long time user but changed my name.

speckham

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speckham

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LandyAndy

Even if you don't post it here, is it worth doing an SoA as it would appear after you've had a baby? I presume you are planning to go back to work fairly quickly?

speckham

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LandyAndy

Don't go on holiday. Don't have an emergency fund while you are in debt. That saves £150pm.

I think a baby may put your grocery bill up by more than £50 a month (nappies, wipes etc aren't cheap;)).

Also what about baby paraphernalia? Cot, pram, pushchair, car seat, highchair, toys etc. Have you factored them in? None of those items is cheap.

poppasmurf_bewdley

You can't really afford to go to Mexico can you?

Can you not get anything back on your booking?

LandyAndy

poppasmurf_bewdley wrote: »

You can't really afford to go to Mexico can you?

Can you not get anything back on your booking?

It won't be too clever if the OP is 8 months pregnant at the time, either.

Tixy

Hi speckham - have a look at the turntous website to see what child tax credits or maybe working tax credits you would get in your hypothetical SoA. As you are the main earner have you discussed OH taking some paternity leave instead of you taking the full maternity period?

How long are your 0% deals? are you paying off the debts in the right order? (in terms of paying most to the one that finishes first)?

On your hypothetical SoA - can you remove holidays altogether (until the debts are repaid), thats then only leaving you £300 short. Maybe also curb the entertainment budget (you'll probably be too tired anyway!) to free up another £50? How much will your petrol bill reduce by when you are not working/commuting?

Can either of you increase your income in the short term (before a baby comes) by working overtime or getting a second job. Its unfortunate about Mexico being booked - but maybe you could try to find short-term second jobs to cover the cost of this so as to free up that £210 towards debt busting.

Regarding the holiday is it right that you are paying £60 towards the cost of this on the credit card, and also saving up £210 a month on top? Is only the deposit paid so far? how much is left to pay?

On your current SoA - can your try reducing the grocery cost a little (maybe £40-50 saving)? have you checked your gas & elec are on the cheapest deals? and tried to see if you can reduce your usage at all? Do you/OH always fill up at the cheapest garages? do you drive fuel efficently (slowly!). You need to budget for car maintenance - presumably OH needs new tyres each year with those miles, plus servicing, MOT etc.

speckham

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Tixy

If the holiday is already paid for on the credit card - then you seem to be overcounting by also including £210 in the holiday part of your SoA. Therefore this should give you an extra £210 to the £650 of savings you can save each month.

If your debts are currently £15750 and the hypothetical SoA is for 10months time then in that 10months you should be able to pay off £380 x 10 (the standard monthly payments), £650 x 10 (the amount you are save) and £3500 (your current savings), so in 10months you would pay off 13800, leaving you with only £1950 left to pay, not the £6500 you've budgeted.

And if there really is an extra £210 a month if you've double counted the holiday cost - then your debts could all be clear in 10months time.

Boris_Allen

The shortest 0% time period is 13 months right?

Don't pay anything back for 13 months then. Instead make sure you are strict about investing what you can afford to save, preferaby into a savings account or if you feel it is worth a gamble, invest in some stocks/shares etc - I know a gentleman who can give you "fantastic advice" regarding emering Middle Eastern Markets (Iraqi banks worth a look at...).

Anyway, Once the frst CC rate rises from 0%, start withdrawing our investments and pay as much off of that as you can, then follow suit with the next CC (paying off highest APR first etc)

Don't go to Mexico, and maybe don't have a kid until the debts are repaid?