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Fluffygiraffes87

OK so ive decided i really need to get a hold of my finances, i work part time earn roughly 900 a month then get UC as a couple with a dependent child and one on the way in April.

We need to save a buffer for when i go on maternity as I'm only eligible for MA not stat mat plus we have house saving goals and we want to move down south where my husband is from so house prices we are expecting to be very expensive compared to the north where we currently are.

We worked out our monthly bills are roughly 35-3900 depending on how much we spend on food and petrol which is anything between 150-200 for petrol and 400-500 on food a month. those are our biggest bills we are working on the car finance which is currently 317 a month and my car insurance is 327 because I've had a couple of bumps the car is probably the biggest expense we have but i don't understand how all these little bills like council tax and utilities and 3 phone bills are in excess of 600-700 pounds

I've done a proper budget and it seems we have a lot of individual things we pay for each each month like Netflix- we were with sky but have switched to now tv for cheapness and we have plus net internet which we thought was a good deal at 33.99 my husband pays 19 pound for his Halifax account and i pay 20 pounds a month on pregnancy vitamins the debt is not even something we can contemplate right now our rent is fairly reasonable at 517 as we are in social housing my husband is currently retraining at university which has dented our income massively as he was working full time before that I'm autistic and get pip enhanced daily living but no mobility. we try to have 1 or 2 McDonalds a month as a treat but i wouldn't say we spend excessively i just never remember being a single mum and paying this much in regular bills every month. All the debt is mine my husband is very good with money. i have store cards x3 of about 500 each i have payday loan of about 2000 still needs paying off me and my husband both have credit cards which are maxed out but we are trying to pay off minimum payment each month we owe about 1800 on both we have an outstanding car finance payment of about 5000 but the car got totalled in feb other driver at fault.

We are due some compensation from that road traffic accident but we are going to take the solicitors advice and put it in personal injury trust as its quite a large sum and we don't want it to affect our uc while i will rely on it in maternity time. its just im so stressed with what i owe and never being able to pay everything off we have British gas arrears of 1000 from a previous tenancy i have 2 credit lines of about 500 each that need paying and old credit cards maybe 4 of between 200 and 500 each i was really poorly in 2018 had psychosis and took out a lot of credit not fully understanding the terms and conditions

I've tried to do an iva but got rejected not eligible for debt relief order and too scared to declare bankruptcy due to wanting to buy a house in the next 5 years its just my brain is like a pinball machine most of the time and my husband has given me the task of sorting out my debt because he wants to give me confidence to do it on my own as well as sort out the bills each month. we have a temporary payment plan with step change until feb next year so we have a bit of breathing room and pay 1 pound off each of my 28 creditors it is so overwhelming that i have 28 creditors i owe money to. i don't know which to tackle first

Honestly we have decided going forward we are going to do 3 years with no holidays just days out now and again so i can get a handle on the finances. the extra costs that we don't plan for like parking tickets which i shouldn't get because i have a blue badge but hospital doesn't want to know its done over parking eye and I'm not having much luck sorting that out. i get really frustrated when I'm on the phone talking to someone about money because sometimes they don't understand what i mean which then means sometimes i am very blunt with people and its causing me so much stress because then they get cross. im at a loss as where to start or what to tackle first. some of these debts are over 7 years old which i understand means usually they have lapsed but i started again paying last may with step change and they asked for every single creditor so i had to give them all. if someone can understand the mess im in and has any words of advice or encouragement i would really appreciate it thankyou

vacheron

Just a little advice to try and split your posts into paragraphs.

Many users here will just skip a huge block of text like this as it is very difficult to read and keep track of where you are. Especailly as it has so many numbers in it.

The first thing most will recommend is that you create a statement of affairs and then post it on this thread as this makes it much easier for people here (and yourself) to clearly see where your money is going. 👍

You can find one here, but there may be better ones that others recommend if you wait for a couple more responses before beginning.

https://www.stoozing.com/soa.php

Jemma01

You seem to have done a lot of homework, which is great. It's a shame on the car costing monthly 337 on insurance is nearly 4k a year!! Honestly, if there's away to give it up, then you'd be saving yourself a lot. Public transport will be a lot cheaper per year if it's an option until your debt is paid.

