Struggling, family. Updated with SOA

Ladyluck1

Hi :wave:

I'm C, mum of 1 and a baby girl on the way. Due in November..
Hubby works full time and I stay at home (can't work anyway at 35 weeks pregnant)
Basically me and DH have got ourselves in some debt by overspending and some on purchasing a new sofa etc.
I'm trying to work out where I stand and how to improve things basically.


Basically how do we struggle so much... We've just downgraded EVERYTHING, phones, most non essential things like occasional McDonald and graze boxes.

Update with SOA, hope ive done it right?

New_and_Improved_Me

Sorry to hear that....its not nice having to go without...:(

I think you need to post a SOA so we (And YOU) can see exactly where the money is actually going.

Where about do you live, Rent seems high!!

Ladyluck1

Isle of Wight...small (probably too small!) 2 bed mid terrace house. Rental prices here are very high!
Our lha is only £525 but you can't get much with 2 beds for that... Go figure! Not that we get much housing benefit anyway.

Ladyluck1

I'll post a soa later on when I can get on the computer, so I can pop it all in excel for myself too

R_P_W

The level of debt other people have is not relevant in anyway.

The only things that matter to you is your income level and your outgoings. If you are struggling then you either need to increase your income and/or decrease your outgoings.

Ladyluck1

R_P_W wrote: »

The level of debt other people have is not relevant in anyway.

The only things that matter to you is your income level and your outgoings. If you are struggling then you either need to increase your income and/or decrease your outgoings.

That is true. Sorry if that was offensive! I have edited my title
It just makes me doubt myself and how we are in this situation that's all.

sourcrates

Hi,
Your total debts are around £3400, and your paying approx £120 out a month on them, when you have the new little one, your tax credits and child benefit will increase, also claim your maternity grant, which im sure you already know about, it dosent cost too much more to feed two small mouths than one, are you claiming all the benefits you are entitled to ? search online and make sure, if your struggling and cant increase your income any further, you could stop making your credit payments for a while, obviously you need to inform your creditors of your situation, your credit file will be trashed, but it may give you some breathing space to gather your finances together, debt collection can be a very long process, you will get letters/phone calls etc, but little else will happen for maybe two/three years, debts get sold on DCA`s will accept a lot lower payments than original creditors, some food for thought anyway, hope all goes well with the baby.

AlexLK

If you want my honest opinion why I think you are struggling so much it is because of your very, very low income. However, post a SOA up and I'm sure some people will have some tips.

Ladyluck1

Ok our SOA
Money in;
Wages £1100
Benefits (tax credits, child benefit, housing benefit) £360
Money out;
Rent - £650
Car (fuel, insurance) - £100 (DH possibly getting a bike to ride to work)
Debt payments - £40
Credit cards - £60
Overdrafts/bank - £42
TV licence - £10
Gas - £50
Electric - 45
Water - £26
Council tax - £120
Food - £150 (currently reducing and can only afford £20 a week!)
Phone/broadband/tv - £50
Mobile phones and iPad - £100 (both just been reduced and contract s end December)
Food for work money DH - £20
Travel - £50
Misc - £50

Almost certain I've missed something out...

We used to spend a LOT more on extras I.e sky, takeaway etc which has all gone/going!

AlexLK

You can certainly reduce the mobile phones in Decemeber. A £10 SIM only deal should cover you.

I got a deal with BT for £32.75 p/m which included unlimited broadband and unlimited calls and the line rental also. However, I have been with them a long time. Speak to your provider.

Can your family of three really survive on £150 for food per month? Honestly, unsure how people on here do it!

ETA: Any way of moving banks to get an interest free overdraft for a while?

HappyMJ

Ladyluck1 wrote: »

Ok our SOA
Money in;
Wages £1100
Benefits (tax credits, child benefit, housing benefit) £360
Money out;
Rent - £650
Car (fuel, insurance) - £100 (DH possibly getting a bike to ride to work)
Debt payments - £40
Credit cards - £60
Overdrafts/bank - £42
TV licence - £10
Gas - £50
Electric - 45
Water - £26
Council tax - £120
Food - £150 (currently reducing and can only afford £20 a week!)
Phone/broadband/tv - £50
Mobile phones and iPad - £100 (both just been reduced and contract s end December)
Food for work money DH - £20
Travel - £50
Misc - £50

We used to spend a LOT more on extras I.e sky, takeaway etc which has all gone/going!

You are spending more than you are earning so you must reduce your expenses. What exactly is Misc? Scrap it...

Why so much on travel if you own a car what's that for? If you genuinely cannot afford to reduce anything you will have to consider stopping paying the phone contracts that are still running or stop paying the TV bill or if you really can't bear to do that then you have to reduce your payments on your unsecured debts.