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  • FIRST POST
    • singleandskint
    • By singleandskint 10th May 18, 7:45 PM
    • 12Posts
    • 9Thanks
    singleandskint
    Waiting for my way out
    • #1
    • 10th May 18, 7:45 PM
    Waiting for my way out 10th May 18 at 7:45 PM
    Hi everybody, first time poster and long time lurker finally facing the situation I am in and waiting for things to improve which doesn't seem to happen and as soon as I think things are finally getting better it seems to go downhill equally as fast.

    Aiming to keep this diary to keep me on track so posting my SOA as of today's date so that I can look back and see how far I've come.

    Household Information[/b]
    Number of adults in household........... 1
    Number of children in household......... 4
    Number of cars owned.................... 2

    Monthly Income Details

    Monthly income after tax................ 1334.3
    Partners monthly income after tax....... 0
    Benefits................................ 1960
    Other income............................ 130
    Total monthly income.................... 3424.3


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 435
    Management charge (leasehold property).. 0
    Council tax............................. 46
    Electricity............................. 55
    Gas..................................... 42
    Oil..................................... 0
    Water rates............................. 23.28
    Telephone (land line)................... 0
    Mobile phone............................ 37
    TV Licence.............................. 12.12
    Satellite/Cable TV...................... 50
    Internet Services....................... 0
    Groceries etc. ......................... 350
    Clothing................................ 40
    Petrol/diesel........................... 60
    Road tax................................ 23.5
    Car Insurance........................... 70.33
    Car maintenance (including MOT)......... 50
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 1482.25
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 50
    Haircuts................................ 0
    Entertainment........................... 0
    Holiday................................. 200
    Emergency fund.......................... 50
    Total monthly expenses.................. 3076.48



    Assets

    Cash.................................... 82
    House value (Gross)..................... 0
    Shares and bonds........................ 300
    Car(s).................................. 6800
    Other assets............................ 0
    Total Assets............................ 7182


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    loan...........................10719.8...345.8.... .22
    cc1............................2900......80....... .6
    cc2............................3995.89...130...... .29.8
    cc4............................72.6......72.6..... .0
    cc3............................4169.34...110...... .0
    Total unsecured debts..........21857.63..738.4.....-



    Monthly Budget Summary

    Total monthly income.................... 3,424.3
    Expenses (including HP & secured debts). 3,076.48
    Available for debt repayments........... 347.82
    Monthly UNsecured debt repayments....... 738.4
    Amount short for making debt repayments. -390.58


    Personal Balance Sheet Summary
    Total assets (things you own)........... 7,182
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -21,857.63
    Net Assets.............................. -14,675.63



    Somehow seeing those figures has shocked me as it doesn't feel as bad as it appears on the SOA and I've somehow never missed a payment on any of my debts so not sure where I've gone wrong to achieve such a shortfall - I think it's partly down to only paying 1 element of my childcare term time and the other full time so some months are better than others and my car insurance went as a lump sum on the credit card so I don't really have to pay that figure monthly either - but this is the effective cost in the monthly figure.

    A little background. I've 4 children living at home - 3 of them depend on me completely financially and the other is currently doing a hairdressing apprenticeship and gives me 30 a week to assist with some of the expenses - I am not entitled to claim any benefits for her and when she turns 18 in June will lose my 25% single person council tax discount and some of the housing benefit I receive.

    Back in January I put a new MOT on the 2nd car (had 2 as needed a 7 seater and something smaller for work when I was with the ex) with the view of selling it. Needed to use it once and found that the battery now needs replacing and I haven't got the funds to do that so it's been sat since January My dad has said he will buy me a new battery but am still waiting and with the new battery the car will command approx 3500 which will go straight against one of the CCs with a view to getting a new balance transfer offer and moving the one with the highest interest over to it (I have no doubt I'll be eligible as I frequently get the offers in the post from existing providers)

    In addition I hope to have some money coming my way in August which will also go to clearing the debt which is where all my money currently goes.

    My eldest son will no longer be using childcare from September onwards so whilst this will reduce my benefit income it will also dramatically reduce my childcare costs and the youngest will be starting school and therefore his childcare costs will reduce too

    I opened a help to save account earlier this month and put in my first 50 and intend to continue to do this every month as an emergency fund and the government bonus in 2 years will be nice too

    Ultimately, if everything goes the way I hope I intend to be in a position to apply for a mortgage by January next year, but who knows what life will bring?!

    Not sure that there is anything I can really cut from my current budget, I've x2 phone contracts (one was the ex's - stuck in that until Feb next year) and the other is only 10/month sim only.

