Where do I start?!

grumblybum

Hello there people,

I am new to MSE, although I have often popped in for a browse. I would really like some input on what to do about my financial situation. Currently I owe approx £27000. The majority of this will be finished in 4 years, but I really need to try and knock it down quicker, or do something, as I am barely meeting the bills each month. Its now at the point where I can't even pay the childcare fees, but can't give up uni as the bursary the uni pays is needed to meet the essential bills.
So where do I start? I've done the budget page previously, and have cut out all non-essential spending, except the kids swimming lessons, but am feeling awful. Its the middle of the month, the kids have grown out of their trainers and I am too skint to buy any more. I just feel like the worst parent in the world.
Thanks for reading

floss2

Hello :wave:

Have you put together an SOA? (statement of affairs) Grab a cuppa & read Southern Scouser's sticky for First Time Posters.Then the other moneysavers will take a look & see if they can help.Well done, you've taken the first step. And don't be scared to admit how you feel - we're a very nice bunch really!

madmoney_2

First things first, you have taken the massive step of admitting what has happened, and you realise you need to sort it out. YOU ARE HALFWAY THERE ALREADY!!! You cant expect everything to be ok overnight, however you will feel much better if you post your SOA on here (see southern scousers sticky at the top of this board), then im sure someone will be along to help you, they are really nice people on here and no1 is going to judge you. With regards to the kids trainers, go to a carboot or have a look on ebay, you need to get the kids trasiners THEN tackle the debt, and you are not the worst parent in the world, many of us have been in the same situation so you are not alone.
Just wanted to say good luck and pop ur soa up so we can have a look xxxx

chevalier

have you snowballed your debts? Have a look at the snowball calculator on https://www.whatsthecost.com . You put in your debts, apr, and payments and it gives you a debt free date, then you can see which debt should have the most thrown at it first (the highest apr), with the rest just having minimum repayments. It can help.

Whilst I guess it would be difficult to get a job, could you do mystery shopping in your lunch hour? Only brings a bit of money but it all helps.

How long til the end of your course? Will you be finishing this year? You may also be eligible for a student hardship grant, which might help? Sometimes they want to get rid of the money at this time of the year, as they can't carry over the money to the next academic year.

Do you have last years text books that you can sell to this years students?

Best of luck
chev

grumblybum

OOoops! Sorry, here is SOA
Incoming

Partners Salary £1600
student bursary £496
Benefits £360
Child support £100

Outgoing

Rent £395
Council tax £80
Electric £110
Tv Licence £11.25
Phone & internet £70
Car Insurance £55
Food £400
Pet insurance £27
Union fees £15
Home insurance £25
Water £42
Childminder £225

Car payments £240 @ 6% apr £11520 remaining
loan £233 @ 13% apr £19572 remaining
loan £188 @ 8% apr £8460
Credit card @ 31% apr £190 remaining
store card £100 @ 16% apr £1200 remaining
store card £53 @ 24% apr £1854 remaining

total debt £43486

Looks like I way underestimated the debt we're in.

rayday2

Only one that shouts to me is your food money, we are a family of 5, 3 children one in nappies, a dog and two cats, with toiletries, cleaning stuff food all in we spend a max of £60 per week.

madmoney_2

Dont worry about it, we have all underestimated at some point lol
ok there are a few things I picked up on with ur soa, firstly, how many are you feeding on 400 quid a month? You may find it helpful to go over to the old style board for some tips on meals, and try to plan your meals for the week ahead and only do one weekly shop, no nipping in for a few bits lol. I noticed there was no gas bill? Also u could shop around for cheaper pet insurance i think, aswell as ur phone internet bill, that is the same as mine but im contracted till the end of september, as soon as it runs out im going for talk talk, it will drop my bill by at least 30 quid!! have you got a mobile? you need to pop that on ur soa if its applicable
hope this helps xxx

nickelodeon

Ok, just a couple of comments, electric seems quite high, are you with the most competitive provider?

£70 for phone and internet is also a lot, I know there are deals where you can get phone, broadband and call package for about £20.

How many people are there in the household, try and cut down the £400 for food, look at the old style board for tips, meal planning and shopping lists (that you stick to!) are great ways to cut down on the amount you spend.

Can you increase your income at all, how about an evening job?

According to your SOA you do have some spare money each month, but I suspect that in reality that's not the case, therefore try doing spending money to see where all your money is really going and where you can cut back.

Good luck and keep us updated!!

madmoney_2

plus ive just worked it out and ur just about covering ur outgoings with roughly 50 quid to spare, have u got anything you can sell on ebay or do a carboot? just brainstorming lol

rayday2

We have pet insurance for 2 cats and a dog it is £7.05 a month for them all it was with a small company not one of the big ones but I have to stress we have no pedigrees so I think that can influence charges.

grumblybum

madmoney wrote: »

plus ive just worked it out and ur just about covering ur outgoings with roughly 50 quid to spare, have u got anything you can sell on ebay or do a carboot? just brainstorming lol

Thanks! Just realised I forgot to add £200 a month for petrol (am clearly daft today). I got hubby to do a car boot last week, but am scouting as we speak for stuff to ebay!!!