How to have a baby without making debt?

affordmylife

thanks for all the info missbee. with the plan you have your student loan will be clear roughly when you are due to have your baby (if you concieve immediately on stopping your pills) other debts/loans will also be reduced/finished by then too. so you will have than money back in your budget.

is it possible to stop using your CC and pay it off within the time of expecting to have a baby. obviously if it takes a few months to concieve you will have that bit longer to pay everything off.

obviously i realise that your housing cost etc are not changeable but how about getting a lodger for say a year that could bring in some extra cash.

or can you both work overtime for a year (obviously not if you are pregnant but until then - maybe) to really bash those debts down. then you could have your maternity leave paying just the minimum of everything.

ill try to think of some more things too.

starbump

Welshlassie wrote: »

I beg to differ with this opinion, you will most definately need a car seat to bring your baby home from hospital

Quite right! Forgot the car seat (unless you travel by foot or public transport). However, I think the rest stands. If you co-sleep, then you won't need a moses basket.

swiss69

You haven't said what rate you are on with your mortgage company but assuming its around 5.5%.

1. If you go on interest only NOW - you will save around £260 per month. Over one year this is £3120. You would then remain on interest only on the mortgage until your are back at work. (Total on int only say 2 years)

You have not mentioned how much you owe on your credit card and loan.

The £3120 could be used to repay the loan (Or you could reduce the loan by this amount in one year and refinance the rest to reduce the payments)

Alternatively you could borrow what you owe on cc and loan on the mortgage if you have the equity and your lender will give it to you. (Better to do now whilst you have the income) - As an example if you owe say £12000 on loan and cc and are paying £310 per month in total on this then a £12k int only loan added to mortgage would reduce payment to around £60 per month - Saving a further £250 per month (Over a year £3000)

If you follow that option you would now have £6000 available in one year which you could use to help supplement income (£500 per month) - This together with your monthly saving of £560 from above two steps plus reduction of £118 per month student loan should help a fair bit.

This is onoly a SHORT TERM solution to get you what you want and you would need to reassess when back in work and earning again....

affordmylife

another thought. have you explored all aspects of child care. you may find a childminder cheaper than a nursery setting. and what if you decide to have another one in a year or so after the first one. you will be paying out double childcare and there will come a point when it will not be worth you working.

or are you convinced you only want one child? that is definitely something to consider.

do_it_today!

Hi all :hello:
Im trying the sums a different way instead trying to trim here and there I am just building on the absolute essentials and moving on from there