In a pickle

Littleskintdragon84

Oh I seem to have got myself in a bit of a pickle.
I’ve started a new business, I love it, I’m recently self employed. I’m paying myself a small wage every week currently until it builds slightly £100 a week.

I took out a credit card to purchase initial stock required (£2k)

My mortgage is increasing by £260 a month from Sept 1st.

I have three car finances to pay (one for DD, who pays £100 a month towards it, total cost is £125 for hers)

A kitchen to pay off £178 a month, 4 years left.

On top of every other bill that is constantly increasing. 

Good points: Phones are sim only, I’m quite savvy with food shopping.

DH earns a low wage, which means that we are entitled to Tax credits (£31 a week)
Next week we go on holidays which was booked over a year ago.

I’ve booked to UK breaks for 2024 already which are coming out of the bank monthly.

I’ve over done it, I’ve got sports fees coming up for ds's soon, which will be about £700 (definitely not essential I know) 

I just need a bit of accountability, somewhere to share and hopefully some guidance and suggestions. Please be kind, I just need somewhere to post and help myself.

outoftheviciouscircle

We are all here as we've all got ourself in the same predicament. First of all, don't take on any other financial commitments, have a look through your outgoings and see if anything can be reduced.
Look at ways to increase your income, sell things you don't need, sign up to survey sites.
Do a SOA, you don't have to publish it but it will at least let you see how over stretched you are, but make sure you are realistic with the figures.

outoftheviciouscircle

And good luck!!

WinterWarrior

Can you cancel and get the money back for the 2024 holidays? I know it seems drastic, but sometimes you need to go all in to save yourself future problems and you may need to choose between essential and non essential spending. It’s horrible, but it’s much easier to sort it out now than it will be in September when your mortgage increases. Extra good luck and well done for recognising the issues early on. 

vampirotoothus

Hi what sort of business is it? Could the hubby and children help with any of the steps in it so that you can produce a finished product quicker. Can you open more hours and get the family involved. Can it pay you more than £100 a week? Other posters will have suggestions. Wishing you well V x

MatyMoo

Well done on seeing the problem and taking action before it turns in to a disaster.

I would actually do an SOA for the business as well as personal. That way you can see how much you need to be bringing in to cover your basic costs & if/when the business can increase your wages or pay you back for set up costs.

Littleskintdragon84

Hey thanks for these replies, I love the idea of a business SOA.
that’s a great idea.

The business is bit odd to explain really and I’m reluctant incase anyone knows me. Anyway yes, it can produce a lot more income, upon growth.
I just need some more members, which is happening. 

I feel really positive having posted.
I need to sit down, write everything down and go from there.

thank you