If you were in my shoes, how would you get yourself out of this ?

[Hillomjs12]

Looking for some advice because I am going through a rough patch financially and I am worried my debt is going to increase to just make ends meet!

Since my separation I have been lucky to secure a small terraced for me and my children. I am however coming to the realisation that the cost of living as a single parent is not only difficult it is becoming increasingly evident that I cannot continue living off so little. I co-parent with EXH 50/50 so not liable for any child maintenance and quite rightly, so he has them his fair share of time. I receive some UC and child benefit, but this gets swallowed up with bills, petrol, food etc.

I have no savings and my son’s birthday / MOT coming up next month. Every time I try to make an overpayment on my credit card it gets swallowed up a few days down the line when I have nothing left in the bank. I am going to break this down and would appreciate any advice on how I can increase my surplus money.

Take home £1900
UC + CB = £480
Mortgage: £720
Utilities: £150
Water: £77 (no meter)
Council Tax: £220 ( this will reduce to £120 in April)
TV + broadband: £35
Mobile: £17
Gym: £26
Car: £160 (pcp)
Car tax and insurance:£55
Vet subscription: £19
Loan: £100 (family member lent me money for necessary home repairs)
Credit Card: £40 ( I owe £1,600)
Food: £350
Petrol: £100
Klarna: £39 (Two payments left from Christmas presents for DC)

If my calculations are correct, I am normally left with £68 a week to live off after all bills have been deducted. But with this I need to use it to pay for DC activities, clothes, and upcoming birthdays, general life. I work a Band 4 NHS operations role so think I need to start looking for a better paid job role. How can I realistically improve my life financially because I cannot continue living like this?

Thank you for your help ✍

You’ll get £100 more per month in April so that should help.

Stop using things like Klarna - once that’s paid off that’s an extra £39 per month.

Can you reduce food costs any further? Even by £50 per month would help.

Also can you get a water meter -£77 seems very high, but don’t know how many children you have / how much laundry you need to do.

Could you manage without the car? That’s taking a big chunk. Otherwise, gym & TV could go.

The bottom line really is as you say OP it’s really hard to run a household on one income, and there is only so much budgeting you can do without just needing more money coming in.

By April you’ll be £139 better off- no Klarna & reduced council tax, so that’s a start but make sure not to fall back into the Klarna trap. Suddenly then £68 a week is more like £100 a week which is much better!

Agree with PP re the car, if you don’t need it then hand it back under change of financial circumstances. If you do need a car though I’d really recommend looking to swap from a PCP deal to a HP so that at least there is an end point at which you will own the car outright and won’t be making a monthly payment on it. With PCP you’re always going to have a car payment each month and that does take up a lot of budget.

Just quickly looking at your list - can you cancel the gym membership? Plenty of exercise can be done for free.
Also, when you can afford to, it would be worth buying a second hand vehicle and getting rid of your PCP
I don’t know how much you spend on bday / Xmas presents but is there any room
for you to scale down costs on those? It’s not worth going broke for.

So nearly £100 a week from April? And even more after your Klarna payments end? Also some none essential things like gym on your list. You have more excess income than I have and a lot of other people but obviously less than some people as well. Are you trying to live beyond your means and that's why you think you are struggling?

Will the family member let you pay less per month?

But as per pp - gym membership and any TV subscriptions should probably go (unless TV subscriptions is just a couple of quid per month)

Plus from April your council tax will fall and your klarna payments will be no more.

So in the medium term it's not looking too bad.

Tweak your food shop maybe and also look for a better paying job.

Make sure you have signed up for the loyalty cards for supermarkets etc that you use (and actually use the card!)

Start saving a bit now if you can for Christmas

I actually don't think £310 per month is a lot for a reliable car (pcp and tax and petrol).

Yes OP could swap for a bus pass but then other things in her life become more difficult if she has to drop her children places. A car makes free things to do a lot more accessible, easier to get supermarket bargains etc. I understand it's a bit of a luxury though. I think if cuts need to be made then other things have to go - the gym, cut down the food bill. Those are more easily reversible if things pick up.

Honestly I think getting a better paid job is the route out of financial difficulty.

I'm a single parent so understand the difficulties. Id start with documenting everythingand workingout what you can swap to a cheapper deal (eg insurance, gas and electricity) anythingyou cant swap put a note in your calendarfor when you can then look at:
Water - probably much cheaper on a water meter. Also check out your waster company see if they have low income schemes (im on one thats £27 a month for unlimited water use as I'm disabled and have a low income but my water company have several schemes for different circumstances).
TV + broadband - can you look into if a social tariff will be cheaper?
Mobile - look at sim only deals I pay £16 for 3 sims with 12gb.
Gym - if money is really tight is it worth cancelling this short term?
Food - this could be lowered. I spend £210 a month for 1 adult two older teens (who eat more than me) and are with me 100% of time. I do this by meal planning every meal, batch cooking, buying lower brands, buying in bulk and when on offer. I shop every 10 days and have a couple of extra cheap meal nights.
Also check to see if you can get any other help? Council tax discount, warm home payment, free school meals for dc (if thats age appropriate) etc.
Is moving debt to 0% credit card suitable?
If you haven't done a switch to a different bank account do it and do it anually, for example Lloyds are doing £200 reward plus Disney plus for a year. Put that £200 towards debt repayments.
Check whst money your spending on little things and ask do you need them. Some people find spend free weeks/month useful.
Sign upto Martin lewis email and check out the website.

