Mortgages, rent, bills?? How to pay?

[TheresMoreofUs]

So it’s obvious a lot of people have/are going to lose their jobs. Businesses small and large going/gone bust. Whether you were scraping by on minimum wage or earning a great salary suddenly many are going into a situation where they can’t pay next month’s mortgage, rent, electricity bill, TV/Broadband, phone contract etc.. Food? Debt?

What is going to happen? Are people going to get governmental payments? I’ve heard about banks discussing mortgage holidays but what about the rest. Suspending credit card, overdraft payments? Utility companies provide energy for free?

Personally I am out of work - a job offer fell through last month because of this situation - job-hunting now isn’t promising. Partner earns good money at moment in a staff job but we have a mortgage, loads of debt, we’re servicing and no savings at all. He’s currently self-isolating at home with a cough - we don’t have income protection because of an underlying health condition. We live in a tiny terrace house and have 15 years left on a mortgage that’s over £1000 a month.

I know this is the story all over. What are people going to do? There can’t be thousands of repossessions can there?

[Loppy10]

In other countries, governments have suspended mortgage and rent payments (ordering banks and landlords through legislation) and, where utilities are publicly owned, have reduced or stopped utility bills.

In this country where the financial business/landlords are more important than human lives, I have expect we will.just be told to take it on the chin. Can't have the banks losing out on income you know

[AnotherEmma]

The usual benefit system kicks in for people who have no or low incomes.

As you are currently looking for work you should claim new-style JSA if you're eligible. (It's based on your National Insurance contributions, basically you need to have worked and paid NI in 2017-2019.)

Does your partner get any contractual sick pay or just SSP?

Depending on your combined income you might be eligible for Universal Credit.

As for the mortgage, you could ask your bank for a mortgage holiday. And you may have to put the debt repayments on hold or reduce them to the minimum payment. Contact National Debtline or Citizens Advice if you want help with it.

[Elizadoeslittle19]

I'm with you...just posted on another thread about DP being self employed. No help for the self employed at all. He is already losing money I can see us not being able to cover bills at the end of the month. I dread to think about next month. Yet I read this morning thet virgin are to ask the government for £7 billion to help airlines throughout this virus. How about the government offer some help to individuals first. Definitely some sort of grant to both PAYE and self employed where needed. As I said in other thread I have no idea how this would work but I'm not paid a six figure salary to work it out either....

[stoptherideiwanttogetoff]

Both self employed in this house and no savings (has anyone?)..! Already seen a decline in H's work pattern and I'm expecting my contract work to be put on hold very soon.. income will be potentially 50% + down! We are not sick so no sick pay in fact nothing.. thinking of selling one of the cars if things get worse.

[TheresMoreofUs]

‘The usual benefit system kicks in...’ I can't imagine anything will be ‘kicking in’. The last time I tried to claim anything it was a shambolic, protracted, depressing experience that involved mistakes, duplication, frustration etc. I’m lucky my partner works now but if the system was bad when things were ‘functioning’ how is it going to cope when it’s workforce is severely depleted through sickness, it’s phone lines are rammed with thousands, millions of claimants. And you end up getting a payment that doesn’t cover your basic outgoings?

We’ll probably be told to tighten our belts won’t we? I’ve got stuff I could sell but I’m thinking Gum Tree isn’t going to be too popular with the face to face interactions/hygiene complications. And housing stuff down to the local post office might not be an option if delay measures become more drastic.

[NotDisclosedToday]

Can you talk with the mortgage company about extending the duration of your term? Might help eat up savings a bit slower. As many are in the same boat I would hope there is some action by the government to help people with their mortgage. Mass reposessions is in nobodys interest. Well, except estate agents but they can fuck off.

[NotDisclosedToday]

@stoptherideiwanttogetoff raises a good point, many people have cars that might be worth a decent amount of money if owned or cost a lot if on lease/finance. Swapping for something less expensive if possible isnt a bad idea, might be an idea to look at this before the possibility of car prices/values dropping.

[AnotherEmma]

"if the system was bad when things were ‘functioning’ how is it going to cope when it’s workforce is severely depleted through sickness, it’s phone lines are rammed with thousands, millions of claimants."

Indeed.

However it does bother me when some people only seem to care about the benefit system now, I'm not saying you OP but a lot of people don't give a shit about the limits of sick pay and benefits until suddenly it happens to them.

