We are currently in stage 1 of the process and starting to fill out our workbook - which needs to be submitted by 5th May 2017. We have concerns around financial situation having read a few of the threads on this site. Please could anyone give advice on the following -
We are both employed albeit part-time (25hrs & 20hrs) this is through choice to accommodate childcare of the 7 year old we already have. Our total income per annum is £46K. We have started saving but only just so this is minimal (approx £1500). The issue we have is that we have £30k worth of debt which has been consolidated into a payment plan with Stepchange (debt charity) and our monthly payments are £87 per month with no interest added. This payment plan is over a 30year period although this can be adjusted if we want to pay more off or need to pay less if due to a change in circumstance.
Our disposable income currently is £150 per month - we have cut back on everything we can as we had to do this for the step change payment plan. We also have car finance of 5 years remaining which is outstanding of £13k. We did have other car finance but have recently paid that off & in the process of selling this car which should put at least another £4k into savings.
In the coming months our jointly income will increase as our hours have been upped but this won't show before the end of Stage 1. Secondly we will receive CSA in the sum of approx £300 per month, this will also not take affect until after Stage 1. Once these come into effect our disposable income will increase to about £1000 a month so will dramatically increase our savings. What is the likelihood of making it through Stage 1 with this in mind?
We did't think it would be a problem as long as we could we show we can afford the debt and an additional child however from reading posts on hear we're now not so sure and are worried - any advice please? Thanks