I need some help.

princessmommy

Hi everyone.
Please don't judge but I'm in a right state.

A bit of background - there's me, hubby, 1 child (age 4) and I've just found out I'm pregnant (planned in the sense of wanted but we've had fertility problems so unexpected, been trying for 4 years and had given up).

Hubby works full time earning 22k. I am full-time mum. I receive £280 per month in child tax credit and child benefit. Check regularly but that's all we're entitled to.

We own a house with 90% mortgage via Halifax. Bought for 118k with 13k deposit (from old house sale).

Survey showed probs with house but we had more unexplained issues like mould, damp, a wall needed replacing etc. Took a 10k loan with HSBC to pay for it all (we expected most of it but some was unexpected). We then needed to take an extra 4k from Halifax on a loan.

Things have just spiralled out of control since. Basically hubby brings in £1400 a month and I get £280 but it's just not cutting it. We've dug ourselves deeper into debt and not intentionally.

Here is where we stand:

Nationwide loan of 1000 @ £33pm
Halifax loan of 4000 @ £120 pm
HSBC loan of 10000 @ £195 pm - all three loans finish in 4 years' time.

HSBC overdraft of 2700
HSBC overdraft of 1500 (this gets repaid by wages then spent again)
Nationwide overdraft of 500
Nationwide overdraft of 400
Natwest overdraft of 2000
Natwest overdraft of 1000

Nationwide credit card of 3700
Natwest credit card of 7600

Wonga loan of £540 total (been rolled over twice now needs paying)
Quick Quid 12 month loan @ £130 p/m runs out in 10 months

£2000 owed to my dad, no rush to pay it back but he does need it back.

These are a mixture of hubby's and mine.

It is now at the stage where I cannot afford to pay the overdrafts because any payment purely covers interest (ie. pay £35, they charge £35 interest so back to maxed out). I have had a few charges for going over limit. I am struggling to repay the credit cards each month and have had a few overlimit charges.

I have never defaulted on any payments but I feel it is only a matter of time.

I now need to buy all the baby things I can (sold everything after first child born to raise money and also as we weren't expect.ing to conceive again) and even second hand this won't be cheap.

I can't post a SOA as I'm new to the site but I will do my best here:


Mortgage £620
HSBC Loan £195
Halifax Loan £120
Pet Insurance £6
Nationwide Loan £33
Quickquid £130
Council Tax payment plan £144
Water £40
Phone £25
Wonga £130 to roll over :eek:
Nursery £80
Natwest credit card minimum payment £190
Nationwide credit card minimum payment £105
Natwest credit card interest to avoid over limit fee £100
Nationwide credit card interest to avoid over limit fee £65
Food £150
Petrol £50 or less, depends
Car tax £18 (paid in full already, expires Jan)
MOT £3 (repair work done free at hubby's work)
Car insurance £54
Home insurance £25 (paid in full already, expires Feb)
Entertainment, holidays, clothes 0
Mobile phones 0 (hubby's paid for by work, never top mine up)
Elec/Gas £115 (currently owe almost £800 as only just got bill)
TV Licence £10 ish (paid in full til Oct next yr)
TV 0 as we changed to freeview
Haircuts - £15 per month for all 3 of us as friend does it cheap


We do not go out - ever - and do not go on holiday. No savings. Don't smoke or drink.

I am on a payment plan for council tax. Not heard anything from nPower yet about gas/elec but did get an online bill for almost £800 for 6 months. Not paid any yet as can't afford to. Had to do payment plan with council tax as kept getting summons/liability order.

Just don't know what to do.

I need £350 this month to cover the bills that I just don't have. I have stupidly tried applying for more loans and been rejected. Even the high-interest 12 month loans like quickquid have rejected us.

My dad has already lent us 2k (half for the deposit as we were just short of what we needed and half to pay off 2 payday loans I couldn't afford) and I don't think he can lend us anymore as my sister is getting married and he's paying for that.

My mortgage deal runs out next Oct (2014) and we know we will have to stay on SVR because our credit ratings are shot but this will save us almost £200 a month. In the meantime we are hoping to take a mortgage payment holiday but not sure if we will qualify. It isn't ideal but we need to pay some debt and get baby stuff.

I just don't know what to do... can't go bankrupt (couldn't afford to anyway) as we'd lose our home and wreck any chance of owning again. Can't sell as we are in negative equity.

Worried about how a DMP would affect us.

