Don't Know What to Do - Please Help

klfairy

We've had a very turbulent few months. OH was in a job which paid well and then suddenly he was given a week's notice and that was the end of that. He found a new job very quickly, but with a massive pay cut. It was horrible hours and after a week he couldn't do it any more and quit. The same afternoon he was interviewed and offered another new job. This one has normal hours. The basic salary isn't great, but there's genuine potential to make a decent amount through commission. Obviously for budgeting purposes I can only use his basic salary. He starts on 23rd July.

Here's where it gets (more) complicated.

1) I've now had a pay cut. I was bringing in £1770 per month but it should have been £1530. This has been going on for almost two years. I have a meeting on Monday to agree a repayment schedule. They're proposing £443 per month, which I just cannot afford.
2) When OH lost his job the first time, we gave nursery notice. Then he got a new job and so we started needing nursery again, but then he quit again after the notice period, so DS has been going. We're about a month in arrears with the fees.

I have been through our SOA in very very careful and fine detail. The ends just about meet, but only once he's working and being paid, and only if I'm not repaying any overpayment. I literally have no idea what to do for the next set of bills coming in.

I did have a call with CCCS booked, but had to cancel as it clashed with a hospital appointment. I'm inclined to go for a DMP and then use any commission OH is paid to pay off extra.

I just don't know what to do.

rising_from_the_ashes

Could you post the SOA up here as you'll get better advice on how things stand / where cuts may be possible.

Re your salary - how did the overpayment occur?

Were they paying you more than your salary should've been or was it something else?

klfairy

Re the overpayment, I went to part time on return from maternity leave (4 days per week) and someone didn't press the right button on a computer somewhere. I didn't realise because at that point money was all over the place with mat pay and we had a very "head in the sand" approach to finances at the time.

SOA I will do, but I'd be amazed if anyone can suggest anything tbh. I'm much more on the ball than before so can't shave anything off.

klfairy

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 1539
Partners monthly income after tax....... 0
Benefits................................ 81.2
Other income............................ 0
Total monthly income.................... 1620.2

Monthly Expense Details
Mortgage................................ 490
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 74
Electricity............................. 55
Gas..................................... 57
Oil..................................... 0
Water rates............................. 50
Telephone (land line)................... 45
Mobile phone............................ 30
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 300
Clothing................................ 0
Petrol/diesel........................... 260
Road tax................................ 20
Car Insurance........................... 160
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 500
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 32
Contents insurance...................... 0
Life assurance ......................... 25
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Bank account fees....................... 31
Boiler service.......................... 18
Loan (to family)........................ 219
Total monthly expenses.................. 2388


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


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(490)......0
Total secured & HP debts...... 0.........-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
CC (virgin)....................0.........50........0
CC (barclaycard)...............0.........50........0
CC (Santander).................0.........80........0
Sofa...........................0.........32........0
Overdraft......................0.........60........0
Total unsecured debts..........0.........272.......-


Monthly Budget Summary
Total monthly income.................... 1,620.2
Expenses (including HP & secured debts). 2,388
Available for debt repayments........... -767.8
Monthly UNsecured debt repayments....... 272
Amount short for making debt repayments. -1,039.8

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -0
Net Assets.............................. 0

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using other browser.

Notes: Buildings insurance includes contents. Landline includes internet. Cars are owned outright and worth a few hundred apiece.

klfairy

SOA for when OH is working again:

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 1539
Partners monthly income after tax....... 1156
Benefits................................ 81.2
Other income............................ 0
Total monthly income.................... 2776.2

Monthly Expense Details
Mortgage................................ 490
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 74
Electricity............................. 55
Gas..................................... 57
Oil..................................... 0
Water rates............................. 50
Telephone (land line)................... 45
Mobile phone............................ 30
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 300
Clothing................................ 0
Petrol/diesel........................... 260
Road tax................................ 20
Car Insurance........................... 160
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 500
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 32
Contents insurance...................... 0
Life assurance ......................... 25
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Bank account fees....................... 31
Boiler service.......................... 18
Loan (to family)........................ 219
Total monthly expenses.................. 2388


