Newly Separated

Breo

Busy_Mee1 wrote: »

I am so sorry you have had such a tough time and I hope you have some support from family and friends.

You don't need me to tell you that your current financial situation is unmanageable and you might just scape the £57.00 you need to balance your SOA by tinkering with your utilities, but you need something a bit more drastic in the long term. Your SOA above only allows you £150 to live on a month ...food, nappies clothing basically everything and that just isn't sustainable.

Agree! Although mum bought me 300 nappies today so I may never need these again :rotfl:

So I think you need to think about the following options:

1. Get legal advice to secure the financial future for you and your child.
2. Cancel £90 TV/internet package - explain the change in your circumstances, they should be sympathetic.

I need to keep the internet and phone line as I work from home in the evenings, but I'm hoping to cancel the TV and save a few quid.

3. Explore help with childcare - this needs to be a priority. Do you have any family and friends that could help ? Would your Dr give you a sick note because of the stressful situation in the meantime until you can get sorted. This would give you some breathing space.

Work have been very understanding and given me a month's paid leave, so I'm using the last paycheque without childcare to buy things I won't be able to afford, but unfortunately I don't have family close by that can help. I hope longer term to be able to reduce my days to 4 which would shave off a couple of hundred - as long as I can do longer hours the other days.

4. The car loan needs to go - could you sell the car and buy something cheaper out right ? Would you qualify for another 0% credit card to pay the car loan off ?

Agree getting rid of this would solve the problem. I have 15 payments left and I wondered about taking out a longer term loan to at least reduce it. The car is in excellent condition so I'm loathed to buy something else in case I have problems with it. I hadn't thought of putting it onto my 0% card. Will ring them tomorrow and find out what payments I would be looking at with that.

5. Get a lodger as others have suggested
6. Sell the house and buy something cheaper

Again agree. The house has nothing but sad memories in it. I'm thinking about where I might want to live and starting to look, but think this will be longer term.

7. Cancel Union - approach Union to see if they have access to charitable fund to help you through this tough time.

Will keep that in mind - I guess they might given me a payment break or something, at least until I could pay off some other debt and reduce my outgoings.

All this is tough stuff I know but you need a plan that is sustainable.

It is tough, but at least if I get myself sorted now, once we are out of the otherside we will be quite well off - when she goes to school I'll be loaded!!:rotfl:

The very best of luck x

Thanks
b

Breo

sammyjammy wrote: »

If you voluntarily move to a water meter you have the chance to move back to rateable value charges within a 12 month period. Unless you are in the South West the chances are you will save half of what you are paying now. A water meter automatically gives readings to the provider so no question of building up debt.

Thank you - thats very reassuring to know. I will give them a ring tomorrow. Thats cheered me up no end!

Kim_kim

Not a huge help, but here goes.

I have switched to smart meters for my gas & electric.
They (apparently) send daily readings back to the supplier & they can monitor & adjust the direct debit better.
I don’t want to rack up a debt by paying too little monthly, but nor do I want to overpay & having British Gas sitting on my money.

Smart meters might be a good idea for you.

Breo

Honeysucklelou2 wrote: »

How old is your LO? When your child reaches the age of 3 you should get 30 hours of free childcare.

Checked this out today - in Wales the rules are different and you have to use their specific provision within the council area you live (which is a long way from where I work presently). They cant offer wrap around either. But I'll keep it in mind for next year as maybe will be cheaper to use that and then pay someone to pick her up etc.

Breo

LMG1305 wrote: »

Our house is a 4 bed detached & our buildings & contents insurance is only £22 per month. I pay annually but save that monthly amount ready for next years renewal.

Also gas & electric, we are a family of 4 and pay £65 per month in total.

Thanks - I managed to cut my insurance down (and as it was due pretty soon they let me switch early. Todays little victory!

£65 a month sound much more manageable for electric and gas. How active are you in trying to keep usage low?

Breo

Kim_kim wrote: »

Not a huge help, but here goes.

I have switched to smart meters for my gas & electric.
They (apparently) send daily readings back to the supplier & they can monitor & adjust the direct debit better.
I don’t want to rack up a debt by paying too little monthly, but nor do I want to overpay & having British Gas sitting on my money.

Smart meters might be a good idea for you.

Thanks - might also help me see what makes a difference in usage terms i guess? Did it cost to switch over?

