What are you going to do when you just run out of money?

[batvixen123]

My situation - I'm currently working from home. DH is on furlough, but is bringing in considerably less than he would do normally due to the cap on earnings. Am aware we were v lucky before. DH's company is one which relies on people being allowed to interact in public - they can't work while mass gatherings, and hospitality is shut down. Currently the company owner is pretty honest about the fact that they know the company will go bankrupt, but they're keeping it open on paper in order to be able to get their staff furlough pay. Once furlough pay stops, the company goes into liquidation.

DH has worked in his industry for over 20 years. I think it would be challenging for him to get a new job in another industry. Especially if he can't leave the house - he has severe asthma and so is meant to be shielding. If shielding continues until we have a vaccine, potentially 1-2 years, he won't be able to work.

If DH can't work and his furlough pay stops, which we expect will happen well before a vaccine appears, then we won't be able to pay the mortgage. We have savings that will last us maybe 4-5 months but not more. Certainly not years. I don't see how we can put the house on the market to sell it before foreclosure if we are meant to be shielding. I don't see how we can move house without massively breaking shielding.

If we're going to have to break shielding anyway, is he best off just finding some kind of work when furlough ends and he loses his job, even if it involves going out for some of the time? Are there any other options?

What are other people in the shielding category going to do when they stop receiving furlough pay etc if the expectation is that they can't engage with the world again until there is a vaccine?

By the way, thank you everyone. Lots of really really good advice here.

I'm so sorry op, so stressful. But there will also be a lot of people in the same situation. Banks will offer mortgage breaks. Your dh could maybe do a very similar role in different organisation? I think there will be much more working from home to protect people.

Shielding, which if it's necessary would presumably need to last until there is a vaccine or a huge percentage of the population has gained immunity, makes it so much harder. My PiL are in this situation. things are OK while the furloughs are in place, but once that financial lifeline is lifted they are in dire straights financially until they can work again.

MiL is looking for a job she can do remotely (no sure what but I suspect something along the lines of copywriting or editing as she has previous experience freelancing in that) and they are intending to downsize. Their thinking is that breaking shielding to downsize will be way less risky than breaking shielding on a daily basis to go to work to pay the mortgage. They have been talking about downsizing for a few years anyway, though.

It's all very much fantasy planning (I don't mean that in a demeaning way, just that there's little they can act on or check out to see how realistic it is) at this point. Until there is more info about any easing of restrictions (and support), there's not a lot to act on.

I think you have to do the maths and work out how much you genuinely need to subsist till he can work again. Plan for two years, then sell what you can to cover the shortfall.

This may be little comfort - but having 5-6 months savings to pay the mortgage, and being able to cover it now while you're in furlough is probably better than many people.

The government can't afford to let banks foreclose on millions of mortgages, and its not in the bank's interests either. If it goes on much longer there will be extended payment holidays etc.

Yeah, our gym automatically suspended our DD when they closed. Have you actually checked with your gym?

Well according to MN if you are worried about losing your home and buying food it means you DONT CARE about people dying of covid! No idea why you can’t be concerned about both but there you go!
Apparently, the only people who want to go back to work are millionaires according to some people on MN. I find this attitude so utterly bizarre- of course people are worried about money, some people’s incomes literally stopped overnight. It’s ok to feel worried about it and it’s ok to want lockdown to end so you can go back to work. It does t make you some kind of monster for wanting to keep your home and have enough to feed your kids.

I’m sorry OP

Look on money saving expert online, and do a money makeover. Save money where you can now and it will help the money go further. Apply for a mortgage holiday if you can, and save the difference if possible. Look at retraining online?

batvixen123 Can i just suggest that you talk to your mortage provider there're as i understand it at the moment more symnpatic that you might think they, are but tell them sooner rather then later what the outlook is for you they may well be OK on intrest only for a while or suggest another plan perhaps, but sooner rather than later before it becomes a much bigger problem!

Can your husband's company apply for a grant? There are grants as well as government backed loans for businesses.

We've always known I was the liability in terms of health and income and made decisions around that, including keeping our overheads well below our means and commiting the MN sin of me stepping back from my career so that DH progressed further in his. So, I think we will be ok financially at least although we were never expecting the shit to hit the fan in this manner.

Furlough pay will go on as long as it needs to so you don’t need to worry on that front

WTF. Are you for real . If a company goes bust then furlong will stop.

And do you really truly think that the Goverment will continue to pay out 80 percent of wages for business for as long as necessary which could be how long .....

Whatever your on I want some.

I think you are wise to plan now OP because this problem isn't going away for the shielding group and £94 per week UC isn't going to cover anything (he might not be eligible anyway because of your wages).

