Help to clear debts under £1000

Chazz.Collins

Hi everyone! First time poster, occasional browser here!

I'm a mother to a 5 year old and I live with my partner (not her father). My daughter's father doesn't pay child support as he's part-time employed, but he does give her dinner and look after her overnight 3 times a week. I work full time, and also travel 10 hours a week to this employment (1 hr back and forth by car).

I have a debt to HMRC that was occurred during our time together on a joint tax credit claim (we both worked for Currys and our "unknown until the moment they are paid because it depends on what you sell" quarterly bonuses pushed us over our declared base income.

Long story short, I now have £791 owing to them (my ex also has this amount as he is liable for 50%).
I want to get rid of the debt and start saving for important things, like a new car (mine clocks up the miles quickly!) and also hopefully a mortgage deposit.

My income is as follows:
1300 - work
300 - current partner support
I also sell some crafts on Etsy, but that is sporadic and earns me about £5 per order (usually around 2 orders a month)

My outgoings:
535 - Rent
74 - Council Tax
40 - Water rates
90 - Gas/Electric
40 (approx - varies) - TV/Phone/Broadband
110 - Childcare (2 nights a week after school)
12 - TV licence
50 - Car insurance
27 - Mobile bill
22 - Finance agreement (spread over 10 months, 5 months down)
20 - various insurance agreements
130 - Diesel (approx)
150 - Food

At the moment I pay HMRC £50 a month, but it's getting me nowhere fast....

Does anyone have any tips on how I can make my money go a bit further and start saving??
I don't smoke or drink, and I shop either at Morrisons or Aldi...

Any advice is appreciated!

MallyGirl

your outgoings sum to 1300 so that leaves the 300 for everything else. Take £50 for HMRC out and there is £250 left. You have nothing in the there for clothes for a growing 5 yr old. Do you get free school meals?
The rent is a pretty high proportion of your income - is that your half?
what about haircuts, prescriptions?
there isn't much wriggle room there

mrskingandthescarecrow

Can't see anything for car repairs, mot, road tax, gifts. You will need money for these at some point.


The usual rule to clear debt is to increase your income as much as possible and reduce your outgoings as much as possible.


Maybe have a clear out and do a car boot or sell things online. Do online surveys (tedious but can raise a bit of extra cash).


Outgoing wise - could you shop around to get a cheaper deal on gas/elec? Maybe get rid of the tv package and TV licence and just keep your internet. I use Netflix; there's always something worth watching. Can you reduce your mobile to a sim only deal? Meal plan to keep shopping to the minimum.


All the pounds will add up and if you pay them off the tax credits balance it will be gone sooner.

mrskingandthescarecrow

Also, if you're not already, claim child benefit for your daughter.

Chazz.Collins

Hi everyone, thank you for your kind responses.

As far as car repairs, MOT, etc; my stepfather is a mechanic and does all the MOT stuff at a reduced cost for me, so that's not so bad.

We don't get free school meals, she has a lunchbox which is made up by her father / his mum (I drop her off with them at 7.30am so I can get to work on time).

I am already claiming child benefit for her. I was getting child tax credits but as my new partner is now living with me, they have stopped (that's why I didn't include them on the income list - was previously around £240 a month).

Gas and elec is currently the cheapest around (have saved nearly £500 with them this past year, it's crazy!).
I'd like to get rid of the TV package but am in contract until August. When it's up I intend to get a freesat box (most of the progs I like are either on channel 5 or BBC1 anyway!!).
Mobile is in contract for another 18 months, sadly; but at least is half the price of my old contract!

Clothes for daughter... She gets a lot of hand-me-downs from her cousin (2 years older), and I'll pick up bits and bobs here when I can (although admittedly all her PJ trousers now stop at her knees!! Thank goodness it's summer, lol).

I live in Wales so prescriptions are free. Haircuts... I currently have a shaved head (shaved for charity) and my daughter has such fine hair that I only tend to get it done 1-2 times a year.

It seems like I'm doing a fair bit to save, but there's always something, eh?

Any more tips would be gladly received :-)

nkkingston

Try doing a spending diary for a bit. It'll show you if your calculations are correct, and it'll also make you more conscious of your money in general.

I don't know how tax credit debts work, but are you sure you owe half each, rather than you're both liable for the whole amount? If he doesn't pay on time, you don't want to be stung for his share (or at least, you want to be prepared for that eventuality).

tori.k

You sound like a very independent but have you considered asking your partner to increase their share a little towards the home. even if they just took over the cost of the TV & BB.

alexadams88

why is your partner providing you little amount? please tell him to raise some and are you sure you need a car?

fewgroats

Try selling on Folksy, Fiverr and maybe Upwork? Maybe up your prices slightly on Etsy?

LPMS

Have you got confirmation from HMRC that you are liable for only half? I ask this because if you clear your half before your ex than HMRC can still chase you for the remaining debt until it is paid in full.

Chazz.Collins

Hi everyone<

thanks again for your replies :-)

Yes, I am positive I only owe half; it's because it was a joint claim which has now ended as we separated, and as such we are each liable for half. The payment plans have been set up for each of us. I spoke to them the other day (to get the outstanding amount of £791) and they confirmed.

My partner has never lived away from home before, and he used to give his family £300 a month for rent and bills (was previously council house as his dad is disabled), and paid for his own food, separate bills, etc.
He gives me £300, but he does also buy 50% of the food we eat (I buy it one week, he buys the following week).

And as far as car, yes I do - I work 36 miles away from my home, and there's no public transport to get me there (would end up costing more than my car, which is very economical at 100 miles for £10 fuel).

I will ask him to increase a little - I just hate asking, lol.