Advice needed, please

[NeedMoneyAdvice]

DH and I have just found out we are about to lose £500 a month income.

I had started another thread, but I was advised to come here for some advice. We don't know what we are going to do and I wondered if anyone could help us. Name changed because lots of these details would out us.

We have just taken on an 18 month lease with a letting agent. We have spoken to them this morning, and we cannot break this. We could simply not pay, but we would lose our deposit, and would struggle to find a landlord that would take us on if we did this.

We currently earn about £30k between us, take home about £23k.

Rent is £1000
Council Tax is £200
Gas and Electricity is £190
Phone/Broadband is £50
Childcare is (currently) £350
Car insurance is £60
Car payment is £140
Petrol around £80
Home insurance is £20
Gym membership is £75

Think that is everything. Obviously, this leaves us over budget. I genuinely don't know what we will do without this money?

We aren't entitled to any benefits, including WTC and CTC.

I genuinely don't know what to do.

and seriously why is OP worried about credit rating just stop all payments and feed your kids, credit rating is the least of her worries.

That is 'the homelessness route'. Eviction notice = impending homelessness.

Op talk to National Debt helpline if you havant already,they can offer you some fantastic advice,and also advise on your lease and ask shelter to.

Saying that the lease company were actually a bit cross....what do you expect! They are not going to be thrilled to have to go back to LL nad say actually , that fell through.

You need to get tough. So what if they were cross, your going to be broke, you are broke, its dog eats dog.

you have to fight, be in there crying, making a case for yourself...

She won't listen on here. I hope someone gets through to her. Her grasp of the immediate priorities does seem odd. I just hope she doesn't decide to skip council tax so that vodaphone can be paid.

*credit rating is quite key actually, to everything! if they want to destroy themselves for the next ten years...yeah fuck the credit rating

OP, you need to speak to you PIL first. They have suddenly stopped your £500 a month payment but if they could see what this has done to you they might be prepared to help for a bit longer.

There are other options but they all involve breaking legal and contractual obligations.

You are going to have to admit you've made some unwise choices but it will be better than trashing your credit rating if you can help it.

I'm say this because if you husband is taking professional banking exams, no one will employ him with a trashed credit rating (if he went bankrupt he would likely be barred from the professional body too) so all the studying will have been in vain.

We have done the benefits checker thing countless times, and gone to the benefits agency. We are entitled to nothing. I do not know why, but they keep telling us we aren't

This is why

What are the income limits for tax credits?
The income limit for you depends on your own situation. But as a very rough guide, you might not be able to get any payments of tax credits if your income is more than around:
£26,000 if you have one child
£32,200 if you have two children
£13,000 if you're single with no children
£18,000 if you're in a couple with no children
These limits will also apply from 6 April 2013 - but remember they are only a rough guide. You could still qualify from 6 April 2013 if your income is above these amounts. For example, if you pay for registered or approved childcare, are disabled, or have more children.

I don't undertsand how someone can work three jobs, in the SE (I'm assuming due to the high rent) and only earn 9k?

Even a telesales job should net you twice that before commision.

Well it's six years and it's not really a choice.

If there's not enough money to pay it all, then do you pay mobile and gym to not worsen your credit. Or do you pay rent and council tax to avoid bailiffs and eviction notices?

And she did say her credit was already impaired.

If his credit rating is badly impaired, he should just forget the studying and take on another job in the time he is currently studying as he won't get anywhere in banking with a poor credit rating.

She's in Scotland. An expensive city there.

Noone would advise bankruptcy in this scenario. Maybe a DMP.

As far as the gym goes, go in ask to speak to manager, no joy area manager....no joy write an email to all the managers and say " struggling family, new baby due, about to be plunged into debt because Gym wont release them from contract..." say your posed to go to papers with a nice picture of yourself...

Jeez your council tax bill is high. Is that normal in Scotland? I'm fairly sure I don't pay that in London (close but it's a bigger property than a 2 bed flat) or is it because it also includes water?
www.gov.uk/apply-council-tax-reduction

I've never heard of a gym that won't suspend a membership for pregnancy or serious health condition. Get yourself down to the gym and cry if necessary. Get the suspension in writing and cancel the DD.

You might want to avoid a CCJ but if you are evicted the council is going to have to house you anyway. Time to visit them in person I think.

Last suggestion which is a bit desperate measures. What would happen if you were "abandoned" by DH? For housing and benefits?

