£1000 a month debts and about to start Maternity Leave!

FireWyrm

The bottom line is that you are £700 short a month on the housekeeping. Something has to give. Can your partner return to work within 8 weeks? You get 6 at almost full pay and then you could probably stretch to another two, but that's your lot. You would not seem to be able to afford to stay at home much longer than that.

Washable nappies can be purchased from Ebay for a fraction of the cost of disposables and will last through several children.

You must pay Rent, Council Tax and Food. Everything else is a luxury so at best, you are going to have to default on some of the debts, or go onto a token payment scheme. It is probably best to start writing to your creditors now to warn them that you will be paying a token amount of £1 for the next 2 - 3 months until your partner returns to work and resumes full time pay.

[STRIKE]I dont mean to be judgmental, but having children at this time would seem to be rather inconvenient to your finances and perhaps you should have looked at debt reduction first. Think of paying off the debts as 'saving' for a baby - that sort of thing.[/STRIKE] However, what is done is done and cannot be changed now, so you'll have to make the best of it.

Have you looked at what benefits you will get after the child is born? Child benefit will be payable and although it isnt much, it will help a little. There must be some tax credits in there and some sort of childcare voucher scheme as well.

You also dont seem to have a TV package but you are paying for a TV license? You only need this if you are watching live TV as it is broadcast, otherwise, ditch it. Frankly, you cant afford a TV package anyway so it would have to go. Sell the TV if you can and buy what you need for the baby instead. Plenty of us have to do that sort of thing - I sold my 3 year old Ipad to pay for nappies for instance.

Clearly you cant sell the car as it is on finance and not yours to sell, but you will have to severely ration the petrol usage. I suggest you only use it for absolutely required trips like to the supermarket, although you could see about getting much of that delivered depending on how far away you are.

Pepperoni

jaydeeuk1 wrote: »

OK, everyone's thinking it but I'm going to say it.
Why didn't you wait till you could afford to have kids?

No - not everyone is thinking that at all.

OP - Sorry if someone has already suggested, I've only had time to skim (baby napping and about to wake!) - but you only have to take 2 weeks after your baby is born. I know that sucks, really sucks, but what is your childcare for when you do return to work? Is it a feasible (money wise) option to go back a lot earlier than you had planned? You don't have to take 6 months, a lot of people have to go back a lot sooner to avoid debt, nevermind avoid adding to it.

bilko89

Just a quick Q but what are your benefits made up of? Have you included your maternity pay in your benefits? We now have two kids but when myself and my better half had our first we were receiving £82 per month child benefit, £60 per week child tax credits and my working tax credits were £5 per week. That's roughly an extra £340 per month.

Lmh71365

Thank you Zephyr

My on-form earnings were never less than £2000 per month, usually somewhere between £2200 and £2800. So yes, that would JUST cover my OH not working. The question is if I could achieve those figures whilst tired, and preoccupied with my family. It's a 60+ Hour, 6 day a week and sometimes working days off kind of job. I used to LOVE it! I'm thinking switching dealerships might give me the motivational boost I need to hit my personal targets.

I don't think he would be entitled to any benefits as I earn (on form) about £40,000 a year. If I can get out of my finance, I could also have a company car!! Yay, more savings!

I mean, I start getting all excited that this is the solution but it's so dependant on me loving my job to take home that money. As a new mum with a tiny baby I will hardly see, am I going to have that motivation?

I have no problems at all getting a part time job whilst on leave! But I thought this doesn't work out very effective because of the extra tax etc? If I'm wrong there then that is a helpful suggestion!! That could raise up to £500 a month couldn't it!

cavework

Could you work from home for some of your working week?

Tixy

Lmh71365 wrote: »

What I need is a drastic solution to my debts, like a IVA or something - I'm taking it this is completely impossible with the debts being in my mums name or guaranteed by her? Is there nothing I can do besides trying to scrimping and scraping even further to save maybe a hundred, maybe a hundred and fifty pounds?

An IVA is not an option because of the debts in your Mother's name or being guarantor.

It is unfortunate that you took out the new car loan guaranteed by her so recently. Without that you could probably have just about managed to repay the credit cards in her name, and would have had the £10k shortfall in your own name, so would have been able to look at debt management for yourself.

Presumably you have checked the benefits figure is correct? whilst on maternity will you be entitled to child or working tax credits? have you included child benefit as well a SMP?

If the benefits are correct then even with trimming down some of your outgoings I can't see anyway that you will be able to manage unless you can do something drastically different such as moving in with mother or her selling the house.
I think you will have to explain to mother that you won't be able to keep up the repayments on the credit cards or the car.
She obviously knew when she guaranteed the car that she would become liable to make repayments if you couldn't afford to, so whilst I imagine you feel bad about it, she does need to know.

If she cannot make the payments on the car, the cards you have used in her name and her own debts and living costs then she will need to enter in to some sort of debt management. It will probably be best if she contacts one of the debt advice charities for some help.

Tixy

Lmh71365 wrote: »

I have no problems at all getting a part time job whilst on leave! But I thought this doesn't work out very effective because of the extra tax etc? If I'm wrong there then that is a helpful suggestion!! That could raise up to £500 a month couldn't it!

If you are working, even part time then it will likely affect your SMP. So probably won't be better off.

On_my_way

I wasn't exactly thinking that but I was thinking that you have left it until 2 weeks before your maternity leave to sort out your finances and that's not ideal. Plus, it is quite clear that your mum is also in a serious financial crisis and those cards/debts should not be in her name.

I am not judging you but you have got yourself into a bit of a problem. Still, people on here have sorted out FAR worse things and you will be able to as well but you might need to cancel your gym memberships etc even if you do use them a lot.

cakeforbrains

I haven't got any solutions for you, I'm afraid. Although, moving in with your mother seems the best option from an outsider looking in.

I also wanted to add my voice to those NOT judging you for getting pregnant and keeping your baby. Things happen. I hope you get it sorted.

Oh, and about 97% of women are able to physically breastfeed so make sure you seek the right support on that (which can be hard to find). You'll also need to make sure you eat enough. Your grocery bill is very low and your body will supply the breastmilk first and then leave you with whatever energy remains.

Pepperoni

I'd cancel the gym - when you have a baby you won't be using it, really - you won't. Never mind the fact that you cannot afford it.

Phones - find out cost to buy out the contract and if that will be cheaper than letting them run on? You can get SIM only deals for £7 a month.

Prescription - could your OH not get his prescription done 'monthly' and then you just pay the one off fee? I still can't work out why it is so expensive unless its a private prescription?

Please share your childcare plans once you return to work?