A new start

muppetyness

Hiya all,

I have finally had enough. I want to pay our debts off, so we have a better quality of life as a family, and so we can start planning for the future!

I thought it best to get it all written down somewhere, so that maybe I could get advice from those with more experience than me

Brief history: Up until September last year, we as a family were on income support and SDA, due to my partners long-term history with depression. He finally took the leap and applied for a job that a friend of his reccomended, and is now doing something he is very good at, and that I think he can really make a go of! I am so proud of him
We have 2 children, and a third due in a few months.
As a result of being on benefits, and not being altogether sensible, and also being forced to rent a house for four years that ate A LOT of money (its so difficult finding landlords who take on HB tenants) we are in debt in a way that is really getting to me. My partner doesn't have a bank acc or any credit rating, due to a bad experience when he was at his lowest (before we met) Therefore, all his wages and our tax credits and child benefit are payed into my single current account.

Here's a breakdown of our debts, and spending, I don't know how I'm going to feel seeing all this written down...

DEBTS
Barclaycard (0% till July 08) £2700
Nationwide credit card (not sure of rate at the moment) £740
Overdraft on my old barclays additions account £450
Next Catalogue £515

Total = £4405

SPENDING (pcm)
Income:

Partners wages £1100
Tax credits £524 (per 4 weeks)
Child benefit £120

Total: £1744

I am about to stop my 2 part time jobs due to being so pregnant, so wont include those. Also, I know the tax credits and CHB will change once the baby is born, and when the new tax year starts.

Outgoing:
Council tax £105
Childrens clubs £16
TV lisc £11
Water £11
Electric £62
Sky £21 ( we don't get any other signal in our area or we'd just use our freview box)
Contents insurance £10
Car insurance for 2 cars £54 (we live in a very rural area and both need a car)
Phone £12
Broadband £25
Mobile phones £55 (on contracts)
Rent £366
Shopping £300-£400 per month
Petrol £200-£250 (DP has an hours commute each way to work, and I have a 15min drive each way for school run, plus other things like pre-school and after school activities, it sucks being so rural for petrol costs etc )
Oil for heating is now at £250 for 500litres, which lasts up to 2.5 months in the winter, and normally up to 4 months in summer. We just get it as and when the tank runs low!
I try to pay £100 to each of the credit cards, and £50/60 to Next each month.

Total: £1542

Anual things: Oil Anything up to £1000 (or £83 pcm) (depending on oil prices which are currently astronmical and double what we were paying 5 years ago!
Car Tax: £252 (or £21 pcm)
And the other stuff like birthdays etc I have no clue how to work out!

Phew, thats quite scary!

Anyway. In amongst that lot, we pay for car repairs/tax, birthdays etc as and when they come round, and have no savings whatsoever!
Also, somehow in the near future we need to try and get a new car that will accomodate the 5 of us (3 car seats in back) as our escort is on its last legs. But how we will do that I don't know as DP cant apply for loans, and I cant as I dont actually earn the money that goes in my bank, he does

Anyway, Its quite good, if scary, to see it all in writing, and I hope if anyone has any tips or advice for my budget they will pipe up

I long for the day that we are debt free!

Mupps.

(PS If I have waffled to much here, and this needs editing to make sense, please tell me! I am not very concise )

tealady

Something has to go. You can't really afford Sky, two cars and 2 mobiles.
Your shopping bill could be cut as well.
Make sure you will be getting all the benefits you are entitled to.
Sorry if this sounds harsh but some things are luxuries not necessities.

mummytofour

REally does not look lke to bad a situation to me but then I have not added it up.Your rent os very low which is lucky. Mobiles are expensive can these be cut down .I cant see where you have included thinsg liek hair cuts and clothes. While I remember have you applied for your sure start grant yet?

dubsey

I agree with both the replies so far. Firstly something needs to give in order for you live on a daily basis, but it doesn't look major at first glance.

I do think some careful budgeting is now in order though. What are the kids clubs, they are costing money both in the fees and as you have said petrol to get them there. Things like shopping-the best advise I've seen is the spending diary, when you write down all the little seemingly insignificant things, it's quite a shock. It's certainly worked for me!

Sorry just to add, doesn't look major wasn't meant to sound blase-workable is more what I was getting at!

muppetyness

Thanks for the replies so far.

I would love to get rid of one of the cars, but that would mean that either DP wouldn't be able to go to work, or I wouldn't be able to take the kids to school. Obviously not doable. The public transport is next to non-existent from our village, and what there is costs a fortune.
The two mobiles are on a contract, so can't get rid of those yet. I suppose we could get rid of sky, but then we would only have a very patchy bbc1 signal, and seeing as we NEVER go out lol, we may end up rather bored. Is there a cheaper option for satelite TV?

