Active discussions

Meet the Other Phone. Flexible and made to last.

Meet the Other Phone.
Flexible and made to last.

Buy now

Please or to access all these features

Talk
AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

Please help me work this out!!

33 replies

ohnowhatnow123 · 30/11/2021 20:19

I honestly just don't know what to do and need a fresh pair of eyes to help me evaluate things.

Our financial status is currently so bad I just don't see a way out! I'm not working as I'm studying and will be working in the next year hopefully, my hubby works and we have 3 small DC's, all under 6. We have a mortgage and also have a debt management plan in place. When the pandemic started we were put in a position where we had to borrow more money (I know this was a really bad decision but we didn't feel we had another option). We are now at a point where we have more outgoing on debt than any other outgoings, we constantly can't afford repayments which means we end up constantly behind on bill payments. I've already taken more breaks from our mortgage than we should have done so that is no longer an option. I just feel so defeated. I feel like our lives are falling apart, even my health is now deteriorating and I think it's all due to stress. I just don't know what to do anymore.
I know a common suggestion is to sell things but we are at the point we have nothing left to sell!

OP posts:
CloudyStorms · 30/11/2021 20:20

Can you do part time work around your study?

CloudyStorms · 30/11/2021 20:21

Or defer your studying and work for a year?

Valhalla17 · 30/11/2021 20:22

Who is administering the debt management plan? Sounds to me like that plan is unaffordable and needs to be adjusted surely...?

EasyLikeSundays · 30/11/2021 20:24

You need to speak to step change or another debt charity and get an IVA or similar in place. Dont put your head in the sand just pick up the phone to reputable charities etc that can help. Citizens advice is another avenue to explore.

Darkpheonix · 30/11/2021 20:24

Were you already on the DMP when you borrowed more money?

Not judging just wondering how your DMP is so unaffordable for you

Original poster
ohnowhatnow123 · 30/11/2021 20:25

I can't work part time as I'm studying to be a teacher so my study schedule is non-Fri 7.30-5.30 and my hubby works nights and weekends with his job (as well as days) so I couldn't afford the extra childcare. The debt plan is with step change, I've already don't a review for this year so I don't think they will let me change it again

OP posts:
Howshouldibehave · 30/11/2021 20:26

What are you studying, @ohnowhatnow123

It actually sounds like your finances are in serious trouble-I think I would put the study on hold for now and get a job as a priority.

EasyLikeSundays · 30/11/2021 20:27

If its more than all your outgoing something else needs to be considered. You need to speak to step change again - they're there to help you not decline your requests. I would look further into an IVA with them OP. Alternatively review your outgoings further and see where else you can save. Stop borrowing more money.

Original poster
ohnowhatnow123 · 30/11/2021 20:27

@Darkpheonix

Were you already on the DMP when you borrowed more money?

Not judging just wondering how your DMP is so unaffordable for you

Yes unfortunately we were. We didn't plan on that happening but my husbands job was massively affected by coronavirus and we went from approx £600 a week to statutory pay (£90 a week) for over 8 months
OP posts:
Original poster
ohnowhatnow123 · 30/11/2021 20:29

@Howshouldibehave

What are you studying, *@ohnowhatnow123*

It actually sounds like your finances are in serious trouble-I think I would put the study on hold for now and get a job as a priority.

I'm not defending my actions at all but I honestly feel like this would be the wrong thing to do at the moment. Because my husband works crazy hours (that we only find out about 24 hours in advance) my only option is to work around school hours. I've already taken out my student loan which would need repaying even if I drop out and in July I qualify and will be then be able to get a decent wage for a good job, whereas if I drop out now I would be really limited on income because of the school hours
OP posts:
Luredbyapomegranate · 30/11/2021 20:30

I’d go and see citizens advice - your debt management plan isn’t working if you are falling behind on bills. You have a decent job coming, they will be able to help you negotiate your debts so they are manageable - but call them tomorrow first thing so this doesn’t impact on your mortgage. Money saving expert is a great place for advice.

You will get through this.