I'm just so worried and the stress is making me upset, snappy and just down in the dumps. I've cut back as much as we can, switched utilities etc and we're just in a huge mess and I can't see a way out

I would sell the car but it's only worth about £400 and to be honest it would cost us more in public transport to get everywhere as we don't live anywhere near anything really.

I am looking for a job, will consider anything - nights, the hours my child is in nursery, even full time if it will cover childcare. Our daughter starts school in Sept 2014 but the new baby is due in 6 months.

Help

Pee

If you have ruled out bankruptcy, then I think the first step is to prioritise.

The Wonga loan jumps out at me as the first thing to get rid of. Could you have a week or longer living out of the freezer and storecupboards as much as possible to get some money together for this?

Does your child need to go to nursery? If you are looking to work, then you may need to keep the nursery in place. Do you have any experince that would make you suitable for a particular job? Otherwise, have you tried local supermarkets?

ellesbellesxxx

Hi,
First of all, HUGE CONGRATULATIONS - I can see you are worrying a lot but how exciting and lucky to have a second child on the way
So now... things that strike me...
Childcare 80 pounds - now your child is pre school, will it all be covered by government? (forgive me - am a teacher so only know how it works when they get to school!) If so, this is 80 saved straightaway. :jhttp://www.yor-ok.org.uk/Parents/Childcare/nef.html Looks like it according to this. You definitely should not be paying for this if you are entitled to it.

150 for food is incredible wowzers - so if this is a true reflection of your spending then you are doing well.

Could you consider a DMP? . You need to give your self some breathing space. Yes, you might trash your credit rating but if you are going to save money on SVR then maybe it's not the worst thing to worry about.
If you contact Stepchange they will give you great advice.
Good luck

19lottie82

Hi OP - You can post an SOA even if you are a newbie, as you're not posting a link. Just follow the link below, complete it, and copy and post the results as text.

http://www.stoozing.com/calculator/soa.php

However, from looking at your debts, it sounds like a DMP might be your best bet.

Good luck x

KILL_BILL

you need to sort out from the list that you have made the priority debts to the non priority debts. ie important ones are the mortgage, council tax and the similar ones

the unsecured debts eg credit cards and quick quid loans you could write to them and state that you will pay them £1.00 per month until or if your situation improves. This will affect your credit rating but at the end of the day it looks like you have obtained further credit and loans to try and get yourself out, but that never works

Verbatim

If you're in negative equity then you might not lose your home if you went bankrupt.

Have a look over at the bankruptcy board.

In terms of items for the baby try freecycle, put out the word to friends and friends of friends, and as a last resort charity shops.

Congrats on the baby.

princessmommy

Statement of Affairs & Personal Balance Sheet

Summary

Monthly Budget SummaryAmount(£)Total monthly income1,731Monthly expenses (incl. HP & secured loans)1,290Available for debt repayments441UNsecured debt repayments645Amount short for making debt repayments-204Personal Balance Sheet SummaryAmount(£)Total Assets (things you own)120,500Total Secured & HP Debt-106,800Total Unsecured Debt-34,600Net Assets-20,900Household Information

Number of adults in household2Number of children in household1Number of cars owned1Income, Expense, Debt & Asset Details

IncomeAmount(£)Monthly income after tax0Partners monthly income1450Benefits281Other income0Total monthly income1731ExpensesAmount(£)Mortgage621Secured/HP loan payments0Rent0Management charge (leasehold property)0Council tax144Electricity0Gas0Oil0Water Rates39Telephone (land line)25Mobile phone0TV Licence12Satellite/Cable TV0Internet services0Groceries etc.200Clothing0Petrol/diesel50Road tax18Car Insurance54Car maintenance (including MOT)3Car Parking0Other travel0Childcare/nursery80Other child related expenses0Medical (prescriptions, dentists, opticians etc.)0Pet Insurance/Vet bills7Buildings Insurance11Contents Insurance11Life Assurance0Other Insurance0Presents (birthday, christmas etc.)0Haircuts15Entertainment0Holiday0Emergency Fund0Total monthly expenses1290Secured & HP Debt DescriptionDebt(£)Monthly(£)APR(%)Mortgage106800 (621) 6.4Secured & HP Debt totals106800 - - Unsecured Debt DescriptionDebt(£)Monthly(£)APR(%)Hsbc O/D2700019Nationwide O/D500019Nationwide O/D500019Nationwide loan10003321HSBC Loan1000019520Halifax Loan400012020Nationwide Credit Car370010534Natwest Credit Card770019234HSBC O/D1500019Natwest O/D1000021Natwest O/D2000021Unsecured Debt totals34600645 - Asset DescriptionValue (£)Cash0House Value (Gross)120000Shares and bonds0Car(s)500Other assets (e.g. endowments, jewellery etc) 0Total Assets120500

[Deleted User]

I can't follow that SOA.

