If not employed then how ???

lilica

OK, First posting and tentative one at that!
I am about to finish working (as self employed consultant) in order to have my first baby, which, obviously I can't afford.
I am estimating my current debt lies somewhere between £20,000 - £30,000 but as I have been 'off radar' to my creditors for almost two years I am unsure exactly where I stand. Debt is comprised of credit cards, bank overdraft and a loan.
Now, being not entirely daft I have been putting half my earnings (i.e. £200 pw) away since I found out I was pregnant. I have a bank account but my stash is in cash. I figured this would keep me going for 6 months after I quit work, maybe a bit longer as I should get Maternity Allowance.
My query is really this .... I want to pay off my debts - whatever the circumstances they are my responsibility. However, with no job and no income what on earth should I do ?

painted_lady

Firstly, congratulations on your pregnancy. I was in a similar situation. I had my lightbulb moment when I discovered I was pregnant in august 06. I had the advantage of been in part time employment, but have managed to take a full year off work, living mostly off SMP, which is the same amount as maternity allowance. I am no financial expert, but advice I can give you is
- well done for saving money up, I had some savings too (mainly from selling my car) and it has helped a lot
- I am guessing you have done a budget and cancelled DD's you no longer need, shopped around for better deals and so on
- join all the baby clubs, there is a list on here somewhere, the best on by far is boots, they send you freebies, trial samples, special offers and so on.
Pampers also send you free nappies and vouchers from time to time.
- I have made sure I always make at least the minimum payments on my CC's, then at least I am keeping them happy and dont have to worry about my credit rating, when I am back at work (next month) I will make extra payments.
- make a list of anything you need for the baby, ask for things as presents, you otherwise will end up with loads of clothes that only fit once.
- freecycle and ebay for baby goods, most stuff is either new or as new.
- I used washable nappies, saved me £8 a week
- breastfeeding is cheaper and healthier than formula, but I couldnt do it for medical reasons
- dont forget to claim child benefit, you will get a form in the hospital
- when you have claimed this you get a £250 voucher for baby to open a trust for it
- see if you are entitled to tax credits in addition to maternity allowance, this is the singlemost thing that has contributed towards me staying off work. Go to www.entitledto.co.uk to see if you might be eligable.
- ebay anything you dont need, maternity clothes and so on
- I refinancedmy credit, so overall am making payments each month, but now on 0% or low APRs
- I have a skill I can offer people (wedding photography) and have occasionally done this to help my income, I photographed around 12 weddings last year at £300 profit per day,my partner had the baby for a few hours while I did it, certainly helped me to stay off work a bit. maybe you have a similar skill? It could be ironing service, cleaning service, CV writing, tutoring or anything you can do from home or choose your own hours, payment could go towards debt?

carrottopsuk

if you do become entitled to child tax credits, you may want to check if you are entitled to a Sure Start Maternity Grant:

http://www.surestart.gov.uk/surestartservices/support/helpwithchildcarecosts/maternitygrant/

http://www.jobcentreplus.gov.uk/JCP/Customers/WorkingAgeBenefits/Dev_013950.xml.html