Single, six kids and going to be debt free!

Mumoffourkids · 17 December 2017 at 3:44AM

Thanks Cumbria lass, yes if I didn't work, I would slowly go mad. I have always worked apart from two years when I had my middle two children but I lived in France and did other things like tending a small holding!

And yes my childcare costs are probably higher than my wages, but I do get some tax credits towards the childcare costs and roll on April when my son gets 30 hours funded.

Two years isn't very long and I plan for that to be sooner but I still want to live. I know could clear a lot sooner if I cut everything right back but why not enjoy yourself a little bit. Obviously if my debts were a lot higher, and it was going to take a lot longer to clear then I would cut back on more things.

enthusiasticsaver · 17 December 2017 at 4:11PM

As your children get older you will be able to work longer hours so I think it is worth you working and you will notice the difference as the free hours kick in and gradually childcare costs get less. I think having the work ethic and keeping you in the workplace will have benefits in terms of setting an example to your kids and giving you some child free time as well especially if you are a single parent.

A DMP sounds like it is the way to go with you and as you already seem to be pretty good at living on a small budget it should definitely be within your means. 2 years is nothing and then you can move forward.

Your soa looks ok considering you are a large family but I would definitely say you need to allocate something to an emergency fund. How much do payplan say you need to pay each month?

enthusiasticsaver · 17 December 2017 at 4:12PM

I also think life assurance is a must for you as you have kids unless you get it as part of a pension with your occupational scheme.

Mumoffourkids · 17 December 2017 at 6:23PM

Thanks enthusiastic saver for taking the time to comment.

I know I am looking forward to April as childcare costs should reduce quite considerably, then again in September.

I can always work extra from home if I have time! Not slot of that at the moment though.

I did my soa with payplan, added some bits including emergency fund of £50 per month and they came up with a figure of £806 to pay each month.

That seems reasonable to me and won't leave me short I shouldn't think.

Yes good idea about life insurance, I used to have some and it wasn't expensive so I'll look into getting some again, maybe go through a cashback site?

I have also been having a think today about maybe dealing with my debts myself but using the figures I worked out with payplan? Not sure if that's a good idea or not. One reason why I thought this was because if I get any extra money which may happen, then I would prefer to pay off certain debts just to get rid of them. But if went through payplan, they would want to split any extra payments to all the debts. I don't know if that would work though?

Also I thought about sending letters to all debts saying I am now getting sorted and will be working out how much to pay them and send them a token payment in the meantime. This should give me January to get sorted and be able to pay off both tax credits overpayment and my littlewoods account which would give me a boost. Would that work?

Mumoffourkids · 17 December 2017 at 10:46PM

So I have worked out my money for January, February and march on a spreadsheet. To do lists for tomorrow (borrowed the idea from another diary

).
- send letters to creditors
- update spreadsheet for April figures
- finish assignment
- work out money for the week
- buy balloons for dd2 birthday
- iron school clothes
- update budget software for payments out
- wrap ds1 presents

Think that's a good start for tomorrow

Crikey123 · 18 December 2017 at 3:32PM

Popped in to yours & subscribed so we can cheer each other on.

Drawingaline · 18 December 2017 at 5:41PM

Hello. I have just read your thread on the debt free forum. You sound very determined. What a way to start the new year, tackling your debt head on.

I will pop by again and look forward to reading about your journey.

enthusiasticsaver · 18 December 2017 at 6:46PM

Mumoffourkids wrote: »

Thanks enthusiastic saver for taking the time to comment.

I know I am looking forward to April as childcare costs should reduce quite considerably, then again in September.

I can always work extra from home if I have time! Not slot of that at the moment though.

I did my soa with payplan, added some bits including emergency fund of £50 per month and they came up with a figure of £806 to pay each month.

That seems reasonable to me and won't leave me short I shouldn't think.

Yes good idea about life insurance, I used to have some and it wasn't expensive so I'll look into getting some again, maybe go through a cashback site?

I have also been having a think today about maybe dealing with my debts myself but using the figures I worked out with payplan? Not sure if that's a good idea or not. One reason why I thought this was because if I get any extra money which may happen, then I would prefer to pay off certain debts just to get rid of them. But if went through payplan, they would want to split any extra payments to all the debts. I don't know if that would work though?

Also I thought about sending letters to all debts saying I am now getting sorted and will be working out how much to pay them and send them a token payment in the meantime. This should give me January to get sorted and be able to pay off both tax credits overpayment and my littlewoods account which would give me a boost. Would that work?

No reason why you cannot manage your own DMP and many do simply because payplan stick to a precise repayment plan so full and finals are better under self managed. I think contacting them all offering tokens is a good start. You really want them to default if they haven't already as then they will be off your record in 6 years from default date. Getting rid of tax credits first is sensible.

Mumoffourkids · 18 December 2017 at 9:24PM

Drawingaline wrote: »

Hello. I have just read your thread on the debt free forum. You sound very determined. What a way to start the new year, tackling your debt head on.

I will pop by again and look forward to reading about your journey.

Thanks drawingaline. I am very determined and am determined that next year I am going to really tackle my debt!

Mumoffourkids · 18 December 2017 at 9:26PM

enthusiasticsaver wrote: »

No reason why you cannot manage your own DMP and many do simply because payplan stick to a precise repayment plan so full and finals are better under self managed. I think contacting them all offering tokens is a good start. You really want them to default if they haven't already as then they will be off your record in 6 years from default date. Getting rid of tax credits first is sensible.

Thanks for your advice. I have the first letters all ready prepared but can't print as printer isn't connecting to the WiFi! I'll print tomorrow at work though. I did phone tax credits today and paid £50 off and they have agreed to me paying £120 per month for the next three months. But I am hoping to pay it all off at the end of January.

Single, six kids and going to be debt free!

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