I could cry...

catralense

Sorry...whinge alert....!

Over the last month or so I've really had a fright with our finances. We moved back to the UK in July and bought a house (with hindsight I think we paid over the odds for it but it was in the area we wanted). We knew that it needed work doing to it but it wasn't until the work started that we realised the full extent of the revamp (EVERYTHING had been bodged really badly by the previous owners). Anyway, we ended up spending over £6k than we'd planned. We took a loan out to cover it.

Anyway, we haven't lived within our monthly income once since we returned and I had a 'lightbulb' moment in DEcember. So I sat down, made a list of Income and Outgoings, switched a credit card balance to 0%, etc, ect. We had a strict budget to sstick to but we were feeling positive and we were back in control.

This morning a ltr from WFTC arrived, informing us that our payments were dropping from £295 per month to £41. I'm gutted. We're doomed. Still in shock!

We phoned them and they explained that the payments were have been receiving were based on DH wages last tax year because he had only worked half a year. Now that he's worked a full tax year we'll only be entitled to the basic amount. Why the hell couldn't someone have explained this to us before???

I've called the mtg company to ask them to consider upping the mortgage by £6k to incorporate the loan. They'll only lend us £3k to keep the LTV below 90%. If we'd like them to revalue the property now that a lot of the work has been done then they'll charge us £65! THe problem is, there is still a lot of work that needs to be done, finishing touches, ect.

Sorry to moan to you lot. I'm just panicking!!!

I've been trying the grocery budget and, to be honest, this is the only place that we are able to cut our spending. It's not even as if we can sell the house and buy something smaller...as it is we're in a tiny 2 bed terrace. We've got two children (7yr old girl and 1 year old boy) and they already have to share a bedroom.

Bang goes my hopes of trying for another baby in a few months time

ANy advice welcome. I'm off to change my siggie to a new lower grocery challenge amount.

chloebelle

I can't offer much in the way of advice except one thing - as hard as it seems, STAY CALM.

Problems can be solved, sit down quietly and think slowly, staying nice and calm. Panic solves nothing.

You have my sympathy, I really hope you can find a way to sort this x

Bargain_Rzl

Hi catralense,

Have you paid a visit to the Debt-Free Wannabe board? You'll get lots of advice there about your finances

http://forums.moneysavingexpert.com/forumdisplay.html?&f=76

Olliebeak

Can only repeat what chloebelle has already said.

Keep Calm - Keep talking (no arguments/blame) - Double check your finances on paper.

If shopping budget is the only area where you can make substantial savings, then try mealplanning, shopping list and sticking to it (but leaving a little room for manoeuvre if there are bargains available that you'll use).

Have you got any unnecessary items around your home that you no longer use - could you declutter for instance and sell anything?

Have you made absolutely certain that you are claiming everything that you are entitled to?

Have you tried listing EVERY OUTGOING? I know that sounds a bit - can't think of the word at the moment - but sometimes there are things that we just don't think twice about but could be cut back on/done without.

My personal overspend at one time was automatically spending too much money on Avon. The catalogue would come through the door and I would automatically make out an order for stuff that I fancied. I didn't realise that it was adding up to around £20+ every campaign (do you realise how many campaigns a year that they do :eek: ) for stuff that I didn't really need at all - just for 'a little feel good factor'! Soon kicked my own a$$ for that one when I realised!!

Have you checked that you're on the best supplier for gas/elec? This can make a big difference but check out Martin's advice on switching before doing anything about this one.

Good Luck with organising your finances - but at least you've now had your LBM (Light Bulb Moment) and things can only get better for you and your family.

Keeping_Positive

Dont apologise and to repeat dont panic lots of us have gone through the how am I going to pay/cope etc. Go to the Debt Free Wanabee board and do a SOA (Statement of Affairs). Youll be amazed how much knowledge there is on how to cut spending and this board always get a mention!

mary43

I really do feel for you. Was almost bankrupt once and if it hadn't been for CAB helping up sort out mortgage repayments and get them reduced, along with everything else, don't know where we'd have been.
You're bound to find some help on here............as has been said the 'debt' forum might be a good place to start.
At least you recognise there is a problem. So many people don't.
Good luck and hope everything works out for you:o

nearlyrich

It's a nightmare when your budget is slashed by something you have no control over, just to repeat the advice to pop your SOA on the DFW board, there are lots of experts who can help to stretch your funds.

mumoftwo

Don't panic..

like already being said: really look at what you are spending.
Are you familiar with Pigsback (just search this forum) Quidco, where you can earn vouchers or money back?

http://www.paidtoshop.co.uk/

Paid to shop is full of good ideas to up your income with a little bit of effort

Is there any way you can up your income if you can't cut back your outgoings? Like has been mentioned: sell stuff, even your baby clothes, prams etc

make birthday gifts/cards etc

cook everything from scratch: bread, meals, biscuits, cakes etc.

You have come to the right site, there are so many ideas and so much help available, you just need time to read it all and use what is beneficial to you.

Good luck and remember there is always someone on here willing to help you!!

Best wishes

pigpen

((((hugs)))) .. because you need them!

Double check, triple check and reshuffle numbers. and make sure every single outgoing is included..

I have an VERY simple spreadsheet.. I couldn't work with the complex ones on here so I did my own idiot level one.

Other people you owe to try phoning and reducing the payments to them for a while.. just while you get other aspects sorted out.

I know what it is like to be hit with shock much needed house repairs.. the only room in here that looked ok when we moved in ended up being totally gutted and refitted.. the only thing that is the same are the light shades!! We had to replace a floor the day we got the keys as it had wet rot.. scary isn't it!!

Try posting a SOA over on the debtfree wannabee board.. everyone over there is fantastically helpful! They might just have a fabulous answer to something and save you lots! Look at the obviius things first.. changing fuel suppliers for example.

XxX

catralense

Thank you SO much for all your replies :heartpuls.

I've calmed down now (with the help of a kitkat lol!) and am starting to think a bit more calmly...I've had a good look at all of our outgoings. We are short, but not as hugely short as I initially though (£100 as opposed to £295). I'm going to have a look over on the DFW for more hints and tips.

I'm at college at the moment as I hope to be going to uni in Sept 2009, to study Midwifery. In order for my application to be considered I needed to get some care experience so already had an interview on Friday at my local hospital for a health care assistant. I was going half-heartedly (let's face it...who wants to be paid to wipe bums :eek: ) but now I'll be going with renewed enthusiasm/desperation. How the hell I'll manage a small family, studying and working is beyond me, but millions of other people manage it so I'll just have to as well.

THank you all for your supportive comment. I expect I'll be back often with questions!

Verity