I have the kind of family that many people think shouldn't need extra help from the Government

[MogadoredMemoo]

I would like somebody to tell me how we can reduce our outgoings. We are the kind of family who people seem to think shouldn't need any financial help from the government. there seems to be an attitude that we just need to tighten our belts a bit. So I am really interested in how people think we will manage if out tax credits are cut.

Dh earns just under 25K. I really seriously cannot at the moment due to health problems.

We currently get £80 a week in TC and this helps us keep our head above water. But under the new system it looks like we wont get it any more.

So with DH salary and CB we have a monthly income £1772.00

Mortgage £700
Council tax £83
Car Insurance £58
Gas £60
Elec £80
Maintenance for DSD's £250
Petrol £200
Contents and Buildings ins 67.00
other bits ie TV licence, broad band phone, pet insurance £100
Nappies £20

That would then leave us just £154 each month to clothe and feed 3DC and to feed 2 dsd's.

How are we suppose to manage on that? I'm not saying that we should just be given hand outs but why can't the government do other things to help like keeping petrol cost lower. we just about managing at the moment but we are going to be in shit if these cuts go ahead. We will end up losing our home.

Even worse I suspect there are thousands of families like us out there. The ones trapped in the middle, not earning enough to survive but earning too much to get any help.

Mrsgeton, Sorry, just trying to keep up with all the questions. Yes we have shopped around, we pay by DD too so that reduces the cost.

You house insurance is high - £67 a month? As is your gas and electric - look at switching all of those.

Tax allowances are going up in April aren't they? Can you claim incapacity benefit (does that still exist?)

Agree with expat re DLA.

Do you not get maintenance for your child? CSA?

Have you looked at re-mortgaging with another provider?

You seem to have a high outlay for the amount that is outstanding on your mortgage? (but I'm not an expert).

I don't mean extending the terms in years, but just looking for another provider...

In the short term, you are barely managing.

But for the longer term, are you able to do anything to put yourself on the path to being well enough to work again?

Darlene, yes I did have a hose when I had my first two children. I sold it when my first husband left me because I could not afford the mortgage. It was a 3 bed and worth just 50k then hous prices increased hugely in a relatively short period and it cost us £120 to buy a 2 bed terrace.

I still think you are paying too much insurance etc.

What type of house do you live in?

I live in a 3 bed detactched with garage and pay about £180 per year. That is contents and buildings.

your gas and electric is really high - do a dual deal / DD price check on the comparison sites

you should be able to halve it I'd have thought for a 2 bed terrace

Earlybird, I am on medication and have a psychiatrist. I am doing everything I can to get well enough to work.

Darlene, my youngest is 17 months so still does need to be in nappies

Activate, we did do a price comparison not long ago and they were pretty favourable.

Make sure your buildings insurance is covering the cost of rebuilding your property not at it's value IYSWIM - rebuild costs are probably less than £100k!

Go through quidco and double check everything you are paying for is the best deal.

Lastly go to moneysavingexpert website for savings on everything - how can you cut your electricity usage that type of thing.

you have some time to sort out your budget though so dont panic.

you could try living without the tax credits now to get used to change in budget and then build a bit of a emergency fund. Insurances are cheaper if you can pay the whole lot in one go.

probably not popular but have u checked that the maintenance is in line with what he CSA says?

I've just seen that you live in a 2 bed terrace - so do we and we aren't paying anywhere near as much for our utilities and buildings and contents insurance.

Our B&C - currently £36 per month (unlimited buildings cover and £75k contents) but we've just shopped around and are about to switch to a different insurer who will provide the same for just £20 per month!

Gas & Electric - we pay £35 pcm for gas and £26 pcm for electric with Southern Electric. Granted I am out at work during the day and that keeps the bills down, but I can't see how yours is so high unless your central heating is on 24hrs a day and you leave all your lights on!

TBH you should have though about this before you got together with some one who already had 2 DCs. Did you not realise that it would effect your income paying maintenance?

Car Insurance £58, seems a bit steep compared to ours, suppose it depends very much on the type of car and your no-claims, but make sure you shop around
Gas £60/Elec £80 - You should be able to reduce these, drop the thermostat down a degree or two, don't have heating on when you're out, wear extra layers etc - we have a 3 bed semi and pay about £80 for gas and electricity combined each month
Petrol £200 - really think about every journey you make (we're doing this now), try to combine trips, walk if at all possible, lift share with others etc.
Contents and Buildings ins 67.00 - seems very expensive, shop around, ours comes out at below £20 a month
other bits ie TV licence, broad band phone, pet insurance £100 - It may sound harsh, but can you afford to keep pets? A good friend of mine who adores animals has just rehomed her rabbits, chickens and dogs and is amazed at how much money she saves. Of course it's up to you, depends on your priorities. We save on the expense of TV as we don't watch it so no licence fee - you could do this at a push.
Nappies £20 - unless all 3 DC are in nappies you could probably spend less - Aldi nappies are pretty good and cheaper than other shops own brands (MUCH cheaper than Pampers or Huggies)

mamatomany. I have been chasing my ex through the CSA for 10 years! he moves about all the time, even going abroad for 6 months.

OP - if you want help trying for DLA try your local CAB and DIAL - they will help advise on eligibility and help you fill in the forms. I think often you get a 'no' after 3 months but can then appeal. If you have a diagnosis of your condition then find a support forum online for it. I'm a member of a fibro board and there's loads of help on there for successfully claiming DLA. It's worth a try. I haven't tried yet but if I don't find work soon I will (I am aware it's not an 'out of work' benefit but I wouldn't need the extra money if I had a job as would be able to pay for the aids myself).

Darlene, please listen to me. When we got together I was working full time and we could easily afford everything and an extra baby. I got ill after having the baby, so ill I still can't work.

Two bed terrace house you are paying way too much in bills.!!!!!!

Thanks to everyone who is giving practical advice. I am going to really look around at our insurance etc and see what we can do

How often do you all go out as a family of 7?

It may be worth getting a really really cheap to run/insure much smaller car and forgo family trips. Alternately move down to something like a zafira if it's going to save you money.

Looking back, you shouldnt have sold that first house. Did you get advice at the time? Why didnt you stay and your ex pay the mortgage until your Dcs were 18? Did you not have some equity left over? What happened to that?

You really should be getting ESA. Have you applied?

Our gas and electric conbined is £135 pcm and we even owe them money after reading this im thinking we should switch!!! Thats a 3 bedroom house 2 adults and 2 dc not here 4 days a week through the day !!!

Well, it's almost as if you don't want to make ends meet, what with your willy nilly eating and suchlike. Tsk.

Have you thought about perhaps selling an internal organ?

Or one of the children? (which would also reduce the food expenditure, so win-win)

Minty, What is dial? I have never heard of that. The problem is because I have a mental illness rather than a physical one it seems a lot harder to claim.

'Darlene, please listen to me. When we got together I was working full time and we could easily afford everything and an extra baby. I got ill after having the baby, so ill I still can't work.'

memoo, don't let her get to you. she just posted on another thread that she shouldn't have to pay for the breast cancer or hospital admissions for gasteroenteritis of women who don't breastfeed/babies who are formula-fed.