Things are completely out of hand

mrsd1984

Last Summer we had our ds. Up until then we had debts, but we're working hard at paying them off and were sticking to our budgets every month. Maternity pay was v difficult (thankfully had managed to save beforehand) and now I'm back at work, but have only been part time. We have got through each and every month since April thanks to credit cards. My husband is self employed and doesn't earn a huge amount, though after discussions he has increased his weekly wage (the money was there but he was only willing to pay himself £220 a week, this has now increased to £270). I teach, so I have a decent wage, but as I said I'd on,y been part time supply since starting back after maternity. I know this won't work, so from September I will be working more (I'm aiming 4 days a week, but as I'm supply it's hit and miss).

We really need to get our spending back on track. I need to add, that as well as teaching I have set up a small business crafting, which does bring in a small income. By keeping this aside, we have managed to put enough away for our ds's first birthday party/gifts/cake etc. without touching our bank accounts. I'm aiming to do the same with Christmas, any money I earn from crafting is out in an envelope and will be for Christmas.

I need to sort out now, though. I'm not being paid this month (supply - Summer), so even more will be added to the cards. If I supply direct for the council, I work a month in advance to pay, but I get paid almost double what I would be paid through an agency. I'm planning to try and work 50-50 through agency and council during September so that we have some money at the end of Sept but more afterwards.

Sorry for the rant, I really need to get my head straight and start working out where we go from here. I have joined the grocery challenge for August, stopped hubby buying a takeaway yesterday, and am already looking at other sites for reduced items to spread Christmas out.

I need to type out exactly what is coming in and going out each month, but I'm thinking it may be worth me waiting until September to do that as I'm afraid petrol at least may have to go on the credit card as well this month.

It's definitely time I faced up to what's going on, so here goes.......

solvencyseeker

Hello - didn't want to read and run.


Why don't you spend the time freed up this summer to do a big SOA (all your income and spending) using the last 6-12 months records (bank and credit card statements) and post the results on here to see if the experts can help. Or contact one of the debt charities. If you keep having to use credit to live then unless you change something - earn more/spend less - you will dig yourselves into a big hole. Something I have experience of.


Whatever you decide to do please do take action now - don't delay.


Best wishes.

ellesbellesxxx

Hi, schoolzone also do surveys/online focus groups especially for us teachers - they soon add up, especially as the surveys are 2 pounds each.
I second doing an SOA, it is really informative!

in_need_of_direction

Have you the option of tutoring?

ChopinonaBudget

ellesbellesxxx wrote: »

Hi, schoolzone also do surveys/online focus groups especially for us teachers - they soon add up, especially as the surveys are 2 pounds each.
I second doing an SOA, it is really informative!

I signed up for schoolzone (I think it was schoolzone) but wasn't eligible as I'm not technically a school teacher. You will be though. As I recall though, a lot of the stuff I was getting emails about we're a lot more than £2; more like £50. I don't know if these are surveys that they don't need many teachers for and are difficult to get into or whether it was a prize draw and I didn't read the emails properly? Worth signing up anyway!

ChopinonaBudget

in_need_of_direction wrote: »

Have you the option of tutoring?

I had to hire in tutors for my daughter, and fees generally vary between £20 and £40 depending on area (and level being taught)
Check out First Tutors. It's where I went for all of mine, and the tutors I spoke to all said that although they had to pay a joining fee it was well worth it in terms of the work they gained through the site

mrsd1984

Thank you for your replies. Will definitely look into schoolzone, and I will be increasing my hours to almost full time from September so will be in a better position to see where I am and what I need to do. The aim is by the end of September to be earning more than we spend and then using the extras by splitting between savings and paying extra off debts.

Other than the crafts, there's not much else I can do over the summer, though over £100 is coming in this week alone from it, so it will be a massive help. I just need to make a plan of action, to complete a soa so that I can see our outgoings, and realistically look at what I need to be earning every month. Here goes......

KiKi

mrsd1984 wrote: »

My husband is self employed and doesn't earn a huge amount, though after discussions he has increased his weekly wage (the money was there but he was only willing to pay himself £220 a week, this has now increased to £270).

It sounds like he actually earns more, but pays himself the minimum so that there's money sitting in a business account, waiting to be taken in dividends (ie, he's paying the min to keep himself under certain tax and NI thresholds)?

If so, you might want to review this approach. The amount of interest you'll pay on your credit cards would probably wipe out any tax benefits of working this say, and the time you spend struggling to pay bills could be made so much easier.

