Since the start of the year, our disposable income has been utterly wiped out by increased bills - nursery fees, rent, gas and electric mobile phone contract, train fares as well as food and clothing increasing in price.
Our biggest expenditure by far is the nursery fees at £1500 per month.
From next September, our nursery fees will drop to £750, giving us an extra £750 a month. A year later, this will drop to zero as we will not need wraparound care for school.
At the moment, after all of our bills (which we have reduced where we can e.g. cancelling subscriptions, reducing the food budget) we have disposable income of £100 a month to cover clothes, toiletries, anything for DD and special occasions. I am worried this will reduce further with the next energy price hike.
DH says we should accept we may go into debt short term until our nursery fees reduce to maintain SOME kind of enjoyment in life and cover any larger purchases we may need in the next 14 months. We have a 0% credit card to cover this.
I am unsure - if our circumstances change, I am worried we will get saddled with debt we cannot repay. On paper we would be able to clear debt pretty quickly, but what if I lost my job and my salary reduced? Sickness?
I am unsure where to draw the sensible line here.