Can't seem to escape this debt

kj*daisy

You would have a fair amount left over if you didn't have the debts, indicating that you have been spending far more than the fairly conservative amounts you have put in your SOA for some time. The amounts you show are not that high if you didn't have debt but as you do you need to cut right back now to try and get rid of the payday loans ASAP as they are crippling you financially.

You can't afford nursery costs if your OH isn't working, you also should consider no holiday, cheaper haircuts, no clothes except absolute necessities for your child, remove paid for tV, no entertainment and cut right down on groceries. Once you shift the payday loans you can loosen the belt a bit as you should them be able to overpay the credit cards highest interest first, until they are gone.

Goblin1975

Just a quick comment on the nappies - Lidl nappies are excellent and cost much less than Pampers at a little over £5 for a large pack. No leaks!:j I think they are also recommended by Mumsnet.

RAS

kj*daisy wrote: »

You would have a fair amount left over if you didn't have the debts, indicating that you have been spending far more than the fairly conservative amounts you have put in your SOA for some time. The amounts you show are not that high if you didn't have debt but as you do you need to cut right back now to try and get rid of the payday loans ASAP as they are crippling you financially.

I suspect that missus' income prior to childbearing allowed them a better standard of living and they have just not pared down their expenditure to fit the new income?

Now however, they have to pare back even more to get rid of the PD loans.

[Deleted User]

Omg wrote: »

Statement of Affairs & Personal Balance Sheet

Summary

Monthly Budget Summary Amount(£)
Total monthly income 2,801
Monthly expenses (incl. HP & secured loans) 2,115
Available for debt repayments 686
UNsecured debt repayments 1,144
Amount short for making debt repayments -458
Personal Balance Sheet Summary Amount(£)
Total Assets (things you own) 1,500
Total Secured & HP Debt -0
Total Unsecured Debt -11,439
Net Assets -9,939
Household Information

Number of adults in household 2
Number of children in household 1
Number of cars owned 1
Income, Expense, Debt & Asset Details

Income Amount(£)
Monthly income after tax 2720
Partners monthly income 0
Benefits 81
Other income 0
Total monthly income 2801
Expenses Amount(£)
Mortgage 0
Secured/HP loan payments 0
Rent 800 - This seems very high. Any chance of moving to somewhere cheaper?
Management charge (leasehold property) 0
Council tax 83
Electricity 30
Gas 70
Oil 0
Water Rates 33
Telephone (land line) 12
Mobile phone 26 - How many phones?
TV Licence 12
Satellite/Cable TV 29 - That's £348 pa. Cancel and go to Freeview/Freesat.
Internet services 20
Groceries etc. 340 - £11 per day is high for 3 people.
Clothing 60 - Also high (£720 pa). Reduce.
Petrol/diesel 140
Road tax 0
Car Insurance 0
Car maintenance (including MOT) 0
Car Parking 0
Other travel 0
Childcare/nursery 168 - Do you need childcare, when your partner isn't working?
Other child related expenses 0
Medical (prescriptions, dentists, opticians etc.) 30
Pet Insurance/Vet bills 0
Buildings Insurance 0
Contents Insurance 12
Life Assurance 0
Other Insurance 0
Presents (birthday, christmas etc.) 30
Haircuts 20
Entertainment 80
Holiday 120
Emergency Fund 0 - Put something in here, even if it's only a tenner.
Total monthly expenses 2115
Secured & HP Debt Description Debt(£) Monthly(£) APR(%)
Mortgage 0 (0) 0
Secured & HP Debt totals 0 - -
Unsecured Debt Description Debt(£) Monthly(£) APR(%)
Credit card 1 4120 102 0
Credit card 2 3800 110 0
Credit card 3 1440 54 0
Payday lender 339 339 0
Payday lender 500 500 0
Overpayment 800 25 0
Store card 1 440 14 0
Unsecured Debt totals 11439 1144 -
Asset Description Value (£)
Cash 0
House Value (Gross) 0
Shares and bonds 1500
Car(s) 0
Other assets (e.g. endowments, jewellery etc) 0
Total Assets 1500

You need to put APRs in for loans.

[Deleted User]

Omg wrote: »

Presents, well, i agree but Christmas is such a killer.

£360 a year on presents, with only one 2 year old in the family? :eek:

Omg

Thanks again for the replies. The support on this forum is fantastic and the advice is massively appreciated.

I will definitely give the Lidl nappies a try, I think we have one nearby but never been. I'll go there tomorrow.

As for the childcare: we have recently moved to a new area and have no network of family/friends yet so no babysitters or anything. He only attends for two days per week but he loves it there, its the only chance he has really to play with other children. I'd rather live on beans on toast for a month than deprive him of that. I know its expensive but I think its too valuable for his social development to cut back on.

We won't be taking a holiday this year, I've already made that clear. The missus doesn't know about the PDLs but she knows I am desperate to get rid of the debt.

The mobile phone cost is for two phones, both 1-month rolling contracts which rarely get used above the inclusive minutes/texts and don't think its a bad deal.

Omg

As for presents, dunno how i'm gonna pay for xmas but this is the present list so far aside from the obvious:

Mum
Dad
Grandparents
Brother
Sister
Brother in law
Sister in law
4x neices/nephews

Thats just my side!

RAS

You cannot afford the child care at the moment. Your need to be living on beans on toast anyway, if you stop the nursery.

Is there a mums and tots group? Much cheaper and just as efffective for his development.

RAS

And you simply cannoty afford Christmas presents.

A token pressie for the children - fine. Just explain you are skint with adjusting to the new finances. People understand.

You really need a light bulb moment, as does the missus

[Deleted User]

Could you combine Mum & Dad, Brother & SIL, Sister & BIL, and grandparents, and give one "household" present for each couple?

As for nieces and nephews, when I was young, it was a token gift (annual, model kit, board game etc.) for each.