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.

DH does need to speak to his employers.

Is there some reason, other than earning too much, why you don't qualify for any benefits?

Could you manage avon? I did that when we were very short of cash, it's good for when you have a baby as you can just wheel them round with you to drop off and pick up your booklets.
I made about £70 a month and I only had a few clients.

BTW I thought you had 3 jobs.

You have had the rug pulled out from under you OP, I am so sorry, but I don't think there is a magic wand that will help you maintain the status quo. If you are going to survive then I think only radical action will do.

Your DH needs to postpone his qualifications until you are both in a position to support him through them again. He needs to find a job paying more than £11k at least until you can get out of the contracts you are tied into. Short term pain for long term gain.

Alternatively do you and he have any skills that you can use to set up a business from home?

Again, I am sorry that you are in this position.

The gym will send the debt to a collections agency. We can't do this as we are really trying to rebuild our credit rating so one day, we can get a mortgage.

I know that seems a long way off but we've tried so hard to reduce our debt and get our credit score better of the past few years, I just cant throw it all away.

We switched providers for G&E recently (a year or so ago) and the price was about the same?

You can sometimes negotiate out of gym memberships or agree to pay less and not have access to the facilities. Ask to speak to the manager.

Likewise the phones, ring up and see if you can negotiate lower payments for less minutes and a longer contract (you will need to choose the "end your contract" option).

Consider selling the phones and cars and replacing with more basic options if that is likely to get you a profit.

Then the council tax, I saw your other thread, has your DH got the student exemption form for council tax so you are only paying single-person occupancy? Has he tried asking for hardship funding?

By my sums you have £248 left over each month which should be just enough for food.

That rent and CT is astronomical for your income. Could you find new tenants and ask letting agent if they'd allow you to leave if new tenants moved in ASAP? That way it wouldn't affect your chances of being accepted my new LL.

Only people in receipt of benefits are entitled to FSM. We aren't.

Random what can DH work do?

Checkpoint I know 2 women who sell Avon (through work), and I know zero who would buy

Can you ask the gym to suspend your part of the contract at least as you are pregnant?

Are you taking mat leave - does that mean you can reduce the childcare costs?

We pay £110 for electricity and gas in a much bigger property, with high ceilings. Have you tried Uswitch?

If you go on mat leave does your income drop significantly enough that you will qualify for any benefits?

Have you contacted StepChange? Most contracts can be put on hold by large organisations like this.

Can you ask the gym to suspend your part of the contract at least as you are pregnant?

Are you taking mat leave - does that mean you can reduce the childcare costs?

We pay £110 for electricity and gas in a much bigger property, with high ceilings. Have you tried Uswitch?

If you go on mat leave does your income drop significantly enough that you will qualify for any benefits?

Also, £720 pa for car insurance seems really really expensive, when is it due for renewal?

Have you counted in child benefit? Also, have you tried renegotiating existing commitments? What about changing from fully comp to third party f and t for car? Or spreading your car loan payments over a longer period to bring the monthly cost down? It'll take longer to get rid of the debt and you'll pay more interest in the long run but it would be a good short term fix.

Speak to the companies and tell them you're struggling. Ask them to help you sort out a more favourable payment structure. Remember they want to keep your custom and not lose you to a competitor.

DH isn't a student!

We only use the car for essential journeys - we are walkers. But, I need it for DS school and to get to work. And I can't manage the shopping myself without it.

We've asked the gym, and DH called Vodafone but we are tied to the contracts.

Child benefit is £80 a month, I forgot to include that. So we have that as well. Apologies.

I'm not taking maternity leave, only for 4 weeks.

Why is our G&E so high?

Change your gas/elec tarriff now. Ours is £113 a month for a 3 bed semi and we have it blasting round the clock.
If dh is working 13 hours a day and you have 2 jobs plus a child, when were you both going the gym enough to justify £75?

Car insurance is high, but we only learned to drive 2 years ago. It is renewed in November and should go down a bit then. It went down a lot last November. We were paying over £2k a year for the first year!

He can ask them about a loan/career advancement/Payrise - sometimes they will do these things if you sign up to staying for x amount of years after qualifying (and of course you have to repay). Obviously if you leave their employment you are still liable to repay.

Sod what the benefits agency say. Actually apply for housing benefit and council tax benefit. As soon as the baby is born send off for child benefit and phone up Tax credits and apply.

Please do not take anyones word that you are not eligible for a benefit, apply and check thoroughly the paperwork they send back with their decision. Your income dropping by £500 per month net may well mean that you are now eligible.

Phone up today Tax credits and local council and apply - or look on line, you have nothing to lose.

Are your G and E bills based on what you actually use? If so, are you leaving things like heating, water, etc on all the time?

Find a good benefit checker and run the figures if you became a SAHM after this baby, or if DP became a SAHD. Sadly, it might be that you would then be better off. Would one of you consider a career break for a year or two if it saved your bacon?

How long is your heating on for?

Is anything except the fridge/freezer left on for long periods?

Would your car insurance reduce if only one of you was insured to drive it?

He is out of the house for 13 hours a day, as he walks to/from work. We go to the gym some evenings or at the weekend.

We would cancel it, we tried to cancel it, but they said we were tied in and there was nothing they could do. I said I would just have to cancel the DD and they said that was fine but it would go to a debt collector.

At one point we were eligible for £1.62 per week council tax benefit but what that did mean was that we were eligible for reduce priced school holiday playscheme part funded by the council!