Help please

twinmum07

Our finances are a mess and we can't afford everything so any advice and guidance would be appreciated.

We are currently on a mortgage baby break until November. A little of the money has been put aside for our first family holiday. We can't get out of this now and know it was silly and unaffordable! We plan to put the rest of the money aside to ensure we can pay the mortgage for 3 months once we have to start paying again. How we will pay beyond Feb 2011 is anyones guess!!!

DH's mobile contract is £20 and due for renewal in Oct so a little saving there. Mine is £5 and i never go over that.

We have just swapped gas and electric so are tied in for another year but saved £40 per month when we swapped over.

We are currently filling in forms for Tax Credits and we get £188.40 in child benefit.

We have 2 cars as DH needs one for work and I am at home with 3 under 3s so can't be marooned without a car. My mum bought our little 2nd car so no finance on that. The main car is on 0% finance and can't really be downgraded as we need a reliable MPV.


I have 2 1/2 year old twins so they will be starting the half day at nursery in November but our youngest is only 13 weeks old. At the moment I am somewhat stuck in the catch 22 of not really being able to afford not to work but not being able to afford the childcare to do so. This would shift a little once the twins are at nursery but I am guessing I am unlikely to find a job I can do for the few hours they are at nursery that would cover the childcare fees for the little one.
I do run my own business but this has seriously nosedived and is no longer covering it's basic costs (the first 3 credit cards are mine and are business cards really). This has only happened over the last few months and my own time to devote to it has been a factor alongside the economic climate. Now the baby is a little older I hope to be able to claw it back to paying suppliers and the credit cards. I haven't put down an income for the business as at the moment there is none, my aim is to get the business back to at least paying the 3 credit cards again and then hopefully more.
At the moment I am half way through a 10 week block of work, which is 5 hours a week and the in laws have been good enough to have the kids. The pay for the block of work is £1500 and should keep me under tax and NI contributions for the year. However, I haven't counted this in the SOA as it is ending in 5 weeks and not continuing next year.

We are trying our best together with the business and starting to use ebay for the business again tot try to get stock and cash flowing. I have looked into other little things I can do to boost a little whilst working with and around my children. I love the idea of Phoenix Trading as a way to get out, exercise for free and hopefully build myself a small income.

We are scraping by now but our concern is that our figures for Feb just don't add up/work so want to act now rather than bury our heads and panic then.

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.................... 2
Monthly Income Details
Monthly income after tax................ 2720
Partners monthly income after tax....... 0
Benefits................................ 188.4
Other income............................ 0
Total monthly income.................... 2908.4
Monthly Expense Details
Mortgage................................ 1610
Secured/HP loan repayments.............. 375.4000000000001
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 149
Electricity............................. 54
Gas..................................... 39
Oil..................................... 0
Water rates............................. 27
Telephone (land line)................... 15
Mobile phone............................ 25
TV Licence.............................. 12
Satellite/Cable TV...................... 11.5
Internet Services....................... 12.5
Groceries etc. ......................... 300
Clothing................................ 20
Petrol/diesel........................... 200
Road tax................................ 32
Car Insurance........................... 127
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 10
Buildings insurance..................... 17
Contents insurance...................... 17
Life assurance ......................... 22
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 20
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 3175.4

Assets
Cash.................................... 0
House value (Gross)..................... 180000
Shares and bonds........................ 0
Car(s).................................. 15000
Other assets............................ 0
Total Assets............................ 195000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 226000...(1610).....4.9
Secured Debt.................. 7883.4...(375.4)....0
Total secured & HP debts...... 233883.4..-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
HSBC B.........................4577......113.......17.9
Virgin B.......................5476......120.......24.9
Halifax B......................3669......55........12.9
Tesco J........................3220......90........19.9
Barclays J.....................3970......90........19.9
HSBC J.........................7450......185.......25.9
Total unsecured debts..........28362.....653.......-

Monthly Budget Summary
Total monthly income.................... 2,908.4
Expenses (including HP & secured debts). 3,175.4
Available for debt repayments........... -267
Monthly UNsecured debt repayments....... 653
Amount short for making debt repayments. -920
Personal Balance Sheet Summary
Total assets (things you own)........... 195,000
Total HP & Secured debt................. -233,883.4
Total Unsecured debt.................... -28,362
Net Assets.............................. -67,245.4
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

thanks in advance for any help

twinmum07

I hope I have put this in the right place. If not, where should it be?

