Help, Advice, SOA included!!

RMMA

Hello,

Thought I'd pluck up the courage and declare myself to the world! I am up to my eyeballs in debt - as I'm sure most of are!! We have a six month old child and my wife is about to come to the end of her maternity pay. She has maanged to save up just over 1000 for her to spend after the maternity money runs out. Should do us for a little while, but after that we're on our own.

Other than a DMP I really don't know what to do :mad:. Got myself into a silly position a few years ago, and fighting ever since to pay off what I can every month. Leaves me with noting at the end of the month.

Basically, i'm looking for ANY advice, ANYTHING to help me during the next 6-9 months which will help me be in a better position once the savings run out and I have to find money from somewhere to support my family. My wife will not be going back to work - by the time we factored in childcare costs it wouldn't be worth her working anyway so that option is out. My car is old and knackered and barely gets me to work - especially in the recent weather! I work in an isolated location anyway with no public transport so I can't sell the car.

We have a shared ownership home - we own 50%. We are on the variable mortgage rate of 3.95%. Not enough equity in house to get a remortgage (we are at 95% LTV)

Here is my SOA:

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1960
Partners monthly income after tax....... 0
Benefits................................ 48 (might increase after my wife receives no MP)
Other income............................ 0
Total monthly income.................... 2,008
Monthly Expense Details
Mortgage................................ 385.93
Secured/HP loan repayments.............. 0
Rent.................................... 304.19 (Shared ownership home)
Management charge (leasehold property).. 0
Council tax............................. 129
Electricity............................. 30
Gas..................................... 58
Oil..................................... 0
Water rates............................. 29
Telephone (land line)................... 30 (inc. internet)
Mobile phone............................ 20
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... (as above)
Groceries etc. ......................... 100
Clothing................................ 0
Petrol/diesel........................... 80
Road tax................................ 15
Car Insurance........................... 35
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 10
Contents insurance...................... 6.71
Life assurance ......................... 0 (cancelled - I know, I know...)
Other insurance......................... 0
Presents (birthday, christmas etc)...... 5
Haircuts................................ 5
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1264.95

Assets
Cash.................................... 0
House value (Gross)..................... 160000 (we own 50% of that)
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 161500

Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 75800....(385.93).....3.95
Secured Debt.................. 0
Total secured & HP debts...... 75800

Unsecured Debts
Description....................Debt......Monthly.. .APR
credit card....................9600......99........11.6
credit card....................6800......210.......9.1
credit card....................5800......55........6.9
credit card....................2300......55........6.9
credit card....................1500......35........19.9:mad:
loan...........................22000.....283.97....5.6
Total unsecured debts..........48000.....737.97

Monthly Budget Summary
Total monthly income.................... 2,008
Expenses (including HP & secured debts). 1,264.95
Available for debt repayments........... 743.05
Monthly UNsecured debt repayments....... 737.97
Amount short for making debt repayments..5.08
Personal Balance Sheet Summary
Total assets (things you own)........... 161,500
Total HP & Secured debt................. 0
Total Unsecured debt.................... -48,000
Net Assets.............................. 113,500


Any suggestions from anyone?? Sorry I really am starting to panic a little. I can do a car boot sale and maybe e-bay some things but I'm certain I wouldn't get more than 300 tops - that would be a generous estimate!

I know there are no 'quick fixes' and I'm prepared to be in this for the long run. My loan finishes in 6 years. Apart from that I can't get anymore credit cards (0%) - and with my wife not working I can't get any in her name to help me out. Any other ideas?

Thank you in advance - I know there are many others out there probably in a worse situation than me and I am grateful for any time anyone can spend helping me. We have enough to get us through the next few months but once her income stops we really are in a pickle! I am a total worrier - god knows how I haven't had a heart attack over this in the past few years!