    Debt is mostly as a result of the split and waiting for benefit payments to be applied and solicitors fees - thankfully they are all cleared now and I can start getting back on track. In addition - the holiday payments of 200 will be fully paid by July (again booked back when was with ex and as a result was stuck in the payment plan - thankfully my eldest has agreed to take his place and pay a percentage to me for it when she turns 18 in June and is able to access her child saving account lump sum).

    So that's me really. Skint, single and currently stuck in a rut!
Page 1
    • Mumoffourkids
    • By Mumoffourkids 10th May 18, 8:51 PM
    • 683 Posts
    • 3,519 Thanks
    Mumoffourkids
    • #2
    • 10th May 18, 8:51 PM
    • #2
    • 10th May 18, 8:51 PM
    Welcome to the diaries. I am also single but with six kids and they all depend on me. My eldest turns 16 on Saturday and she has a small part time job to earn herself some spends. My youngest is 20 months and is in nursery three days a week along with DS2 who is 3. Luckily I get funding for DS2 and I will get two year old funding for DD4 in September. It is hard to juggle kids, money and paying back debts.

    Good luck with your debt journey x
    Total debt Dec 2017 23090.83
    SEP 2018 0 100% paid
    Emergency fund 257.38/600
    Total Savings 1672.07
    • MeenaM
    • By MeenaM 10th May 18, 9:03 PM
    • 260 Posts
    • 473 Thanks
    MeenaM
    • #3
    • 10th May 18, 9:03 PM
    • #3
    • 10th May 18, 9:03 PM
    welcome and good luck with your journey,
    the childcare costs seem to be more than what you earn?
    Sealed Pot 11. #199Next1170Barclays Credit Card 4891.20/0- 0% ends April 2019 virgin 0% ends july 2020 4138 2,205.89AA Credit Card 860 0- 0% ends Dec 2017 Sainsburys Credit Card 521.27-0 0% ends Feb 2018 STARTED Nov 17AIM TO BE DEBT FREE JULY 2019Emergency Fund 614/1000
    • Mumoffourkids
    • By Mumoffourkids 10th May 18, 9:17 PM
    • 683 Posts
    • 3,519 Thanks
    Mumoffourkids
    • #4
    • 10th May 18, 9:17 PM
    • #4
    • 10th May 18, 9:17 PM
    welcome and good luck with your journey,
    the childcare costs seem to be more than what you earn?
    Originally posted by MeenaM
    My childcare costs are more than I earn as well if I count in the fact that I have to pay for two more kids in the holidays and I don't get funding in the holidays. However, if I didn't work and therefore didn't pay childcare fees, I would lose about 1000 a month in income and that is after taking into account childcare fees. Therefore in my case I am far better off working than I am not working even when you take into account childcare fees. This might be the case here.
    Total debt Dec 2017 23090.83
    SEP 2018 0 100% paid
    Emergency fund 257.38/600
    Total Savings 1672.07
    • beanielou
    • By beanielou 10th May 18, 9:42 PM
    • 56,805 Posts
    • 231,150 Thanks
    beanielou
    • #5
    • 10th May 18, 9:42 PM
    • #5
    • 10th May 18, 9:42 PM
    Happy shiny new diary
    Wishing you well on your debt free journey.
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 11 lbs **