Numpty_Monkey

twinmum07 wrote: »

I hope I have put this in the right place. If not, where should it be?

It's in the right place:A

t4mof

Welcome and well done for coming on here and trying to sort this out before it all comes to a head in February. :T

To be honest, shaving a little bit off your groceries, petrol and car insurance (that's high!) isn't going to claw back the deficit but your mortgage is taking up 55% of your income and just doesn't look sustainable. I'd be seriously looking in this area to make cutbacks - perhaps even moving house and renting somewhere for a while, just while you get yourself sorted.

How long do you have left on the HP agreement??

Do you have family nearby who could have the baby once the twins are in nursery so you can earn but not pay childcare fees??

Numpty_Monkey

twinmum07 wrote: »

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.................... 2
Monthly Income Details
Monthly income after tax................ 2720
Partners monthly income after tax....... 0
Benefits................................ 188.4
Other income............................ 0
Total monthly income.................... 2908.4
Monthly Expense Details
Mortgage................................ 1610 you need to contact your mortgage provider and ask to reduce payments( I know nothing about mortgages)
Secured/HP loan repayments.............. 375.4000000000001
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 149 ask to pay over 12 months
Electricity............................. 54
Gas..................................... 39
Oil..................................... 0
Water rates............................. 27
Telephone (land line)................... 15 Is this a bundle package?
Mobile phone............................ 25
TV Licence.............................. 12 as phone
Satellite/Cable TV...................... 11.5 as phone,maybe you can reduce the package or find a better deal
Internet Services....................... 12.5 as phone
Groceries etc. ......................... 300 the good peeps on OS Board will help you reduce this
Clothing................................ 20
Petrol/diesel........................... 200 Checkout Martins article
Road tax................................ 32
Car Insurance........................... 127 :eek: I hope thats a typo, checkout comparison sites and cashback sites
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 10
Buildings insurance..................... 17 any insurance checkout comparison sites and cash back sites
Contents insurance...................... 17 as above
Life assurance ......................... 22 as above
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 20
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 3175.4

Assets
Cash.................................... 0
House value (Gross)..................... 180000
Shares and bonds........................ 0
Car(s).................................. 15000
Other assets............................ 0
Total Assets............................ 195000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 226000...(1610).....4.9
Secured Debt.................. 7883.4...(375.4)....0
Total secured & HP debts...... 233883.4..-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
HSBC B.........................4577......113.......17.9
Virgin B.......................5476......120.......24.9
Halifax B......................3669......55........12.9
Tesco J........................3220......90........19.9
Barclays J.....................3970......90........19.9
HSBC J.........................7450......185.......25.9
Total unsecured debts..........28362.....653.......-

Monthly Budget Summary
Total monthly income.................... 2,908.4
Expenses (including HP & secured debts). 3,175.4
Available for debt repayments........... -267
Monthly UNsecured debt repayments....... 653
Amount short for making debt repayments. -920
Personal Balance Sheet Summary
Total assets (things you own)........... 195,000
Total HP & Secured debt................. -233,883.4
Total Unsecured debt.................... -28,362
Net Assets.............................. -67,245.4
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

thanks in advance for any help

I ve left a few comments hopefully some are usefull:A
I would suggest contacting one of these Non-profit Debt Counsellors' List

katsu

twinmum07 wrote: »

