Can't afford minimum payment -advice please?

[daysmustgetbetter]

I know I'm a idiot
When I moved into my house I had nothing
I got my appliances /sofa from littlewoods
I put them on buy now pay later but now I'm struggling.
I get £1,000 a month
£460 is rent £100 is gas /electric £90 council tax and I pay them £240
I'm left with £110 for food
It's killing me
I've asked if I can set up a payment plan they said no
I honestly don't know what to do
If I don't pay the full amount will they pass me to a debt collection agency ?

The OP has 2 adult children living in the house that are working - surely they would be expected to split the rent?

OP I understand that you are trying to pay for your children's keep because you love them and want them to enjoy going travelling but you are doing them no favours to allow them to believe that life is free or to allow them to be selfish and see you struggle while they have £1000 plus spare each month. For grown ups life is not free.

Everyone in a family is important and that includes the parents. You should not be scraping by while your children have plenty of spare cash to spend or save. It's great that your children pay for their own food. Now they need to split the rent, council tax and utility bills 3 ways too. With your low rent splitting rent and bills 3 ways will still give them a very reasonable income to spend or save but improve your quality of life so much. We all sacrifice for our kids but there comes a point when sacrificing more takes the piss - and you paying for all rent and bills resulting in you living on £100 a month to live on while your adult kids spend and save their earnings on themselves crosses that line.

Could you look at either a bank loan or a credit card with 0% interest and see if these will mean you have lower payments.

Not that helpful really.

what about getting self employed cleaning jobs? Where I live cleaners are in high demand, my new one posted in a local Facebook group and within a few weeks was working 50 hrs a week. You only need to supplement what you’re doing. I realise it’s after the event but learn a lesson, all this stuff can be bought 2nd hand very cheaply. Dont use debt.

The problem you've got I assume is that you're looking for a specific job, and potentially part time? Are you looking for a job in addition to your current one, or to replace your current one?

You need to eat, and you can't be picky about what work you do. Look for some part time bar work - you now have no caring responsibilities and can pick up shifts that no one else wants. You might enjoy it, you might hate it. But you'll be able to afford food.

It doesn't have to be forever, just until you find something better.

The children can postpone their travelling for a while and start paying towards bills.

Help them when you're able to.

Lots of us have been in debt then wriggled out, you'll get there. So children pay towards their upkeep, Littlewoods helpline, possibly extra hours and the organisations pp have mentioned.

Also I think you’re being daft not charging your working adult children; tell them the situation get I’m sure they wouldn’t want you struggling. You could pay the debt together, stop it continuing to wrack up interest and then you should work to reimburse them. My parents were comfortable but still charged me rent when I started working.

Hi OP.

Things are getting a little fraught on here, aren't they?
I would look at taking a normal loan out. Sainsburys would do £4500 for £108 per month for example. You can always increase your payments when you find more hours.
It's the most manageable way of sorting this out.

Oh my gosh. If your kids have the money to help you pay it off I would ask them and get it paid off. Then pay them £100 a month instead each and you will be paid off in a year and no more interest payments.

it is the interest that is gonna kill you here. If you owe. I honestly would let council and power wait and get this massive interest bearing debt gone.

I honestly would let council and power wait

Wow. The advice here never fails to stun in its terribleness.

Council tax is the one debt you can be sent to prison for failing to pay, and nobody is going to be impressed by OP claiming poverty while voluntarily not asking two other working adults to pay their way and doing absolutely nothing to work more hours.

I suggest you crunch the numbers together with your children.

The two obvious points are:

1. Find a second job - keep the one you enjoy if you can as it sounds good for mental health
2. Get kids to contribute more than food split cost (remember if they are 18-20, working FT on nmw- they will both be earning more than you...)

Less obvious (and may be overly complex and requires financial discipline..)

1. Your kids have savings. Possibly earning very little interest. You have £4.5k debt - being charged big interest- Littlewoods mentions 44.9% annual rate on line- but your s maybe different..

