Support needed please

wannabee_in_credit

Hello everyone,

I don't know why it's taken me so long to find a forum to join to get me through this whole sorting-my-life-out business but I'm finding things tough going and I really would love some advice and support from other people who know what I'm going through.

I'm 34 years old and stupidly had the notion when I was at university that I would be rich by the time I was 30. And I spent, spent, spent in a world of buy now and pay later. Really frivolous with my money.

When my second child was born 3 years ago things got desperate, I was off work on maternity leave and my OH had a nervous breakdown, resulting in him taking 9 months off work. After my lightbulb moment and a long chat with a friend I contacted CCCS and 20 months ago started on a dmp with them.

As I say, I really just wanted to come on here for money saving advice, encouragement and support because it is sometimes hard to see the light at the end of the tunnel, especially at this time of year. Look forward to getting to know you all...

Here's my soa, any further money saving advice gratefully received. My childcare, and petrol costs are unfortunately correct for the time being.

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 1650
Partners monthly income after tax....... 700
Benefits................................ 196
Other income............................ 0
Total monthly income.................... 2546

Monthly Expense Details
Mortgage................................ 579
Secured/HP loan repayments.............. 150
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 86
Electricity............................. 40
Gas..................................... 35
Oil..................................... 0
Water rates............................. 34
Telephone (land line)................... 0
Mobile phone............................ 22
TV Licence.............................. 14
Satellite/Cable TV...................... 0
Internet Services....................... 47
Groceries etc. ......................... 300
Clothing................................ 25
Petrol/diesel........................... 150
Road tax................................ 15
Car Insurance........................... 40
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 900
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 22
Contents insurance...................... 0
Life assurance ......................... 15
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 15
Entertainment........................... 10
Holiday................................. 0
Emergency fund.......................... 10
Total monthly expenses.................. 2539


Assets
Cash.................................... 0
House value (Gross)..................... 90000
Shares and bonds........................ 0
Car(s).................................. 2500
Other assets............................ 0
Total Assets............................ 92500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 78000....(579)......0
Hire Purchase (HP) debt ...... 4500.....(150)......0
Total secured & HP debts...... 82500.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
cccs dmp.......................22000.....274.......0
Total unsecured debts..........22000.....274.......-


Monthly Budget Summary
Total monthly income.................... 2,546
Expenses (including HP & secured debts). 2,539
Available for debt repayments........... 7
Monthly UNsecured debt repayments....... 274
Amount short for making debt repayments. -267

Personal Balance Sheet Summary
Total assets (things you own)........... 92,500
Total HP & Secured debt................. -82,500
Total Unsecured debt.................... -22,000
Net Assets.............................. -12,000

:eek::o

nonnatus

Hello!

Good for you for making your way here and putting it all down in black and white - that's the first big, horrible step taken, you get loads of support here for all the other steps as well as lots of hints and tips you would never have thought of .

I'm nowhere near as good as the others at analysing a SOA but what does leap out at me is £1050 in petrol and childcare costs - that must be reduced surely ??

Good Luck x

mildredalien

gotta read and run unfortunately but thought I'd offer a couple of comments This board is definitely really supportive, and you'll get loads of ideas and tips on saving money!

Your partners income is 700/month, but your childcare costs are 900/month - is there any chance of him becoming a full time carer to your children? It would actually save you money!! Obviously that is a decision that you guys would need to make between you as giving up work can be a very difficult choice. If not, is there any way of increasing income?

You could definitely reduce your grocery bills, have a look at the old style boards for some tips.

Good luck!

road-runner15

Hello, and well done for posting. Yes, the childcare costs are very high, but if your OH gave up work now to look after your little ones, might that impact on his ability to get a job later in life when they are grown up? Just a thought.

Could you shop around for lower-cost childcare? I understand this might not be possible either - depends on the area and whether your children would be happy to be moved.

You said your debt came from spending a lot - does that mean you have stuff you coud now sell to get back some of the money?

