Really need to clear my debts but debt charity cant help. What next?

BeingMe

I've taken two orders so far that I will be charging for. Both of these are for next month. I have done around 10 orders at cost so far for family and friends. This is why I would like to set up a business account ASAP so that I can put all profit in to that and also the expenses (although initially the money will have to come from my personal account) so I can keep it all separate. I am 100% sure that I have made no profit so far. Family and friends have given me the odd fiver on top of the costs but I have spent £100s on equipment. I have kept all receipts for anything I have bought for the business.

Willowpop

BeingMe wrote: »

Thank you, I shall look for some free business advice locally. I have had bits here and there on another forum. I won't say what the business is but I basically make something. Customers pay a 50% deposit which more than covers materials and then the balance is purely profit. I've done a few orders now at cost for friends to get my name out there and it acts as free advertising. Other costs are equipment, website hosting, advertising, domain names and at some point I need to trade mark my business name. I do not need business premises yet as I am doing it from home.

I've just done the food shop and took the children and made the saving money into a game for them as suggested by a poster up thread. It was quite successful and took their minds off nagging for extras and treats. I spent £57, I would normally spend £70. However, this wasn't a full shop as my cupboards are looking quite healthy at the moment. I bought done reduced mince and a pie and have frozen these, the mince into three portions so I will get three meals and it cost £5. I am realising that I could save further though. I buy my daughter juices for packed lunches but she has a flask I could make squash in. I buy cheese strings when on offer but I could cut up cheese cubes if I was more organised. I find the packed lunches expensive because the children eat the stuff I buy for snacks when it is meant for their packed lunches.

Well done getting the shop in for less than normal, that's a really good effort.
As far as the kids eating the food that's for lunches, tell them what is for snacks and what isn't. If you think they won't listen, put all the lunch food in a box in the fridge/cupboard and tell them they mustn't eat from there for their snacks.
what are you putting in the packed lunches? I use Sainsburys as my supermarket and have got the cost right down.... Eric the elephant carton drinks ate just over £1 for 12, basics frozen sausage rolls (the little party sized ones) are under £1 for 50, the basics bags of crisps are great, smaller than Walkers bags so a great size for lunch boxes, Sainsburys own brand penguin bars are great, I chop fruit and put it into a little tupper ware tub, and a can of fruit salad/ canned fruit slices that gets portioned up is much cheaper than the individual tubs of fruit pieces. I buy frubes etc when they are on offer, bogof etc, otherwise my daughter takes a pot of basics fromage frais. .. or a dollop of natural yoghurt to mix some strawberries into. Rolls and bread can be bought cheaply too...especially if you find them reduced with the yellow sticker on, but the basics white rolls are around 40p for 12 if I remember correctly. A packed lunch can be healthy without it costing too much ( so long as it isn't eaten as snacks! )

BeingMe

Thank you willow. I'm going to do have to something. My daughter has just had a huge meltdown because she wanted some cheese strings before dinner. I said no. Then she had another meltdown because she wanted yogurts AND biscuits for pudding and I said she had to choose one. All is calm again now though. I feel guilty denying them food (mothers instinct to feed perhaps?) but I waste so much money on snacks and stuff they don't need. We have a fruit bowl that they can help themselves to but for some reason this isn't as appealing

For packed lunches I usually do a sandwich made from an own brand loaf of bread, with either grated cheese or processed ham (yum), a packet of value crisps or a dairy lea dunker which I only ever buy on offer, a carton of juice or a my5 fruit shoot, a cheese string and some fruit which is usually strawberries or grapes which are their favourites (they would be being so expensive!). I sometimes put a cake or biscuit bar in but again these are cheap own brand ones. Ideally I'd like to bake my own biscuits and buns for them to take but these are always eaten the night they are made. Thing is, dairy lea Dunkers aren't cheap even on offer if they eat two at home for every one that goes in the lunch box. I hate restricting food though!

Kate_fixing_it

asparagus1968 wrote: »

kate_fixing_it
for some reason there isn't a thanks button on your post, but it is a great post, so thank you!

Aaaw thank you xxx Just the way I see it though. I never "learned" how to budget/save as a child. If the money was there it was spent, if the money wasn't there it was borrowed and spent. I want better than that for my kids. I'm late to the party on learning this but I'm determined they won't be. Life isn't easy, whilst I'm fiercely protective of them I don't sugarcoat things. I don't want reality to bite them as harshly as it bit me.

Kate x

Willowpop

BeingMe, The meltdowns will last a few days, but the kids will be used to not eating snacks before dinner ( it's not mean to deny them a snack at this time of the day at all, it's not needed) in no time at all.
On the next cheese string meltdown, give them a choice..have the cheese string this evening, or have it in your lunch. Don't by top ups. The kids won't come to any harm learning 'when it's gone it's gone'. If they think supplies are unlimited and it all just gets replenished they'll carry on munching you out of house and home. Suddenly, and if they are genuinely hungry, the fruit bowl will be more appealing......but not right before dinner.

mennie

From one skint mum to another, can I offer some advice?


