Spending more than I earn and don’t know what to do!

Fosterdog

Tarambor wrote: »

Bin the pet insurance, the whole thing is a massive con in the main because the excess they make you pay is pretty much designed to cover all but the worst bills you'll ever get. Everyone I know with pet insurance has never been able to make a claim even though their pets have been to the vets because the bill has been less than the excess.

Terrible idea for someone who has no other means of funding any treatment needed. Just head over to the pet board and you will see how many people have had many very expensive claims. What do you think OP would do if say their pet got run over and needed life saving surgery? With insurance they will just have the excess to pay, without it and already in debt they won’t be able to borrow more so would have to just have their pet PTS.

middleclassbutpoor

Whose names are the debts in? Are they all joint or in your name? If not in your name, these may be worthwhile defaulting on if you cannot cover these?

Re your employment, this is something I understand given its the same sector that I am in.

What I would suggest that you do if you cannot increase your income in anyway is to approach your HR team and look for the company policies around this area.. You are always better to explain the position you are in before you get any deeper.

It sounds as though your position has come from your partner not being able to work rather than you being reckless with money so if you are proactive and open with your employer, it shouldn't mean that you will lose your job but if you end up defaulting and your employer finds out that this is a result of continuing to increase debt to cope then that would look worse to them.

If there is a union, it may be worth approaching them as they may have the benefit of helping others in a similar situation.

[Deleted User]

Thanks again for all the responses they are greatly appreciated.

@Fosterdog - thanks for the comments, got some adjustments and good ideas from them.

Partners income - Should be looking to start part time work early next year.

Council tax bill i need to query as I have the bill in front of me and if it was 10 months it would be more than what I am paying but if it was 12 it would be less, but it mentions that there was a balance from 2016/17 of £120 so I am wondering if I am paying the 12 months plus the £120 balance from last year (from before we moved into the property)? I will definitely query this tomorrow.

Water rates - I did the water meter calculator recommended on MSE and it worked out at £35pm which would be a saving of £18pm so could be worth the switch. I am sure we could be more efficient with water as well to save more if we was on a meter.

Groceries - I am currently looking through some of the old style posts and I have found some fantastic cheap recipes on Jack Monroes blog thanks @angela110660! I also want to make a visable weekly meal plan so we know what we are all having for each meal so foods can be planned for and not wasted.

Clothes - I put that there for what we spend on average at the moment per yer divided by 12. I haven't bought new clothes for ages but my boy has being a growing lad and needing school uniform. One thing that has helped is asking family for clothes for him as side gifts when they ask for gift ideas.

Medical - This amount includes prepaid prescriptions (Which i see you & @fatboy have spotted is a duplicate) and contact lenses, I have tried getting cheaper lenses but because I work in a highly air conditioned environment all cheaper lenses that the ones I get leave me with dry and irritated eyes even when using drops during the day.

Contents insurance - Currently buying at around £11pm

Other insurance - Is phone insurance for myself and my wife but I am trying to see if my contents insurance would cover this with theft, loss or accidental damage. If it can, I can cancel this upon purchase.

Haircuts - I have my wife cut my hair now and we will try and leave my boys hair an extra week to reduce frequency.

Prescriptions - Duplicate! Good spot!

Cash - As with clothes this is my average cost of car maintenance divided by 12, I will be starting an emergency fund from next month that will start building up for things like this.

Loan 1 - Last payment is on Aug 2019 - 21 payments left

Loan 2 - Last payment is on June 2022 - 55 payments left

@patman99 - Unfortunately there is nobody near me doing my shift pattern that I could share transport with. My spouse will hopefully be ready to work again part time early next year which should be a help thanks.

@enthusiasticsaver - I have moved my credit card to a 0% for 38 months card and I am going to open a separate bank account for my wages to go in as previously mentioned but without defaulting on my debts just to separate from them. I could then ask my parents if they could lend me the money to cover my overdraft then wont be paying interest and I can pay them back the money, if they cant afford to I will still pay the overdraft off every month with a set amount but it will take a lot longer. We are currently selling lots of things we arent using anymore on shpock, gumtree and facebook. I may have to look into getting a temporary second job to push things a long as if I can pay of my first loan sooner than Aug 2018 I will get £130pm freed up which could help pay off the overdraft and credit card faster! Also just starting next month to build an emergency fund in an accessible savings account thanks.

@Tarambor - Fortunately the pet insurance has already paid for its self after an operation needed when my dog was 2 and when he was accidentally poisoned by a neighbors rat poison and needed his stomach pumped. Fingers crossed we wont need to claim again but I would much rather have it there because if I couldn't afford the treatment needed I don't know what I would do and the excess is only £60.

@middleclassbutpoor - The debts are in my name, I will definitely look up more information about our company policy's on this matter and may talk to HR, I have already spoke to them in the past because one of my loans was defaulted last year even though I was up to date on my payments (Loan providers fault - had credit report repaired after and loan reinstated with small reimbursment) so I agree they are more reasonable and understanding when they know the reason behind these financial situations thanks.

enthusiasticsaver

Moving your credit card to a 0% deal is good. I would continue to pay the £60 payment on that until the overdraft is paid off which should be your next target unless your parents can lend you the money to repay it and are willing to accept a fairly low monthly repayment.

[Deleted User]

@ enthusiasticsaver - Thanks, I was going to keep the £60pm payments and it works out well because the total balance divided by the 38 months of 0% interest is £60 which is perfect!

I am starting to feel much better about this now and I’m scouring this forum for ways to reduce grocery bills now that I have a list of things to do to reduce my other bills.

theoretica

When do you pay car parking? Could you cut this by walking a bit further?

Phone insurance, how much would an absolute minimum handset be if you needed to replace it? Could you get an old one from a friend or family who upgraded if you needed? You might be better off putting the money aside yourself, and being careful with them.

[Deleted User]

I agree about the mobile phone insurance.

I only have it, because it's part of the package I got from my bank, for my travel insurance.

I won't ever be able to make a claim on it.

[Deleted User]

@theoretica & @Bedsit Bob

I will be cancelling my phone insurance when I get my contents insurance so that bill will be gone in the next month or 2.

patman99

My suggestion regarding car sharing was that you could post your journey and if some is going all or part of the way, they would book a seat in your car.

I believe one site is blahblahcar.

Windofchange

The car sharing idea is a good one. Otherwise, how about selling the car and buying a 125cc scooter? I used to own one and they are cheap as chips to run. £1000 would get you a decent second hand one, and it cost me a fiver a week in petrol to commute 140 miles to work and back. Tax is a tenner a year, insurance a couple of hundred, and servicing costs next to nothing. Cold weather is just a case of getting some good gear. I ride all year round on my big bike and only skip a day when there is ice on the roads. Safety reasons rather than too cold.