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.................... 2
Monthly Income Details
Monthly income after tax................ 2720
Partners monthly income after tax....... 0
Benefits................................ 188.4
Other income............................ 0
Total monthly income.................... 2908.4
Monthly Expense Details
Mortgage................................ 1610
Secured/HP loan repayments.............. 375.4000000000001
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 149
Electricity............................. 54
Gas..................................... 39
Oil..................................... 0
Water rates............................. 27
Telephone (land line)................... 15
Mobile phone............................ 25 try to reduce
TV Licence.............................. 12
Satellite/Cable TV...................... 11.5 drop satellite TV and get a freeview box
Internet Services....................... 12.5 02 are cheaper if you have a mobile with them - look for options for cheaper 'net
Groceries etc. ......................... 300 try old style board for tips to reduce
Clothing................................ 20
Petrol/diesel........................... 200 sdtop making non-essential trips
Road tax................................ 32
Car Insurance........................... 127 seems really high - maybe you need to take your car off the road for a bit? Look for options at renewal time from comparison sites and use a cashback site like quidco or top cashback
Car maintenance (including MOT)......... 20 are you actually saving this?
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 20 what is this?
Medical (prescriptions, dentist etc).... 20 again what is this?
Pet insurance/vet bills................. 10
Buildings insurance..................... 17
Contents insurance...................... 17
Life assurance ......................... 22
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20 you can reduce this -charity shop, sales, 99p shop, home made with love from the kids and giving less.
Haircuts................................ 20 go less often. clippers for the boys and a hairdressing college salon for you.
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 3175.4

Assets
Cash.................................... 0
House value (Gross)..................... 180000
Shares and bonds........................ 0
Car(s).................................. 15000
Other assets............................ 0
Total Assets............................ 195000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 226000...(1610).....4.9
Secured Debt.................. 7883.4...(375.4)....0
Total secured & HP debts...... 233883.4..-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
HSBC B.........................4577......113.......17.9
Virgin B.......................5476......120.......24.9
Halifax B......................3669......55........12.9
Tesco J........................3220......90........19.9
Barclays J.....................3970......90........19.9
HSBC J.........................7450......185.......25.9
Total unsecured debts..........28362.....653.......-

Monthly Budget Summary
Total monthly income.................... 2,908.4
Expenses (including HP & secured debts). 3,175.4
Available for debt repayments........... -267
Monthly UNsecured debt repayments....... 653
Amount short for making debt repayments. -920
Personal Balance Sheet Summary
Total assets (things you own)........... 195,000
Total HP & Secured debt................. -233,883.4
Total Unsecured debt.................... -28,362
Net Assets.............................. -67,245.4
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

thanks in advance for any help

I can't find enough places for you to save enough money to make your payments so I think you need to make cuts now and try to save up an emergency fund.

You may need to go somewhere like CAB for advice.

Good luck

twinmum07

We have 20 months left on the car payments so no use for our Feb crisis but the end is in sight (sort of!)
The car insurance is multicar and is high due to DH's bad run of 3 crashes in 3 weeks (not all his fault!). We have been crash free for 2 years now so hopefully things will be better once we make it to 3 years.

The mortgage is huge and moving would be a good option but we are in massive negative equity (around £45k) and properties aren't shifting yet - 2 identical houses over the road up for sale. We have 18 years left on our mortgage so extending the term could be an option at the end of the baby break. I am guessing we wouldn't be able to switch mortgage providers at end of our tie in in 2 years due to the negative equity.

Our other child related expenses are nappies - we use cloth on the baby and the twins are potty trained so just pull ups for naps and overnight - they are ready to go without a nap so I could halve this and their overnight wee's are either non-existant or niagra falls so leak. I guess I may as well let them leak in a cloth nappy for free rather than pay to flood a disposable!!! For 2 overnight we wouldn't need to buy more.

We both wear monthly contacts and this is our medical expenses. I have just had to swap from gas perm. so a new expense but pregnancies have left my eyes too dry. We do buy through internet to save (and in all honesty it is less than this as DH still has contacts leftover from the specsavers deal he ended last year and has another 10 months supply!)

we are stuck with sky for another 6 months but scrap when we can (will need an outside aerial but hopefully that is still cheaper in the long run).