You seem to have quite a lot of venues to save up, but if you can please submit SOA that would help you (and us) see where savings can happen.

StewedApple

Formatted re-post of orginal text:-

ok so ive decided i really need to get a hold of my finances i work part time earn roughly 900 a month then get UC as a couple with a dependent child and one on the way in april. We need to save a buffer for when i go on maternity as im only eligible for MA not stat mat plus we have house saving goals and we want to move down south where my husband is from so house prices we are expecting to be very expensive compared to the north where we currently are.

we worked out our monthly bills are roughly 35-3900 depending on how much we spend on food and petrol which is anything between 150-200 for petrol and 400-500 on food a month. those arew our biggest bills we are working on the car finance which is currently 317 a month and my car insurance is 327 because ive had a couple of bumps the car is probably the biggest expense we have but i dont understand how all these little bills like council tax and utilities and 3 phone bills are in excess of 600-700 pounds

ive done a proper budget and it seems we have a lot of individual things we pay for each each month like netflix- we were with sky but have switched to now tv for cheapness and we have plus net internet which we thought was a good deal at 33.99 my husband pays 19 pound for his halifax account and i pay 20 pounds a month on pregnancy vitamins the debt is not even something we can contemplate right now our rent is fairly reasonable at 517 as we are in social housing my husband is currently retraining at university which has dented our income massively as he was working full time before that im autistic and get pip enhanced daily living but no mobility.

we try to have 1 or 2 mcdonalds a month as a treat but i wouldnt say we spend excessively i just never remember being a single mum and paying this much in regular bills every month.

All the debt is mine my husband is very good with money. ihave store cards x3 of about 500 each i have payday loan of about 2000 still needs paying off me and my husband both have credit cards which are maxed out but we are trying to pay off minimum payment each month we owe about 1800 on both

we have an outstanding car finance payment of about 5000 but the car got totaled in feb other driver at fault. we are due some compensation from that road traffic accident but we are going to take the solicitors advice and put it in personal injury trust as its quite a large sum and we dont want it to affect our uc while i will rely on it in maternity time. its just im so stressed with what i owe and never being able to pay everything off

we have british gas arrears of 1000 from a previous tenancy i have 2 credit lines of about 500 each that need paying and old credit cards maybe 4 of between 200 and 500 each i was really poorly in 2018 had psychosis and took out a lot of credit not fully understanding the terms and conditions ive tried to do an iva but got rejected not eligible for debt relief order and too scared to declare bankruptcy due to wanting to buy a house in the next 5 years

its just my brain is like a pinball machine most of the time and my husband has given me the task of sorting out my debt because he wants to give me confidence to do it on my own as well as sort out the bills each month.

we have a temporary payment plan with stepchange until feb next year so we have a bit of breathing room and pay 1 pound off each of my 28 creditors it is so overwhelming that i have 28 creditors i owe money to. i dont know which to tackle first honestly we have decided going forward we are going to do 3 years with no holidays just days out now and again so i can get a handle on the finances. the extra costs that we dont plan for like parking tickets which i shouldnt get because i have a blue badge but hospital doesnt want to know its done over parking eye and im not having much luck sorting that out.

i get really frustrated when im on the phone talking to someone about money because sometimes they dont understand what i mean which then means sometimes i am very blunt with people and its causing me so much stress because then they get cross. im at a loss as where to start or what to tackle first.

some of these debts are over 7 years old which i understand means usually they have lapsed but i started again paying last may with stepchange and they asked for every single creditor so i had to give them all. if someone can understand the mess im in and has any words of advice or encouragement i would really appreciate it

thankyou

Jemma01

Are you able to disclose how much money you're getting from the totalled car? And is it AFTER paying the 5k due on the car?

