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Original poster

financial struggling.

41 replies

Devlesko · 04/04/2020 21:14

Ok, if you are going to struggle financially can you explain to me how?
I'm really not stupid but live a different way to many and would like to understand.
My family is poor so it's not because I have money and am ok jack, but lucky that my lifestyle doesn't require much money.
This has the unfortunate effect of me not understanding much of what others may be going through.
We have lost half our family income but will be able to manage, where I know others wouldn't.
So, please don't think I'm being a gf, to me understanding means you can offer sympathy and support others.

OP posts:
BusyBB · 04/04/2020 21:17

I am a key worker and my husband is too. If we have to take time off we would only get sick pay which is only a third of our wages.

Hopefully we wont need to take time off...

Bobsandbitz · 04/04/2020 21:22

I think short term most of us will be fine. Exception would be people already on minimum wage, as the furlough means they could earn 20% less than their already minimum income.
Long term, and if this continues, we will all be struggling. More people will inevitably lose their jobs, sadly. Never claimed any sort of income support in my life, but I imagine it's not enough to actually pay for a mortgage, household bills, nursery, etc! Also, many people will have other types of loans and borrowings that still need to be paid- me for one, never been a problem up to now, but if I had to take a further paycut, I'd have a lot less to spend on food. (Food and savings is usually what I use my money that's left over after paying all the must haves first!)

DianaT1969 · 04/04/2020 21:28

OP ehat are your outgoings and what is your income?
Most people pay rent/mortgage, council tax, utilities, broadband, phone, food. Possibly house insurance, TV licence, Netflix, car insurance, car tax, car repayments. Some may have debt repayments on credits and personal loans taken out when they had income. Some may have childcare costs and private school fees still to pay.

Small business owners and freelancers might have business insurance, software subscriptions, bank fees, professional membership fees, vehicle insurance, vehicle leasing repayments, accountant fees, business phone, business broadband, rent & rates, storage, staff costs.

It would be good to compare those to yours.

Gin96 · 04/04/2020 21:28

My husband hasn’t been furloughed as he started new job on the 2nd March, we will get £100 a month on UC. If he had been furloughed it would’ve £2000 a month. I have tried ringing mortgage company to apply for mortgage holiday, I can’t get through as they are short staffed.

Bobsandbitz · 04/04/2020 21:31

@gin96
Have you tried online banking? I know some banks offer it online, really easy to apply too!

Original poster
Devlesko · 04/04/2020 21:56

Diana

We are entertainer and musician, but small business. We don't earn much to begin with and have £200 pm tax credit., just the one dependant now, and a low mortgage as in our 50's now. We've never had debt and no subscriptions like Netflix, Sky, or Virgin etc. We keep household bills low, so we can afford to pay them, due to our low income.

My ds2 call centre and partner likewise are furlough, but said the 80% will leave them about the same as no travel costs.
They said they'd have to stop the weekly takeaway but would be ok, otherwise. No kids but have only just started paying a mortgage.

I hadn't considered the extra costs for small business, as ours only needs a home office and of course less insurance.
Would these costs be enough to make small businesses go under, or would they just be a strain for a while?

OP posts:
Original poster
Devlesko · 04/04/2020 22:01

gin

Aw, my heart goes out to you, and ditto to setting up online banking, it's so much easier, not just for this but if you have several small accounts easy to rob Peter to pay Paul.
Do you work yourself gin? Thanks

OP posts:
Insideout99 · 04/04/2020 22:09

We will struggle. My husband is in the vulnerable category due two two underlying health conditions, one of them he’s struggling with controlling well recently. He works in a call centre who cannot follow special distancing rules as they don’t have the capacity for it. He cannot work from home. He is classed a key worker. He has been offered unpaid leave or go to work. So he’s on unpaid leave but still employed. My wage only covers 95% of our essential bills, not including food etc.

DianaT1969 · 04/04/2020 22:53

OP If you didn't hadn't been receiving £200 tax credits and your mortgage was around £900, would that make a difference to how well you would get through this? I think most people who have been furloughed will get by as they save on travel and lunch, but minimum wage workers, zero hour contracts and newly self employed people will struggle. It doesn't take much, in my opinion to tip the balance. A deficit per month of £600 and no access to credit is enough to send someone into poverty within a couple of months.
I think a lot of people will try to save more once we are through this and earning again.

Judystilldreamsofhorses · 04/04/2020 23:03

My salary’s not impacted, but my DP was made redundant just before Christmas, and he is unlikely to find a job for some time now, because even when this is over companies won’t be hiring. He put in a claim for JSA last week so at least something should be coming in.

I’m a lecturer, and worry we won’t have new students next academic year. I have a decent length of service if I am made redundant, but hopefully the union will fight hard against redundancies.

