HELP...one step forward three steps back

inamin

OMG! WHat on earth am I going to do? I was just getting somewhere but tax credits have now dropped by £250 per month and so am now short for my outgoings. HELP!!! I was just making ends meet, covering all outgoings off my wage and tax credits plus making up the shortfall (about £100 per month) by tutoring and mystery shops etc but now where do I get so much from? Hubby not working due to illness and fact that our business has gone pear shaped, not able to work for anyone else due to amount of time needed off work. He refuses to claim anything (not sure he qualifies anyway) I need to find a way of making up the £350 shortfall per months I have at the moment. £80 per month tutoring what else can I do?

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

Monthly Income Details
Monthly income after tax................ 1760
Partners monthly income after tax....... 0
Benefits................................ 294.66
Total monthly income.................... 2054.66

Monthly Expense Details
Mortgage................................ 387
Secured/HP loan repayments.............. 228
Council tax............................. 123
Electricity............................. 34
Gas..................................... 65
Water rates............................. 30
Telephone (land line)................... 45
TV Licence.............................. 12.12
Groceries etc. ......................... 250
Clothing................................ 10
Petrol/diesel........................... 200
Road tax................................ 37.5
Car Insurance........................... 31.78
Car maintenance (including MOT)......... 80
Medical (prescriptions, dentist etc).... 10.4
Pet insurance/vet bills................. 35
Buildings insurance..................... 28.71
Life assurance ......................... 14.25
Presents (birthday, christmas etc)...... 38
Haircuts................................ 6
Accounting fees......................... 75.48
Total monthly expenses.................. 1741.24

Assets
Cash.................................... 0
House value (Gross)..................... 110000
Shares and bonds........................ 0
Car(s).................................. 15000
Other assets............................ 0
Total Assets............................ 125000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 69000....(387)......0
Secured Debt.................. 24000....(228)......0
Total secured & HP debts...... 93000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
mbna...........................3825......85........15.9
asda credit card...............702.......18........24.8
barclaycard....................2158......60........26.9
kennel fees....................90.5......65........0
medical fees...................360.......0.........0
lloyds loan....................1500......248.09.......17.3
barclays overdraft.............1200......7.5.......19.3
business loan..................2142......178.54.......0
Gas arrear......................387...........
Electric..........................178
Total unsecured debts..........11977.5...662.....-

Monthly Budget Summary
Total monthly income.................... 2,054.66
Expenses (including HP & secured debts). 1,741.24
Available for debt repayments........... 313.42
Monthly UNsecured debt repayments....... 663.5
Amount short for making debt repayments. -348.58

Personal Balance Sheet Summary
Total assets (things you own)........... 125,000
Total HP & Secured debt................. -93,000
Total Unsecured debt.................... -11,985.5
Net Assets.............................. 20,014.5

backinbusiness

I have seen this post (and similiar) on the Benefits Thread, and I truly hope that the usually friendlier DFW posters give you the help and advice you require without being judgemental.

Good luck op.

bib

Plans_all_plans

Hi I don't usually post on here, but one thing jumped out at me: you have 2 cars. Are they both necessary if your husband doesn;t need one to get to and from work? If he's physically disabled and needs one to get about, can you give up your car in favour of using public transport for work?

Have you been on www.entitledto.co.uk? This will highlight any benefits you may be entitled to.

downnotout

£200 for petrol? that seems high, can you cut down on the car use?
you list car value at £15000. Can you not sell this and get a smaller/older car? say a 6 year old punto for about 3,000 leaving 12,000 to clear your more "expensive" debts?

[Deleted User]

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2 Do you really need 2 cars?

Monthly Income Details
Monthly income after tax................ 1760 Any way to increase
Partners monthly income after tax....... 0 I Think that you really need to sit down with hubby and have a serious chat with him - show him your SOA and be 100% honest with each other about the situation - even if only in the short term hubby has to swollow his pride and claim for any benifits he may be entitled to - not only for himself but for the family
Benefits................................ 294.66 Are you claiming all you are entitled to (see comment above)
Total monthly income.................... 2054.66

Monthly Expense Details
Mortgage................................ 387
Secured/HP loan repayments.............. 228
Council tax............................. 123 can you spread this over 12 months instead of the usual 10 - ask your concil
Electricity............................. 34 this seems okay, but Gas very high. Are you in arrears and paying this off, if so when will it be fully repaid - if not in arrears are you in credit with either company - if so ask for it back. Eitherway check that you are on the cheapest tariff for your area (Uswitchh) and if switching makes sense then go through one of the cashback sites (Quidco, topcashback, onepoll etc)
Gas..................................... 65 see above
Water rates............................. 30
Telephone (land line)................... 45 This is very high, what is the reason for this - should be able to get home phone and internet approx £20-£25 pm
TV Licence.............................. 12.12
Groceries etc. ......................... 250 You can cut this back, meal plan, batch cook, drop brands etc - take a trip over to the old style board for advice and ideas
Clothing................................ 10
Petrol/diesel........................... 200 Are all journeys essential?
Road tax................................ 37.5
Car Insurance........................... 31.78
Car maintenance (including MOT)......... 80
Medical (prescriptions, dentist etc).... 10.4
Pet insurance/vet bills................. 35
Buildings insurance..................... 28.71 At reneal see if combining buildings and contents would be cheaper
Life assurance ......................... 14.25
Presents (birthday, christmas etc)...... 38
Haircuts................................ 6
Accounting fees......................... 75.48 any way to reduce this? Do it your self?
Total monthly expenses.................. 1741.24