Anyway. Are you claiming JSA atm? If not you should claim now before the system becomes overwhelmed as you predict.

[IfYoureNotIntoYoga]

It's terrible, I pointed this out on another thread and got told Im a ?%!!*€$~ for worrying about finances and putting that worry before people lives!

[stoptherideiwanttogetoff]

@NotDisclosedToday one is a high priced luxury (mid-life-crisis) car so I've ordered that to be sold this week. Mine is a 2012 208 run around in good working order and will be fine. He can get himself something for 2k and we will use the rest of the car sale money as a buffer. It's sensible option, not favoured by my H but if money stops coming in and we leave it any longer we won't be able to sell it.

[SudokuQueen]

I was worrying about this last night. I'm not even one of the ones that will be affected (I hope). But I was thinking about people who work in cafes and bars, if they get told to close for 14 days or more, that could be the end of those businesses. British Airways are already talking about making people redundant so if a big airline like that are struggling, the smaller ones are screwed. We are going to lose many, many small businesses over this. Thousands of people will be out of jobs. From all the panic buying happening we could soon run out of supplies on some things.

No matter what people say, our government is doing fuck all to stop all of this. And that ship has sailed now, I don't think it can be stopped. This isn't going to be a good year, who knows how many will die from coronavirus, but also how many will die from being made homeless and can't afford food?

[NotDisclosedToday]

@sudokuqueen

"No matter what people say, our government is doing fuck all to stop all of this"

What miracle are you expecting? Im not even a Torie voter and its clear they are in an impossible situation. If they dont impose a draconian lockdown more people will be infected sooner so the NHS is fucked. If they impose a draconian lockdown the economy will fall off a cliff and we will be fucked.

Either way we are fucked. There is no magical fix it button.

[TheresMoreofUs]

Yes no magical fix. But hopefully some announcements to reassure measures will be taken to alleviate financial anxieties. Food vouchers for the most hardest hit. Utility credits for a period of time.

Can you imagine Virgin/BT whoever pulling the plug if you default after a month or so - lock-down with no telly! Mobile phone companies pulling the plug?

We can’t extend our mortgage as we’ll be in late 60s early 70s when we make final payment as it is and as I said before, lots of debt, no savings. And I’m not entitled to Jobseekers because I haven’t made enough NI contributions for the qualifying period.

But there are so many worse off. As a nation we are going to have to have help and support from state machinery and big corporate entities like never before.

[AnotherEmma]

"Food vouchers for the most hardest hit."

These things already exist.

People get in arrears with their gas and electricity all the time. It takes a lot before you get disconnected.

People on pre payment meters can get fuel vouchers.

But the country is already functioning in a way that provides the BARE MINIMUM for people who are struggling so you are right that when more people suddenly start to struggle all at once, the system won't be able to provide for everyone.

This is the reality of capitalism and Tory austerity.

I wonder how many Tory voters are hand wringing about all this now! So many people don't give a shit until it could happen to them and their loved ones!

[stoptherideiwanttogetoff]

My sister in business travel has been told all staff need to go down to a 3 day week. All senior managers have taken a 50% pay cut and warned this could be more if the situation continues. Now BA have announced job cuts.. it will roll out across the board by the end of next week for sure. The only place your safe right now is the huge supermarkets, they are rushed off their feet. Think about using the local shop for little bits and bobs instead, you could well be keeping a roof over their heads!

[SudokuQueen]

@NotDisclosedToday

I'm not expecting a miracle. But when they saw the virus heading our way, could literally NONE of their analysts have looked into this? I can't believe that, someone must have thought about this. The panic buying, the loss of jobs if we go into lockdown, the massive headache for the NHS? They've known this was coming for months and did nothing. They could have introduced laws on how many items you're allowed to buy to restrict panic buying, they could have done what other eu countries have done and suspended payments. They could have told schools to organise home packages for kids and sent them home earlier, could have introduced working from home earlier. They have sat back and done nothing.

I can't expect a miracle from a British government because they can't even do their day job well. We have schools near us who are still going to send children on trips away soon. How is that sensible?

[TheresMoreofUs]

Yes will be trying to use our local shop more. It’s usually one to avoid because it’s stock is so erratic and mainly sweets, fags and alcohol. But it will hopefully be good for basics like milk, gin (!)