Good luck! x

[Deleted User]

wannabee_in_credit wrote: »

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1650 any chance of increasing - overtime?
Partners monthly income after tax....... 700 as above, also childcare is costing more than this?
Benefits................................ 196
Other income............................ 0 Any chance of getting something here? Have a look at the "up your income thread" for some ideas
Total monthly income.................... 2546

Monthly Expense Details
Mortgage................................ 579
Secured/HP loan repayments.............. 150
Council tax............................. 86 Is this over 12 or 10 months?
Electricity............................. 40
Gas..................................... 35
Water rates............................. 34 Is this metered? If not consoder if it would be cheaper?
Mobile phone............................ 22 How many phones? GiffGaff have a SIM only contract for £5 including calls/texts in the bundle, might be worth considering
TV Licence.............................. 14
Internet Services....................... 47 This is Very high? Do you have pay for TV included here? If so reduce or cut out, look at freeview and freesat options. You should be able to get home phone and internet for about £20 per month - shop around!
Groceries etc. ......................... 300 This could probably be reduced as well - take a look around the Old Style board on here for ideas on how to cut this down - meal plan, batch cook, drop brands, shop in Lidl/Aldi
Clothing................................ 25 every month? Only buy essentials until debt free, also sell what you no longer wear on e-bay
Petrol/diesel........................... 150 - try and combine journeys where possible. Any chance of a car share?
Road tax................................ 15
Car Insurance........................... 40
Car maintenance (including MOT)......... 10
Childcare/nursery....................... 900 How old are your kids - when will this go down?
Medical (prescriptions, dentist etc).... 10
Buildings insurance..................... 22 does this include contents?
Contents insurance...................... 0
Life assurance ......................... 15
Presents (birthday, christmas etc)...... 10
Haircuts................................ 15 see if you can get cheaper/free cuts at a local college
Entertainment........................... 10 what does this get spent on?
Emergency fund.......................... 10
Total monthly expenses.................. 2539

Assets
Cash.................................... 0 where's your emergency fund cash, also money for any yearly bills, MOT etc?
House value (Gross)..................... 90000
Car(s).................................. 2500 - is it possible to downgrade? Or use alternative transport?
Total Assets............................ 92500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 78000....(579)......0
Hire Purchase (HP) debt ...... 4500.....(150)......0
Total secured & HP debts...... 82500.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
cccs dmp.......................22000.....274.......0 Have all your creditors stopped charging interest?
Total unsecured debts..........22000.....274.......-


Monthly Budget Summary
Total monthly income.................... 2,546
Expenses (including HP & secured debts). 2,539
Available for debt repayments........... 7
Monthly UNsecured debt repayments....... 274
Amount short for making debt repayments. -267 It seems that you are still short at the end of the month even with the help of CCCS. You've mentioned yourself that childcare makes a dent in your income - is this expected to reduce anytime soon? or is your partners salary expected to increase any time soon? - if the answer to both is no, then I think that you need to consider is your partner working is the best option.

Also you seem to spend a fair bit on tv, internet, home phone, and mobiles - can any savings be made here?

And I think that your grocery bill can be reduced a fair bit as well. Try reducing by £25/£50 in month one (Jan probably more sensible than dec, given it's Xmas and all!), and then by a further £25/£50 next month and see how you get on.

Personal Balance Sheet Summary
Total assets (things you own)........... 92,500
Total HP & Secured debt................. -82,500
Total Unsecured debt.................... -22,000
Net Assets.............................. -12,000

:eek::o

Some comments above, hope that at least some will help,

D9

SueSpillage

Hi there. I understand the position you are in - have been there myself - and with Xmas coming up just makes it worse when you can't afford to buy the things you would like for the kids.

One or two things from your list that may help. Internet £47 a month sounds like a lot could you try shopping around for a better deal or are you like me stuck with Virgin. I have found that I can cut down my clothing costs by recycling and revamping items in my wardrobe or bought cheaply at charity shops. I realise its hard with growing kids. I remember how much their shoes cost. Contact Citizens Advice there may be other benefits that you are entitled to that they will know about and they also give really good debt advice.

With regard to food I have found that making menu plans for the week and then shopping on line saves a bomb because you only buy what you need and don't get tempted. I you must shop at the supermarket then trying going about an hour before they shut and looking for things marked down because they are at their sell by date. They are still fit to freeze.

Best of luck and try not to let it get you too down. Remember every penny counts and there are still things you can do with the family for free. Be kind to yourself.

