More going out than coming in, cut spends but still not enough to pay off debt... :(

dktreesea

Your benefits per month seem really low to me, not high as per another comment earlier on the thread.


That doesn't even seem to be enough housing benefit, let alone child benefit and child tax credit. Wouldn't you qualify for working tax credit on such a low income? I suggest you go onto the entitled to website, put in your current income and see what comes back.


It sounds like the benefits are based on previous year's income, but you can get it to be based on current year's income if you have suffered a huge reduction in your income.

poppasmurf_bewdley

flukeas wrote: »

TV license get rid of it.

Only if you get rid of the TV as well, or you could be adding a £200 fine to your outgoings.

Please don't be so stupid as to do this.

Bobarella

Could you get rid of your car and still manage? It looks like that combined would make the difference on your shortfall.

flukeas

poppasmurf_bewdley wrote: »

Only if you get rid of the TV as well, or you could be adding a £200 fine to your outgoings.

Please don't be so stupid as to do this.

So get rid of the TV as well, sell it to bring in some money, right now it's a luxury they can't afford.

On_my_way

At least you are aware that you have a problem to fix. I assume that your partner knows that you both seriously need to stop spending and be super careful.

You should look at your belongings and do a massive audit. Old clothes etc can go to a place that pays for them, cash 4 clothes shops etc to earn a few pounds to line your pocket.

Also, things often sell very well on ebay so that's a consideration too.

Really, both of you need to work and I am sure that it is possible to cover childcare between you so that you haven't got to pay anyone.

If one of you is at home https://www.valuedopinions.co.uk, swagbucks etc are a way of earning vouchers etc to spend - it's a slow way of making money but it's possible to earn £40 per month in vouchers for Boots, Sainsbury's etc fairly easily if you log onto it most days.

Good luck

glentoran99

flukeas wrote: »

So get rid of the TV as well, sell it to bring in some money, right now it's a luxury they can't afford.

Or just dont watch live tv, stick to DVDS and on demand

catwoman73

Can you move to very near to your workplace so you can walk or cycle to work.

Can your partner get an evening or weekend job (or whatever fits in with your hours) so you don't have to pay for childcare.

Your mobile costs are quite high, considering your low income - you could half that amount and still have smartphone contracts albeit not the latest and greatest all singing and dancing versions.

And your water is very high unless you are in the south west - is this rates or metered?

5erge

Your credit card debt is low, so it is worth contacting the credit card company and ask if they can lower your APR for you, I was able to do this with a couple of CC.

You could also do the same with your bank OD. Gas and electric is high, do you have any credit on your account, if so get it back (don't let them fob you off, it's your money they aree arning interest on) then it's worth reducing the monthly amount you pay them.

Car insurance is really high too, by adding someone on your policy even if they don't drive you can save a fair amount of money. As someone else mentioned use topcashback to boost your earning potential, from car insurance, day to day grocery shopping etc...

Do you use your mobile phone to the max, any room for movement there?

19lottie82

The main thing that jumps out at me is you seem to be spending a huge chunk of your wages on running a car to get to what, based on your wages, looks like a minimum wage job. Surely it would make financial sense to get rid of the car (which frankly, you can't afford) and find a job closer to home to avoid the transport costs?

Also, your benefits level, taking into account your low wage and that you have a child, seem very low - are you sure you're getting all your entitled to?

Would your partner be able to take up some kind of part time work in the evenings, so you can look after your child?

CleanStart

Hi,

Apologies, I think I had miscalculated a few things. This is the more accurate breakdown.

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................ 1010
Partners monthly income after tax....... 0
Benefits................................ 595
Other income............................ 0
Total monthly income.................... 1605

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 600
Management charge (leasehold property).. 0
Council tax............................. 98
Electricity............................. 40
Gas..................................... 60
Oil..................................... 0
Water rates............................. 55
Telephone (land line)................... 15
Mobile phone............................ 38
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 17
Groceries etc. ......................... 200
Clothing................................ 15
Petrol/diesel........................... 145
Road tax................................ 10
Car Insurance........................... 95
Car maintenance (including MOT)......... 20
Car parking............................. 20
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Pension................................. 20
Total monthly expenses.................. 1485


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 1000

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card....................1280......20........0
Overdraft......................500.......5.........0
Loan 1.........................7200......129.......0
Loan 2.........................500.......38........0
Total unsecured debts..........9480......192.......-


Monthly Budget Summary
Total monthly income.................... 1,605
Expenses (including HP & secured debts). 1,485
Available for debt repayments........... 120
Monthly UNsecured debt repayments....... 192
Amount short for making debt repayments. -72

Personal Balance Sheet Summary
Total assets (things you own)........... 1,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -9,480
Net Assets.............................. -8,480


I would also like to mention that I have managed to temporarily reduce my loan repayments to £90 and £1 making my overall monthly balance +£4 after all bills are paid. This isn't enough as i need to keep making as big a payments as possible to these debts so I will be looking for a higher paying job in the meantime whilst selling any unnecessary items on gumtree or eBay to help me out of my overdraft.

@19lottie82, I am looking for a closer job at the minute and my Mrs is looking for a part time job also.

@5erge, Thanks, ill contact my bank about my credit card and overdraft that's a great idea!

I have called about the gas and electric and I am on the lowest tarriff its just the ancient boiler and our house being impossible to heat and keep warm which is where we would save in a smaller more cold protected home.

We have already cut our mobiles down as far as it will get, used to be over £100 so no room for improvement there until contracts end and can go sim only.

I am due to renew my insurance in March so I will try and add someone and see if that works then thanks.

@catwoman73, I am trying to move in the same area and get a job around this area which should reduce travel costs.

She is trying to get a job at the minute.

Paying water rates at the minute and as mentioned above our mobiles are as cheap as we can get them at the minute.

@On my way, Been getting things together in bin bags and boxes to sell, going to try and do a car boot and eBay the stuff off that don't go or vice versa.

@pmlindyloo, I miscalculated the benefits we are receiving and I am also paying back an overpayment so I have just asked to pay half of what I am at the minute for an extra £20 a month.

Those are the main replies, thanks to others that have replied all advice is helpful and I am taking it all on board.