Apologies if I've misunderstood, but you said he's only willing to pay himself £220, which suggests he's paying himself min wage and taking the rest in dividends - which means there's probably money in a business bank account that's his to take, and could really help you out. In the meantime, you're running a craft business, having to work more hours at school and trying to find more ways to save money and pay for Christmas!

KiKi

mrsd1984

No, that's not the case. Tax and NI is based on what goes into the business account not his personal account. What he has been doing is every quarter, if there is a substantial around in his business account, he pays himself a 'bonus', which is nice at the time but means we don't know where we stand each month.

mrsd1984

Here is my soa. I haven't included anything in my earnings as I wanted this more to show how much I need to earn to live, and how much I'd need to earn so that we have extra money to pay off the debts quicker/save harder.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 1170
Benefits................................ 88.83
Other income............................ 0
Total monthly income.................... 1258.83

Monthly Expense Details
Mortgage................................ 601
Secured/HP loan repayments.............. 67.64999999999998
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 115
Electricity............................. 36
Gas..................................... 36
Oil..................................... 0
Water rates............................. 35.5
Telephone (land line)................... 42.93
Mobile phone............................ 20
TV Licence.............................. 12.12
Satellite/Cable TV...................... 21.5
Internet Services....................... 0
Groceries etc. ......................... 160
Clothing................................ 20
Petrol/diesel........................... 120
Road tax................................ 14.17
Car Insurance........................... 22.05
Car maintenance (including MOT)......... 12.5
Car parking............................. 10
Other travel............................ 0
Childcare/nursery....................... 312
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 25.04
Pet insurance/vet bills................. 0
Buildings insurance..................... 8.72
Contents insurance...................... 8.72
Life assurance ......................... 12.34
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 10
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 50
Total monthly expenses.................. 1843.24


Assets
Cash.................................... 0
House value (Gross)..................... 120000
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 122000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 100667...(601)......0
Hire Purchase (HP) debt ...... 455......(45.5).....0<
HP.............................132......(22.15)....0
Total secured & HP debts...... 101254....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
MBNA...........................4413......100.......1.29
Barclaycard....................4657......100.......17.9
Total unsecured debts..........9070......200.......-


Monthly Budget Summary
Total monthly income.................... 1,258.83
Expenses (including HP & secured debts). 1,843.24
Available for debt repayments........... -584.41
Monthly UNsecured debt repayments....... 200
Amount short for making debt repayments. -784.41

Personal Balance Sheet Summary
Total assets (things you own)........... 122,000
Total HP & Secured debt................. -101,254
Total Unsecured debt.................... -9,070
Net Assets.............................. 11,676

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

mrsd1984

After looking at that, my aim is to bring home at least £1000 each month, which is very do-able. That would leave my soa looking like this:

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1000
Partners monthly income after tax....... 1170
Benefits................................ 88.83
Other income............................ 0
Total monthly income.................... 2258.83

Monthly Expense Details
Mortgage................................ 601
Secured/HP loan repayments.............. 67.64999999999998
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 115
Electricity............................. 36
Gas..................................... 36
Oil..................................... 0
Water rates............................. 35.5
Telephone (land line)................... 42.93
Mobile phone............................ 20
TV Licence.............................. 12.12
Satellite/Cable TV...................... 21.5
Internet Services....................... 0
Groceries etc. ......................... 160
Clothing................................ 20
Petrol/diesel........................... 120
Road tax................................ 14.17
Car Insurance........................... 22.05
Car maintenance (including MOT)......... 12.5
Car parking............................. 10
Other travel............................ 0
Childcare/nursery....................... 312
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 25.04
Pet insurance/vet bills................. 0
Buildings insurance..................... 8.72
Contents insurance...................... 8.72
Life assurance ......................... 12.34
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 10
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 50
Total monthly expenses.................. 1843.24


Assets
Cash.................................... 0
House value (Gross)..................... 120000
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 122000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 100667...(601)......0
Hire Purchase (HP) debt ...... 455......(45.5).....0<
HP.............................132......(22.15)....0
Total secured & HP debts...... 101254....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
MBNA...........................4413......100.......1.29
Barclaycard....................4657......100.......17.9
Total unsecured debts..........9070......200.......-


Monthly Budget Summary
Total monthly income.................... 2,258.83
Expenses (including HP & secured debts). 1,843.24
Available for debt repayments........... 415.59
Monthly UNsecured debt repayments....... 200
Amount left after debt repayments....... 215.59

Personal Balance Sheet Summary
Total assets (things you own)........... 122,000
Total HP & Secured debt................. -101,254
Total Unsecured debt.................... -9,070
Net Assets.............................. 11,676

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.