    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger. MFW 2018. No 144
    • singleandskint
    • By singleandskint 11th May 18, 3:25 AM
    • 12 Posts
    • 9 Thanks
    singleandskint
    • #6
    • 11th May 18, 3:25 AM
    • #6
    • 11th May 18, 3:25 AM
    Thanks for your replies, it's actually heartwarming to know that I'm not as alone on my journey as it sometimes feels.
    Yes, it's hard working and being a single mum but I figure my kids aren't young forever and if I were to give up work because of my change in circumstances I wouldn't be setting the right example for them and could even struggle to find a new job later down the line, so for now my childcare costs are more than I earn and financially because I rent I wouldn't be any worse off if I just quit and sat home all day but that's just not me and if it wasn't for the change in circumstances and heavy legal fees last year I wouldn't be in debt now.
    I won't be in this position forever, I want to buy a house, I want to be able to leave something for my children when I'm gone, I want to have a good retirement income.
    The benefits of continuing to struggle on for now far outweigh the potential longer term impacts of being a stay at home mum.
    I'm on track for promotion too and expect to be managing my department in the next 5 years which will equate to better take home pay and ultimately remove my reliance on benefits to make up the shortfall.
    • Mumoffourkids
    • By Mumoffourkids 11th May 18, 7:59 AM
    • 683 Posts
    • 3,519 Thanks
    Mumoffourkids
    • #7
    • 11th May 18, 7:59 AM
    • #7
    • 11th May 18, 7:59 AM
    I feel the same way about teaching my kids its good to work for your money. I only work three days a week but I can work from home if needed. I feel I am setting a good example for my kids and in addition, I couldn't sit at home all day being a stay at home mum. I did it for two years when numbers 3 and 4 were born and I was itching to get back to work. Once all my kids are in school in just over two years, then I might look for some self employed work to fill in the other two days.
    Total debt Dec 2017 23090.83
    SEP 2018 0 100% paid
    Emergency fund 257.38/600
    Total Savings 1672.07
    • enthusiasticsaver
    • By enthusiasticsaver 11th May 18, 8:25 AM
    • 7,058 Posts
    • 15,281 Thanks
    enthusiasticsaver
    • #8
    • 11th May 18, 8:25 AM
    • #8
    • 11th May 18, 8:25 AM
    I agree that staying in work is the best thing to do to give you hopefully a position you can move up from and once the childcare costs are reduced when your youngest starts school this will look better even if you lose tax credits. Setting a good example for your kids is also important but the early years are hard.

    Looking at your soa initially I thought why are you putting 200 towards a holiday when you clearly can't afford it but then read your post and see that it was booked under different circumstances and will finish in July. Unfortunately you then also lose some income due to your daughter turning 18 but at least she gives you some money every week.

    The loan repayment is totally out of proportion to your income and a very high rate so whilst I understand using the 3500 car money to repay highest card I wonder if it is worth trying to balance transfer it and use the car money to repay off the loan. That will be a problem if and when you buy a property due to affordability criteria.

    I am unsure whether putting your car insurance on a credit card, unless it was a 0% one was a good idea. Ideally you would be saving monthly for it and paying in full from savings. I think in your situation I would be resisting using cards at all. The rest of your soa doesn't look too bad.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • singleandskint
    • By singleandskint 11th May 18, 6:52 PM
    • 12 Posts
    • 9 Thanks
    singleandskint
    • #9
    • 11th May 18, 6:52 PM
    • #9
    • 11th May 18, 6:52 PM
    Yeah there's been so many changes and it's been somewhat hard and disappointing adapting to them. We've changed from a monthly income of around 5500 to what you see above and stupidly the debts were mostly in my name as I was the one with the static income (ex was self employed qualified tradesman). We had 0 childcare costs then too as the eldest was around to cover the overlap when his family couldn't have them. Now that she's on a placement she's working the same hours as me and since our separation his family have been less than helpful thinking by wearing me down I'll take him back.

    The car insurance made sense at the time to put it on the card. I had an offer waiting for a balance transfer so put it on my usual pay off monthly in full one(cc4) and transfer the balance to the 0% one as soon as the statement was due so it's on cc3 now.

    The build up of debt has been the knock on effect of going from a healthy surplus to waiting for benefit payments to kick in and using all my wage to pay the upfront fees and relying on cards to get me through to my next payment date and it escalated from there. Just not quick enough reacting and finding it hard to say no when the kids come home with school trip letters for a 200 weekend away.
    I've certainly learned from my mistakes and keep the grocery shop under 80 a week which includes all household products, nappies and dog food. My slow cooker is my best friend and the best investment made as when I was getting home from work at 6 (because of doing 2 runs to different childminders) be too tired to cook for us all and end up ordering food.
    It's exhausting most days to be fair, but I'm so proud of how the kids have adapted to the situation and know that seeing me continue to work and do everything else in what is now a shorter day due to leaving earlier and getting home later that they are learning valuable life lessons.
    I'm expecting a big shift in finances after this summer as the youngest term time only child minder finishes and I've already been paying a percentage towards the test fees for his other one (holidays and when he goes school in Sept) so will see a change there where I'm saving 115 per week and then the oldest son has no child minder altogether so a further saving of 406 a month (less any holiday club costs as I don't like the idea of him being home all day)