Hankunamatata · 30/11/2021 20:30

Get CAB and revisit managing debts. Look at working evenings or weekends around studying

Chronicallymothering · 30/11/2021 20:31

How much is coming into the household.
Have you checked you are getting all you are entitled to.
Who is the additional debt with, and how long is if for?
Are there any bursaries/ support funds you can access as part of your course.
Is it possible to defer your training by 12-18 months and get any job you can- by which time more of the children will get free hours/ be at school to lighten the finances.

Original poster
ohnowhatnow123 · 30/11/2021 20:31

@Luredbyapomegranate

I’d go and see citizens advice - your debt management plan isn’t working if you are falling behind on bills. You have a decent job coming, they will be able to help you negotiate your debts so they are manageable - but call them tomorrow first thing so this doesn’t impact on your mortgage. Money saving expert is a great place for advice.

You will get through this.

Thank you this is really helpful, I will make an appointment to see them asap
OP posts:
Chronicallymothering · 30/11/2021 20:32

The basics are you need a combination of:
More money into the household
Fewer outgoings for the short term
More time over which to spread paying debt.

Luredbyapomegranate · 30/11/2021 20:32

@Howshouldibehave

What are you studying, *@ohnowhatnow123*

It actually sounds like your finances are in serious trouble-I think I would put the study on hold for now and get a job as a priority.

This is insane advice. Teaching is a career the OP can build on. It will be possible to reduce your payments and move forward OP -
Hankunamatata · 30/11/2021 20:34

Change mortgage to interest only

MatildaIThink · 30/11/2021 20:35

@ohnowhatnow123

I honestly just don't know what to do and need a fresh pair of eyes to help me evaluate things.

Our financial status is currently so bad I just don't see a way out! I'm not working as I'm studying and will be working in the next year hopefully, my hubby works and we have 3 small DC's, all under 6. We have a mortgage and also have a debt management plan in place. When the pandemic started we were put in a position where we had to borrow more money (I know this was a really bad decision but we didn't feel we had another option). We are now at a point where we have more outgoing on debt than any other outgoings, we constantly can't afford repayments which means we end up constantly behind on bill payments. I've already taken more breaks from our mortgage than we should have done so that is no longer an option. I just feel so defeated. I feel like our lives are falling apart, even my health is now deteriorating and I think it's all due to stress. I just don't know what to do anymore.
I know a common suggestion is to sell things but we are at the point we have nothing left to sell!

Go on the Money Saving Expert site and on the Debt Free Wanabe forum, do an SOA (Statement of affairs) and there are people who will help you work out what your position is, an IVA might be a far better option than a debt management plan. Doing the SOA will also help you get things in place to speak to StepChange or another legitimate debt charity.

Selling things will likely not help as the interest and penalty charges are going to be too high, but an IVA and speaking to StepChange might well write off previous interest and fees and get the core debt itself reduced.

Blondephantom · 30/11/2021 20:36

Your university should have a hardship fund. They may be able to help. They will also have people who can help you with a budget, etc. Could you offer online tuition sessions? Less time consuming than tuition in person.

MatildaIThink · 30/11/2021 20:36

Also, as you are not working, run your income through Entitled To, to check any benefits entitlement you might not be claiming.

www.entitledto.co.uk/

CloudyStorms · 30/11/2021 20:38

Can your DH get a better paid job?

R0tational · 30/11/2021 20:41

Ask student finance to help you with a hardahip grant. Not guaranteed but worth asking for a new extra hundred quid.

squee123 · 30/11/2021 20:58

Have you done a really harsh review and cut back of your outgoings? Are there any family members who could help tide you through until you qualify? Have you checked whether you might be entitled to any benefits?

Don't be put off by the religious sounding name, because they don't preach at all, but Christians Against Poverty can be really helpful too if CAB can't see you soon.

Darkpheonix · 30/11/2021 21:14

Yes unfortunately we were. We didn't plan on that happening but my husbands job was massively affected by coronavirus and we went from approx £600 a week to statutory pay (£90 a week) for over 8 months

Have you included the new loan in the dmp?

How come he didn't get furlough?

Is he back on £600 pw?

321dog321 · 30/11/2021 21:17

You can change your DMP if you're with Stepchange. I'd ring them tomorrow if you can and they'll be more than happy to help.