Could you renegotiate your mortgage terms to rent out your home (assuming the market rate covers the mortgage, maintenance and fees) and rent a small place with your earnings in a much cheaper area?
This would allow you to pick up your life once a vaccine is found.
Perhaps your DH could get a job in a rural area with less chance of social interaction and only using his own vehicle. Something in horticulture, farming, fence maintenance, maintaining grounds. That type of thing.
Before a vaccine, there may be successful anti-viral drugs which will give hope to the shielded group that their outcome will be better if they catch it.

I'd look at reducing your outgoings as much as possible now. Apply for a mortgage holiday immediately, at this stage it doesn't particularly matter how long it's going to be for, just reduce what you're paying out. Also look at any other loan holidays/car payments etc.

Someone else will be able to answer better than me, but there are better rules around evictions than there used to be. If you can pay even a small amount of arrears, they can't evict you.

Are you able to increase your earning potential during this period? Sorry if that's not the case, but worth suggesting.

Practical options op. Extended the mortgage period? So reduce payments per month. Bug3t meals and other functions.
Can your dp change career even if just a lower paid job you will be better off than on uc. There are some job he can do wfh.
Other option is get rid of cars and other luxaries.
I'm. Sorry as it sucks for lots of ppl.
My dp self employed and in events type stuff and his current income Is almost zero.

**Their thinking is that breaking shielding to downsize will be way less risky than breaking shielding on a daily basis to go to work to pay the mortgage.

This^^ was what jumped out at me from your post. Hopefully mortgage holidays etc is enough to keep you in your current home but if not, I don’t understand why selling and moving house is a problem compared to going out to work every day? Your husband could keep away from viewers and movers pretty easily surely?

Lots of people advising you I look for other jobs etc!! I can’t see many businesses taking people on at the moment unless your in healthcare.

I worry about this too if anything happens to my husbands job. According to the news etc this could lead to a Great Depression, if that happens millions of people could end up homeless. Would the government really let that happen, all these families on the streets? I have absolutely no idea what will happen.

It is a worry and of course people catching it is also a worry.

So sorry to hear that you are struggling Batvixen and it is really a stressful time. I would definitely agree with the great advice on here (especially Starrynight), and also definitely the mortgage holiday which you could then save for further down the line. Also try and budget as much as you can now so you can further add to your savings. Martin Lewis gives great advice about this too, www.mirror.co.uk/money/coronavirus-martin-lewis-19-need-21751664 HTH sendinghugs and positive vibes x

This is the major problem for so many people now.A good friend of ours is not well ,and has a job at a family firm. They have always treated him well and he feels like one of the team ,however they will probably be unable to continue trading if this continues for much longer.He will quite possibly lose his job and isnt the only one! Of course we must protect the NHS and people /children and so on .If we reopen sometime in May which seems to be the goal here, Lots of people will be in difficulty financially by then.

DH is self employed in events also and not eligible for furlough or any government handouts.
My wage doesn't cover all outgoings. We rent so can't apply for a payment holiday. Rent is 70% of my income. 2 kids. No savings and all credit now maxed. No gym, Spotify, to cut.
No idea what to do.
We can't afford to move as can't pay 4 weeks in advance and 4 weeks bond plus all the expenses like utilities. And actually hiring a van etc to move.
Added there are no cheap houses/flats in our area currently for rent.

This is a great thread full of lots of practical advice.

I would be wary of this though as not sure it’s legal - maybe check with CAB:

(look into making a partial lump sum payment to mortgage to reduce savings below savings cap)

The rent a room thing always pops up. Nobody wants to live with other people’s small children in my experience and is it even safe to have a stranger living in your home anyway

Sadly we had to deal with this 3 years ago when the company I worked for suddenly went bankrupt - or sudden news to me anyway. It is tough. You can get contributory benefits for 6 months, we got a mortgage freeze, DP managed to get extra hours.
If you have no money to pay rent, there are government benefits. You might have to move to cheaper housing though. If it is already in the cheapest then benefits should cover you. If you are buying all you can do is either a mortgage holiday if you hope it will get better soon, or try and sell and move, or rent out and move.
Sadly I suspect a lot of people who have never understood how shit our benefit system is are going to find out.

This is what I would do...

Cut EVERYTHING to the bone. Every activity gone. Get onto Moneysavingexpert and spend your life there (debtfreewannabe board).

I would write to the phone and gym and explain the situation and any other similar contracts. If they said No I would ring my MP and get them to ring them. Or post on social media and shame them. Depending on how long I had left on my mortgage I might default.

Everything should be about saving the house. Meal plan every single meal.

What is the difference then between your salary and outgoings? Definitely go interest only. Do it today.

This will not last forever, but people that survive act QUICKLY. It is better to over react than under react. Make quick decisions and be pro-active.

Once you know the specific difference you can then devise a plan. You'd be surprised how you can earn a few hundred if thats whats needed. As he is vulnerable try to match up careers that bridge what he did with what would suit. eg Mowing lawns. Could he make and sell stuff. Can he volunteer as a basis for a newish career? Can he become a childminder etc etc.