Katie Lea is earning £1,400 a month and struggling with debts of £350
Money
Katie Lea is desperate to clear her debts so she can treat her son, but she’s struggling to pay the bills after her ex-partner moved out of the family home in December.
The 35-year-old part-time midwife lives with two-year-old son Max in a two-bedroom flat she owns in Exmouth, Devon.
At the moment she earns a minimum of £1,400 a month (after tax) a month and receives £89.70 child benefit, plus £450 maintenance from Max’s dad.
But Katie, who bought the property with her ex-partner last April, now has to pay all of the £1,333 a month mortgage and bills herself.
Plus, she spends £352 a month on various debt repayments, as well as extra on transport, grocery shopping, and socialising.
Our Cash Clinic expert Lily Canter recommends Katie consolidates her debts onto one cheaper loan, as well as switch her pricey mobile and energy contracts.
Lily also recommends a number of tips Katie could use to boost her income when Max is in bed, such as filling out online surveys.
Katie said: “At the moment I can’t even afford to take Max to a local farm park and I have no idea how I am going to clear my credit card.
“I feel I have cut costs everywhere and I don’t know where else to save money.”
To help Katie get on top of her cash flow, our cash clinic expert Lily Canter poured over her finances to work out how she could consolidate her debts, save money and boost her income.
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Here’s how our Cash Clinic makes Katie savings of over £7,500 in a year.
Groceries: £300 per month
New Spend: £220 per month
Saving: £80 per month
When it comes to her two dogs – a spaniel called Jack and a Yorkshire terrier called George – Katie is pretty savvy and spends just £20 a month on their food by buying in bulk.
She currently spends £280 a month on groceries for herself and her son, but we reckon by making some changes she could reduce this by £80 a month to £220.
Katie admits she pops into Tesco three or four times a week to pick up bits she has run out of.
