It just keeps disappearing...

nicki_2

Hi, I'm Nicki. I'm a single mum of a teenage daughter, self-employed and on a very low income (credit crunch hit my business, but I am trying my best to up it!). I don't drive (bus fare is approx £4 a day if I need to get the bus anywhere, and I rarely get a taxi!), I have no insurance at all. I don't budget for hair cuts/new clothes (except for school uniform) as they are bought when I have the money 'saved' or desperately needed. My last hair cut was approximately 3 years ago, I cut my daughters myself. I colour my hair at home once every 8-12 weeks, at whichever point I get too annoyed at the badger stripes.

I've been in debt for over 10 years, but since becoming a single parent 5 years ago I've found it much harder to pay the debts off. Due to my low income, I'm basically living off benefits despite working. I do my best to pay more than my minimum payments each month on my two credit cards, and always pay at least £150 between them which is just slightly more than the minimum payment.

I have been to the bank and asked for a consolidating loan but they won't let me have one as I'm self-employed and on such a low income. I've been refused balance transfer credit cards so I'm stuck with what I have. All my bank accounts are with Natwest (I have been with them for nearly 20 years) and I do not want to move. I've been in my overdraft since October 2008 and its now costing me approximately £30 a month in interest fees, and £6 in charges.

I am trying to stick to my budget, but unforeseen expenses keep cropping up and eating away at any dent I've made in my overdraft. For example, last summer my daughter broke her knee, and I ended up hiring a wheelchair to get her around for the first 4 weeks as she couldn't manage on crutches with a full leg cast on (no arm strength, she was all brains and no brawn) and we were at the hospital almost weekly for 6 months so had bus fare to pay out as well. This also effected my business as I wasn't able to work as she needed care 24/7 until the cast came off after 5 weeks. For the first 2 weeks of school she also need to be escorted to and from school (costing me £15 a week) on account of having to bus it on crutches.

I have a 'savings' account which is currently virtual as I've spent more than I had saved for Christmas/school/emergency. Each month I put £150 into it, which I've just upped from £100, after discovering secondary school is a lot more expensive between travel costs/uniform/rare trips than primary, especially when my DD outgrew all her uniform except her tie!

I use Moneyplus to keep track of my various accounts and according to that, in theory I should actually be 'in the black' for a whole 24 hours at the end of next June based on current figures. I have it set up so that it shows a bill of £30 a month for interest charges, and another £6 a month for bank charges with no end date. Amounts will be adjusted after I have consistently had interest charges under £25 for 3 months, then £20 and so on.

I'm hoping that by posting on here, I'll keep my self in check and manage to clear my overdraft by this time next year.

In my SOA if its got a zero amount I've deleted it!

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 1 (but is almost adult in costs)

Monthly Income Details
Monthly income after tax................ 80
Benefits................................ 1072.24
Other income............................ 230
Total monthly income.................... 1382.24

Monthly Expense Details
Rent.................................... 460
Council tax............................. 0 (cost me £50 this year as I received benefits. No idea what next year will cost)
Electricity/Gas............................. 77 (Duel fuel tariff, expires next week)
Water rates............................. 33.89
Telephone (land line)................... 17.5
Mobile phone............................ 37
TV Licence.............................. 12.12
Internet Services....................... 13
Groceries etc. ......................... 200 (includes toiletries, cleaning etc)
Other child related expenses............ 10
Presents (birthday, christmas etc)...... 150 (includes school expenses)
Entertainment........................... 7.99
Total monthly expenses.................. 1018.50

Assets
Total Assets............................ 0

No Secured nor Hire Purchase Debts

Unsecured Debts (Figures based on last bill received - I have just made this months payments)
Description... .................Debt......Monthly......APR
Halifax CC.. ......................2421.95.......50...........24.4
Natwest CC.......................4380.99......100.........19.16
Overdraft...........................2400.00.......50..........18.28 (this is the maximum I'll hit this month & minimum I'll pay back)
Total unsecured debts..........9202.94......200...........-

Monthly Budget Summary
Total monthly income................................... 1,382.24
Expenses (including HP & secured debts)..... 1,018.50
Available for debt repayments........................ 363.74
Monthly UNsecured debt repayments............ 200.00
Amount left after debt repayments....... 163.74

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -9,202.94
Net Assets.............................. -9,202.94

Its that £163 that just seems to mysteriously disappear.

Tixy

Hi

If you are 'losing' that much a month then I'd start keeping a detailed spending diary for a few months to work out the money is actually being spent.

I'd also suggest splitting on paper the £150 you put in the other account. Can you account for the breakdown of that £1800 over the year? How much is actually going on schools clothes and costs, how much on presents and how much on emergencies?

Have you checked your benefits are all correct and you are getting all you are entitled to? Do your benefits include some housing benefit towards the rent?

Whilst there may be other reductions you can make in your outgoings (shaving bits off groceries, utilities, mobiles etc) they won't add up to as much as the £163 that you can't identify so I would focus on that first.

Have you considered looking for employment rather than continue with your current self-employment?

nicki_2

I actually forgot to include my daughters 'wages' (aka extra pocket money) she gets for helping me with work which averages out at £7.50 a month, and her actual pocket money which is £10 a month. The £10 listed is her mobile top up.

