Childcare costs forcing us into debt.

hanes

Im not sure if we are getting the correct amount in childcare tax benefits.

we currently pay £636 p/m for one child. both of us work.
the goverment pay the first £356 but this is with ALL benefits inc (child tax etc)

leaves us with £280 to find. my partner and myself are not high earners 14k, 18k respectivly.
on top of the usual life of rent, car finance etc and living costs we are finding it impossible to manage every month.

i dont know where to begin with this, but is there advice we can seek to find out we are getting the correct amount. (we have been told this is correct) but still im not too sure.

any help would be great thank you

vroombroom

I suppose the best people to ask are tax credits? if it is correct, then look for cheaper, alternative childcare.

I'm a part time student, will be returning to work part time before Xmas, partner works full time and our household income is a lot less than yours - my childcare costs are £92pw and we get no help towards it, so I think you are very fortunate.

hanes

vroombroom wrote: »

I suppose the best people to ask are tax credits? if it is correct, then look for cheaper, alternative childcare.

I'm a part time student, will be returning to work part time before Xmas, partner works full time and our household income is a lot less than yours - my childcare costs are £92pw and we get no help towards it, so I think you are very fortunate.

i understand your point, but the childcare place we have we fought very hard for, its the best available and our 10 month is coming on leaps and bounds, while money cant buy this sort of benefits i cant help but feel we are being squeezed every which way. but changing childcare is not an option for us.

I find it hard to believe you work as hard as you can for a better life and the goverment would rather see you on JSA. but i guess what they reap in 20% VAT and 40% tax it would not make a dent.

there is the benefit of once she is older it will pay off. but i didnt believe there were many in the same posistion as us.

after reading your post however i see it is the case.

just at the moment we cant see the light at the end.
very glad we dont have too much debt to deal with.

vroombroom

I don't think the government want you on JSA - you have a joint income of 32k and you only have to find £280 to pay.

I'd suggest doing a SOA and posting on the DFW board - the peeps on there are great and will give some good advice x (get rid of the car finance would be the first!)

I know that is probably not want you want to hear, but IMO you have to be financially responsible yourself for the kids you bring into the world x

rogerblack

hanes wrote: »

i dont know where to begin with this, but is there advice we can seek to find out we are getting the correct amount. (we have been told this is correct) but still im not too sure.

Pop over to the 'debt free wannabe' section of the forums, and look at the sticky for how to post a statement of account.
This will help others suggest possible reductions in your outgoings.

hanes

vroombroom wrote: »

I don't think the government want you on JSA - you have a joint income of 32k and you only have to find £280 to pay.

I'd suggest doing a SOA and posting on the DFW board - the peeps on there are great and will give some good advice x (get rid of the car finance would be the first!)

I know that is probably not want you want to hear, but IMO you have to be financially responsible yourself for the kids you bring into the world x

i agree. we are trying to provide a better life and not let our child think the world owes her anything. i dont want to do an SOA as we are not that bad yet. just juggling with things
regarding car finance i wish i could im looking into options of returning it but i dont know how other than defaulting on the agreement.

vroombroom

well just cut down on everything you can - swap your contract for a PAYG, get rid of Sky, stop having takeaways etc. We did all this to ensure our boy's place at nursery and its a fab one at that, worth every penny x

£280 is not a vast amount to find each month x

hanes

We have cut down on everything. trouble is with Sky you are locked into a 12month contract. 9 months left IIRC. we are'nt takeway people. but still we have weeks where we are left without money for food. i did a budget planner and we are left with £81 per week. yet at the moment this has not been fruitful.
i think the world is mad. lol

vroombroom

downgrade to sky on the lowest package available then x

hanes

vroombroom wrote: »

downgrade to sky on the lowest package available then x

sorry i meant to say we are on BT vision.
there is no option to downgrade.
we pay £44 for broadband and tv inc calls
tried to cut it down before but they have a penalty of £211

vroombroom

so really its not a case of childcare forcing you into debt, but you living beyond your means and you want government handouts to pay your child care costs;)

sorry to be harsh, but I think thats the reality of it;)you've got two realistic options - a) go for a cheaper childcare alternative or b) radically reduce your outgoings

we did the latter and combined with my student loan and OH's wage, we still manage to run a car each (bought outright), pay our rent and bills each month and put a bit into savings (we've just come back from holiday that we saved for and we've just booked next year's holidays) :cool:. CB for our son is put into his savings account as well:D