new can anyone help?

helpus_2

We pay £80 to the car and £50 to the house builders ( this rises to £75 next year and so on until we pay £150 a month for 4 years at the end)

mum2one

helpus wrote: »

Hello I am new...

We haven't missed any payments yet as I am on maternity leave so have no childcare to pay for, all the 0% credit card deals came to an end and we can't get any more ( santander refused) but when I go back to work in Octber we are screwed - what do we do please??!?!?!?


font=courier new]Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 500
Partners monthly income after tax....... 1900
Benefits................................ 180
Other income............................ 0
Total monthly income.................... 2580
Monthly Expense Details
Mortgage................................ 1100 - could you change to interest only for a yr or so to give u a breathing space
Secured/HP loan repayments.............. 130
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 90 - not reduced as such, but could u ask for it to be over 12 months, that be £75 pm
Electricity............................. 50 - thats high, check that items aren't on standby, lights off, mobile phones etc charge in the room that your in, that way you can turn off quicker
Gas..................................... 80 - again high, have you arrears?, consider turning the thermostate eg ours was set to cut in when the temp dropped to 18C, we altered it to 16C, haven't noticed the difference in temp, but in the gas been reduced, consider cutting off 5mins each way, then aim for 10mins off
Oil..................................... 0
Water rates............................. 50
Telephone (land line)................... 50 - does that include any internet etc, if your not fixed, I get calls bar mobile inc with internet, before that we used a company called 1899, www.1899.com, basically then, we paid 5p connection call, only if the call was answered then if it was landline the call was free.
Mobile phone............................ 10
TV Licence.............................. 12
Satellite/Cable TV...................... 18 - a luxury that you can't really afford at mo
Internet Services....................... 5
Groceries etc. ......................... 400 - pretty gd, but there may be some suggestions on the old style board, meal planning, bulk cooking
Clothing................................ 50 - I appriciate you've got a housefull, but consider spending only if necessary, and primark, asda, tesco
Petrol/diesel........................... 80
Road tax................................ 15
Car Insurance........................... 50 - thats high, consider shopping around at renewal, use cash back sites
Car maintenance (including MOT)......... 30
Car parking............................. 40 - is there an alternative parking thats cheaper
Other travel............................ 10
Childcare/nursery....................... 500 - guessing this is while your at work, is it going to be long before funded nursery etc comes in
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 10 - good price but shop around
Contents insurance...................... 8 - ditto
Life assurance ......................... 18
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50 -needs to be reduced, look now and see who you could trim off the list, look at the xmas threads for ideas - hampers, home made, can save a fortune
Haircuts................................ 10
Entertainment........................... 50 - that could do with being halved
Holiday................................. 0
Emergency fund.......................... 10
Total monthly expenses.................. 2926

Assets
Cash.................................... 0
House value (Gross)..................... 186000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 186000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 177000...(1100).....6.9
Secured Debt.................. 9000.....(50).......7 - how many months have you left - ditto for hire purchase
Hire Purchase (HP) debt ...... 1000.....(80).......11
Total secured & HP debts...... 187000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Virgin.........................5000......90........23
virgin.........................5000......90........23
barclaycard....................2000......50........14.9
overdrafts ....................5500......60........0
capital one....................3000......120.......11
barclaycard....................2000......50........14.9
Total unsecured debts..........22500.....460.......-
is it 2 virgin cards or put it twice by mistake

What would suggest is looking at your minimum payments on the card, is that the monthly sum set, if it is -

on the tabs at top - theres alink called snowball whats the cost, you put in all the amounts owed, the apr rates the minimum the card requires eg 2.5% and what you can pay across all the cards.
This then ask do you want balance order or interest, the best is interest as it gets rid of the highest card, and sets a payment plan for you

Monthly Budget Summary
Total monthly income.................... 2,580
Expenses (including HP & secured debts). 2,926
Available for debt repayments........... -346
Monthly UNsecured debt repayments....... 460
Amount short for making debt repayments. -806
Personal Balance Sheet Summary
Total assets (things you own)........... 186,000
Total HP & Secured debt................. -187,000
Total Unsecured debt.................... -22,500
Net Assets.............................. -23,500
Created using the SOA calculator at .[/font]

I've put some suggestions in,its not going to solve the difference overnight.
You mentioned your paying back tax credits could you ask them to reduce the payment over a longer period.

The main bug bearer on this is the childcare, sometimes its devils advocate.

Re - the turned down for 0% card, don't take that to heart since the credit crunch, literally went barriers up, and there only just starting to relax.
Have you got any space where you could balance transfer some of the higher aprs across.

dancingfairy

From your SOA it looks like far from having a problem in October the problem might hit before that. If you are now getting 500 a month wages and your outgoings are the same - 500 childcare then you outgoings plus minimum payments to the debts are higher than your income? unless I'm missing something?
I would consider changing the mortgage to interest only for a while and possibly trying to pay off the secured/hp debts as soon as possible while making token payments to the unsecured debts.
How much would you be out by if you went interest only for a while on the mortgage?
df

dancingfairy

Would a water meter save you money?
df

mum2one

I doubt a water meter would reduce the bill, not with 2 adults and 3 children, it would go through the roof.

Mazzletov

I'm new too, but here goes...

Sorry for being so BASIC, but - are you getting Childcare Vouchers via your employer? They don't reduce the cost of the childcare but it's taken from your gross pay before deductions so you don't pay tax or NI on that amount. It all helps. Don't lose heart with the shopping around: this site recommends Alliance & Leicester current account which then gives you a 0% transfer credit card with no fee.

Well done for trying to head the problem off. A debt management plan via Consumer Credit Counselling Service could be in order, you've already done the hard work with your SOA, they may get your interest frozen and agree payments more manageable than the minimums you're paying at present. Or use the Debt Remedy tool on their website which will advise what "contractual payments" you should offer them, if you feel up to having those negotiations yourself.

Despite the financial "pointlessness" of it I would probably pay MORE than I earn in childcare to keep my future job secure and my child's horizons open. Chin up on this decision, I say!

Best of luck.

dancingfairy

Good point from the OP about childcare vouchers - although in certain situations you are better off not using them - something to do with benefits etc - I'm not sure which benefits it affects though? maybe someone else will know? is it working tax credits? a weird situation I know - Martin has written on this as well - might be worth having a look on his childcare article and see what it says.
df
EditL Here's a link to Martin's article and it does say it's tax credits and explains what to do in given situations
http://www.moneysavingexpert.com/family/childcare-vouchers#low

helpus_2

Thanks everyone, I can look into interest only, we are in a 2 year fixed though will they let us? I will check. and no unfortunately we do have 2 virgin cards
I have thought about the childcare vouchers too and I think they may be the way forward - really don't want to leave my job but if it comes to it I will get a job in asda on an evening or something, until it gets a bit better. We have already decided that this house is too much money for us so when the 2 years is up we will be selling up and getting (probably renting) something more manageable ( if we make it that far!).
The kids are home now and need attention so I am off but no doubt I'll be back, thanks again