low income and unsure what to do ....

Mad4camping

Hi,
I need some advise our families fortunues have changed... £10,000 drop in annual income. I know everyone is feeling it and this is case for lots of people. If i throw you our figures would somebody kindly point me in the right direction please ?

We jointly earn in total £18,701 before tax
we have 2 children between 6 and 10.
we recieve child tax credits and child benefit

I am very carefully but we are struggling. we are simple in our living style dont smoke/ drink /lottery/ we shop at charity shop etc.
we are getting on top of debt that was run up when we were in a better situation... any help would be great i feel like im drowning in worry..

stu12345_2

do u have council house or mortgae, do u owe bank loans or credit cards, even if you dont smoke drink but run a car, have car insurance, repairs , credit cards, the money u have will be swallowed up in those.

DaisyFlower

Can either of you increase your hours or take a second job?

Make a list of all outgoings and see what you can cut that is not essential.

stu12345_2

you can survive on even dole money as a couple which is way below your £18,000 plus tax credits IF and big IF, you dont have bank loans, credit cards, car finance, car insurance, raod tax debts before your finances changed, if you did then you have to see what you can sell do with out, then once youve done that, get a balance sheet and see whats left and write to remaning creditors to make an offer.

Indie_Kid

Have you looked on the debt free wannabe board? If you post a statement of affairs, (SoA) then people can give you ideas of what you might be able to cut back on.

stu12345_2

in my experience the biggest outgoing was running a car,approx £90 aweek but if its on a recent HP agreement there is very little chance of handing i back and being quids even.even cancelling your car insurance costs a fee.
some say they need a car for work, yes an old car is fine, but its raising the money for it if your stuck with a new car on HP you cant easily hand back and have free cash left over to buy a runabout.
then some folk say an old car is unreliable and if i dont get to work i loose my job and hence catch 22 situation, thats why I try and take jobs that are within walking or local bus distance away if my trusty banger dont start.