The tickets I believe if you talk to the guys in the right forum here, theyll tell you to ignore them. So please post specifically there and be prepared to share the tickets minus your personal information

Frugal_Jools

Hi - There's a really helpful website called Debt Camel about this sort of topic. Also helpful to write down all your exact numbers. I hope you get some help.

enthusiasticsaver

I would say from reading your post that you may also have ADHD which means a lot of this will be very difficult for you to manage so I would urge your husband to think again about you taking on organising bills etc. The fact you say your brain is like a pinball machine sounds familiar. My husband, son in law, daughter and both granddaughters are all either Autistic/ADHD or PDA so that sounds familiar. Executive functions for those who are neurodiverse is a real challenge.

A few simple things to remember.

Priority bills are Rent, utilities, food. Credit cards, store cards etc are unsecured and low priority debt. Have any of those debts defaulted? I personally would not do payment arrangements. Just tell them you are on maternity leave and let them default. Usually the best thing to do is let the debts default then do a DMP which is an informal debt payment scheme. Stepchange can help you with that. Explain you are neuro diverse so that they understand if you are blunt on the phone if you do not understand. You could also try the CAB which has face to face advisors which you may prefer.

There is a link to a soa (statement of account) in my signature which may help you prepare a budget but as a start your husband getting rid of the Halifax account and just getting a free bank account is a good way of saving almost £240 a year. The car payments need to be reduced so as soon as you get your payout look into getting a much cheaper car.

ManyWays

I think the advice to put all the money into a personal injury trust is not good. Perhaps the solicitor is hoping to be paid for setting it up and even to be a trustee?

You could use that money to clear your debts, have a stress free second pregnancy and, if you are currently financing a car, buy that car instead. PI money does not affect your UC for 12 months (see https://www.gov.uk/guidance/universal-credit-money-savings-and-investments#personal-injury-and-illness-compensation) so you do not have to rush into this decision

These are all reasonable things to do. You will not be seen as having deprived yourself of capital doing this. If the money is a lot more than that, please say how much.

If you debts are old, they you can probably settle them for a lot less than the current balance. Please give us a list and we can advise. Do these show on your credit record? This is a good time to have a look, credit karma is a free report.

Sorting the debts and bills out… I think your husband isn't being very kind here, but we can talk you through the debts if you list them,

The best way to sort the bills out is to get a joint account which is only used for paying bills. You add up what the monthly payments are. Then your husband and you move that money into the account when he is paid and when you get UC. This works well if you have enough money and it simplifies the rest of your finances as you know the bills are being paid.

Then you and your husband need a regular monthly chat about the next months money. And while you are getting used to this, I think a weekly chat would be better.

Fluffygiraffes87

thankyou so much everyone for your feedback after taking the advice of some of you ive finally managed to do a statement of affairs on lemon fool it was suprisingly easy to do and yes i have adhd and autism combined (only got diagnosed last week- so im unsure how to proceed on medication if im currently pregnant but thats maybe a conversation for me and the doctor further down the line).

wow i did not realise how much debt I have actually accrued.

here is a breakdown of everything soa i think its called

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1[b]

Monthly Income Details[/b]
Monthly income after tax................ 1400
Partners monthly income after tax....... 713
Benefits................................ 2368
Other income............................ 0[b]
Total monthly income.................... 4481[/b][b]

Monthly Expense Details[/b]
Mortgage................................ 0
Secured/HP loan repayments.............. 417
Rent.................................... 517
Management charge (leasehold property).. 28
Council tax............................. 109.5
Electricity............................. 100
Gas..................................... 117
Oil..................................... 0
Water rates............................. 55
Telephone (land line)................... 0
Mobile phone............................ 122
TV Licence.............................. 14
Satellite/Cable TV...................... 34.98
Internet Services....................... 33.99
Groceries etc. ......................... 500
Clothing................................ 50
Petrol/diesel........................... 200
Road tax................................ 17.5
Car Insurance........................... 277
Car maintenance (including MOT)......... 45
Car parking............................. 10
Other travel............................ 25
Childcare/nursery....................... 0
Other child related expenses............ 125
Medical (prescriptions, dentist etc).... 120
Pet insurance/vet bills................. 60
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 100
Haircuts................................ 40
Entertainment........................... 23.99
Holiday................................. 269
Emergency fund.......................... 50[b]
Total monthly expenses.................. 3460.96[/b]
[b]