Unless you are getting 30%+ interest on your kids bank accounts, stop these savings until your debt is repaid, by this time you will be better with your money and you can double the payments. One year will not make a huge difference. If you have a fair bit saved for them you may be as well using (borrowing) a lump to pay off some of your debts.


You cannot afford to shop in Next, harsh but true.


Days out - I don't know the age or gender of your kids, apologies if I have missed this. Mine loves raking about in the woods, pooh sticks, skimming stones at the beach, rock pools, hunting for mini beasts under stones, sand castles, football or Frisbee at the park, all free. I usually do one trip each holidays and the rest are all free things from the above list. They are usually the ones he enjoys the most too.


If the weather is rubbish, we have games marathons, where we play all his board games one after another, cinema days, with homemade popping pop corn and curtains closed, make dens and eat picnics in them, bake cakes, decorate biscuits with icing.


Kids parties - I feel your pain!! I spend no more than £5 on the gift, I buy the packs of 10 birthday cards for 99p from Tesco and buy wrapping paper whenever it is on offer. I bought 2 rolls for 29p each from HomeBargains at the weekend but Tescos do cheap rolls too.


Xmas and Birthdays - you simply cant afford £100 each at the moment. You will have to become more organised and keep an eye out all year round and shop in the sales.


Packed Lunches -These can be expensive, look for frozen sausages and sausage rolls and pop a few in the oven when you are making dinner for the following days lunch. I make individual jellies in Tupperware and portion up fruit salad. I never send him with crisps or choc biscuits as we cant afford it. I am always looking for cheap cartons of juice, but I am just going to start sending him with a flask of squash.


Do you qualify for free school meals?


Remember that you will need to inform tax credits about any profit your business makes. I also run a small business and you must be extremely organised.


Have you checked with you landlord about running a business from home, you should tell the council too and your insurers.


It is hard, but on paper you have a fair bit left, on paper we have nothing left. I look at it as a challenge to make each month work.


There are ways to make a bit more. I do all the free clicks on the cashback websites, Do surveys and evaluation work for Crowd Flower, Mystery Shopping - it pays peanuts, but we need the peanuts.


Carboot, selling on facebook, cash for clothes...


You need to make more and spend less

Kate_fixing_it

BeingMe wrote: »

Thank you willow. I'm going to do have to something. My daughter has just had a huge meltdown because she wanted some cheese strings before dinner. I said no. Then she had another meltdown because she wanted yogurts AND biscuits for pudding and I said she had to choose one. All is calm again now though. I feel guilty denying them food (mothers instinct to feed perhaps?) but I waste so much money on snacks and stuff they don't need. We have a fruit bowl that they can help themselves to but for some reason this isn't as appealing

For packed lunches I usually do a sandwich made from an own brand loaf of bread, with either grated cheese or processed ham (yum), a packet of value crisps or a dairy lea dunker which I only ever buy on offer, a carton of juice or a my5 fruit shoot, a cheese string and some fruit which is usually strawberries or grapes which are their favourites (they would be being so expensive!). I sometimes put a cake or biscuit bar in but again these are cheap own brand ones. Ideally I'd like to bake my own biscuits and buns for them to take but these are always eaten the night they are made. Thing is, dairy lea Dunkers aren't cheap even on offer if they eat two at home for every one that goes in the lunch box. I hate restricting food though!

I can empathise again but well done for putting your foot down. The meltdown is just a reaction to the shock that you said no - I got stunned silence the first time I said it but it was forgotten in half and hour. I promise that it gets easier, now I just get a shrug.

You aren't restricting food. You are drawing a line between want and need. They aren't going to starve. This was a snack before dinner not you refusing her a meal.

How about baking together? We have stacks of takeaway boxes from our "old" life and these get labelled with a day and the baking goes in there. The other thing DH does (he's taken over grocery shopping) is to buy a multi pack of whatever (enough for the week) and asign it to each child. It's for them to decide when it's eaten and if they run out during the week then tough (DH is less of a pushover than me ) We went from 36+ bags of crisps per week (and running out) to buying four six packs and having some left. Only once has anyone run out in the last two months - the other 3 learned from DS1's error.

Well done on keeping them distracted while shopping too (I forgot about that bonus) do that each week and you are £50 a month better off... £600 saved in a year!

Keep your chin up, sounds like you are really trying and getting some successes already.

Kate x

BeingMe

Thank you everyone for the reassurances and further advice. It's all really helping. I particularly like the idea of apportioning treats, it might also save arguments on who had more than whom!

