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Original poster

Advice needed, please

482 replies

NeedMoneyAdvice · 18/02/2014 13:35

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.

OP posts:
Viviennemary · 18/02/2014 19:36

There doesn't seem to be very much leeway to make reductions in your outgoings. You could look for a cheaper place to rent but from what you say you are tied in to this agreement. The gym membership could go. Unless people know why you are losing the 500 per month it's difficult to see a way out of this. Your outgoings are simply too high for your current outgoings. So you will be in debt unless you can borrow from a sympathetic family member.

Catsmamma · 18/02/2014 19:36

How strange the husband didn't think to come here and tell us all off.

Bagofnutsnbolts · 18/02/2014 19:39

Oops sorry should be all us, me included left out the us....sorry no offence to anyone!

Clutterbugsmum · 18/02/2014 19:49

Perhaps he is to busy study for his 'accountany/banking degree'.

If they don't sort something out soon re incomings/outgoings then they could end up going bankrupt in the future then his banking will be gone due to the bankruptcy. The he will be on his 3rd choice of career.

Jirvine · 18/02/2014 19:55

This is not going to be popular but would you be better off on benefits instead of working?

Sounds like you are one of the families trapped as working poor - you can survivie like that............

There has to be a charity or something that can help even working tax credit for childcare?

SetPhasersTaeMalkie · 18/02/2014 19:58

I've posted this on your other thread. Contact your local authority. I've checked and your authority has debt and money advice and a welfare rights advisor. All free and confidential.

Jirvine · 18/02/2014 20:00

Contact Sure Start or the equivalent in your area

www.gov.uk/browse/benefits/families have a look here there may be soemthing you have missed

Ballsballsballs · 18/02/2014 20:02

OP, two charities that might be helpful:

Shelter Scotland for housing and benefits advice.

StephChange debt charity.

clare8allthepies · 18/02/2014 20:14

As for the tax credits, if OP had not reported a change such as Childcare provider then yes this can cause an overpayment. What will have happened is that the Childcare costs with the previous provider will have had to be ended on her claim from the date they actually ended (though you do get a 4 week run on) and her new costs and Childcare started on her claim BUT the new costs would only be backdated 1 month from when the change was made meaning the CC part of the claim for the period in between is overpaid.

If the award is just the family element or less (about £10 per week) then no money is paid out and it all goes to the overpayment recovery. If the award is more than that then 25% hoes to the recovery and the rest is paid to the claimant.

In any case if overpayment recovery is causing financial hardship you van ask for the recovery to be reduced or suspended, though there is no guarantee that this will be granted.

NorthernLurker · 18/02/2014 20:14

I pay less than the OP for gas and electric on a 4 bed house and we have it on lots tbh. I think she may have made an error in her meter readings.

VeryStressedMum · 18/02/2014 20:21

Clare8allthepies, no the op had tc stopped because she didn't inform them that the cost of the same childcare had gone UP (can't remember the reason something about adding meals...)

sleepyhead · 18/02/2014 20:24

Op could easily be paying that by dd, especially if they aren't particularly financially savvy and just pay the bills without question. Energy companies are well known for keeping hiking the direct debit and building up huge surpluses. I was paying 180pm for a short while in our 1 bed before I twigged and insisted on paying for what I used going forward. I got a chunk of cash back and we paid approx £50pm dual fuel from then on.

Energy companies are crooksAngry

Council tax is probably right as well. It will include water as op is in Scotland. We we're 145 in our 1 bed flat and are well over 200 now.

Mumoftwoyoungkids · 18/02/2014 20:42

I think your take home should be more than you think. I think your £30k is made up of £20k + £10k? Tax allowance is about £9.5k. So you will be paying 33% of 10.5k + 0.5k = 33% of £11k = £3630.

Which will give you take home of a bit over £26k.

Sorry- no actual extra cash but when you add this and the child benefit at least the sums look a little more possible.

