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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

tax credit cuts

63 replies

yellowdianthus · 02/06/2012 09:36

help! me and my partner are lucky enough to own our home but its very shabby as we cant afford to do it up much. the cuts to the tax credits mean we are seriously considering going on benefits full time which i never though we would ever be in this situation.
does the government not realise they are pushing people into this? we dont get free petrol on expenses etc and i live in a rural area.
i am struggling to pay the bills now, i dont want fancy things i just want to be able to pay the bills and have some kind of life. this is no life. its awful. i feel bad for my son but we had him before the recession and we both earned a good wage and now we dont. how do other people cope with this. i cant afford to heat my home or buy food sometimes. ive got alot of debt too : (

OP posts:
delilahlilah · 02/06/2012 10:32

Go over to mse and check out the 'debt free wannabe' board. You will find nice, helpful people who will help you with outgoings etc. Surprising where you can make cuts. HTH

Dprince · 02/06/2012 10:36

But if you had to get into debt to do it up, you couldn't afford it. Sorry but the debt is the problem.

DeckSwabber · 02/06/2012 10:38

I also think that if you are working you will have more options when it comes to refinancing...

happyinherts · 02/06/2012 10:41

Going on benefits may sound attractive as you will save on petrol expenses, working expenses, etc BUT and it's a big but you will end up in a rut. You'll be in that position longer than you intended to as you're limiting your potential.

By cutting back on things here and there - simple things - and perhaps juggling round commitments, could you or partner find extra work. Evening office cleaning, ironing, anything which you wouldnt have previously considered.

Life is hard I'm afraid and a lot of lower paid workers are technically better off with part time jobs plus wftc, but it's a demoralising existence when you try and lift yourself out of it when children are older. Get debt advice, try and budget a bit better (dont mean to sound patronising) and think about ways of bringing in extra income.

Pekka · 02/06/2012 10:45

you will be better off on benefits, if you earn below £14.000 pa. if you earn more than that, i would suggest remaining in employment.

VashtiBunyan · 02/06/2012 10:54

Are you paying off debts that you are being charged interest on? You need to get debt advice, go to CCCS, get them to manage your repayments. Your repayments will then be lower and most companies will stop charging you interest when you are with CCCS.

You are not managing debt if you pay £200 a month back to a credit card company who then charge you £100 interest every month.

Mosman · 02/06/2012 11:14

Ok,
Stop paying the debts, they will be secure against the house, interest frozen and reduced to an affordable - £25,000 loan = £50 a month for the next 60 years - that actually happened to a "friend" of mine.
Then use the surpluss money to get back on your feet.
In 15 years time the debt will have been inflated away and £50 will feel like a fiver and you'll be able to get rid of it very quickly.

Corgito · 02/06/2012 14:19

@Mosman... you can't advise someone to consolidate their debts into a very long-term loan without knowing their circumstances. If a loan is granted - not a given if the OP has a poor credit rating - and they still have to put day-to-day expenses on credit cards, they can end up far worse off than they started. CAB, CCCS or National Debtline will be able to assess the right options for the OP's particular case.

runronnie · 02/06/2012 14:22

would you really want to be paying back loans 20 years after you retire - i wouldnt

WorraLiberty · 02/06/2012 14:35

Yes, seek professional help for your debts.

Regarding running a car, living in a rural area is normally cheaper than living in a city with public transport so it's all swings and roundabouts really.

You don't get free petrol and us city dwellers don't get free train/bus travel.

WhosPickleisThatOnion · 02/06/2012 14:55

Agree you would be better to get help with your debt repayments if you can't afford food. Go and see the citizens advice. Your bank may be willing to do something if it's with them. That could be a far better option than benefits. Don't use one of these companies that email around from time to time they are a rip off. Use cab.

Mosman · 02/06/2012 17:20

You don't consolidate them, you simply stop paying them.

BarredfromhavingStella · 02/06/2012 17:47

Debt advice is the way forward as has previously been stated-going on benefits isn't a good idea & wont help with the debt at all.

CAB are very helpful with this sort of thing, please contact them before any hasty & perhaps regrettable decisions are made.

mrsscoob · 02/06/2012 18:25

Being better off on benefits is a myth, I think probably started by the government and tory supporting media so that they can bring in all their cuts to disabled people, single mothers etc and get the backing of the public. All that flat screen tv, florida holidays stuff etc is bullshit and I can't believe people believe it but sadly they do.

I am sorry for your situation it is horrible to be struggling when all you want is to pay your bills and put food on the table, it isn't asking for much. Definitely get some advice, I know someone who had credit cards which in her words she was paying a fortune back each month, she spoke to them and explained she was struggling and on a low income they froze the interest and let her pay £5 per month until she's back on her feet.

Sparks1 · 02/06/2012 18:32

All that flat screen tv, florida holidays stuff etc is bullshit and I can't believe people believe it but sadly they do.

No it isn't, it's real. If it wasn't the government wouldn't be having to put a cap on benefits. How can it ever be fair that someone on benefits can receive the same disposable / real term income of someone earning £36,000 ?

It can't ever be.

Dprince · 02/06/2012 18:39

There are some people who live very nice lives on benefits. But it isn't the norm. The Tories didn't create the myth to they could cut benefits. This sort of things has been going round for years before the recession. My local mp (labour) admitted that labours promises of not cutting benefits were not realistic as there is not enough money. And as for the spending they promised, he also accepted there would need to be cuts first.

Threeprinces · 02/06/2012 18:40

YABU - benefits are for those who need them not choose to be on them.

Why should the rest of us pay for you if you have full time jobs are can nearly pay for yourselves?

runronnie · 02/06/2012 18:42

i know plenty of people on benefits who go abroad on hols and have more disposable income than those who work

unfortunately

Ishoes · 02/06/2012 18:46

I also know lots of people on benefits who holiday a couple of times a year and appear to have a very nice lifestyle-I have been told I am a liar before on here when I say this-even though these people are members of my own familyHmm

But this is not really a thread to discuss this so lets not hijack-op you sound like you need some good advice on how to manage your debts. I hope things improve for you I really do but I dont think going on benefits will help as with the cuts noone will have it easy any more.

rainydaysarebad · 02/06/2012 18:59

Hmm Sell your house?

Mosman · 02/06/2012 19:09

Actually if she went on income support the mortgage interest would be paid for as long as the children are at home. Lots of benefits to being on benefits if you play the game well.

MrsGuyOfGisbourne · 02/06/2012 19:10

Sell the house and pay off your debts, and thank god you live in a country with free education and free health, while most of the rest of the world is a darn sight worse off and can't even dream of 'going on benefits' - why do you imagine you can just do that?

Ishoes · 02/06/2012 19:18

Education and health arent free-they are paid for with taxes and ni contributions. It is also pointless to compare the ops problems to those of a third world country-we dont live there.

I agree the op would not find life any easier on benefits-well not now that they are implementing cuts-but I dont blame her for wanting to have a moan.

WhosPickleisThatOnion · 02/06/2012 19:20

I don't see how selling the house will help in a depressed market, she'll have to pay rent whatever, if she even has equity. I'd hold on to it.

rainydaysarebad · 02/06/2012 19:32

If she really must hold on to the house, then she should put the whole house on rent and go and live on rent in a small flat somewhere nearer the city or near a bus route.

TBH I think she's being ungrateful for what she has. She actually owns a house. There are people in the country who will never be able to afford a house as things are.