Thank you in advance for any help!

savingmummy

Hi and welcome! congratulations on your baby.
Firstly you soa looks ok, maybe try and reduce the grocerie shopping, meal plan and stick to a strict list! Drop brands on most things inc nappies, wipes etc baby stuff is all the same in different packs believe me.
Good ideas you have re, ebay and bootsales - it is amazing what you don`t use when you declutter drawers, cupboards and lofts! Baby will grow out of most her clothing etc so quickly so sell these on ebay in bundles they sell!!
Don`t overspend on baby clothing really not worth it look around and also get your wife on net mums - people sell bags of baby stuff even give them away!! Also freegle.
Could your wife not get a small weekend job or evening job then you can look after baby saving childcare costs this money could then be thrown at the cc`s.
Are you still using cc`s?
Is the £48 childbenefit? Are you getting Tax credits? Make sure they have the details 100% correct and that you are getting what you should be.

Goodluck and hope you manage to get others who can advise a little more x

iamana1ias

RMMA wrote: »

Hello,

Thought I'd pluck up the courage and declare myself to the world! I am up to my eyeballs in debt - as I'm sure most of are!! We have a six month old child and my wife is about to come to the end of her maternity pay. She has maanged to save up just over 1000 for her to spend after the maternity money runs out. Should do us for a little while, but after that we're on our own.

Other than a DMP I really don't know what to do :mad:. Got myself into a silly position a few years ago, and fighting ever since to pay off what I can every month. Leaves me with noting at the end of the month.

Basically, i'm looking for ANY advice, ANYTHING to help me during the next 6-9 months which will help me be in a better position once the savings run out and I have to find money from somewhere to support my family. My wife will not be going back to work - by the time we factored in childcare costs it wouldn't be worth her working anyway so that option is out. My car is old and knackered and barely gets me to work - especially in the recent weather! I work in an isolated location anyway with no public transport so I can't sell the car.

We have a shared ownership home - we own 50%. We are on the variable mortgage rate of 3.95%. Not enough equity in house to get a remortgage (we are at 95% LTV)

Here is my SOA:

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1960
Partners monthly income after tax....... 0 what does your OH get now? can't be nothing if baby is only 6 months old?
Benefits................................ 48 (might increase after my wife receives no MP)
Other income............................ 0
Total monthly income.................... 2,008
Monthly Expense Details
Mortgage................................ 385.93
Secured/HP loan repayments.............. 0
Rent.................................... 304.19 (Shared ownership home)
Management charge (leasehold property).. 0
Council tax............................. 129
Electricity............................. 30
Gas..................................... 58
Oil..................................... 0
Water rates............................. 29
Telephone (land line)................... 30 (inc. internet)
Mobile phone............................ 20
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... (as above)
Groceries etc. ......................... 100
Clothing................................ 0
Petrol/diesel........................... 80
Road tax................................ 15
Car Insurance........................... 35
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 10
Contents insurance...................... 6.71
Life assurance ......................... 0 (cancelled - I know, I know...)
Other insurance......................... 0
Presents (birthday, christmas etc)...... 5
Haircuts................................ 5
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1264.95

Assets
Cash.................................... 0
House value (Gross)..................... 160000 (we own 50% of that)
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 161500

Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 75800....(385.93).....3.95
Secured Debt.................. 0
Total secured & HP debts...... 75800

Unsecured Debts
Description....................Debt......Monthly.. .APR
credit card....................9600......99........11.6
credit card....................6800......210.......9.1
credit card....................5800......55........6.9
credit card....................2300......55........6.9
credit card....................1500......35........19.9:mad:
loan...........................22000.....283.97....5.6
Total unsecured debts..........48000.....737.97

Monthly Budget Summary
Total monthly income.................... 2,008
Expenses (including HP & secured debts). 1,264.95
Available for debt repayments........... 743.05
Monthly UNsecured debt repayments....... 737.97
Amount short for making debt repayments..5.08
Personal Balance Sheet Summary
Total assets (things you own)........... 161,500
Total HP & Secured debt................. 0
Total Unsecured debt.................... -48,000
Net Assets.............................. 113,500


Any suggestions from anyone?? Sorry I really am starting to panic a little. I can do a car boot sale and maybe e-bay some things but I'm certain I wouldn't get more than 300 tops - that would be a generous estimate!