I stopped buying my children's clothes in next a long time ago. The last amount I spent on my card with them was for the house. If I do buy things it is always in their sales these days but even then, I actually think their quality is getting worse and the clothes are no longer worth the money. I used to be able to sell my eldest's stuff on eBay from next after a full year of wear, with their latest stuff it all needs binning after a few months wear. I buy clothes in the supermarkets now so it's not as bad when they're ruined.

I am really confused about how the business will affect things like housing benefit and tax credits. Will I have to pay business rates for council tax? Obviously I'm working more hours now but with no profit. Luckily my landlord is fine about me operating a business from the house. I don't have insurance currently (I don't own anything of value really).

My tasks for this week are to cancel my extended warranty on my car and look for cheaper providers for broadband and phone. I also need to provide readings to my gas and electric company as all my bills are based on estimates.

My children are 14, 5 and 3. I think I might just be able to manage without stopping the savings payments but if it comes to it, I guess I'll have to. I'm going to cut back in other areas first and see how I get on. I can't access their savings either - the money is in trust funds.

mennie

When you are receipt of housing or council tax benefit, there is a separate self employed income form you must complete.


I know you say you have nothing of value, but think what it would cost to replace all your worldly possessions in case of a fire/leak. You do not have the money to replace these things.


you can get contents insurance for less than £10 per month.

BeingMe

Ok, thanks to everybody who has posted I have started to take action. I have found this very motivating so might use this thread as a kind of diary and update my signature to show progress. This is what I've done so far:


1. Downloaded a debt app so I can see at a glance what everything is costing. Total debt is £6,706.45, over £1000 less than I first thought! It also shows it will cost £12,038.95 including interest and take until 2033 to pay off at the current rate! Definitely going to tackle this now and aim to be debt free by August 2015.


1. Called to pay £40 off nursery debt which now stands at £174 - over £200 less than I thought it was. I pay this at £40 a month under the agreement so this should be clear before the year is out.


2. Called my bank about a business account. they confirmed it would leave a footprint on my credit file so I am holding off until I find out about the 0% card.


3. Given proper meter readings to my gas and electricity company - the first reading since I have moved in. I've been too scared to call them in case my estimates were way off and Id be in debt with them. But, I'm using less electric (yay!) and slightly more gas so this will be reflected in this months bill. I'm so relieved about this!


4. Called to cancel my extended warranty on my car which was costing £21.99 a month. The DD came out today for this so I will cancel that and that will be my last payment.


5. Written out a budget for the month with a running total of what I have coming in each day and what I need to spend. This is the FIRST time I have ever done anything like this but it shows at a glance what I have to spend each day/week and I have budgeted proper figures for food and spends whereas I usually just spend what I want and think no more of it. It's probably not a standard way but I think this will work for me and I will do it again for next month but with rounded UP figures for what's going out and rounded DOWN figures for what's coming in. Any surplus I will transfer into a savings account to cover emergencies. I will need to look again at budgeting a proper amount for birthdays/Christmas and an emergency fund next month but I have at least made a start. This will be a VERY expensive month with a wedding, a weekend work trip, a trip to London to see a relative (train tickets paid for last month) and a hen do weekend at the end of the month, plus father's day too. First column date, second income, third available, fourth expenses, fifth balance. I'm pleasantly surprised to find I can afford this month and the figures don't take into account the income I expect from my business (around £90) which will go into the business account. Here it is:


T 05 0 340.60 £30 petrol 330.6
F 06 300 630.6 £15 savings 615.6
S 07 0 615.6 £20 night ou 595.6
S 08 0 595.6 NSD 596.6
M09 0 596.6 £3 business 593.6
T10 219.96 813.56 £65 768.56
W11 0 768.56 £64.24 704.32
T12 0 704.32 £50 654.32
F13 0 654.32 £66.04 588.28
S14 0 588.28 £100 London 488.28
S15 0 488.28 £100 London 388.28
M16 0 388.28 £30 358.28
T17 219.96 578.24 £36.44 541.8
W18 0 541.8 £96.99 444.81
T19 0 444.81 £30 414.81
F20 0 414.81 £15 savings 399.81
S21 0 399.81 £30 work trip 369.81
S22 0 369.81 £30 work trip 339.81
M23 0 339.81 NSD 339.81
T24 410.36 750.17 £95.76 654.41
W25 0 654.41 £50 food 604.41
T26 0 604.41 £143 461.41
F27 822.82 1284.23 £145.18 1139.05
S28 0 1139.05 £100 Hen do 1039.05
S29 0 1039.05 £100 Hen do 939.05
M30 0 939.05 NSD 939.05
T31 219.961 159.01 £20 PG 1139.01