This is incredibly frustrating. Whatever you say, OP, your facts and figures have changed substantially, during both threads and between the two threads.

People on MN are very good about helping people in hardship, but most people who ask for help are honest about their situation.

There are several strange things about your situation and when people comment on this you just say 'we can't change it' or 'there's a reason for it.'

1. 18 month contract with no break clause. This needs to be sorted. As I said on your other thread, no landlord in their right mind would sit tight and do nothing when their tenants are saying they will default on the rent soon. You need to be clear and firm about your situation and point out to the landlord/agents that you are categorically not able to continue paying the rent, so need to come to an arrangement re marketing the property. Keep calling them, keep emailing them. Keep going until they agree. There's no point saying 'WE CAN'T MOVE' again and again. You will be moving sooner or later, either on the tail-end of an eviction procedure with a CCJ against you, or under your own control, albeit possibly with loss of deposit/reference.

2. Gym membership. Ditto. Keep calling. Write to head office. Ask about deferment, to be reviewed in 6 or 12 months.

3. Phone. Same advice. Point out that they'll get less out of you by pursuing you through the courts than if they allow you to go onto a lower tariff in the short-term.

4. Tax credits. An overpayment doesn't stop you claiming forevermore. What usually happens is that deductions are made from the new claim on a rolling basis. I am a criminal lawyer and represent people on benefit fraud allegations - they often have an arrangement in place regarding the repayment, even before the prosecution begins. You need to go into this with CAB or similar, and go and see a local advisor. I'm also confused as to why an increase in childcare costs would lead to an overpayment. You need to look at having this reassessed. Again, keep pursuing.

With all of this, you seem to just accept the first thing that anyone tells you. Of course the landlord/gym/phone people are going to say 'computer says no' - that's easier for them. You need to persist and be clear and firm. People aren't generally going to push on regardless of their own best interests. Talk figures and consequences and you will almost certainly get somewhere.

And if you want help from somewhere like MN, you need to be honest and consistent. The inconsistencies in these threads have been spectacularly obvious, and people don't want to waste their time.

Are you an illegal?

The TC thing makes me suss. Surely you would still claim n receive payment but with a reduction in place to pay off what you owe.

That won't work for us. If anyone sounded so entitled it is you OP.

You are kidding yourself if you think reducing car insurance by £16 is addressing your problems.

I'm sorry but you really need to tell the agent to feck off and move somewhere cheaper. Suspend gym easily done as you are preg. Get rid of car. Which you said originally you needed for work but now don't as you work from home and need the broadband.

Why you would take on such a high rent on such a low income is silly in the idiots place. Some harsh advice and lessons here OP.

From teh other thread

We aren't entitled to any WTC or CTC as we earn over £30k together.

DH earns £11k from his job.
I earn £9k from one job, £9k from the other and £4k from the other.

Our mortgage payments are £1350 a month.
Council tax is £190 a month.
Car insurance is £80 a month.
Childcare is £350 a month.

NONE OF THIS MAKES ANY SENSE.

First place

And you have either been given shocking advise or are talking rubbish about your previous claim

A change in circumstances that means you get more in tax credits would not result in that happening you would just lose any extra you were entitled to as a result of that change and only be able to obtain a months work backdated.

A unreported change that resulted in you getting more than you should does not result in a further claim being prevented.

The upper earnings limits changed last year it dropped quite a lot you earn over it that's why you can't claim anything with your current income

RTFT

She is not "an illegal".

She needs the car to take her child to school and to get to her bar job.

if your employer doesn't do Childcare Vouchers you can volunteer to set it up for your company.
I ma pretty sure someone on Mumsnet done it - I'll have look for you and paste it here.
The think is - it doesn't cost them anything, just the hassle of running it.

You could also look at debt consolidation.

I think the problem is that you are trying to find a way to avoid any of the consequences of this situation - credit rating damage, sharing a bedroom, changing schools, DH giving up his studying etc. You can't. You're in this situation and there will be consequences to whatever course of action you take. You just need to decide which route has the least unpalatable consequences.

You are desperate to keep your credit rating? Fine, look at room-sharing or DH giving up studying.

The 2 bedrooms is non-negotiable? Right - give up on worrying about the credit rating for now.

DH's studying is most important? OK - share a bedroom and default on gym/phone.

You need to decide what can give first, and focus your efforts on the most pressing issue.

Then report thinking. Don't troll hunt.