6
Pet insurance/vet bills................. 20 Do you have more than one animal? This seems high. Shop around and use cashback sites/
Buildings insurance..................... 0
Contents insurance...................... 9
Life assurance ......................... 6
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 15 I used to spend the best part of £20 a month on my hair. I switched to a backstreet salon and reduced the amount of haircuts I got. Still look good and costs around £6 a month.
Entertainment........................... 60 What entertainment is this? Can you not swap and do something for free or low price? (romantic walk, cheap DVD rental?) Entertainment is important but there's so much you can do for free or pennies!
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1304

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 5000

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Loan Halifax...................9000......180.......24
Loan Lloyds....................15000.....418.......23
Barclaycard....................2000......60........6.3 See below.
Car Payment....................5000......101.......16 Pay less on this IF POSSIBLE and more on the one below. Higher APR = more charges.
AMEX...........................1500......40........24
Total unsecured debts..........32500.....799.......-

Monthly Budget Summary
Total monthly income.................... 2,677
Expenses (including HP & secured debts). 1,304
Available for debt repayments........... 1,373
Monthly UNsecured debt repayments....... 799
Amount left after debt repayments....... 574
Personal Balance Sheet Summary
Total assets (things you own)........... 5,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -32,500
Net Assets.............................. -27,500

Hope this helps

firestronaut

Also, keeping on par with everyone elses posts... DD gets a LOT of ebay stuff.
And the National Childbirth Trust does Nearly New sales every three months in most areas. Toys/prams/clothes/cots for a fraction of the price and still in full working order.
You can also sell items your baby grows out of, making extra cash and some of it goes to charity!

Sarahsaver

You would be eligible for tax credits.