Objection · 18/02/2014 20:57

has the OPs DH been on this thread to tell everyone off yet?

clare8allthepies · 18/02/2014 20:57

very that wouldn't have stopped her payments or caused an overpayment all that would have happened is that they would only have been able to backdate the increase one month. If that is the case and her payments have stopped then it might indicate that her claim had been updated incorrectly but if that was true then it would have been discovered when the OP appealed which she said up thread that she had.

Mumoftwoyoungkids · 18/02/2014 21:00

Hang on - are you entitled to SMP? Because if so then wouldn't you be better to take maternity leave for 39 weeks, get your £136ish a week and save £350 + £200 a month on childcare?

If your normal income is £10k then this is only about £60 a week less than your normal income but you are saving over £100 a week on childcare.

Or if your dh is the lower earner then you could go back and he get up to 6 months paid paternity leave?

Nicknacky · 18/02/2014 21:10

Why would you move from a two bedroom flat to a two bedroom flat when you are pregnant when there is plenty of three beds available in Edinburgh for less than £1000?

Figster · 18/02/2014 21:26

You seemingly couldn't afford your lifestyle even with the £500 handout yet chose to have a 2nd child Shock

Millipedewithherfeetup · 18/02/2014 21:27

Ok first thing is try not to panic, think about the car, that us a big chunk out of your income, is there any way you can get child to school on the bus ? Can you do the same for work? Or try and get a lift with a colleague ? Get onto the phone co, tell them you simply cannot afford to pay those mobile charges you will be able to negotiate a deal if you push hard enough, also look at childcare costs, again see if you can get cheaper ? Possibly a chilminder who can fit in ? Get in touch with your local housing association and let them know whsts happening, you may have to stop paying yiur rent and get an eviction notice before they actually step in. Good luck op, try and stay positive.

AFsalterego · 18/02/2014 21:31

millie have you read thread! all that will fall on deaf ears, although good positive advice.

The op has not accepted her situation. Sad

Bagofnutsnbolts · 18/02/2014 21:32

Objection, I think he's had such a pasting on the other thread he's too scared to come on this one! But by rights he should be telling us off on this one as i think it was this thread which got his wife upset in the first place

AFsalterego · 18/02/2014 21:33

We'll maybe just maybe they are facing up to it together, which isn't all bad.

IneedAsockamnesty · 18/02/2014 21:40

A few years back I was in loads of debt, credit rating so poor I couldn't even open a bank account

Bollocks, natwest, lloyds, satandere (or what ever Abbey call themselves these days and every other mainstream bank,will do a very basic bank account availible to those at the very highest banking risk group (shoud be bankrupt are bankrupt have been several times) they are not dissimilar to children's accounts

I went to Thinkbanking.co.uk

Daft move

They renegotiated contracts and repayments on my behalf and managed my income and outcome so everyone got paid but only what I could afford. I didn't have to deal with anyone directly and it was a huge weight off my shoulders, which, given your pregnancy, sounds like something you could use

All things that CAB,CAP or any other none charging debt support service can do.

How much more have they added to your debt to fund this?

Daft suggestion

Rinoachicken · 18/02/2014 22:00

sock

I've been through this but you obviously can't be bothered to read so here you are:

This was 15 years ago. I tried natwest and abbey national (as was then). I was turned down for both. I suffer from poor mental health and was too depressed to try any more.

I had never heard if any of the charities, I just googled.

Nothing was added to my debt, interest was frozen, it just took ages to pay off as I was paying tiny amounts. I paid it all off about 4 years ago and am very proud that I did it all myself and nothing was written off.

I did and do find them value for money for me and was simply sharing my own positive experience

Sorry if me paying off my debts offends you

IneedAsockamnesty · 18/02/2014 22:12

You paying off you debt does not offend me at all. You being charged fees to do something that is readily available for free does greatly.

Without that help you would have settled the debts much sooner you would have felt better sooner. They prey on vulnerable people.

And I'm not cross at you I'm cross at them

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