what to do?

QueenBeruthiel

Childcare costs are crippling you. When does the younger child turn 3? Then you will be entitled to - I think it's 15 - free hours p.w. subsidy.

Would a childminder be a cheaper option?

beth1611

She turns three next year, she's not 2 yet.
I did look into childminders but none in my area had space for a baby at the time and also weren't that much cheaper than nursery

fatbelly

sourcrates wrote: »

Things are changing in April with regard to Bankrupcy.

Amongst the changes taking place is the option to pay the fees monthly, after which you can submit your application.

Details here :

http://www.stepchange.org/Existingclients/Bankruptcyclients/Bankruptcychanges.aspx

Things are pretty much as uncertain as stepchange say about the new process except that we do know the fee:

£525 plus £130, with no remission due to low income

However, we do not yet know the payment options as they are not following the successful and well established methods used in DROs.

I'll update my thread as they let us know (1 April maybe?)

https://forums.moneysavingexpert.com/discussion/5400026

Happytravelling

Re basic bank accounts, I saw this news article earlier in the week, so you might need to be firm with bank staff if they don't know what they're talking about: http://www.bbc.co.uk/news/business-35472850

Would sky let you at least reduce your package, even if you can't cancel completely?

Can you reduce the cost of childcare by purchasing childcare vouchers from work?

You could make some extra cash by selling stuff, dvds, music, clothes that the kids have grown out of? Not a long term solution but could buy breathing space

beth1611

I already sell everything we no longer use, regularly do car boot sales etc.


My work don't offer childcare vouchers and Sky have already reduced my package by 20% 5 months ago which is why im under contract with them for another 7 months.


Thanks for your suggestions though

beth1611

If I go down the bankruptcy route-assuming they are going to allow payments in instalments- what should I do in the meantime as I can't afford the payments on the debt.


Do I just stop paying them or pay them something?

Happytravelling

There are various things to cut down a few pounds here and make a few pounds there, but they're not going to give you the certainty of extra cash to meet your repayments... maybe contacting national debtline (notice a rep has already been responding on here) or stepchange to find out if and how they can help.

pmlindyloo

beth1611 wrote: »

Hi, i'm new, have reached a point in my debts where i can no longer make the minimum payments.


I went to citizens advice and they said my only option was to go bankrupt but i can't because then we'll lose our home as it's in our tenancy agreement that we will remain solvent.
They also said that it will be difficult for other charities to offer help because of the way my husband and i manage our finances. We have separate bank accounts, he pays half the rent and i the other, he has a car and pays all related costs as well as our food shopping and council tax. I pay everything else. All the debts are mine.
It seems the budget forms everyone uses insists on having all fields filled in such as council tax and because i don't pay it or anything towards groceries then that causes issues.


These are the details if anyone can help please?


Income: 900.95
child benefit: 137.60
tax credits: 526.20


total: 1564.75


Outgoings:


Rent: 365
water: 24.72
tv licence: 12.12
gas: 39
electric: 30
home insurance: 14.04
mobile: 36 (15 for call plan, 21 for actual phone)
landline: 17.99
broadband: 5
sky: 40
nursery: 598
after school club: 108
school dinners: 43
swimming lessons: 24
haircuts: 5
gifts: 10
entertainment: 10
clothing: 10
public transport: 26


total: 1417.87 surplus: 147


Debts:


Barclay unsecured loan £16771 (328 pm)
MBNA credit card £10835 (199 pm)
Barclaycard £660 (15pm)


we are a household of 4, 2 adults, 2 children aged 8 and 2


thanks for any advice you can give

I can understand why CAB have given you the advice that they have.

Looking at your outgoings then you have very little 'wriggle room' as your child care costs are a huge expense in your income.

Tax credits will be a joint claim and your child care costs can be included in the claim.

Since your tax credits are not covering the child care care costs then I am wondering what your partner is earning.

Did CAB refer to the fact that your outgoings may not indicate a 'fair' split of what you and your partner have arranged financially?

I understand that you do not want to involve your partner in this but without your working 'together' financially then my personal feeling that going bankrupt yourself was the most sensible advice.

beth1611

My husband brings home £1100 per month.


His outgoings are:


Rent: 365
council tax: 145
groceries: 280
road tax: 18
car insurance: 28
petrol: 40
sons football coaching: 28
mobile: 30
gifts: 10
haircut:5
prescription: 9
entertainment: 20
pension: 30
car maintenance: 15


total: 1023 surplus: £77

pmlindyloo

beth1611 wrote: »

My husband brings home £1100 per month.


His outgoings are:


Rent: 365
council tax: 145
groceries: 280
road tax: 18
car insurance: 28
petrol: 40
sons football coaching: 28
mobile: 30
gifts: 10
haircut:5
prescription: 9
entertainment: 20
pension: 30
car maintenance: 15


total: 1023 surplus: £77

Thank you.

Did CAB do a benefits check for you while you were there?

It is possible that your tax credits are not right although obviously I do not know your previous year's year income and childcare expenses. Plus, you might be eligible for some housing benefit (just might as I don't know where you live!)

You could try putting your information into the benefits calculator on https://www.entitledto.co.uk to see what it says but for really accurate information you would need to take your paperwork to CAB and ask for a benefit check. (ask them what you need to take)

Do you pay a reasonable rent for your property? Can you do a comparison to see if there is anything cheaper?

Am just trying to see if there is any chance of either upping your income or lowering your expenses (as others have tried to do) to see if there is any possibility that a DMP might be an option.