Worried about money

[Teddy1981]

Hi. I’m in a predicament! I’m a single mum with 2 kids, one nearly 18 and the other one 15. I have a 50/50 share with their dad. I work full time, I receive child benefit, UC and maintenance from their dad. I live an a shared ownership house. (50/50) however, once my 17 year old finishes college (next year) the support goes for him, leaving me unable to afford my house!! I appreciate he’ll have to start paying board but his father will expect board too and I don’t think he’ll be on a decent wage to start off with…. What do I do? I’ve also got £10k on a credit card which is interest free currently and I’m trying to pay this off.

Start looking for higher paid jobs? I can’t see another option long term. Your son can opt just to live with one of you if you both ask for board, it would be totally unreasonable for you both to ask for it.

I'm sorry to hear this. Money worries are not fun. Maybe go and see citizens advice bureau and see if they can help maximise your income in any way and look at your debt for you. X

Do you work full time? Could you increase hours or get a second job?

Sorry I just read that you do work full time.

How short are you? Can you extend the term on your mortgage to make your monthly payments cheaper?

I think a back to basics approach is needed now - look for a job that pays more or a part-time job (easier said than done in today’s market). Live frugally for at least six months to get that debt down.

Do you know when your service charge is increasing, if it will be?

I'd start by making sure you've got a budget and going through your expenditure to see where you can make cutbacks/ savings. Chances are you're paying more for something than you need to eg broadband, phone, insurances. Can you make grocery shopping/ meals cheaper? Any savings you can make can really add up to improve finances.

Moneysavingexpert has a really useful budget planner and great advice about a 'money makeover'- see www.moneysavingexpert.com/family/money-help/

Do your sums add up when you exclude “trying to pay the debt off”?

I’d spend the next 6 months really trying to pay down the debt and applying for better paid jobs, and then look again at the budget in 6 months.

The reason I’m suggesting those two things specifically are because you’ll have the same situation again when your 15 year old finishes college. Both reducing debt and earning more will help with the second time it happens too.

Also, don’t forget that if your son isn’t earning a lot to start with, he can also apply for universal credit. Which might make asking him for board feel easier.

Surely at aged 18, dc could decide which home will be his main one. It would be rubbish for him to pay board to both parents when he's only there 50% of the time in each house. He probably wont be able to afford that either, as you say.
Or maybe his dad is in a position not to charge him board? He won't be paying the maintenance anymore. He should talk to his dad about it .