A) "borrow' from kids what you can afford to pay back before their summer holiday. Pay that straight off the loan- so you aren't paying interest on it. . And pay kids back every month. So it works like a short term 0% loan on part of the debt.

There are a lot of variations to the above that would be possible. But you need to crunch the numbers

Your children need to cover all their own costs. 25% of the council tax you otherwise wouldn't need to pay between them and probably half the energy bills between them they should give you in cash. Then buy their own food or pay their share on top of that.

Are there local job agencies nearby? Try them for office work, factory or warehouse work, cleaning etc. Pick up some bar work in the evening maybe.

@daysmustgetbetter could you borrow 5k from credit union and pay them back a smaller value

Would you be able to take a credit card at 0% interest pay the debt with Littlewoods off then pay the credit card using the £100 you wanted to? That way you won't be accumulating more interest on top?

I suspect you've never been in OP's position, and the judgement isn't helpful. (OP, I was in a very similar position at one point when I was single.) Yes, secondhand is better in theory, but secondhand goods still require a lump sum to purchase. When things are tight, and especially if multiple items are needed, sometimes that lump sum simply isn't available and credit agreements can seem like the only way.

And before anyone who doesn't know what it's like to be in this position decides to preach about saving up, yes of course that's best but takes time - again, especially when funds are tight. What are people supposed to sit on/cook on/wash their clothes with in the meantime? Those are basic practicalities, it's not about 'expecting everything now'.

OP, I made the same mistake for the same reason, it happens. I agree with pps who have said talk to Stepchange, and I don't think it would be remotely unreasonable to charge your DC a modest amount of rent either. I hope you're able to work something out.

It’s a shame you didn’t get an interest free credit card or loan at much cheaper rate over longer period to pay it off when the interest was added on after 12 months, that is extremely high interest rate given your credit rating was good up to now. It might still be possible to negotiate to do that.

Have you given some thought to charging rent to your children OP?

I must admit, I am curious as to why you don't want to do this.

I hope you manage to find a way through it all.

You need to split all of your household bills equally between you and all of your working adult children. They need to pay their way, same as they would if they were not living at home. Travelling is a luxury which they will need to save up for over time. You shouldn't be up to your eyes in debt paying for furniture which they are having equal use of, you shouldn't be living in poverty while your DC are not.

@MooseOnTour I always think of the fellow when I think of Macca's employment opportunities: https://en.wikipedia.org/wiki/Charlie_Bell_(businessman)
I only ever heard of him because there was a lot of reporting locally when he sadly died at such a young age.

Her kids are actually adults so chances are her wages would wipe her entitlement.

Adding to the chorus that your adult children living with you need to step up and make a contribution.

As an absolute minimum...
Half each of that 25% extra council tax you have to pay because they're living at home
£20 each minimum towards gas electric and water, you will know how much this costs you every week/month, who uses the most and what is a fair amount to ask.

On top of those it would be very reasonable to ask for a bit more too for use of the facilities. That could be the repair/replacement fund for the next time you need to replace an dcorndice item. They might not like it but they certainly won't get a better deal anywhere else!

It's not right that you are struggling whilst they are freeloading (possibly unwittingly) off you. They won't know unless you tell them.

Also check if you're entitled to UC as per the post above. If their wages tip you over the threshold, then they are costing you even more money. Nothing to stop you having a rethink once you get a new full time job, but for now they need to pay their way.

In light of your circumstances I wonder if https://www.carersuk.org/ might be able to offer you some advice.

Have you looked into seeing if you can transfer the balance to and interest free credit card?

Or just tried a second job alongside your current one for the time being?

I know it’s shit. I was carer for a few years and went back full time plus a second job last September and am just about keeping my head above water, but it is doable.

I disagree.

It was helpful advice.

Go to Citizens Advice Bureau.

If you don't sort your debt out, it will be passed to a collections agency.

What's wrong with that?! 🙄

Check your credit rating and if possible pay off Littlewoods with a zero interest credit card.