My mobile contract has just started for 18 months but is £5, we will reduce DH's or go to pay as you go in oct when his contract ends.

Broadband has been swapped to o2 and we got it free for 3 months plus used cashback site. We have 6 months left so will reassess at Xmas.

Thank you so, so much for your comments - we will have another look at the SOA.
The business will hopefully improve and start pulling its weight more. I was working part-time and had a consistent turnover of £4000 so could draw out £1000 per month but last months turnover was less than £1000, leaving me short and unable to withdraw.
The in-laws used to look after the twins part-time but lost this arrangement when I left my job. They now look after my nephews 3 days so they can't really offer more than the day they are doing already. The twins going to nursery is much needed for them but a big issue for us as the in laws live 45 mins drive away so them being out of the house actaully ties me as i need to collect and drop them off whilst it is only a half day. The day they do so i can work does cost us an hour and a half's petrol as the kids go up there so we don't know what will happen when the twins are at nursery. Due to their needs they need to be in school nursery and settled so using the government funding for 3 year old to put them in a private nursery for 2 1/2 days solid isn't an option for them as they would have to be uprooted again.

I guess we do need to talk to a counsellor but it feels like such a scary step.

Numpty_Monkey

twinmum07 wrote: »

I guess we do need to talk to a counsellor but it feels like such a scary step.

Honest it isn't:A , the ones in the link I posted are on your side,
so don't be scared of them:D

t4mof

twinmum07 wrote: »

The mortgage is huge and moving would be a good option but we are in massive negative equity (around £45k) and properties aren't shifting yet - 2 identical houses over the road up for sale. We have 18 years left on our mortgage so extending the term could be an option at the end of the baby break. I am guessing we wouldn't be able to switch mortgage providers at end of our tie in in 2 years due to the negative equity.

Extending the term would be one option, and also paying interest only if possible.

We were in a very similar postition with our mortgage being such a huge chunk of our income about 3 years ago. We called in a financial advisor and he did us a fantastic deal that saved our house. We had it on the market but in the end we were able to stay here.

It sounds like your business is picking up which is good new. Is there any chance you can supplement your income with an evening job?? I did this once my eldest was 4 months old. OH would come in from work and I would go out - my first shift was 6-10pm. Not ideal for spending time as a family but it would only have to be for a fixed time while you get sorted.

twinmum07

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.................... 2
Monthly Income Details
Monthly income after tax................ 2720 = 2780 in Sept (unless govt block 2.3% pay rise for teachers)
Partners monthly income after tax....... 0
Benefits................................ 188.4 hopefully rising to 268 with tax credits once processed (unless govt. stop them!)
Other income............................ 0
Total monthly income.................... 2908.4 (Sept est. £3048)
Monthly Expense Details
Mortgage................................ 1610
Secured/HP loan repayments.............. 375.4000000000001
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 149
Electricity............................. 54
Gas..................................... 39
Oil..................................... 0
Water rates............................. 27
Telephone (land line)................... 15
Mobile phone............................ 25 (hopefully £10 in Oct)
TV Licence.............................. 12
Satellite/Cable TV...................... 11.5 £0 by xmas
Internet Services....................... 12.5
Groceries etc. ......................... 300 £250 (damn you baby formula)
Clothing................................ 20 £10 - kids only (DH is a maths teacher so elbow patches are expected)
Petrol/diesel........................... 200 £170 by no random drives
Road tax................................ 32
Car Insurance........................... 127 due for renewal in Oct - an old non-fault claim has finally been closed so an extra 2 years no claim - will call insurance co. tomorrow
Car maintenance (including MOT)......... 20 0 - we don't save, just panic when it happens
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 20 scrap and go 100% cloth nappies
Medical (prescriptions, dentist etc).... 20 opticians - down to £8
Pet insurance/vet bills................. 10 we don't save and have a £100 vet bill coming but DH is giggling at this representing a saving as we have gone from 3 cats to 2 !!!!! Heartless !!!!!!!
Buildings insurance..................... 17 these 3 have just been renewed but will hunt harder next year
Contents insurance...................... 17
Life assurance ......................... 22
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20 £8 we are tight really and this would mostly be for gifts to our own kids. The baby can have birthday and christmas gifts wrapped up 2nd hand from the twins and the twins can be economised on(or we can rely on grandparent generosity and spend the £10 we usually do!)
Haircuts................................ 20 £5 this was mostly for the kids - I will learn to clip or invest in a couple of hats when it goes wrong. DH already does what is left of his own hair
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 3175.4 (est £2949.90 at end of 2010)