Assets
House value (Gross)..................... 110000
Car(s).................................. 15000 Would selling one be an option? This would not only bring in a lump sum to pay off one of the debts but would also save a lot monthly in running costs. Even switching one or both to a cheaper car might be an alternative?
Total Assets............................ 125000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 69000....(387)......0
Secured Debt.................. 24000....(228)......0 What's the APR - how many months left to run?
Total secured & HP debts...... 93000.....-.........-

Unsecured Debts - I have put these in the order of the most to the lease expensive - I notice a business loan in here, should personal and business finance not be seperate? Also, perhapse hubby needs to talk to the business debtline for advice (this is free impartial advice)
Description....................Debt......Monthly...APR
barclaycard....................2158......60........26.9
asda credit card...............702.......18........24.8
barclays overdraft.............1200......7.5.......19.3
lloyds loan....................1500......248.09.......17.3
mbna...........................3825......85........15.9
kennel fees....................90.5......65........0
medical fees...................360.......0.........0
business loan..................2142......178.54.......0
Gas arrear......................387........... Is this being repaid in the monthly amount above? If yes how much is going towards the arrears and when will this be fully repaid?
Electric..........................178 As above
Total unsecured debts..........11977.5...662

Monthly Budget Summary
Total monthly income.................... 2,054.66
Expenses (including HP & secured debts). 1,741.24
Available for debt repayments........... 313.42
Monthly UNsecured debt repayments....... 663.5
Amount short for making debt repayments. -348.58 Quite a high amount to make up from the SOA above. I don't want to sound negative, and although there are savings that could be made above perhapse you should take the advice from one of the debt charities (EG CCCS, CAB, National debtline) They will offer free impartial, non-judgemental advice on your specific situation. As things stand currently, unless you can up your income considerably you are getting further in to debt by nearly £350 every month.

Personal Balance Sheet Summary
Total assets (things you own)........... 125,000
Total HP & Secured debt................. -93,000
Total Unsecured debt.................... -11,985.5
Net Assets.............................. 20,014.5

Hi,

I have made some comments above. I hope that they help.

Well done for posting and I hope your situation improves soon,

D9

inamin

I know its going to sound like I'm dismissing ideas but I'm not and I am truly grateful for all help and advice. We do need two cars because the chidlren need to get to and from school and my hubby uses one car for that, (no public transport available due to school location) I need my car to get to and from work and I have looked into public transport but the additional time taken to get to and from work would mean I had to stop my tutoring and other obligations I have as I would not longer have the time, int he long run it ends up cheaper to drive than to get the bus. Unfortunately my children's school is in the opposite direction to my work. We walk wherever possible and shop at ALDI rather than bigger supermarkets. The gas arrears is not being paid at the moment (can't face ringing them!) The kennel fees hav only one and a bit more months to run then they'll be done plus the unsecured lloyds loan will be finished in September/October this year so that will make a massive difference (will make up for the shortfall from tax credits) but we need to get to then. Phone is the chapest I could find it, home phone, broadband plus free evening and weekend calls (necessaryf or hbby to keep trying to get business up and running) Plus free international calls, (family in USA, France, Poland and Germany) Many of whom don't have (wont use) skype. THat includs calls which we make which are not free (such as companies etc) Think the actual bill without call costs is about £36/£38.
BUsiness loan is guaranteed by me so needs to be in here rather than separate. That only has 12 months left to run.
I am thinking of doing some cleaning and ironing for people, that might bring in some more pennies and have made steps to try to get another student for tuition.
ANy other ideas welcome.
I am determined to sort this all out this year, it is not going to beat me. x

elaine12022

Re the cars - are there any taxi firms that do school runs where you live?If there are maybe that would be cheaper than running a car?

good luck with sorting everything out,are you & OH working togetheron everything?

rising_from_the_ashes

I'm afraid I agree with the others about the 2 cars, at the moment you simply cannot afford to have & run both of them.

How far is your house from the school?

If over 2 miles (primary) and 3 miles (secondary), the council must provide free school transport.


Re your gas, if this is for current consumption and excluding the arrears payments then this is very high and should be able to be cut substantially - how many bedrooms does your house have? (I live in a 3 bed semi and my gas is £32/month).

Accounting fees of £75/month - is this for the business? (If so, it should be paid from the business and not your personal outgoings).

How many pets do you have? Try shopping around when their insurance is up for renewal (same for house/car/life etc).

Re the home phone, this needs to be brought back to the basic (cheapest rate) - let your family ring you (I give it 3 rings & my mum phones me back).

I am a bit concerned at the lack of separation of the business from your personal finances (loan, telephone, accounting etc) - I'd suggest getting some advice on this front (CAB etc).

Good luck

downnotout

I will ask again, is it really necessary to have a 15k car?

Culex

rising_from_the_ashes wrote: »

How many pets do you have? Try shopping around when their insurance is up for renewal

Or eliminate that bill entirely by making the dog(s) into a tasty and nutritious curry?

Well, it makes about as much sense as some of the other comments.

Culex

downnotout wrote: »

I will ask again, is it really necessary to have a 15k car?

She doesn't - that's both cars and, if they're on HP, they won't actually own them until the end of the HP agreement.