We have signed up to Step Change to pay off our debts, but have had car tax bill + speeding fine + school trip bill for DS2....

[josben]

So at this point in October we have 90p in the bank - we have no savings, and are not able to ask our parents for a loan of money...

I now realise that i should've realised by budgeting properly that the would happen so early in the month but now I do not know what to do...?

DH and I both work, but have large mortgage (£1,000 pcm) and are paying £367 to Step change pcm, plus the other usual bills, living expenses with 3 DC's...

I have listed some bits on EBAY this afternoon to sell but I am wondering how we can cope when we get additional bills like car tax and insurance? Plus we are struggling to save anything as our budget is so tight,.. we are not driving our car at the mo as it needs £300 spending on it...

I am now thinking that the only way out of this situation is to sell the house and downsize ...?

[Imeldainthemustardcoat]

Hi
Sorry to hear about your current situation, have you considered looking at Frugal Queen or Mortgage free in three blog, they are very good at this kind of thing and have a track record for helping people. You could pick up some great budgeting tips, ideas etc...
I really hope you get things straight, hope this post helps x

[Fluffycloudland77]

Does the school have a fund to pay for trips parents can't afford?.

[josben]

Thanks for your posts, much appreciated


I have now paid for the school trip, but that is a good idea about maybe a fund...

I will def look at Frugal Queen and Mortgage free in three

Thanks

[lateSeptember1964]

Have a look at Dave Ramsey "The Total Money Makeover" he uses a seven point plan of baby steps. It is aimed for the American market but the basic premise is well worth considering. I use his budgeting advice and have found it really helpful

[specialsubject]

if you aren't driving the car either sell it or at least declare it SORN - as long as you have somewhere off-road to park it. That means no tax and no insurance to pay, although obviously no insurance if it is stolen.

this can 'mothball' it until you are more able to pay for it. Won't negate the speeding fine though of course.

[OnIlkleyMoorBahTwat]

If you go on a speed awareness course, you still need to pay for it, and it sometimes costs more than the speeding fine.

Does the budget that you agreed with Step Change include annual costs like car tax, insurance, MOT and repairs, because it should. They are usually quite generous with the amount they allow for groceries too, so it is usually possible to live on less and have a bit extra for savings or treats. How long have you been with them? Is there any way that you can miss a payment so you can pay these things?

One real advantage of formal debt management is that you are forced to learn to budget and save up for irregular outgoings. After you have paid off your debts, if you carry on doing this, things like car insurance and broken appliances are never a worry because you just pay for them as they arise out of the money that you have saved up for that very purpose .