Assets
Cash.................................... 0
House value (Gross)..................... 100000
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 101500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(490)......0
Total secured & HP debts...... 0.........-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
CC (virgin)....................0.........50........0
CC (barclaycard)...............0.........50........0
CC (Santander).................0.........80........0
Sofa...........................0.........32........0
Overdraft......................0.........60........0
Total unsecured debts..........0.........272.......-


Monthly Budget Summary
Total monthly income.................... 2,776.2
Expenses (including HP & secured debts). 2,388
Available for debt repayments........... 388.2
Monthly UNsecured debt repayments....... 272
Amount left after debt repayments....... 116.2

Personal Balance Sheet Summary
Total assets (things you own)........... 101,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -0
Net Assets.............................. 101,500

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using other browser.

klfairy

... and neither SOA shows me repaying any overpayment.

happybucket

Hi klfairy, I have never replied to one of these before but your situation sounded like mine was at one time so here's my twopenceworth, sorry if i dont make enough suggestions as to how to remedy things though

As for the works overpayment, their mistake so I don't think you should suffer financially by paying them back a third of your salary every month, haggle haggle haggle!

klfairy wrote: »

SOA for when OH is working again:

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 1539
Partners monthly income after tax....... 1156
Benefits................................ 81.2
Other income............................ 0
Total monthly income.................... 2776.2

Monthly Expense Details
Mortgage................................ 490
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 74
Electricity............................. 55
Gas..................................... 57
Oil..................................... 0
Water rates............................. 50

This is way more than I use, 2 adults/2children, in a 3 bed house and I have a prepay card for gas and electric, (insisted on by owner of house), water is metered.

Telephone (land line)................... 45

I know you said this includes internet but still seems high, mine's £25 all inclusive, so shop around if you can.

Mobile phone............................ 30

Again, expensive, can you downgrade to cheaper package/phone?

TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 300
Clothing................................ 0
Petrol/diesel........................... 260
Road tax................................ 20

Car Insurance........................... 160

This is expensive for two cars just worth a few hundred, I found if i added my name to daughters insurance as a named driver, it brought her premium way down. Please don't add me to your policy though!

Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 500

Can you get any help from tax credit people with this?

Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 32
Contents insurance...................... 0
Life assurance ......................... 25
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Bank account fees....................... 31

Santander charging me £20 a month so I'm moving, can you find a free account?

Boiler service.......................... 18
Loan (to family)........................ 219
Total monthly expenses.................. 2388


Assets
Cash.................................... 0
House value (Gross)..................... 100000
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 101500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(490)......0
Total secured & HP debts...... 0.........-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
CC (virgin)....................0.........50........0
CC (barclaycard)...............0.........50........0
CC (Santander).................0.........80........0
Sofa...........................0.........32........0
Overdraft......................0.........60........0
Total unsecured debts..........0.........272.......-


Monthly Budget Summary
Total monthly income.................... 2,776.2
Expenses (including HP & secured debts). 2,388
Available for debt repayments........... 388.2
Monthly UNsecured debt repayments....... 272
Amount left after debt repayments....... 116.2

Personal Balance Sheet Summary
Total assets (things you own)........... 101,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -0
Net Assets.............................. 101,500

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using other browser.

