Mum with debt!

free3reeder01

Hi there,

I had a baby girl 7 months ago and have quite a lot of debt. I have £11,500 left to pay off on my loan and and overdraft of £2000. That's it so it's easy to manage but it's still a lot! All in, my repayments and interest cost me £270 per month.

I am still on maternity allowance (govt) but going back to work in 4 weeks. We cannot afford childcare so my partner is going to quit his job (which he HATES) to look after our little girl while I go back to work (I love my job!).

When I go back, I will be earning about £800 a month maximum and I am panicking about how we are going to afford our mortgage, bills, living expenses AND my repayments. We do not live lavishly, only buying the absolute neccessities but even so, my calculations suggest we'll be short by at least £100 every month.

So basically I need to know if there is anything I can do to sort out my debt? Can I declare myself bankrupt with my situation? Would you recommend it? I'm afraid I'm a total dunce when it comes to my rights and what to do for the best so any help from you experts would be so useful.

Thanks!

Nicky321

Hi there, most people on here will advise you to fill in a SOA and post it here. This will give a better picture of your situation and make sure the best advice is given.
Also check here to make sure you are getting everything you should be.

free3reeder01

Thanks I just noticed that - so I have done one and pasted below. I hope that's the right thing to do.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 800
Partners monthly income after tax....... 0
Benefits................................ 200
Other income............................ 0
Total monthly income.................... 1000

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 240
Rent.................................... 250
Management charge (leasehold property).. 0
Council tax............................. 80
Electricity............................. 40
Gas..................................... 60
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 10
Mobile phone............................ 25
TV Licence.............................. 10
Satellite/Cable TV...................... 10
Internet Services....................... 10
Groceries etc. ......................... 200
Clothing................................ 0
Petrol/diesel........................... 50
Road tax................................ 14
Car Insurance........................... 22
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 80
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1141


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 1500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 11500....(240)......8.9
Total secured & HP debts...... 11500.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-


Monthly Budget Summary
Total monthly income.................... 1,000
Expenses (including HP & secured debts). 1,141
Available for debt repayments........... -141
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -141

Personal Balance Sheet Summary
Total assets (things you own)........... 1,500
Total HP & Secured debt................. -11,500
Total Unsecured debt.................... -0
Net Assets.............................. -10,000

Created using the SOA calculator
Reproduced on Moneysavingexpert with permission, using Firefox browser.

Nicky321

free3reeder01 wrote: »

Thanks I just noticed that - so I have done one and pasted below. I hope that's the right thing to do.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 800
Partners monthly income after tax....... 0
Benefits................................ 200 (what benefits are these? Child Benefit, Tax credits)
Other income............................ 0
Total monthly income.................... 1000

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 240
Rent.................................... 250
Management charge (leasehold property).. 0
Council tax............................. 80
Electricity............................. 40 Check on a comparison site make sure its the cheapest.
Gas..................................... 60 Check on a comparison site
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 10
Mobile phone............................ 25 could this be cheaper on PAYG
TV Licence.............................. 10
Satellite/Cable TV...................... 10
Internet Services....................... 10
Groceries etc. ......................... 200
Clothing................................ 0
Petrol/diesel........................... 50
Road tax................................ 14
Car Insurance........................... 22
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 80 whats this?
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0 should be something here or at least
Contents insurance...................... 0 here
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 here? maybe enter something here
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0 would be better allowing something here
Total monthly expenses.................. 1141


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 1500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 11500....(240)......8.9
Total secured & HP debts...... 11500.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-


Monthly Budget Summary
Total monthly income.................... 1,000
Expenses (including HP & secured debts). 1,141
Available for debt repayments........... -141
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -141

Personal Balance Sheet Summary
Total assets (things you own)........... 1,500
Total HP & Secured debt................. -11,500
Total Unsecured debt.................... -0
Net Assets.............................. -10,000

Created using the SOA calculator
Reproduced on Moneysavingexpert with permission, using Firefox browser.