Assets
Cash.................................... 0
House value (Gross)..................... 180000
Shares and bonds........................ 0
Car(s).................................. 15000
Other assets............................ 0
Total Assets............................ 195000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 226000...(1610).....4.9
Secured Debt.................. 7883.4...(375.4)....0
Total secured & HP debts...... 233883.4..-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
HSBC B.........................4577......113.......17.9
Virgin B.......................5476......120.......24.9
Halifax B......................3669......55........12.9
Tesco J........................3220......90........19.9
Barclays J.....................3970......90........19.9
HSBC J.........................7450......185.......25.9
Total unsecured debts..........28362.....653.......-

Monthly Budget Summary
Total monthly income.................... 2,908.4 est 12/10 = £3048
Expenses (including HP & secured debts). 3,175.4 est 12/10 = £2969.90
Available for debt repayments........... -267 £78.10
Monthly UNsecured debt repayments....... 653 £610 (hopeful decrease in min payments)
Amount short for making debt repayments. -920 -£531.90
Personal Balance Sheet Summary
Total assets (things you own)........... 195,000
Total HP & Secured debt................. -233,883.4
Total Unsecured debt.................... -28,362
Net Assets.............................. -67,245.4


The -£531.90 represents what i need to make to keep our heads above water so I can try to get this from the business, selling crap on ebay and basically doing anything I can to scrape things together.
I think DH has realised that he really does need to talk to his parents. If they were still providing 3 days childcare we wouldn't be in this position but that has been swept under the carpet over the last year due to reasons to fiddly to go into. However, if the in laws would be willing to do a day of childcare at our house rather than theirs then I could still work outside the house 1 day a week despite the twins only being a half day in nursery. I could then do supply teaching and hopefully bring in £400/£500 a month to almost cover the shortfall. If we were to show his parents the figures then hopefully they might be able to understand the real impact of where the childcare takes place as their favorite excuse for not making solid arrangements is 'we'll think of something nearer the time' when nearer the time we may not have a home.

Phew - a load unloaded!!!

twinmum07

t4mof wrote: »

Extending the term would be one option, and also paying interest only if possible.

We were in a very similar postition with our mortgage being such a huge chunk of our income about 3 years ago. We called in a financial advisor and he did us a fantastic deal that saved our house. We had it on the market but in the end we were able to stay here.

It sounds like your business is picking up which is good new. Is there any chance you can supplement your income with an evening job?? I did this once my eldest was 4 months old. OH would come in from work and I would go out - my first shift was 6-10pm. Not ideal for spending time as a family but it would only have to be for a fixed time while you get sorted.

can i be rude and ask what you did? I will do anything i can with and around my kids as well but i think the hard thing is that as a teacher, I could get £25 per hour doing supply if i had childcare but without I guess I am looking at minimum wage ish. i would actually love to do supermarket work or office work but it is hard to look at such a difference between the wages of a job working around DH as opposed to working daytime hours on such a good rate. There is always tuition but not at this time of year and i feel anxious about putting my eggs in the tuition basket for Oct/Nov when I can't guage the possible uptake in our area. We put a few flyers out in February this year but a very small number of them and had no response. I am sure better/more active marketing would help but I think we just want safeguard now.