is your council tax reducing because of a rebanding / house move or are you currently overpaying debts on it? If it's rebanding then your water bill should also reduce as that's based on your council tax band. But if you can get a water meter that should save you money with just 2 people (unless you both bath daily!).
You haven't included TV licence (unless that's in the TV & broadband figure or you don't have one) or house insurance.
None of your outgoing seem excessive, your car is probably an expense you can't really afford at the moment, it's just your income isn't high enough for the current cost of living.
Living on a household single income is hard, the bills are practically the same but to be paid from only one income. I reckon it costs me about £300 a month more to live on my own that it would if another adult lived here (and that includes things like paying for my own car, gym and mobile).

You could probably get your food bills down, cut meat/fish etc, buy cheaper treats. Meal plan using cheaper ingredients.

In the short term have you anything you could sell on ebay to get the loans down a bit?

Spend less or earn more - look around for jobs and don’t automatically think “oh no I couldn’t do that”

Is the mobile in contract? If not switch to a £5 sim only plan.

Is there a cheaper gym - pure gym maybe? Or can you cancel for the summer an exercise outside?

How long is left on the loan to a family member? I’d ask them if you can miss March payment and make double payment in April (when the council tax reduction and klarna should be paid off making you £159 a month better off)

Do children get free school meals? If so then maybe the food bill can come down by £5-10 a week or so. Are you shopping at Aldi/Lidl, switching out branded? Batch cook too - half the week I’m guessing there’s only you eating at home.

It’s so tight and so hard 😞

Unfortunately there is only ever 2 ways out of scenarios like this…reduce your outgoings or increase your income.

Do you budget? Like proper full budget, nothing every single penny you spend and where you spend it? That’s really the only way to know what your gap is…your gap then goes towards your debt.

Oh and unless you find something a lot better I wouldn't leave the NHS for just a small pay rise. The private sector doesn't always (or often) have the same benefits in terms of pay rises and pensions.

Do you need vet subscription? Cancel gym. Why isn’t your son paying for his own MOT, does he have a job, if not why not? Get a water meter.

Switch mobile to sim only if you can.

@Gonnagetgoingreturnsagain i think she means son's birthday and her own MOT?

I'd cancel the gym and phone and get a £5 top up PAYG plan. And exercise at home or in the park.
And pay off klarna then stop using it.

It's good your CT is going down. That'll help a lot?

I pay £4.90 a month for a sim only with Lebara. Unlimited calls and texts. 5 GB data

Cut the gym out for sure. There's loads of ways to exercise for free

When is the klarna cleared ? (sorry if I missed that info)

I would think about a water meter but it may not be cost effective if you have a few children

Water - request an assessed charge.

TV - stop paying the licence fee.

Gym, TV and Broadband need to go. Children's paid activities are a luxury in your circs, vet subscription is a luxury - vacs and front line will work out cheaper. Don't do Christmas on tick next year. Explore a water meter - we saved money doing that.

Not sure about the car 160pcm is quite low.

Get a higher paying job - could you take in ironing the nights your ex has your child? Early morning cleaning? Care shifts?

To be fair, you are getting some UC and it's not meant for non essentials.

Giff Gaff do mobile pay as you go bolt on for £6 per month.
Search for other Internet providers and look for ones that do discounts for people on benefits.
If you can, end the PCP on the car. It's a lot cheaper to get a loan out for a cheap car that you keep after you've paid it off. I've had my car for 8 years, I'd paid it off after 3 years at around £100pm.
I'd stop the gym membership and exercise on your own. Loads of free workouts on You Tube and the weather is getting better for outdoor exercise.
If your children are very young you could do food shopping cheaper. Meat is expensive and can be replaced with lentils. Buy in season fruit and veg. If you're not time poor daily shops when the reduced stickers are added and/or too good to go boxes could reduce your shopping bills.

Your situation is very similar to mine OP.

I'm breaking even though, just about - I assess it at the start of every month so I know where I am. I spend more on food and socialising than you, but less on car and debt.

I was going into the red a bit each month so I have started babysitting and that's made all the difference.

It's hard. I wouldn't necessarily stop the gym in your situation if it brings you joy. Best of luck.

If ex had them 50/50 I’m guessing he has then kids 3 nights

those evenings can you look for extra work whether cleaning /bar staff /waitress/care home etc