I'm sure others will be along soon to give more advice, check out the link in earlier post to check your getting everything your entitled to.

free3reeder01

thank you! The benefits are child benefit, working tax credits and child tax credits. The £80 a month is for nappies, food and clothes.

Unfortunately I'm on a long contract for my phone otherwise I would switch to PAYG right now.

I am confident we're getting everything we're entitled to but I will recalculate when I go back to work at the beginning of April.

lauzellen

Well done for posting your SOA I've made some comments in blue.


Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 2 Do you still need 2 cars when only 1 is working?

Monthly Income Details
Monthly income after tax................ 800 Could you increase this by doing overtime?
Partners monthly income after tax....... 0 Could your partner do a part time job that fits around when you are in to look after little one? Even if its just a bar job..
Benefits................................ 200 Is this with taking into consideration your reduced income for tax credits purposes?
Other income............................ 0
Total monthly income.................... 1000

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 240 What is this secured on? Car?
Rent.................................... 250
Management charge (leasehold property).. 0
Council tax............................. 80 Can this be spread over 12 months?
Electricity............................. 40 Seems high - do a comparison and try to reduce usuage.
Gas..................................... 60 As above
Oil..................................... 0
Water rates............................. 40 This looks a little high - do you have arrears?
Telephone (land line)................... 10
Mobile phone............................ 25 If in contract reduce package if poss.. or if out get rid and go PAYG or sim on contract - some good deals for £10 pcm.
TV Licence.............................. 10
Satellite/Cable TV...................... 10 Do you need this? Get rid if out of contract.
Internet Services....................... 10 Can you combine this with a landline to try reduce the cost - some good deals out there.
Groceries etc. ......................... 200 Try to do batch cooking, cheaper brands etc to bring this down - look on the old style money saving board for help.
Clothing................................ 0
Petrol/diesel........................... 50
Road tax................................ 14
Car Insurance........................... 22
Car maintenance (including MOT)......... 0 Maybe need a little something here?
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 80 What is this for?
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0 Nothing? Do you have nothing of value?
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 add a little something here
Haircuts................................ 0 never?
Entertainment........................... 0 nothing?
Holiday................................. 0
Emergency fund.......................... 0 May be wise have a small amount here.
Total monthly expenses.................. 1141


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 1500


Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 11500....(240)......8.9
Total secured & HP debts...... 11500.....-.........-

Unsecured Debts
Description....................Debt......Monthly.. .APR
Total unsecured debts..........0.........0.........-


Monthly Budget Summary
Total monthly income.................... 1,000
Expenses (including HP & secured debts). 1,141
Available for debt repayments........... -141
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -141

Personal Balance Sheet Summary
Total assets (things you own)........... 1,500
Total HP & Secured debt................. -11,500
Total Unsecured debt.................... -0
Net Assets.............................. -10,000

Created using the SOA calculator
Reproduced on Moneysavingexpert with permission, using Firefox browser.

lauzellen

free3reeder01 wrote: »

thank you! The benefits are child benefit, working tax credits and child tax credits. The £80 a month is for nappies, food and clothes.

Unfortunately I'm on a long contract for my phone otherwise I would switch to PAYG right now.

I am confident we're getting everything we're entitled to but I will recalculate when I go back to work at the beginning of April.

Can you lower your tarrif?

Baby is getting to the age where you can make your own purees etc - this may be a cheaper option. Also have you tried lidl nappies - they are brilliant!! and much cheaper! Clothes - try ebay or do any friends have older children where they could give you some clothes?

Nicky321

free3reeder01 wrote: »

I have £11,500 left to pay off on my loan and and overdraft of £2000.

Thanks!

I see you mention O/D of £2000, but its not on your SOA. (or I cant seem to see it there). I know it sound a bit petty, but if you sit down with all your precise details of income and expenditure it will be more accurate. Rounding things up or down doesn't seem much each month but over 12 months it may have an effect, could be £££ over estimated or underestimated.

rhianna99

Hi, when working out your benefits, have you taken into account that the baby element is ending in April? this will lower your payments. I really think that your partner needs to get a part time job because even without the debt repayments, you dont have much left after essential expenses.