Budgeting and saving tips

Cat4321

Hi I’m New to this site and Just getting used to navigating. I’m on maternity leave and when I go back to work next year will have to pay around £650 a month childcare costs. We are in around £20k cc debt and at a point where we can’t move them around as the 0% ends. Have been thinking about trying to consolidate this on to our mortgage when the term ends in the summer but not sure if this will free us up
Any cash as will still have to pay at least 1% off the debt off (we already pay 1% min payment of this cc debt).
So I’m
Now thinking we’re going to really have to try and stick to a budget much better and not add to our debt if possible and try and pay it off.

So I’m Looking for any tips? I’ve seen people Mention saving 1p’s and snowball calculator which are new to me and wondering if there are any more
Ideas/apps that may help
Me budget (and stick to it) and pay off the debt, also
Any theights on consolidatong the debt on to
Mortgage? Thanks

EssexHebridean

OK - first thing I'll say is that when you are still at a point of saying things like "try to stick to a budget" and "not add to our debt if possible" then for goodness sake put the idea of ANY sort of consolidation - but especially the form that leads you to convert unsecured debt to secured - right out of your minds. To be honest it's almost never a good idea anyway - but certainly not in a situation like yours.

Your starting point here is with one thing and one thing only - ignore everything else for the time being - create, and learn to live within, a budget. You'll find the link to the SOA calculator we suggest in my signature - get that filled out, make it honest and accurate. You may find a years worth of bank/card statements helpful to identify what you are really spending in various areas. You could then, if you like, post that into your thread here and we can take a look and see if there are any pointers we can offer.

Also - learn to budget on paper (or at least manually, on a spreadsheet) before thinking about using an App - you need to learn the process before trusting software to do it for you, else if something goes wrong you won't know how to fix it.

monetxchange

I second all of what EH says. Putting it bluntly, with £20k of debt you're way past the saving 1ps level. It would be great to see an SOA so we can advise, or please ask if there are any budgeting questions you have. Hoping you're inching close to your lightbulb moment!

Sncjw

Best not to turn it into a secured debt. What happens if you can’t afford the extra payment on the mortgage.

Cat4321

Okay thanks yes points taken, I will re do budget and come back, I used to be very good at budgeting using different purses for food and fuel etc but since having children and child care costs have buried my head , thanks for your advice

EssexHebridean

Cat - it's easy done and I suspect very few of us on here haven't at some stage been guilty of the thing of just letting it all wash past us, and quietly convincing ourselves that "it will all be alright - somehow" without giving any real thought to how that might happen. I know I have - used to be permanently in the overdraft by the end of the month, a loan to purchase a car was second nature ("It's just what you do, isn't it!") and we spent 5 years talking about overpaying the mortgage but not actually doing anything about it... The great news is that you're already seeing that it needs action to fix the situation - the next step is to take that action.

Cat4321

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 650
Partners monthly income after tax....... 1400
Benefits................................ 137.6
Other income............................ 0
Total monthly income.................... 2187.6

Monthly Expense Details
Mortgage................................ 808
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 193
Electricity............................. 44
Gas..................................... 0
Oil..................................... 0
Water rates............................. 43
Telephone (land line)................... 47.93
Mobile phone............................ 58.5
TV Licence.............................. 12.83
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 400
Clothing................................ 20
Petrol/diesel........................... 100
Road tax................................ 41.5
Car Insurance........................... 50
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 18
Pet insurance/vet bills................. 0
Buildings insurance..................... 14.48
Contents insurance...................... 0
Life assurance ......................... 70
Other insurance......................... 20
Presents (birthday, christmas etc)...... 0
Haircuts................................ 50
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2021.24


Assets
Cash.................................... 0
House value (Gross)..................... 220000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 223000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 179000...(808)......3.49
Total secured & HP debts...... 179000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Credit card....................32356.....337.5.....0
Total unsecured debts..........32356.....337.5.....-


Monthly Budget Summary
Total monthly income.................... 2,187.6
Expenses (including HP & secured debts). 2,021.24
Available for debt repayments........... 166.36
Monthly UNsecured debt repayments....... 337.5
Amount short for making debt repayments. -171.14

Personal Balance Sheet Summary
Total assets (things you own)........... 223,000
Total HP & Secured debt................. -179,000
Total Unsecured debt.................... -32,356
Net Assets.............................. 11,644

Cat4321

Totalled up the debt and it’s a lot more than I thought as you can see. Had a massive panic about this and still am. Thinking we probably need to sell the house and try and pay off debt this way as we can’t afford nursery costs when I’m back at work. Thinking about changing jobs for better money bit tricky with child care needed. Feeling awful
Now and not sure what to do who to call.

Cat4321

This is my approx salary when in maternity leave, when I return next year il earn £1127 and have to pay approx £650 a month for three days, used to work 4 days but this cost £800-900 a month so worked less.

Cat4321

Also partner earns £1700 not £1400

benbay001

Cat4321 wrote: »

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 650
Partners monthly income after tax....... 1400
Benefits................................ 137.6
Other income............................ 0
Total monthly income.................... 2187.6

Monthly Expense Details
Mortgage................................ 808
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 193
Electricity............................. 44 - Seems very low especially as you have no other fuel bills? I live in 1 bed flat with electric heating and my electric bill is £70 on the average month.
Gas..................................... 0
Oil..................................... 0
Water rates............................. 43
Telephone (land line)................... 47.93 This seems high to me. What do you get for this? Is it internet aswell? Can you downgrade?
Mobile phone............................ 58.5 Too high for 2 people trying to clear debt - When do they expire? Try going sim only?
TV Licence.............................. 12.83
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 400 This can definitely be reduced by 20%. Pick up whatever is on offer and check that its truly cheap by comparing price per weight. Being budget conscious with your groceries doesn't necessarily mean beans and rice. Done sensibly you can have a ver varied diet.
Clothing................................ 20
Petrol/diesel........................... 100
Road tax................................ 41.5
Car Insurance........................... 50
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 18
Pet insurance/vet bills................. 0
Buildings insurance..................... 14.48
Contents insurance...................... 0
Life assurance ......................... 70
Other insurance......................... 20
Presents (birthday, christmas etc)...... 0 - Im sure this isnt true - if you dont consider what you spend on the average month of the year, your budget wont be accurate.
Haircuts................................ 50
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2021.24


Assets
Cash.................................... 0
House value (Gross)..................... 220000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 223000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 179000...(808)......3.49
Total secured & HP debts...... 179000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Credit card....................32356.....337.5.....0
Total unsecured debts..........32356.....337.5.....-


Monthly Budget Summary
Total monthly income.................... 2,187.6
Expenses (including HP & secured debts). 2,021.24
Available for debt repayments........... 166.36
Monthly UNsecured debt repayments....... 337.5
Amount short for making debt repayments. -171.14

Personal Balance Sheet Summary
Total assets (things you own)........... 223,000
Total HP & Secured debt................. -179,000
Total Unsecured debt.................... -32,356
Net Assets.............................. 11,644

Those are the areas i would start looking at. If you dont complete your budget accurately i wont help you work out where money is going.

Best of luck.