Don't Know What to Do

A question about : Don't Know What to Do

We've had a very turbulent few months. OH was in a job which paid well and then suddenly he was given a week's notice and that was the end of that. He found a new job very quickly, but with a massive pay cut. It was horrible hours and after a week he couldn't do it any more and quit. The same afternoon he was interviewed and offered another new job. This one has normal hours. The basic salary isn't great, but there's genuine potential to make a decent amount through commission. Obviously for budgeting purposes I can only use his basic salary. He starts on 23rd July.

Here's where it gets (more) complicated.

1) I've now had a pay cut. I was bringing in Ј1770 per month but it should have been Ј1530. This has been going on for almost two years. I have a meeting on Monday to agree a repayment schedule. They're proposing Ј443 per month, which I just cannot afford.
2) When OH lost his job the first time, we gave nursery notice. Then he got a new job and so we started needing nursery again, but then he quit again after the notice period, so DS has been going. We're about a month in arrears with the fees.

I have been through our SOA in very very careful and fine detail. The ends just about meet, but only once he's working and being paid, and only if I'm not repaying any overpayment. I literally have no idea what to do for the next set of bills coming in.

I did have a call with CCCS booked, but had to cancel as it clashed with a hospital appointment. I'm inclined to go for a DMP and then use any commission OH is paid to pay off extra.

I just don't know what to do.

Best answers:

• Could you post the SOA up here as you'll get better advice on how things stand / where cuts may be possible.
  Re your salary - how did the overpayment occur?
  Were they paying you more than your salary should've been or was it something else?
• Re the overpayment, I went to part time on return from maternity leave (4 days per week) and someone didn't press the right button on a computer somewhere. I didn't realise because at that point money was all over the place with mat pay and we had a very "head in the sand" approach to finances at the time.
  SOA I will do, but I'd be amazed if anyone can suggest anything tbh. I'm much more on the ball than before so can't shave anything off.
• Statement of Affairs and Personal Balance Sheet
  Household Information
  Number of adults in household........... 2
  Number of children in household......... 1
  Number of cars owned.................... 2
  Monthly Income Details
  Monthly income after tax................ 1539
  Partners monthly income after tax....... 0
  Benefits................................ 81.2
  Other income............................ 0
  Total monthly income.................... 1620.2
  Monthly Expense Details
  Mortgage................................ 490
  Secured/HP loan repayments.............. 0
  Rent.................................... 0
  Management charge (leasehold property).. 0
  Council tax............................. 74
  Electricity............................. 55
  Gas..................................... 57
  Oil..................................... 0
  Water rates............................. 50
  Telephone (land line)................... 45
  Mobile phone............................ 30
  TV Licence.............................. 12
  Satellite/Cable TV...................... 0
  Internet Services....................... 0
  Groceries etc. ......................... 300
  Clothing................................ 0
  Petrol/diesel........................... 260
  Road tax................................ 20
  Car Insurance........................... 160
  Car maintenance (including MOT)......... 10
  Car parking............................. 0
  Other travel............................ 0
  Childcare/nursery....................... 500
  Other child related expenses............ 0
  Medical (prescriptions, dentist etc).... 0
  Pet insurance/vet bills................. 0
  Buildings insurance..................... 32
  Contents insurance...................... 0
  Life assurance ......................... 25
  Other insurance......................... 0
  Presents (birthday, christmas etc)...... 0
  Haircuts................................ 0
  Entertainment........................... 0
  Holiday................................. 0
  Emergency fund.......................... 0
  Bank account fees....................... 31
  Boiler service.......................... 18
  Loan (to family)........................ 219
  Total monthly expenses.................. 2388
  
  Assets
  Cash.................................... 0
  House value (Gross)..................... 0
  Shares and bonds........................ 0
  Car(s).................................. 0
  Other assets............................ 0
  Total Assets............................ 0
  
  Secured & HP Debts
  Description....................Debt......Monthly.. .APR
  Mortgage...................... 0........(490)......0
  Total secured & HP debts...... 0.........-.........-
  Unsecured Debts
  Description....................Debt......Monthly.. .APR
  CC (virgin)....................0.........50........0
  CC (barclaycard)...............0.........50........0
  CC (Santander).................0.........80........0
  Sofa...........................0.........32....... .0
  Overdraft......................0.........60....... .0
  Total unsecured debts..........0.........272.......-
  
  Monthly Budget Summary
  Total monthly income.................... 1,620.2
  Expenses (including HP & secured debts). 2,388
  Available for debt repayments........... -767.8
  Monthly UNsecured debt repayments....... 272
  Amount short for making debt repayments. -1,039.8
  Personal Balance Sheet Summary
  Total assets (things you own)........... 0
  Total HP & Secured debt................. -0
  Total Unsecured debt.................... -0
  Net Assets.............................. 0
  Created using the SOA calculator at www.makesenseofcards.com.
  Reproduced on Moneysavingexpert with permission, using other browser.
  Notes: Buildings insurance includes contents. Landline includes internet. Cars are owned outright and worth a few hundred apiece.
• SOA for when OH is working again:
  Statement of Affairs and Personal Balance Sheet
  Household Information
  Number of adults in household........... 2
  Number of children in household......... 1
  Number of cars owned.................... 2
  Monthly Income Details
  Monthly income after tax................ 1539
  Partners monthly income after tax....... 1156
  Benefits................................ 81.2
  Other income............................ 0
  Total monthly income.................... 2776.2
  Monthly Expense Details
  Mortgage................................ 490
  Secured/HP loan repayments.............. 0
  Rent.................................... 0
  Management charge (leasehold property).. 0
  Council tax............................. 74
  Electricity............................. 55
  Gas..................................... 57
  Oil..................................... 0
  Water rates............................. 50
  Telephone (land line)................... 45
  Mobile phone............................ 30
  TV Licence.............................. 12
  Satellite/Cable TV...................... 0
  Internet Services....................... 0
  Groceries etc. ......................... 300
  Clothing................................ 0
  Petrol/diesel........................... 260
  Road tax................................ 20
  Car Insurance........................... 160
  Car maintenance (including MOT)......... 10
  Car parking............................. 0
  Other travel............................ 0
  Childcare/nursery....................... 500
  Other child related expenses............ 0
  Medical (prescriptions, dentist etc).... 0
  Pet insurance/vet bills................. 0
  Buildings insurance..................... 32
  Contents insurance...................... 0
  Life assurance ......................... 25
  Other insurance......................... 0
  Presents (birthday, christmas etc)...... 0
  Haircuts................................ 0
  Entertainment........................... 0
  Holiday................................. 0
  Emergency fund.......................... 0
  Bank account fees....................... 31
  Boiler service.......................... 18
  Loan (to family)........................ 219
  Total monthly expenses.................. 2388
  
