Debt with no apparent way out

[Ijing]

I have 10,300 in credit card debt. It’s interest free and at the moment is manageable, I pay a little over the minimum to avoid interest and to cut into it a bit. Unfortunately my now ex partner has lost his job, he is severely unwell and will not be working again for the foreseeable future. This means I suddenly have zero contribution from him and I have calculated that our child’s nursery fees will mean I have literally 25 pounds left after all expenses including a (very basic) weekly food shop. I have cut back everything, the only thing I have to keep is internet connection which I need for work. I am in a professional role and my salary means I can’t claim anything, not even child benefit. I don’t know what to do. This is going to escalate isn’t it?

The only answer is either: increase your income, decrease your outgoings, or get rid of your debt. There are various ways of doing this, most of which will destroy your credit rating. Do you have savings? Do you rent or have a mortgage?

You need to look at your outgoings in more detail - you would have to be earning over £60k and to only have £25 (a week/month?) left over seems unlikely. Look at where your money is going.

well the only way to cut into it is to either increase your incomings or decrease your outgoings.

Look around for a cheaper form of childcare. Sometimes childminders are cheaper than nurseries.
Could anyone look after your child one day at the weekend so that you could either get a second job. ( I ended up having to work 6 days to pay for extras when my first husband left me).

Can you apply for better paid jobs?
Move area so that your housing is cheaper.

How many years of nursery do you have? Extreme but If you have a mortgage can you sell up and release any equity in the house?

Is the debt held in joint names?

The first thing I would do is contact the credit card company and let them know that your partner has been diagnosed with a serious illness and is now unable to work and that this has affected your income and ability to pay. This makes you a vulnerable customer.

Ask if the can suspend interest and payments temporarily to allow you time to find a way to increase your income.

At least this should stop things getting worse in the meantime.

You can ask this even if the debt is only in your name but you have an even better case if his name is on it too.

Why can't you claim child benefit? To not be eligible for child benefit you have to earn a very high income in which case I am confused as to your financial situation.
How old is your child? Do you use tax free childcare? When can you get the 30 free hours?

I suggest getting some professional debt advice from a local debt/advice charity. They won't judge at all, and they will advise you on your options.

If the DC’s dad isn’t working, can he do more childcare? Apologies if he’s too unwell for that.

How much is minimum payments per month?
In the short term do you have items you can sell to make the next payment?

You need to be earning over 100k to not be able claim for childcare help, it might not be the full 15hours free or 30hours free, but they can help with the % you pay, depending on how much you earn you can claim up to 85% back. If you are even earning 99k you can still claim back a %, friend turn down a 5k pay rise because it took them over the 100k so she can stay in the same help and tax bracket.
how many days are you in the office compared to WFH? Have you looked into a different area to live? Sounds like you earn a lot and maybe you live in a very expensive area, I’m based in central London, my nursery is around £15 more expensive per day, compared to nurseries around my parents area in zone five, and compared to other friends outside of London, it is literally 30% more expensive, and for friends that live up north they pay half the price. Nursery fees are a joke everytime I pay. Definitely speak to someone professional about your situation, I’m sure even at the job centre a work coach can help with more information than most of us on here. Hopefully you find a solution to your situation soon.

@MrsBennetsPoorNerves

I suggest getting some professional debt advice from a local debt/advice charity. They won't judge at all, and they will advise you on your options.

This is the best advice!

You need to get help from and independent source and they will look at any benefits you could claim and suggest the best ways to manage your debt.

Do it now before things get any worse.

If your husband is very unwell, could he claim PIP?

It doesn't matter about household income with that, it's purely on health.

https://www.gov.uk/pip

Some good advice on here for you OP.

1. Get professional debt help. They can write to your credit card company on your behalf and get interest frozen. I know you are on a 0 percent deal but that won't last forever.
2. Ask your ex about claiming PIP. If he gets that he can pay your DC something. Even on sick pay he should pay the minimum of £5 per week. Get CMS involved.

Could he do a bit more childcare, would he be well enough? If he could it might free you up one day at the weekend to get a second job.

1. Do you have a spare bedroom? If so try to let it out. The income you would get would be tax free. Could you move DC back into your room to let a room out? It seems drastic, but better, than losing your house.
2. If you rent have you asked LL if they would reduce your rent by a tiny amount whilst your ex is ill and not contributing?
3. Look through your clothes/shoes and your DC clothing. Is there anything that no longer fits or you don't wear? If so get it on Vinted or eBay.
4. Go through outgoings again. Could you cancel Netflix or get a cheaper phone contract. Some are just £5 per month.
5. Do you have family who might help out? Either look after your DC so you could get one day work at the weekend or even just to feed your child.

I don't understand how you can't get child benefit unless you earn a very good wage?

There is no husband.

The good thing is at the moment there is no interest being added but that depends on making the minimum payments and when that 0% period finishes having a method of paying it off.

Reach out as early as possible to your credit card company.

You didn't mention whether you are in rented or had a mortgage but if it's a mortgage you can contact your mortgage provider for short term assistance to help you figure a plan. Fairly recently there have been protections put in place for not being punished for reaching out for support.

As well as debt charities there are a number of money radio shows that might have segments with advice that would be helpful. My go-tos are money box, you and yours and Martin Lewis

You need to have a serious look at your expenses.
How did you accumulate over 10k in credit card debt?

With an income of 60k you surely must have been living outside your means.

Have you applied for UC to help with the childcare costs? Even if you aren't entitled to much UC or even any, there is still the possibility of help towards childcare.