Advice needed please!!

MadMel_3

Hi, just joined today, have had a debt management company round but husband didn't like the man that came round and sent him packing, after reading advice on here I'm glad he did. Must of the debts are due to the failure of our restaurant, we had to walk away last July. We are just about managing to meet all payments but it always seem worse school holiday times when you can't take the kids anywhere (13 year old not interested in going to the park!). I am looking for a job at the moment but 4 interviews and about 20 applications later, still no luck. At the ripe old age of 43 and a toddler at home, I don't suppose I'm considered very employable!! SOA as follows, any advice greatly received:

Monthly Incomings:

Partners salary - £2,340 (self employed CIS comes out with £540 each wk but might get a tax bill at end of year - last year it was £76)
Child Benefit - £120
Maintenance - £80

Total - £2,540.00

Monthly Outgoings:

Rent - £575
Council Tax - £119
Gas - £37
Electric - £27
Water - £25
Life Insurance - £17.65
Sun Life plan - £20.00
Home Insurance - £10.41
TV Licence - £11.37
Sky - £26
Accountant - £50 (owe about £3,500)
Car Insurance - £23.24
Phone - £11
Mobile Phone - £30
Food - £325
Petrol - £130

Creditors:

HSBC Loan £288.42 - owing £21,912.34 11.9%
CSA Arrears - £30 - owing £5,672.28 (contesting this at the moment charges have been put on as the Bailiffs arrived two weeks ago, but that's another story!!)
Tesco Credit Card - £80 - owing £2,872.52
Cahoot Car Loan- £94.62 - owing £1,990.42 8.9%
Clydesdale Finance - £72.99 - last payment 1 August 2007 - yippee!!
Powergen arrears - £150 - owing £1048.51 - 4 payments to go
Barclaycard - £50 - owing £1,879.74 - 24.9%
Blackhorse Finance - £66.52 - owing £350 - last payment December 2007
Next Directory - £20 - owing £124.96

Overdrafts:

HSBC £500 - up to limit
Nationwide - £1900 - up to limit
Nationwide - £500 - up to limit


Total: £2,275.54 leaving £264.46 (why don't we ever see this?)

woohoo_postingid

Monthly Incomings:

Partners salary - £2,340 (self employed CIS comes out with £540 each wk but might get a tax bill at end of year - last year it was £76)
Child Benefit - £120
Maintenance - £80

Total - £2,540.00
Have you checked if you are eligible for Working Family or Child Tax Credit??

Monthly Outgoings:

Rent - £575
Council Tax - £119
Gas - £37 - Look at switching suppliers
Electric - £27 - Look at switching suppliers
Water - £25
Life Insurance - £17.65
Sun Life plan - £20.00 - What is this for? Do you need it?
Home Insurance - £10.41
TV Licence - £11.37
Sky - £26 - Do you need this?
Accountant - £50 (owe about £3,500)
Car Insurance - £23.24
Phone - £11
Mobile Phone - £30 - Do you need this?
Food - £325 - How many of you are there? This is a lot
Petrol - £130

woohoo_postingid

Use the snowball calculator: http://www.whatsthecost.com/snowball.aspx
to work out how best to pay off your debts.

whitewing

Madmel, Do not give up on getting a job. Over the past 3 years I have applied for umpteen part-time jobs with the company I am working for now (who seem to be the most flexible of any local employers). It has been really disheartening at times and I was sure too that as a 34 year old mum getting married next year, that I was the most unemployable person on the planet. (I had previously been asked at interview at another place if I were a dollybird because they didn't want to employ a dollybird!).
Anyway, on Monday I got offered a new part-time job, which means:
1. more interesting work than the one I'm in now
2. a promotion so a higher basic rate
3. hours that suit me that also qualify for an enhanced rate

I can virtually work 10 hours a week less for pretty much the same money!!

It has been a long, long slog to get this far. There have been many compromises on the way. However, since I joined the MSE website, I have put lots of budgeting ideas in place, so now I am actually going to have money lefft over at the end of the month too (if I can control my wild impulses!)

Keep chipping away gradually - good things will come to you.

chevalier

Ref the money you never see, what about school trips, pocket money, birthday, christmas, mot, car tax, servicing? You need to work out what these costs are monthly so that they don't come around and bite you on the you know where!

Also you and OH should start to keep a spending diary, which every little thing gets written into. You may find that buying a magazine/coffee/chocolate bar every day, really eats into this money. Can be a real eye opener.

And it will get better! After next monthe you will have the £73 to go towards your debts.
If you put all your debts into the snowball calculator mentioned above, then you can see what your debt free date is now, and then work out where is best to pay the extra £73 to.
Alternatively that money would pay off your next account in less than two months, which will give you a boost and keep you motivated.

Also have a look at wrap around care for you 13 year old, so that you can off more flexible times for work.

Good luck
chev