Could you please redo it, formatting it for MSE.

thanks.

patchwork_cat

princessmommy wrote: »

Statement of Affairs & Personal Balance Sheet

Summary

Monthly Budget SummaryAmount(£)
Total monthly income1,731
Monthly expenses (incl. HP & secured loans)1,290
Available for debt repayments441
UNsecured debt repayments645
Amount short for making debt repayments-204
Personal Balance Sheet SummaryAmount(£)
Total Assets (things you own)120,500
Total Secured & HP Debt-106,800
Total Unsecured Debt-34,600
Net Assets-20,900
Household Information

Number of adults in household2
Number of children in household1
Number of cars owned1
Income, Expense, Debt & Asset Details

IncomeAmount(£)
Monthly income after tax0
Partners monthly income1450
Benefits281
Other income0
Total monthly income1731

ExpensesAmount(£)
Mortgage621
Secured/HP loan payments0
Rent0Management charge (leasehold property)0
Council tax144
Electricity0
Gas0
Oil0
Water Rates39
Telephone (land line)25
Mobile phone0
TV Licence12
Satellite/Cable TV0
Internet services0
Groceries etc.200
Clothing0
Petrol/diesel50
Road tax18
Car Insurance54
Car maintenance (including MOT)3
Car Parking0
Other travel0
Childcare/nursery80
Other child related expenses0
Medical (prescriptions, dentists, opticians etc.)0
Pet Insurance/Vet bills7
Buildings Insurance11
Contents Insurance11
Life Assurance0
Other Insurance0
Presents (birthday, christmas etc.)0
Haircuts15
Entertainment0
Holiday0
Emergency Fund0
Total monthly expenses1290

Secured & HP Debt DescriptionDebt(£)Monthly(£)APR(%)
Mortgage106800 (621)
6.4Secured & HP Debt totals106800 -

- Unsecured Debt DescriptionDebt(£)Monthly(£)APR(%)
Hsbc O/D2700 019
Nationwide O/D500 0 19
Nationwide O/D500 0 19
Nationwide loan1000 33 21
HSBC Loan10000 195 20
Halifax Loan4000 120 20
Nationwide Credit Car3700 105 34
Natwest Credit Card7700 192 34
HSBC O/D1500 0 19
Natwest O/D1000 0 21
Natwest O/D2000 0 21
Unsecured Debt totals 34600 645 -
Asset DescriptionValue (£)
Cash0House Value (Gross)120000
Shares and bonds0
Car(s)500
Other assets (e.g. endowments, jewellery etc) 0
Total Assets120500

Reformatted, it's not perfect, but.

debt-freeoneday

Hi Princessmommy

It sounds like things have been terribly stressful for you all. I just wanted to let you know you're not alone, there are many of us out there that are in a similar position - but there are solutions.

Firstly, DMPs aren't that bad - yes they do affect your credit rating but as you already have a mortgage your house will be safe (and you won't want to be getting another credit card anyway).

DMP's are really good in that lower (and in most cases interest free) payments are negotiated with your creditors. This gives you much needed breathing space in order to survive month to month. If you contact Stepchange, they will be able to advise you with no obligations, it will cost you nothing and they can set everything up for you. They are really understanding too.

Secondly, I work as a childminder and I wondered if this is something that you could consider doing seeing as you are already a full time mum.

It takes a while to set up in business but it could work really well for you when your new little one is born. I earn a decent amount as I work full time plus I don't pay for childcare costs at all because my little girl stays at home with me (at least until she gets her nursery funding). It really is a great job if you think you can work with children. There are many benefits such as being your own boss working from home and you won't need much petrol or money for work clothes. If you'd like any further advice, then do feel free to message me!

I hope this helps somewhat and congratulations on your second pregnancy!

Bublin1

You are paying for childcare when you are a full time Mum. Is that necessary? Also, can you not take up a job until you have to go on Mat Leave?
If for whatever reason you can't work then perhaps sell some stuff on ebay or Gumtree.