Tixy

Hi and welcome, glad you've found us!

Obviously your childcare cost is very high - how old are the kids? how soon is this likely to reduce? are you getting whatever benefits/tax credits you can towards this?

Your partner is only earning £700 which is less than the childcare, could he perhaps consider reducing his hours and reducing the childcare cost? or could he try to find work at the evenings/weekends (if you work mon -fri). Obviously I guess he doesn't want to give the job up, but unless the childcare will reduce soon. or you will get more benefits its going to be a real struggle for him to carry on.

You are showing a shortfall of £267 - what has changed since your last CCCS budget? how are you managing at the moment? have you managed to keep up your DMP payments? maybe you need to go back to them to do a new budget to try to reduce your DMP payment.

What is the APR on your mortgage? are you on a fixed rate and if so how long til it ends? will your cost reduce once you move to SVR? are you paying interest only or repayment?

A few comments on your figures

wannabee_in_credit wrote: »

Benefits................................ 196 have you checked recently you are getting all you are entitled to?

Internet Services....................... 47 this seems high? have you shopped around for a cheaper deal?

Groceries etc. ......................... 300 maybe work on reducing this a bit? I know CCCS will allow this figure but there are people on here who manage on a bit less. Perhaps try to drop to £250? Have you tried the drop a brand challenge? there are a lot of tips on the old style forum here on MSE for reducing costs - and they have a monthly grocery challenge people often find helpful.

Petrol/diesel........................... 150 do you drive as 'fuel efficently as you can and always fill up at the cheapest places etc?

Childcare/nursery....................... 900 this is obviously the major expense - any way you could reduce it? or get tax credits? or vouchers from work (which can be tax efficent)
Secured & HP Debts what are your APRs on these
Description....................Debt......Monthly...APR
Mortgage...................... 78000....(579)......0
Hire Purchase (HP) debt ...... 4500.....(150)......0 is this the car? is the £4500 the current balance or the original balance?
Total secured & HP debts...... 82500.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
cccs dmp.......................22000.....274.......0
Total unsecured debts..........22000.....274.......-

You might want to look at
Cheap Petrol & Diesel Cut your fuel spend by a third

and
Childcare Costs Help Get £1,000s in tax credits & vouchers

wannabee_in_credit

Thanks very much for the warm welcome and advice.
With regards to childcare and my OH work, I'm afraid that isn't an option at all. I think I mentioned but he had a breakdown after my second was born and unfortunately he's just not capable of being a stay at home dad. He's fragile at best and the stresses and strains of full time parenting would definitely finish him off.
The nursery and after school clubs believe it or not are the cheapest available in my area. The cost will come down after Christmas as my son has turned 3 and will now get some entitlement to a nursery grant, which will help (I think it comes in at just over £100 a month).
I work 15 miles from where I live with no early morning transport links so unfortunately a car is the only option for me, and that's how much the petrol costs with the car I have (and can't afford to replace for a smaller one).
But I'm off to investigate the forums more for some grocery saving tips.
Thankyou again for the warm welcome.

wannabee_in_credit

With regards to our mortgage we are on svr, but I'm under the impression that we wouldn't be able to get another mortgage whilst I'm on a dmp. Is that right?
Thanks again all of you for your advice.

I know things like clothes and hair sound high cost wise, but I've got 2 children aged 3 and 7. I get a lot of hand me downs from family members but things like shoes etc need replacing very regularly, no matter how cheap or expensive they are.

If anyone can offer advice re cheaper internet can you let me know? I'm not in contract at the moment but not sure what to go for.
My mobile contract is up in Feb and I intend to see what I can get then.

I thought that I'd done my SOA correctly - I have regular reviews with CCCS which is why the payments I make to them are within a couple of pounds of my 'spare' income.

Yes, the hp is the car. I have 30 months of payments still to make at £150 a month.

Thankyou thankyou. I will take all of your advice on board. )

merlot123

Welcome.

Are you not entitled to child tax credit (childcare element)?

Take a look on turn2us.org.uk, it may just help you.

merlot123

merlot123

If your water isn't metered, I personally would think long and hard before you change to a meter, I now have a meter (new build) and its costing me twice as much a month as water rates. I have two children also, and I'm very careful about what I use.