I know there are no 'quick fixes' and I'm prepared to be in this for the long run. My loan finishes in 6 years. Apart from that I can't get anymore credit cards (0%) - and with my wife not working I can't get any in her name to help me out. Any other ideas?

Thank you in advance - I know there are many others out there probably in a worse situation than me and I am grateful for any time anyone can spend helping me. We have enough to get us through the next few months but once her income stops we really are in a pickle! I am a total worrier - god knows how I haven't had a heart attack over this in the past few years!

Thank you in advance for any help!

You keep talking about when your wife's income stops, but you haven't put her income on here

Have you checked out the up your income board on here?

savingmummy

I never got paid when i left after having my baby. If i didnt return i never got anything x

gfplux

Hello RMMA,
Have you discussed the situation with your wife or is this your big secret?

milliemonster

You should be getting child benefit which equates to around £80 a month for 1 child, plus tax credits which will be a minimum of £42 a month.

Have a look at the Up your income board for ideas how your wife can maybe earn from home, there are tons of ideas on there to bring extra in such as Avon, party planning, online surveys, cashback sites, mystery shopping etc.

I don't think your grocery budget of £100 a month is realistic for the 2 of you plus a baby, are you sure that covers everything?

What was your wife earning and what would her net income be minus the travelling and childcare costs be?

In your current situation, you simply cannot afford all your outgoings on your income alone. If by your wife going back to work you would have enough coming in to meet your minimum outgoings despite the cost of childcare then this may be an option to think again about at the current time.

However, if this isn'y an option then you may need to look at a DMP, have a chat with CCCS or payplan about your options

Tixy

Hi

You should be getting child benefit which I think is about £100 for one child? Was your wife working before, is she not getting SMP either through her employers or maternity allowance instead? read here http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/Expectingorbringingupchildren/DG_10018869

Unless you can increase your household income then you may well need to consider a DMP (although it looks like you are just managing it looks to me like a few costs may be omitted).

If you do manage to get some more income and have spare then do pay any extra off the 19.9% card, which handily is the lowest balance.

Have you stopped spending on the cards? Have you cut them up (or all but one?)

RMMA

Thanks everyone so far!

I didn't include my wife's maternity pay as this SOA is what I will be on after the next two months. My wife currently gets 400 a month maternity pay, which we try and save most of so she will have something once the money stops. she will only get this for the next two months though.

She wasn't making very much unfortunately - around 1000 after tax. I calculate that at least 800 of that would go on childcare, with the rest on petrol/car parking, leaving her with practically nothing either! Joy!

Yes, sorry, I forgot about the child benefit - thats 80, that goes directly to my wife. Child tax credit is currently 48 a month. Maybe I need to speak to them and see if thats right. it was based on my P60 though!

My wife is WELL aware of the situation, although i try not to let her know how stressed I get about it. She knows we need to budget and cut back and she is doing a great job. I'm just concerned how we will cope after the maternity pay stops and the savings run out.

Thank you all again for your support!

RMMA

Yes - I never use the cards at all. All cut up and gone!

savingmummy

You need to check with the tax credits just to make sure it is correct.
Could your wife not go to work part time, closer to home to lesson travellling costs? family or friend to look after baby? even a 3hr a day cleaning job is better then nothing.
I would not save the mat pay i would throw it at the cc debt to get rid.
what does your wife spend the cb on?

It is hard i know. I too left work but had no debt then, if i had debts then i would of returned definately. Worth trying to chat about another income as at the moment that is all you can change x

laurenjade1402

i would suggest your wife getting work in the evenings or at weekends when you are not at work I have done that for years and it means no childcare costs, there are lots of call centres and supermarkets who require staff in the evenings and weekends we are a 24 hour society now. If your wife really wants to work she will find hours that fit in.