It’s all such uncertainty, it is making me so anxious. But I realise we are better off than a lot of people.

PerfidiousAlbion · 04/04/2020 23:04

I think a lot of people carried a lot of debt, besides mortgages, including car repayments and credit card debt.

If you look at the last reported figures for household debt in January 2020, it was approaching those last seen in 2008. People had over-extended themselves. If they cant get furlough pay, they’re stuffed basically.

You’re very lucky to be debt free. Things aren’t the same today as they were when you were young. I say that as an older person.

gamerchick · 04/04/2020 23:09

Maybe try doing it without your tax credits OP before you cast a puzzled eye on other folks. Lots of people don't get state help.

amazedmummy · 04/04/2020 23:13

We aren't doing so well. I'm on SMP at the moment and had calculated that if we were really careful we would just manage to get by. DH has been furloughed and he didn't earn all that well to start with. Also the 80% is of his base salary and he worked a lot of overtime. We will just about get by as I've been able to get a mortgage payment holiday but it's going to be tight.

Stet · 04/04/2020 23:18

Surely it's not that hard to understand how people could find themselves in financial difficulties when their income has totally dried up? ConfusedIf you're in your 50s with an almost paid-off mortgage then you probably bought when houses were relatively cheap compared to salaries. That isn't the case now. And you're getting benefits in addition to the fact you have a very small mortgage, so it doesn't take much imagination to work out that someone with a bigger mortgage who doesn't get benefits and might not be eligible for them for a variety of reasons might be struggling right now if they have been laid off or are self-employed or aren't eligible for furlough. Or having to take unpaid leave to look after their children.

Raver84 · 04/04/2020 23:20

What is difficult to understand? If you have more going out than coming it you will hit difficult times. Housing is relatively expensive. If you are living month to month then having no job or furlough could spell disaster. Not always due to debt, but of course that dosnt help.

Gin96 · 05/04/2020 07:43

My online banking isn’t working I have to ring the bank and I can’t get through 😔

IStressheadI · 05/04/2020 08:04

My universal credit doesn't even cover my rent. I have to make the rest up with my maternity pay, which is just the statutory pay.
Then I have to eat and pay bills.

Understand now?

BarbaraofSeville · 05/04/2020 08:05

You don't mention housing costs and are in your 50s. Could it be that you are either mortgage free or you have a very small mortgage?

Now imagine if you were 20 years younger and had a mortgage or rent that was well into four figures per month. It wouldn't look so rosy now would it?

We're late 40s, our mortgage is about £370 pm and I will still get paid so we'll be OK even though DP has lost all his income and might not get any help either but I recognise that we're in a very fortunate position, and that others with higher outgoings are likely to struggle.

BewilderedOwl · 05/04/2020 08:08

I was told on friday I would be getting an 8% pay cut till least the end of the year. That's a big chunk of money when youre not on that much to begin with...

BarbaraofSeville · 05/04/2020 08:12

Sorry you do say you have a mortgage, how much is 'low'?

Many people your age, it could be £100 pm or less.

MacRedsocks · 05/04/2020 08:16

Are you for real? My DH is WFH but I am fee paid judiciary. No 80% for me. As I'm not self employed and I'm not employed. So we're down my earnings of 40k PA. Add in a £1200 mortgage, 2 young DC & normal bills. We're stuffed. Our income has dropped 60%!

Toomboom · 05/04/2020 08:21

I am in my 60's, renting [ due to divorce and not being able to buy on my own ], work full time on minimum wage. Now furloughed on 80%. I have no savings to fall back on. No idea at all how I am going to manage. Once I pay my rent and bills I literally have nothing left on 80% wage, can't even do a food shop. Nothing to sell as I have sold anything I can.
Trying to see if I can get UC but can't log into the verifying bit. Tried for 4 days now and it just keeps telling me it's too busy. Without being verified I can't even see if I am entitled to anything. So totally stuck.

Kissmycousinkate · 05/04/2020 08:37

Gin96 you can just go on and reset yourself. Do you use frequently? Are all your telephone numbers upto date with your branch? Just go in and reset passwords

PrivateD00r · 05/04/2020 08:44

Sorry op, but this is a very unpleasant thread. Why do you want to hear of others' financial woes? You are used to a small income and receiving benefits, lots of people are not in that situation - you really don't get that? Hmm

JosephineKarlsson · 05/04/2020 08:47

You don't mention housing costs and are in your 50s. Could it be that you are either mortgage free or you have a very small mortgage?

This might be true of OP but a lot of people in their 50s have large mortgages because of divorce or - like us - being impacted by negative equity twice as we had to relocate for work during 2 recessions. I'm not complaining as we now have a lot if equity but still have a large mortgage to pay.

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