    It's really just a matter of waiting.
    • Mnd
    • By Mnd 11th May 18, 7:03 PM
    • 709 Posts
    • 867 Thanks
    Mnd
    Sorry if I've missed it, but are you getting any child support from your ex
    • singleandskint
    • By singleandskint 11th May 18, 7:13 PM
    • 12 Posts
    • 9 Thanks
    singleandskint
    No, no child support as he doesn't earn enough he's self employed and has never declared all his earnings, now that I have to pay to try and get any via the new system it really isn't worth it knowing how his full income isnt declared.
    Especially when I look back and realise how he didn't have to pay for the mediation before court etc so was really dragging it out. There's a court order in place and he should have the kids x days a week and overnight once a week (which would save me money as no childcare costs then and the ability to take on a shift at the local hotel in the evening) but that doesn't happen either and it would cost me more money to take him back to court to enforce it.
    I've enough debt as a result of the seperation I'm not going to get into anymore just to give him the benefit. It's his loss.
    • beanielou
    • By beanielou 11th May 18, 7:30 PM
    • 56,805 Posts
    • 231,150 Thanks
    beanielou
    Keep plodding
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 11 lbs **

    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger. MFW 2018. No 144
    • singleandskint
    • By singleandskint 11th May 18, 7:54 PM
    • 12 Posts
    • 9 Thanks
    singleandskint
    I think I have some good news but can't quite get my head around it.
    I've just opened my tax credits renewal pack and i think they've underestimated my childcare costs but not sure if it will make any difference due to them only paying a maximum of 300 a week anyway. Going to post on the benefits board so that somebody with some experience in this can help me out
    • beanielou
    • By beanielou 11th May 18, 8:03 PM
    • 56,805 Posts
    • 231,150 Thanks
    beanielou
    Hope that you have had good news
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 11 lbs **

    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger. MFW 2018. No 144
    • Honeysucklelou2
    • By Honeysucklelou2 11th May 18, 8:17 PM
    • 1,066 Posts
    • 4,959 Thanks
    Honeysucklelou2
    Hi Singleandskint,

    Totally sympathise, I'm a single mum to 8 and work 4 days a week. Sometimes it is frantically busy, just trying to get out of the door in the morning, ensuring that everyone has what they need.
    My ex doesn't contribute but I've taken the point of view that I'll get on with what I have. If I don't expect it I can't be disappointed.

    Good luck with the debt free journey.
    paydbx #93 804.50/8,000.
    Loan 17k - paid off in Aug 2017. Home improvement loans 3342 March 2017. 2994 in Aug 18
    • singleandskint
    • By singleandskint 11th May 18, 8:17 PM
    • 12 Posts
    • 9 Thanks
    singleandskint
    Thank you, not sure if it is or not as my brain can't seem to comprehend it right Now!
    Basically, if my renewal figures are correct my average monthly childcare costs are actually 1386.67 and not as my SOA so it does free up some money if they are right, on the other hand if I'm right I've potentially not been paid enough. It's hard to work out by the way it's averaged due to having 2 childminders at the moment. I actually think the way they average it will leave me out of pocket because I'll be declaring in July that the youngest is no longer with the term time only minder and as I started in December I'll effectively have paid more out of my own pocket because they've averaged for a year which will cease after only 7 and a bit months.
    The sooner I stop relying on benefits the better, really can't get my head around them!!!
    • singleandskint
    • By singleandskint 11th May 18, 8:26 PM
    • 12 Posts
    • 9 Thanks
    singleandskint
    Totally sympathise, I'm a single mum to 8 and work 4 days a week. Sometimes it is frantically busy, just trying to get out of the door in the morning, ensuring that everyone has what they need.
    My ex doesn't contribute but I've taken the point of view that I'll get on with what I have. If I don't expect it I can't be disappointed.
    Wow, hats off to you. Some days it feels like the whole world is against me trying to juggle my 5 day a week 8-5 with my lot thinking I'm the maid, cleaner, cook, nurse, taxi, bank...you know the score. I think I'd end up institutionalised or bald managing 8 and working. You will be my on going inspiration to get me through this rough patch as soon as I can work out how to stalk a member on here!!!!
    • singleandskint
    • By singleandskint 2nd Jun 18, 8:06 AM
    • 12 Posts
    • 9 Thanks
    singleandskint
    It's been the best part of a month since I last posted and there's been no significant changes. Debt level has remained fairly static despite throwing as much as I can at overpaying.
    Oh how I wish to see just one of them gone.
    It almost feels as if I have no life whilst making all these payments.
    On the positive side I've had a confirmed preschool place for the youngest but no start date so I'm still unsure how my childcare fees will pan out for next year.
    I'm also toying with the idea of applying for UC instead of tax credits as they pay a higher % toward childcare and benefit calculators show I would be better off. Problem I have is that I can't financially manage the wait for the first payment.
    Plan for this month:- continue as I am, build my emergency pot and watch those debts decrease very slowly.
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