Breo

So thanks to being able to put some tips into practice already, I've shaved some little bits off here and there. Plus today was bill day, so my debt came down a tiny bit. I know I'm still short, but at least not by quite as much. And I know there are still savings to be made.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2817
Partners monthly income after tax....... 0
Benefits................................ 82.8
Other income............................ 0
Total monthly income.................... 2899.8

Monthly Expense Details
Mortgage................................ 756
Secured/HP loan repayments.............. 48
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 121.5
Electricity............................. 62
Gas..................................... 62
Oil..................................... 0
Water rates............................. 63
Telephone (land line)................... 0
Mobile phone............................ 14
TV Licence.............................. 12.54
Satellite/Cable TV...................... 90
Internet Services....................... 0
Groceries etc. ......................... 150
Clothing................................ 0
Petrol/diesel........................... 100
Road tax................................ 12.68
Car Insurance........................... 34.38
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 940
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 26
Pet insurance/vet bills................. 0
Buildings insurance..................... 11
Contents insurance...................... 0
Life assurance ......................... 50.37
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Professional Union...................... 26.05
Total monthly expenses.................. 2579.52


Assets
Cash.................................... 800
House value (Gross)..................... 220000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 225800


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 160000...(756)......0
Hire Purchase (HP) debt ...... 2000.....(48).......0
Total secured & HP debts...... 162000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Car Loan.......................3458......216.1.....4.9
Credit Card Debt...............10956.5...129.8.....0
Total unsecured debts..........14414.5...345.9.....-


Monthly Budget Summary
Total monthly income.................... 2,899.8
Expenses (including HP & secured debts). 2,579.52
Available for debt repayments........... 320.28
Monthly UNsecured debt repayments....... 345.9
Amount short for making debt repayments. -25.62

Personal Balance Sheet Summary
Total assets (things you own)........... 225,800
Total HP & Secured debt................. -162,000
Total Unsecured debt.................... -14,414.5
Net Assets.............................. 49,385.5

Breo

More excitement! Just had an email confirming the nursery take Tax Free Childcare, so with the full calculation done I now can afford my outgoings :-)

I know I'm still a long way from being sustainable, but at least the books balance on essentials.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2817
Partners monthly income after tax....... 0
Benefits................................ 82.8
Other income............................ 0
Total monthly income.................... 2899.8

Monthly Expense Details
Mortgage................................ 756
Secured/HP loan repayments.............. 48
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 121.5
Electricity............................. 62
Gas..................................... 62
Oil..................................... 0
Water rates............................. 63
Telephone (land line)................... 0
Mobile phone............................ 14
TV Licence.............................. 12.54
Satellite/Cable TV...................... 90
Internet Services....................... 0
Groceries etc. ......................... 150
Clothing................................ 0
Petrol/diesel........................... 100
Road tax................................ 12.68
Car Insurance........................... 34.38
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 874
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 26
Pet insurance/vet bills................. 0
Buildings insurance..................... 11
Contents insurance...................... 0
Life assurance ......................... 50.37
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Professional Union...................... 26.05
Total monthly expenses.................. 2513.52


Assets
Cash.................................... 800
House value (Gross)..................... 220000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 225800


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 160000...(756)......0
Hire Purchase (HP) debt ...... 2000.....(48).......0
Total secured & HP debts...... 162000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Car Loan.......................3458......216.1.....4.9
Credit Card Debt...............10956.5...129.8.....0
Total unsecured debts..........14414.5...345.9.....-


Monthly Budget Summary
Total monthly income.................... 2,899.8
Expenses (including HP & secured debts). 2,513.52
Available for debt repayments........... 386.28
Monthly UNsecured debt repayments....... 345.9
Amount left after debt repayments....... 40.38

Personal Balance Sheet Summary
Total assets (things you own)........... 225,800
Total HP & Secured debt................. -162,000
Total Unsecured debt.................... -14,414.5
Net Assets.............................. 49,385.5

Kim_kim

Breo wrote: »

Thanks - might also help me see what makes a difference in usage terms i guess? Did it cost to switch over?

No, free. Plus they gave me one of those usage monitors free, so I can see how much I use per day.

If you’ve got sky tv, you can switch to a freesat box & it works like sky plus with less channels.
There is a brand beginning with H, they all seem to rate, you can buy reconditioned ones for about £100 & that’s it.
You can also by a months extra from Now TV, if you fancy some premium channels like films - like at Christmas.

baggybreeches

Hiya, sorry you are having a tough time but you sound like you are doing well and sticking to a plan so I wish you and LO the very best of luck. Definitely get on to the TV subscription straight away, try doing this through an online chat or an email conversation with them, they seem to be the most helpful customer service people. Also your water bill is very high (probably because your house is a 4 bed house) get a water meter fitted asap (it will probably pay your monthly car payment with the saving). Lastly if your car is reliable and safe then I wouldn't rush to swap it for a cheaper one, a good reliable car is a necessity and I would rather pay a fixed amount monthly for the peace of mind that it was roadworthy than buy a cheap runaround which could spring a £££££ bill unexpectedly.