[alittlebit]

Hi



I’ve gone anon for this – I’m not very well known but just being cautious.



I’m in a bit of a ‘pickle’ with my finances, and hoping you guys might be able to give me some direction. I am usually pretty good with money and had a very strict budget, which worked but it has all fallen over due to unexpected and unbudgeted expenses plus a lack of time. I’m feeling a bit lost – I know we’re not in a huge amount of trouble (well I hope not!), but would like to get back on top instead of playing catch up, and have some savings in the bank again.



First I’ll list our income, then what’s overdue and then our usual expenses:



Income:

Me: 1893.00 per fortnight

DH: 1270.00 per fortnight



Regular Expenses:

Mortgage: $2000 per month (I have a split loan and pay a lumpsum payment monthly, and two smaller payments fortnightly)
Loan: $105.00 per week


Petrol: $80.00 per week

Food: $160.00 per week

Childcare: $470.00 per fortnight

Mobile phones: $90.00 per month

Internet: $50.00 per month

Interest Free furniture: $200.00 per month

Electricity: $150.00 per month

Phone: $70.00 per month

Gas: $110.00 per month

PHI Insurance: $83.00 per month

House & contents insurance: $110.00 per month

Car insurance: $34.00 per month



At the moment, I have outstanding childcare bill of $900, school fees of $440, electricity is due next week and I think that’s about $500 (or $600?). There is only about $1600 in the bank at the moment and the mortgage is due to come out tonight ($1600). DD’s birthday is next week, so we don’t get paid before then. I’ll need to shortpay the mortgage to get her present, let alone food etc. for the week. I think I can redraw about $200 from the mortgage as well if I need to.



Basically I need to be able to get back on track before the next big mortgage payment is due (12^th of every month). I know it’s not ideal, but I don’t mind short paying it this week (I get paid next Friday 20/04 so will be paid in full then) if it means I will never have to do it again IYKWIM?



I’m not really after anyone’s opinion on how we got into this mess – just after some help on how to get out of it.



Thanks in advance J

This post has been edited by alittlebit: 11/04/2012, 11:51 AM

[alittlebit]

Sorry the post has gone a bit funny - I did it on an email and then copied and pasted it.

[PrincessPeach]

Are you able to contact the bank, make half the repaymnet when it is due & the other half of the repayment next friday, or better still, see if they can delay the repayment until next Friday.

Usually being upfront with your lender results in more favourable treatment than not.

[MummaDiva]

Absolutely contact your lender. Ask if you can forego one payment this month (which will give you some leeway for basic living expenses), and pay it back spread out over the next three months or six months.

Also, talk to your day care immediately. You may be able to pay off the outstanding bill over a few equal payments. Make sure you stay on top of your childcare bill - if they get sick of you not paying, you may well lose your place, then one of you won't be able to work, and you WILL be in huge trouble then.

If the school fees are for a school in the public system - just talk to the school and make a part payment plan. You can probably take the rest of the year to pay that down, maybe $50 a month to start. I think even the private schools will show some leniency.

I would see if you can pick up an extra $200 - $300 of work a fortnight, and slowly dig yourself out of the debt hole you are in. If you can't pick up more hours at work, one of you may well need to get another job - just for a few months until you get your debts paid off and savings plumped up.

[Charlies Angel]

Arrange split repayment on your home loan.

Pay childcare, school fees on credit card to buy some 'breathing space'. DO NOT add anything else.

Dramatically slash food costs over next month (use up all staples/ extras in your pantry).

Go lowkey for your DD's daughter - ie make a big fuss but not OTT on presents etc.

Arrange direct debit of surplus funds (and there should be ~$500 each fortnight) firstly into the credit card to pay for above expenses, and then into an online savings account so that you don't find yourself in this situation again.

[alittlebit]

Thanks for your replies.

MummaDiva - I kind of already have a bit of extra money coming in with DH's overtime. He worked over Easter, and will be working this coming weekend, so we'll probably be about 1k or so richer on the 25/04. I'm not interested in picking up anymore work - I don't see the kids enough as it is . I work FT and so does DH, with some weekend work thrown in as well for him. He earns more than me, but we salary sacrifice his income with one of our cars, which reduces his wage.

Ohh I just realised it's mortgage day tomorrow - not today. I thought it would be too late to do anything this month. If I can call them today and see if they take half of the payment out, and defer the next payment until DH's overtime comes in on the 25/04... that might help?

I will do as you suggest and contact the school re a payment plan.

Charlies Angel - I don't have a credit card, so I won't be able to do that. I will do as you suggest though and try and get my food bill down. I find it hard to make things from scratch as I'm always so busy.

Even though I'm starting to get behind, should I start saving now anyway? I feel a bit silly getting payment plans etc., and then saving some money in the bank!

Thanks for your help.

This post has been edited by alittlebit: 11/04/2012, 01:04 PM

[Liadan]

The only advice I have, is that for MOST of my expenses, I pay them weekly when I get paid, so for example, my phone bill, I pay just over 1/4 of it each week. Because I do this, I end up being ahead with my bills, which means that if/when I have unexpected expenses, I can reduce a payment here or there without having to stress too much.

It is also easier for me to budget this way, I don't have to save for next weeks bill, or forgetting that I'll have this upcoming expense, and forgetting to budget for it.

[alittlebit]

Hi Liadan

Yes, I used to do this too! I actually loved getting bills lol. As I said, it all fell over the last few months. Looking forward to getting it back up again

[MummaDiva]

If the payment is tomorrow - ring the bank now!

I think that little bit of extra income from your DH should help you stay out of too much trouble - as it will pretty much cover the outstandings that you have with the schools. If he can do this just for a few more weekends, I think you should pretty much be on track.

I wouldn't be concerned about putting away a great deal of savings straight away - just pay off the bits and bobs that need to be paid, then start worrying about savings. If you manage to get a payment plan in place, even if it's interest free, pay it down with any extra money so that you give yourself some wiggle space in your overall budget.

When you are in the clear, and you are breathing a little easier, build your savings into your budget - take your savings out with your mortgage repayments. Try to build up a reserve of at least three to six months pay - I know it's easier said than done, but, if you're anything like me, once you've got the breathing space, you'll be less stressed, and a happy more motivated mother.

[MummaDiva]

Just to add, once you're breathing easier, the first things I would tackle are the $105 pw loan and the furniture loan.
If you paid these off, this will give you an extra $150 a week - in the case of this month, if you didn't have these expenses, you would be able to pay for groceries and a birthday present.

Though financially speaking, paying down a mortgage with a higher interest rate will save you pennies, if you get a boost of income like a tax cheque, etc, this is what I would be ploughing any "gift from god" money in to. I personally would rather save my sanity (I hate loans and things hanging over my head!) than a few pennies.