  Assets
  Cash.................................... 0
  House value (Gross)..................... 100000
  Shares and bonds........................ 0
  Car(s).................................. 1500
  Other assets............................ 0
  Total Assets............................ 101500
  
  Secured & HP Debts
  Description....................Debt......Monthly.. .APR
  Mortgage...................... 0........(490)......0
  Total secured & HP debts...... 0.........-.........-
  Unsecured Debts
  Description....................Debt......Monthly.. .APR
  CC (virgin)....................0.........50........0
  CC (barclaycard)...............0.........50........0
  CC (Santander).................0.........80........0
  Sofa...........................0.........32....... .0
  Overdraft......................0.........60....... .0
  Total unsecured debts..........0.........272.......-
  
  Monthly Budget Summary
  Total monthly income.................... 2,776.2
  Expenses (including HP & secured debts). 2,388
  Available for debt repayments........... 388.2
  Monthly UNsecured debt repayments....... 272
  Amount left after debt repayments....... 116.2
  Personal Balance Sheet Summary
  Total assets (things you own)........... 101,500
  Total HP & Secured debt................. -0
  Total Unsecured debt.................... -0
  Net Assets.............................. 101,500
  Created using the SOA calculator at www.makesenseofcards.com.
  Reproduced on Moneysavingexpert with permission, using other browser.
• ... and neither SOA shows me repaying any overpayment.
• Hi klfairy, I have never replied to one of these before but your situation sounded like mine was at one time so here's my twopenceworth, sorry if i dont make enough suggestions as to how to remedy things though
  As for the works overpayment, their mistake so I don't think you should suffer financially by paying them back a third of your salary every month, haggle haggle haggle!
  Quote:
• The car insurance is very very high. I pay 51 a month for mine but that includes breakdown and higher value courtesy car(so I don't get given a tiny corsa when I have a 7 seater car as I have 6 kids)-the basic ionsurance is 31 a month. And my car is a 6 year old one,my old car was from 1997 and cost me 23 a month.
• How about looking at groceries, I have a family of four with one child having a lactose intolerance so I have to buy more expensive items to suppliment his diet and I only spend Ј200 a month on groceries. I suggest popping over to the Old Style boards for some help cutting this down a bit. I reckon you could get it down to Ј200 in no time.
• The car insurance figure is right. One car is Ј75 per month and the other Ј85. I shopped around extensively for those! We're not accident-prone, but the area we live in is not the best.
  Mobile phone contract price is for two phones. One is Ј21 and the other Ј9. They're both new contracts.
  Groceries could come down a bit yes. Hopefully DS will be out of nappies soon and that'll save a bit!
  I haven't looked at our energy supplier recently. Last time I tried to change suppliers it was such a monumental hassle I didn't think I could face it again. Water is metered and generally comes in at Ј40-45 per month. I budget for Ј50 though, just in case.
  The bank fees - bloody Halifax. It's Ј1 per day for an overdraft that never goes away. I'm waiting for a new account to be set up (got to send in ID) so we can close all our other accounts and hopefully suspend any more charges and just pay back what's owed.
  The loan is OHs from many moons ago (pre-me). It has another 5 years left to run. His mum took it out and he (we) pays her.
• Unfortunately I think your debt may well have to go up before it goes down. This is because I think you will probably need to pay the nursery fees in order for your OH to go to work to get more money in?
  I woul suggest trying to come to some sort of arrangement with them but if you are already owing 1 month then this may not be possible. Can you family help out at all - even if they can help at all with childcare/cost of childcare in the short term until things settle down again? Otherwise I think you will need to consider the cheapest way of funding the extra borrowing
  Hope you can sort something out.
  df
• I have switched energy suppliers, saving about Ј122 per year. Every little helps, right?
  I forgot to account for the fact that we do have about Ј220 in the bank already, which helps a fair bit! We can use this to keep nursery and everyone else off our backs, I hope. Nursery shouldn't be a problem.
  Childcare is (always) a difficult one. The only person we could ask to help out is my MIL, and she does for odd bits here and there. We can't ask her to do anything more really. Everyone else lives too far away.
  I think it's just going to be a (very) tough month and we'll have to hope OH earns well and we can get a DMP sorted sooner rather than later. I think that's the way forward because otherwise there's a risk our debts will just drag on forever. We both have the opportunity to earn extra money here and there, which we can then use to pay off bigger chunks.
  I appreciate the advice, folks, thank you. And thanks for not lecturing!
• Could work not just underpay you by 100 a month until what you've been overpaid has been paid off?100 a month might be doable and at least that way you know what you're budgeting for.
• I will be suggesting a figure along those lines, yes. I just hope they accept it.