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.

[Rumplestiltskinismyname]

Cards www.phoenix-trading.co.uk/web/corp/area/join-us/?bid=bd30010165eaf0258834652d7cf29775e661b6d6

Jamie at Home- scrap that as you have to pay £120 upfront.

You can move- if you find another tenant for your flat.

[AppleAndBlackberry]

Would you be eligible for more benefits if one of you wasn't working? Obviously then you could cut down on the childcare costs and some petrol. I know it's not ideal, especially if you want to work, but it might be worth doing the sums if the alternative is a lot of debt.

[fideline]

Look, that budget barely balances and there is nothing in there for clothes, car repairs, tv licence, water, dentists, medication, contingencies, bank charges......

Something will have to give.

[TheGirlFromIpanema]

So you have about £2k per month whereas before you had £2.5k per month coming in? Its a significant drop %wise and therefore will need significant adjustment to your lifestyle, which even before the drop,you admit there was no buffer.

Its all very well saying we can't do this that or the other - but the reality is that something has to change. You may well be better off not working, taking the lower income, claiming tc's and dropping both childcare and motor expenses iyswim. A lot depends on how your current income is split between you, and I'd really rather not advocate a person becoming financially dependent on their partner/the state for the long term.

Sounds drastic because it is, but whatever solution you find will probably need some major life changes for you all unfortunately. Either that or incurring debt through the lean years which you then pay for tenfold in future.

[Bagofnutsnbolts]

OP I read you previous posting from yesterday, it was fair enough to change your thread as you got a fair flaming. Today your story has more consistency, still recognisably yours, although quite a few changes! but once again to every offer of help and advice you turn down, coming up with reasons why you can't make changes. Interestingly if you can be bothered to look at your previous post, MNs have gone the extra mile to help. But why don't you want help? Why to every sensible bit of advice to you, do you come up with a justification as to why you can't change. Look you have no choice but to move, cancel gym membership etc. so why waste everybody's time and patience, what exactly is your agenda here?

[NeedMoneyAdvice]

coco

We need the broadband we I will be working from home partly. The heating is only on in the morning and evening, and it is bloody freezing without it. I can turn it off more just now and dress DS up, but when the baby comes, is that a good idea? I will, if we have to.

If we leave this property, we lose the deposit.
Without the deposit, we can't move in anywhere new.

You need deposit AND first months rent to move into a new property.

[RandomMess]

How much is your overdraft costing you per month?

[thinking101]

O. Get cheaper broadband. BTinfinty and calls package is cheaper than £50 per month. There maybe cheaper out there, check on MSE.

Look that is your biggest bill. You simply cannot afford it. Line up your next house and move into it. If they take you through the small claims court so be it.

Can you appeal to your letting agent and ask them to find you somewhere else with them so they don't lose out and let you out of it amicably. I think you are really up against it here. I would still walk away for the house. If you can't pay the rent what difference does it make if you end up being chased now or later for the money? Least if you lineup another house you will not be homeless .

I think it may be wealth getting advice from CAB or legal boards, 18 months is a long time and to not be able to give notice on it?

Anything you could sell? If you work from home you don't need the car, move ds school.

Yon have some very tough choices to make, I'm sorry.

if that was me I would be prepared to walk away from house get a cheaper on and let them pursue me through courts, they have to wait for their money while I paid rent elsewhere. Its not in their interest to force someone to stay in a contract that they ultimately cannot afford.

[Rumplestiltskinismyname]

You won't lose your deposit if you find a new tenant. We didn't.

[NeedMoneyAdvice]

clothes -we don't buy
car repairs - we keep our fingers crossed, not ideal I know.
tv licence -we don't have one
water - We don't have water bills
dentists -is free
medication - also free
contingencies - I know. And I hate not having savings.
bank charges...... thankfully we don't get any but if we did, yeah that would be awful.



WE CAN'T CLAIM TC EVEN IF I STOP WORKING! I have said this so many times!

Surely if I quit working and went on benefits, we'd get even less than we do now?

[bibliomania]

Turn off your heating and hot water. Six hours a day is huge. For me it's more like six hours a week (I do have an electric shower).

Do you really need the home insurance? Check if you already have it bundled into your bank account/credit card or something. Or just cancel it and take the risk.

If you can't get out of the gym and phone contracts, sounds like you're stuck with them for a while. Make sure you're clear about the earliest possible date you can get out of them and cancel the moment you can.

Start ebaying everything you can get your hands on.

If this situation is short-term (and you say it is), start thinking about the cheapest way to access more credit. Go on to Money Saving Expert for advice - depending on your situation, it might be a question of getting another credit card and doing a credit transfer. I don't like advising someone to go into debt, but sometimes you have do - make sure you do it sensibly and with a proper repayment plan. I have quite a lot of debt (exH dragging me back to family court on spurious grounds) but most of it is currently on at 0% interest, which is a comfort.

