Don't know what to do - HELP

berri_2

I have been on maternity leave nd am due back to work in April but just as I go back my husband is being made redundant so we will be over £1K short each month but even if we were bothe in full time work we couldn't have afforded the childcare approx £700 per month.

Anyway before we get in a mess I wanted to contact our mortgage company to see if theywould decrease our monthly payment due to the redundancy but shockingly you have to be in arrears before they even consider helping which is madness.

I really don't know what to do we have high mortgage payent and 3 loan payments that are rather high so I know we wont be able to pay them. It's been mentioned about debt management plan but doesn't thatgive you a bad credit rating and stop you from moving in the future? We hate where we liveso really dont want to be stuck there forever because we can't get out due to a plan.

Any advice anybody I really need help on what to do next.

LittleMissGiggles123

I know that most people on here will ask you to do an SOA so we can help to see where you can cut costs & save money.

That aside, you definitely should keep paying the mortgage above everything else. If you can only afford one, the mortgage payment must come first, don't even think about the loan payments until you've covered mortgage, utilities & council tax.

Also, have you got things on ebay you could sell. You say you're on maternity leave. Have you got baby clothes etc that no longer fit the little one? Toys that he/she has outgrown? Have you got maternity clothes that you no longer need, apparently they go quite well on ebay because they're generally quite expensive considering women only wear them for a few months.

Think of other ways to up your income. If you think you'll struggle with childcare costs, could one of you get an evening job so that one of you is always home with the baby? I know it's not ideal as you'll see less of each other, but it's certainly an option to keep you getting in a financial mess & will only be for a few years until your child is in school.

Also, have you checked what tax credits you could get if you were both working & using childcare?

silly_moo

Is it a possibility for your husband to stay at home and take care of the baby? You wouldn't have his income but you wouldn't have to pay for childcare either.

choclover

LittleMissGiggles123 wrote: »

Think of other ways to up your income. If you think you'll struggle with childcare costs, could one of you get an evening job so that one of you is always home with the baby? I know it's not ideal as you'll see less of each other, but it's certainly an option to keep you getting in a financial mess & will only be for a few years until your child is in school.

We've been doing this for nearly a year and it's not half as bad as what it seems. I work 4 nights a week in a local shop, I get paid min wage, but I've got no travel expenses and I only need to pay the childminder for 1.5 - 2hrs 2 or 3 times a week and normally costs us around £35-£40 a month.

I'm now pregnant with my second child and this time won't need to change my job as my current hours should be just a suitable as what they are now. Then when they're both at school, I'll look to see if I can get a better paid job maybe further away - just so I don't get too bored!

berri_2

Thank you for your replies.
I rang HM & Revenues last week but they were not helpful as I have to ring back when I am back at work for payroll info and then again when my husband finishes - they don't keep it simple so I'm not sure what we will get probably not enough.
I'm going back full time and my husband will look after my son until he can find something else (think he will need to as we don't have an easy child).
So with just my wage we will be approx £1k short but hopefully we will get help with credits but i'm not counting on it.

I have thought about evening jobs but at the moment I want to see how my current job goes as the wage is reasonable but in our ideal situation my hubby will work full time on a better wage (he wasn't on a good wage before) then I can go part time elsewhere as my current job will not be flexible.

I do sell on ebay but that will not bring in extra monthly - only so much I can sell from my wardrobe. I have looked at cutting down our current outgoings and cancelling luxuries like Love Film. But our mortgage is high as is our loan payments - I guess next step is to contact the loans to see if they will decrease monthly payment.

I am tempted with a debt management plan as we do have over £30K in loans - anyone have any experience with these?

camuk81

ok phone either pay plan or cccs, please do not pay any money as you can these services for free

Verbatim

have you done a full budget? If you cut out Love Film etc will you be able to meet essentials, mortgage, secured debts, CT, water, gas, electric?

Tixy

In terms of benefits - you should get a reasonable idea of what you will be able to claim using these online calculators - http://www.turn2us.org.uk/benefits_search.aspx

Agree with others - the mortgage payment must come first and before any other loan repayments.

Will your OH be getting some redundancy money?

From what you have posted it does sounds like a DMP might be a sensible way forward, or possibly even an IVA. Contact one of the debt charities from this list - IMPORTANT - Where to seek professional impartial advice about your debts.

A DMP (or an IVA) will have a serious impact on your credit file. But that doesn't mean its not the right option, it might be. On either you will need to look at living on a budget and cutting down on luxuries, although thats not to say nothing is allowed - they do allow you to budget for things like clothes, presents, a limited entertainment budget etc.

If you are considering a DMP I would speak to one of the charities before you contact your loan companies.

When you speak to the charity they will want to know a lot about your finances - its probably worth completing the statement of affairs before you call so you have all this info to hand.
http://www.makesenseofcards.com/soacalc.html

You might also want to post up your statement of affairs on here to see if people can help offer advice and suggestions on things you could change and also on what options might suit you.