From here to maternity... Trying to be debt free

gailey_2

Hi

just wanted to say congrats on no 3 and good luck.

Im same stage as you 2kids although ones in primary now other is 15months expecting 3rd in april.

we expecting a boy so some expense for us as all girls clothes in loft and need a double.Also bigger car.



Just wanted to say do check tax credits as we get same amount as you.
10.50 a week. Im pretty sure under spending reveiw from april 2011 they scrapping the baby element so unsure if you will get more than 40pounds still despite 3rd child.
They lowering the household income threshold to 40grand per year.

The health in pregancy grant is being scrapped jan 1st not april as most people thourght so you have to be 25weeks by then, midwife signed form and sent off to get it.
Im just scraping it as 25weeks on xmas so seeing midwife for form on 23rd will send 1st class recorded that day as expect they be shut a lot over hols.

I would make all the cutbacks you can.
Wait and see about house dont be too hasty as we pay nearly 700quid private rent so maybe with morgage rates being so low you paying less.

LittleBit_2

I've just had a look at the information around tax credits, and you're right it says the baby element is going from April 2011. However, our income will reduce from around 46k to less than 30k, so I'm not sure if that means we will receive more than the basic element?

LittleBit_2

The valuer came and did his stuff. He reckons we should get around 180-185k for the house and sounded pretty optimistic about it. He said they would look to market it at 18750 to 18950 as offers will come in lower than that.
We have another valuer coming next Monday so will see what they say, but hopefully if they come up with the same figures we will put it on the market.

wendz86

Just wanted to say Hi, I am also expecting baby next year but is my first!

Good news about the house valuation!

cha97michelle

We are on about £30k and only get £41.04 per 4 weeks from tax credits. I keep being told by others on my diary that i am not being paid enough, but i have checked it out and that is what we get. I'm hoping it doesn't get any lower than that. Something else would have to go and there is not a lot of room to budge before i slip from MFW to DFW.

I am working my bum off doing loads of surveys and reviews at the minute to try and get myself a bit of something coming in for January. So tedious though and i don't know if i will keep it up.

LittleBit_2

Michelle, I think the thing is they don't actually tell you how they work tax credits out. I was wondering if I may get extra with having 3 children instead of 2?
My friend's husband earns the same as OH, and she has 3 boys who are all at school. She doesn't work and they get £80 tax credits a week! I told her what we get, and she even rung the tax credit people to check she wasn't being paid too much, and they said it was definitely right.
I really have no idea how they calculate it!

gailey_2

Tax credits very complex when we both worker fulltime 52k 1child we were eligible for 40pounds month,

I stopped working income decreased to 35k with 2kids was same.

The threshold used to be up to 56k is being reduced to 40k in april 2011 and baby element scrapped..

But im sure I read in 2012 april it will drop to 25k so we will lose it all together then.

Tax credits -dont think no of kids is the issue its if theres baby element which gets scrapped anyway and based on total household income.

I do know lots of self employed people who fiddle tax credits which I feel is unfair.
if you mates getting double I be asking why?Maybe they not being honest about her hubbys earnings .

You of course will get extra child benefot for 3rd.

Im glad they changing surestart maternity grant 500quid to just 1st child as know some people with 4-5kids who got 500quid for each plus max tax credits, cb, healthy start vouchers ect.

I feel in future if you rich dont worry.
if you low income or unemployed you get roughly same.

If you in middle and one or both of you works you get nothing!
I feel 25-26k be cut off point for most benefits as thats what they take as average wage in uk.

Also working tax credits going up from 16hours to 24hours to be eligible.
yet 24hours nearly fulltime and lot with kids and childcare.

LittleBit_2

I totally agree with you Gailey. I work 22hrs at the moment and that's 3 full days. If I upped that to 24 then it would be 3 and a half days, so an extra early morning with the kids.
It is exactly right that the middle earners in this country get nothing. Don't get me started on it, you'll never get me off my soap box!

LittleBit_2

BTW my mate isn't getting double, she is getting 8 times what I get!! I get 40 a month, she gets 80 a week!! She is definitely declaring the correct earnings. I just can't get my head around it

LittleBit_2

Right, I'm trying to work out what we can afford when/if I leave work. Hubby would get £1750pm. (I'm not going to take into acc tax credits or cb as they may stop, so I want to have them as a bonus, rather than relying on them)

Incoming
£1750

Outgoings
Diesel £140
Food £180
Nappies £15
Kids bank accs £30
Car ins £40
Home ins £25
Xmas £25
Birthdays £15
One off household £30
Holiday £30
Car Maintenance £25
Water £44
Gas/Elec £80
TV License £12.50
Mobiles £45
Landline and BB £17.50
Credit Card £50

Outgoing £749

So realistically we would have 1k left. Obviously we need to factor mortgage/rent and council tax into that, but that is actually better than I thought. Plus at the moment we get the child benefit and tax credits which could be saved.

I've been looking into renting, as if we got a reasonable price for our house, we would be left with nowhere near enough to put down a deposit on a house (unless we can get one for about 35k lol). If we rented, we would want to have enough to save some for a house deposit though and here lies my dilemma. I've been searching for rents up to £500 a month and there is nothing in our area. We need 3 beds and a garden, but other than that I'm really not fussy. Surely something will come up for us and we can stop being held to ransom by our mortgage.