[NeedMoneyAdvice]

We asked about finding a new tenant. They said no.

We would lose our deposit.

We can't move somewhere else without a deposit.

[badgerknowsbest]

Every piece of advice you have been offered you have come up with reasons not to accept it. I'm sorry but if you were struggling you do what you have to in order to save a couple of quid.
I couldn't imagine having expensive gym membership or mobile phones costing that much, it may affect your credit rating but that is the reality of having things you can't realistically afford.
We are on our arse and we have had to make cut backs accordingly. Put up or shut up.

[AppleAndBlackberry]

It seems like you are already fairly frugal and/or tied in to some of your contracts. What do you think will happen if you can't cut down on your outgoings? Do you have the facility to take on some debt in the short term and repay it when you are able to cancel the gym etc?

[fideline]

"WE CAN'T CLAIM TC EVEN IF I STOP WORKING! I have said this so many times! "

Why not? No recourse to public funds?

[FluffySocksAndMarshmallows]

I think the problem is that you aren't considering them.

You can't easily move house. You are tied into the contract, and you'd have to find someone to take over and find somewhere new to live. It's hassle, and it'll be stressful, and if you like your house, it'll be sad, too.

But you definitely can't afford to live there. So saying "WE CAN'T MOVE" isn't an option, because soon enough you won't be able to afford anything at all, including living there.

You might not want to cancel the gym or argue and plead with the phone people, but if you don't, you'll soon get defaults everywhere when everything bounces anyway. And that will also affect your credit rating.

Infact, it's probably worth forgetting your credit ratings, because unless you can find £2.5k to pay back your overdraft and enough money to cover all of your outgoings every month, then you can't afford to pay everything. You just don't have the money.

[NeedMoneyAdvice]

I can't take the risk on home insurance as it's a rental property. We couldn't afford to replace something if it got damaged, and we have a child (soon to be 2).

We ebayed everything we possibly could about 5 months ago, to get the money for a deposit for our current house. Nothing left to sell.

Would a credit card be a good idea?

[NeedMoneyAdvice]

fideline No, not that. It's due to past circumstances.

[velvetspoon]

is there no way you can manage without the broadband? use Libraries, free Wi-Fi spots etc. How much work are you doing from home - can you manage from data allowance on phone?

And even if you don't spend much on food, even £5 a week saving helps. My parents spent a year living on homemade soup and beans/pulses when I was a baby and my dad couldn't work.

You both need to try to increase your income, either in eves or weekends. Just some ideas, if you are in or near a relatively well-off area, there may be a market for odd jobs, lawn mowing, decorating etc. People round here were offering decorating services before Xmas £50 to wall paper a room, or (I think) £20 a wall, it was being snapped up. Dog walking is another - a friend pays someone £20 a time to exercise and play with her dogs for 2 hours a day.

Every penny you can earn, or cut back on, will help towards that £500 deficit.

If none of that is possible though, you have to face moving, or ultimately ending up being evicted. I appreciate that's a horrible prospect.

[thinking101]

Don't pay your rent, use it for new deposit.

Are you waiting for someone to send you money OP with a 10 magic chickens and free childcare offered? I'm getting pissed off now as you are just stonewalling, you havn't give an inch.

You over committed your income and now you are stuffed. If you don't make one of these hard choices you will end up being evicted anyway.

[NeedMoneyAdvice]

I have had some advice, that I have accepted? Some good advice that I wasn't aware of.

But I can't accept advice that isn't feasible for us? I don't see why it is wrong to say 'sorry but that won't work for us'.

I really appreciate the help, but please don't get annoyed with me because your suggestions aren't a possibilty for us.

[MerylStrop]

I totally understand why you might not want to move schools (similar situation ourselves). I get it. Plus huge sympathy with the situation you find yourself in generally.

But you are going to have to face facts and - getting PROPER ADVICE - find ways to do at least one of the things that are suggested. Otherwise you are totally stuffed and will find yourself evicted anyway.

You managed to miss the main point of my last post which is stop assuming that things cannot be changed. Get proper advice re benefits, moving house, extricating yourself from contracts.

[NeedMoneyAdvice]

velvet no, sadly not. I need access to my work files and things and I have a pretty basic phone. It has internet, but not the ability to work from home.

So we do need broadband. I will be working from home around 20 hours a week.

I don't think anyone would pay either of us to paper a wall - never done it before! But gardening possibly, DH could learn gardening? How hard can lawnmowing be? Good suggestion. Thanks!

[Slebmum]

If your husband earns 11k and you don't work you will be entitled to tc. 3 jobs, one on condensed hours and a newborn with 4 weeks mat leave sounds untenable. What if the baby is two weeks late? Will you bf? If not you need to factor in formula on top of food shop.