That leaves £145.50 unaccounted for monthly. I allow a £40 'slush' fund to cover unexpected things, like when my ironing board broke last month & needed replacing, and the iron the month before.

The £150 is all allocated to Christmas between now and the new year. I estimate £500 all in including food. Any left overs and Jan's will pay for daughter bus pass (Termly, approximately £80, although I budget £90 in case the price goes up). Birthdays I only give a card unless its a special one (like my dads 60th this year), then my budget is just £20. Under 18s get £15, my daughter gets more like £50. I have 3 birthdays in April (daughter, niece and nephew both under 18.). Back to school this year cost me approximately £200-250 plus her bus pass. I buy her Dr Martens as school shoes from @mazon (using vouchers I've earned) as they're the only shoes that seem to last.

All benefits are correct and maximised already. I get maximum WTC (I work over 16 hours per week on average over the year, as theres some seasonal variation), child benefit, housing benefit which covers the majority of the rent. We don't qualifiy for free school meals or bus pass so I provide DD with a daily packed lunch & snacks or she'd clean the cupboards out the moment she got home. DD's dad pays me maintenance directly after us both having enough of problems going through the CSA (not always the CSA's fault) which has caused me a number of financial problems over the past few years. This is why I'm finally able to sit and look at stuff properly.

I will try to keep a spending diary for the next couple of months, and get back to more frugal cooking. I'm planning on making my own pasties for DD to have for lunch over the winter in the hopes they'll fill her more than sandwiches (she currently takes 2 a day with various fillings, crisps, chocolate biscuit x2, apple, citrus fruit, something cake like so mince pies atm, and bottled water. All covered in the grocery budget), and attempt some home baking.

I have considered other paid work, but no childcare outside of school hours, or if DD was sick, means I'm restricted for now. She's not quite mature enough to be trusted home alone for more than half an hour tops. I also couldn't trust her to lock the house up before she went to school. She has a habit of leaving things switched on (like the hob or iron). Then there is the expenses of working, £15 a week for a bus pass if not in walking distance, lunch, suitable work attire. The area I live in has a high unemployment rate and an even high rate of single mums looking so trying to find work is very difficult as there is a lot of competition.

I'm currently trying to find more customers, I do surveys, shop& scan, and enter competitions, around working. I'm working my way through some of the thread on the up your income forum to see if there's any other way I can earn from home. I used to sell a lot on e bay, but I'm more or less out of things to sell.

tallyhoh

Have you considered child minding?

sharp82

How come you are so reluctant to change banks? If you could find one with a cheaper overdraft charge, then you've saved money for the sake of filling in a form

gallygirl

If you're tied workwise then you need to up your income elsewhere. Have you signed up for survey sites etc? Have a look at the Up Your Income Board for a list of them - a lot pay in vouchers so handy to keep aside for Xmas etc. Also mystery shopping can bring in a little.

Good luck.

nicki_2

tallyhoh wrote: »

Have you considered child minding?

My house wouldn't pass health & safety checks at the minute I don't think, but it is something I am considering. I'm working on getting problems like black mould which is growing in some of the rooms sorted out for minimal outlay but every room needs doing (got to love freegal, and friends/familys with left overs for decorating stuff ), then I'll look into it more. I know that may sound a little odd, but I'm investing in the house through freebies/minimal outlay so I can hopefully do child minding. Although I have a 'supporting teaching and learning in schools' qualification, I'd have to do a number of other courses (including first aid...it'll only be the 5th time I've done it! :rotfl:), pay for insurance etc etc. So thats a job for when the overdraft is paid off.

pelirocco

how old is your daughter?

wildwestfan

You do need to get a proper job. Universal Credit will assume a certain income for self employed people and if it is only bringing in £20 a week it is little more than a hobby.

Why not sign on to JSA and hopefully get some advice about improving your prospects of finding a job?

nicki_2

pelirocco wrote: »

how old is your daughter?

She's nearly 13 years old. Just started her 2nd year of senior school. I need to get the debts paid off before she turns 18 as I'm hoping she'll go to university. I'll be needing some emergency funds stashed away in case she needs it. Long term planning, like putting money aside for her going to uni, didn't seem urgent until now. Sudden realisation that things are only going to get more expensive as she grows up. She's already having to wear ladies sized clothing so the proportions fit her! Teen ranges aren't long enough.

LeaLea89

Hi Nicki

Keep a spending diary on what you are spending each month, you will be surprised at what goes where.

Another is to earn a little more is online surveys like you do, going through cash back sites when you get your utilities, purchases etc. A couple of mystery shops a month can be a little earner as well. Or another part time job on the side, weekends or evenings is a good little earner, but be careful with the benefits etc.

In regards to banks, use them to your advantage where you can, switching and making sure your main income into it can earn so much a month or a lump sum payment when you switch.

Have a look into your utilities, as they are coming up for renewal and check all the suppliers, takes a while but it is worth doing we have just saved £20 per month on gas and electric by changing supplier.

Hope this helps a little xx