Assets[/b]
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0[b]
Total Assets............................ 0[/b]
[b]

Secured & HP Debts[/b]
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 17500....(317)......0<
written off car................5500.....(100)......0[b]
Total secured & HP debts...... 23000.....-.........- [/b]

[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
raylo..........................500.......15........0
aqua...........................2000......50........0
nationwide.....................1850......150.......0
jd williams ...................600.......33........0
littlewoods....................750.......30........0
very...........................349.......25........0
ccs collect sky mobil..........136.......15........0
onecall........................1000......12........0
tappily........................800.......20........0
sunny..........................800.......20........0
clearpay.......................198.......20........0
money platform.................1376......50........0
pcds-sky.......................232.......20........0
close brothers.................160.......20........0
british gas....................1000......17........0
zable..........................200.......20........0
link-studio....................500.......20........0
link-marbles...................1700......20........0
moorcroft-02...................90........12........0
aci-gain credit................487.62....20........0
zopa...........................400.......20........0
zable..........................500.......20........0
bits...........................200.......40........0
capital one....................390.......20........0[b]
Total unsecured debts..........16218.62..689.......- [/b]

[b]
Monthly Budget Summary[/b]
Total monthly income.................... 4,481
Expenses (including HP & secured debts). 3,460.96
Available for debt repayments........... 1,020.04
Monthly UNsecured debt repayments....... 689[b]
Amount left after debt repayments....... 331.04[/b]

[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 0
Total HP & Secured debt................. -23,000
Total Unsecured debt.................... -16,218.62[b]
Net Assets.............................. -39,218.62[/b]

a lot of the unsecured debt is little debts that ive just let build up over the years most have defaulted to be fair but are not over 7 years old. so i think i have to pay them off. we paid one pay day loan off this month from mr lender that my husband took out in august to get through the month. this kind of income has only been in place since stephen got his student loan and i got my new job last month its minimum wage but i can do 30 hours a week without tiring myself out too much till at least february and my husband is at university

just as an aside the holiday payment will stop in december as we go in january so we will be 269 up from december also. now that this has been worked out i feel so much better i feel like we can set up this payment plan with step change to our creditors and still have a little left over for emergencies each month.

the hard part will be when i stop working and go on maternity allowance once the baby is here as its no where near my wage but i wont qualify for smp as not been with same employer for 26 weeks before i give birth in april.im more than a little worried especially with a little one coming and extra expenses.

this weeks win though was we managed to get a sleigh cot bed mamas and papas style with drawers from emmaus for 95 pounds including delivery and a brand new mattress included

i think its a good idea to try and spend the compensation money on my debts as they are mostly mine which i irresponsibly racked up and the hire purchases are massive but im hoping we might be able to at least pay off a bit of it with the money we get.

I did not know you had 12 months to spend the personal injury money thankyou so much for letting me know this seems like a usewful piece of information thankyou.

id like to keep 5000 as i feel this could one day go somewhere on a house deposit in 3 years time or am i living in a fantasy lol

MasterG83

That's a detailed SOA, time to start looking through it and making small wins. Every win helps your mental health on this and encourages further wins.

For example, the £90 Moorcroft debt, can you just pay this today and close it down?

RAS

Firstly, do you actually have £330 in the bank at the end of the month? If not, where is it going? Time for a little notebook and pencil, each and list all spends. For bigger ones, list the total and take the receipts.

Secondly, before you start paying off consumer debts, your list is a roll call of high cost providers. It might well be worth £20 on stamps to send affordability claims to many of them. That could get the interest paid and due in future removed. Read up on debt camel. Except to . have to appeal.

I'd concentrate meantime in getting some savings behind you.