Toomuchdebt

The car insurance is very very high. I pay 51 a month for mine but that includes breakdown and higher value courtesy car(so I don't get given a tiny corsa when I have a 7 seater car as I have 6 kids)-the basic ionsurance is 31 a month. And my car is a 6 year old one,my old car was from 1997 and cost me 23 a month.

cyclura

How about looking at groceries, I have a family of four with one child having a lactose intolerance so I have to buy more expensive items to suppliment his diet and I only spend £200 a month on groceries. I suggest popping over to the Old Style boards for some help cutting this down a bit. I reckon you could get it down to £200 in no time.

rising_from_the_ashes

klfairy wrote: »

SOA for when OH is working again:

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 1539
Partners monthly income after tax....... 1156
Benefits................................ 81.2
Other income............................ 0
Total monthly income.................... 2776.2

Monthly Expense Details
Mortgage................................ 490
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 74
Electricity............................. 55 This is high - check readings against bills to ensure they're accurate. Check consumption (don't leave things on when not in use) & check comparison sites for a better deal
Gas..................................... 57 As above - as a comparison I pay a total of £64/month (total for G & E) in a 3 bed semi in rural Scotland
Oil..................................... 0
Water rates............................. 50 Seems high - do you have a meter?
Telephone (land line)................... 45 This is high (even incl internet)- check around for better deals. As a comparison, I pay a £19.50 / month (incl internet & anytime calls)
Mobile phone............................ 30 Switch to PAYG & use for emergencies only once contracts are up
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 300 You should be able to get at least £100 off this - great advice from yclura
Clothing................................ 0 Need a figure in here
Petrol/diesel........................... 260 All essential journeys?
Road tax................................ 20
Car Insurance........................... 160 Seriously? This is huge - check comparison sites
Car maintenance (including MOT)......... 10 Not enough
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 500
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0 Need something in here
Pet insurance/vet bills................. 0
Buildings insurance..................... 32 Check comparison sites are renewal time
Contents insurance...................... 0
Life assurance ......................... 25
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 Need figure in here
Haircuts................................ 0 and here
Entertainment........................... 0 and here
Holiday................................. 0
Emergency fund.......................... 0 Vital you get this in place to cope with the "wee things that crop up" and to avoid adding to the debt
Bank account fees....................... 31
Boiler service.......................... 18
Loan (to family)........................ 219 How long does this have to run?
Total monthly expenses.................. 2388


Assets
Cash.................................... 0
House value (Gross)..................... 100000
Shares and bonds........................ 0
Car(s).................................. 1500 Insurance seems excessive for the value of the car
Other assets............................ 0
Total Assets............................ 101500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(490)......0
Total secured & HP debts...... 0.........-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
CC (virgin)....................0.........50........0
CC (barclaycard)...............0.........50........0
CC (Santander).................0.........80........0
Sofa...........................0.........32........0
Overdraft......................0.........60........0Are these all 0% APR?
Total unsecured debts..........0.........272.......-


Monthly Budget Summary
Total monthly income.................... 2,776.2
Expenses (including HP & secured debts). 2,388
Available for debt repayments........... 388.2
Monthly UNsecured debt repayments....... 272
Amount left after debt repayments....... 116.2

Personal Balance Sheet Summary
Total assets (things you own)........... 101,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -0
Net Assets.............................. 101,500

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using other browser.

Few comments above - if you can get the grocery bill down, that should cover most of the missing figures.

Is the car insurance figure right - seems excessive & even more so due to the value of the car?

klfairy

The car insurance figure is right. One car is £75 per month and the other £85. I shopped around extensively for those! We're not accident-prone, but the area we live in is not the best.

Mobile phone contract price is for two phones. One is £21 and the other £9. They're both new contracts.

Groceries could come down a bit yes. Hopefully DS will be out of nappies soon and that'll save a bit!

I haven't looked at our energy supplier recently. Last time I tried to change suppliers it was such a monumental hassle I didn't think I could face it again. Water is metered and generally comes in at £40-45 per month. I budget for £50 though, just in case.

The bank fees - bloody Halifax. It's £1 per day for an overdraft that never goes away. I'm waiting for a new account to be set up (got to send in ID) so we can close all our other accounts and hopefully suspend any more charges and just pay back what's owed.

The loan is OHs from many moons ago (pre-me). It has another 5 years left to run. His mum took it out and he (we) pays her.