I think the thing I need to work on is definitely the shopping budget. The spending diary idea sounds like a good one. I think thats my downfall, about a 100 of that shopping budget is probably spent on stuff I get if I nip in just to get milk and bread top-ups, or if i decide I haven't got the energy to make a proper dinner from scratch that evening. Also, I tend to only do a big shop twice a month rather than every week spending about £100 each time (that includes nappies/toiletries/cleaning stuff etc). Then topping up in between for fresh veg/bread/milk etc. Do you think I'd be better just going once a week, and sticking to that so I dont have to do the top-ups?

I only go to the hair dresser once a year at most, DP goes 3 or 4 times a year. Clothes we buy out of the leftover money in the month if we need them. Though we don't tend to buy that many! The children's clothes normally come out of Christmas or birthday money.

I just sent off the surestart mat grant form. That will help us with things for the new baby!

I don't think there are any other benefits we are entitled to, we get WTC and CTC, and of course child benefit. I just wonder how much they will go up by when the new baby comes. I know our budget doesn't look great now, most of those figures are what we have been spending over the last 5 months whilst I have been earning an extra £54 per week. Next month will be the first real test of the above budget as I finish work at the end of January!

Thanks for the suggestions so far

Mupps.

sparky0107

Hi muppetyness,
With all the repeats on Sky, and the fact that they're moving all the film to Sky film packages which you have to pay for, have you thought of a freeview set top box, I know the choice isn't as wide, but for about £30 you can still have a choice of viewing "entertainment". Not trying to preach, just trying a suggestion, because I think ous Sky package is going to go very soon.
Good Luck
Sparky0107

muppetyness

Hiya,

Yes, the sky thing is an issue. We don't get movies or sports, just the normal channels, we'd be happy with just the standard bbc1, 2, itv and C4. We have a freeview box from our last house, but when we try to use it here, we get no reception. We looked on the site where you check reception and it said digital TV was supposed to be running here by 2011. With normal telly, we can just about get bbc1. Maybe we should just get more into board games etc lol

Mupps.

dubsey

I am - actually no I WAS a nightmare for weekly top-ups at the shop at the end of the road. I would go in for just milk and come out with two bags full. I would think ooh I may as well get xyz while I'm here and convince myself I needed it. I love writing NSD in my spending diary now (sad woman) and I avoid the local shops at all costs. If I know I'm low on milk I give my husband just enough money in the morning and when he drives past the petrol station on the way home from work, he'll pick me some up. Saves me going to the shop and I'm also not making an extra journey in the car! So if you can shop once a week you will definately notice a difference. Do the meal planner too-I know it takes time but if it saves money it's got to be worth it. Check what's in your cupboard and write what you actually need, include a meal for each night, things to last a week for packed lunches etc. My DD (age 10)used to just put anything she pleased in the trolley and I never argued. I now know roughly what the groceries will come to, so I add a few pounds and tell her our challenge for that week, to try and beat the target. Of course we always do-but it stops her throwing endless junk in the trolley or asking for bits all the way round.

Good luck!

neverdespairgirl

You might well be entitled to some council tax benefit - have a look at https://www.entitledto.org.uk which will tell you all!

You'd also be entitled to the Sure Start grant, so you can get the forms for that.

muppetyness

Thanks again, Yes, I semi meal plan as it is now, Just because of a slightly fussy other half who doesn't like to eat the same thing over and over again
I will definitely set a smaller budget for my shopping, and do it weekly so it will hopefully cut out the need for top-ups. I don't know what the average for a family of four is for a budget. Does £55 sound like to little or too much? I do cook a fair amount from scratch, but must admit to having more processed foods like ready made pies, and frozen chips around recently as with looking after 2 children, working part-time and the pregnancy I have been tired out! Also, i have been eating a lot of red meat, steak etc to try and boost low iron levels! But do try to get that when its on offer as its so expensive!

Oh, one last thing, does anyone know if our tax credits will increase due to me finishing work? I haven't a clue, and am still pretty new to claiming them!

Mupps

neverdespairgirl

I find a godsend for me when I'm busy and tired is bulk cooking. If I'm making, say, a casserole, once you've got going it's very easy to make a big amount, and then freeze the rest for can't-be-arsed days!

For example, last night we had beef casserole from the freezer, which I made a couple of weeks ago, as both of us were knackered.

I make beef casserole with stewing beef, pearl barley, onions, red lentils (which thickens it up and adds protein, very cheaply as well) corgettes, garlic, random herbs lying about, carrots, stock, and chopped tinned tomotos. Served with rice. It took me about half an hour when I made the huge potful a fortnight ago, and then just left to cook. We ate some the evening I made it, some last night, and 2 lots left in the freezer for other occasions!