Help no money...

[tiger14]

We have been living on the bread lune for the last few months, only getting by because we have used a credit card to pay for food, etc. Anyway this month our tax credits have been cut, I really don't know what to do..... we won't be able to get through the next few months and certainly won't be able to pay the huge credit card bill we've got form living off it. Have cancelled some things to save, sky etc. We have 3 kids and just don't know what to do. Trying to sell stuff on local fb pages but nothing seems to be selling.....

Hi tiger, sorry your having a difficult time. Might it be worth talking to step change if the credit card bill is unmanageable, might be able to help get you on a easyer repayment plan.

Also maby talk to the kids school (if you can in holiday) they might have a discresonary fund or something that could help with uniforms for next year.

If you get chance I would also try filling out the turn to us benefits calculater just in case you have missed something you are entitled to.

What is step change please? Is it a debt agency? Do they charge you?

What are your circumstances op? Do you work? Does dh? Have you written down all of your incomings v outgoings?

Yes done incoming and outgoing. I work and dh is self employed, we have 3 kids 12, 9 and 6

Do you have a large rent/mortgage? Have you looked to see if you're getting all the help you're entitled to

Stepchange are a debt charity that won't charge you anything. Check out reviews for them online. I used them and they managed to get interest frozen on credit card debts I had and I only had to repay small amounts each month until it was all cleared.
Send me a private message if you want to chat more :-)

Thanks, will have a look then might get back to you.
Rent is £650 a month. Think we're getting everything as we earn too much for most things (£20k approx) tax credits have just taken working tax credit off us but don't think that makes a difference to anything due to income

Sorry for not getting back to you sooner, as teddy said step change are a charity so won't change you and can often broker better compromises from you crediters than if you try negotiateing directly.

You said that it was only the last few months you've been struggling, is this because your income has recently fallen? If so then you could get tax credits to recalculate your award based on a prediction of current year (what you get per month now x12) instead of last year's income. Self employed income especially can fluctuate so much, so if you don't keep them updated everything earned since April 16 will still be affected what you get now.

It's hard to estimate what he's going to earn because like you say it fluctuates. My hours have dropped though so that has gone down. Truth be told we've been living hand to mouth for probably a lot longer than a few months but most of the time we've survived. But now because we've used credit card (Inc. having to add a massive £750 car bill at beginning of month) that's going to be massive per month to pay. Then tax credits has gone down by about £100 per week for around 4 weeks to pay back over payment. Then it will only be abut £20 a week less. I just can't see how we are going to get through the next month at all...... then will really struggle after that.

Can he afford to be self employed? If youre both working and only bringing in £20k combined, it doesnt sound like he is making minimum wage.
Or have i misunderstood and youre £20k over being able to claim?

Have you looked at money saving expert site?

How much on average do you bring in a month between you after tax op?

It's a awful situation, been skint can be so expensive. You can get through this through, just focus on the next four weeks, then you can tackle the rest.

See if the credit card will let you pay less, be upfront with them and they may accept a reduced payment plan as better then you having to default. (Step change could help with this)

Go through all your bill and check that your on the cheapest tariff, whilst your on check the balance on your accounts, if you're in credit then you could ask for a refund to help see you through.

If you have a reasonable credit rating some banks will pay you to switch to them, MSE has a page about this but I think Halifax pays you a bonus (about £100) as soon as you switch.

I second getting in touch with Step Change. Get them to negotiate with the credit card company. Are you working full time, or could you pick up something else now your hours are reduced?

Also, I think Step Change can issue a food bank voucher, CAB or health visitor certainly can.

Thanks everyone, yes it's £20k combined. I am looking for extra now hours reduced but that's not a help in short term. I'm Def going to get in touch with step change and try to see about reduced payment for credit card, at least for next month if nothing else. I just feel so run down with it all. It breaks my heart that kids can't do stuff there friends are. We wanted to take them holiday this summer (just a 3/4 nights somewhere cheap) but just can't afford it. I think what tipped me was the kids, there friends asking why they have never been on a plane, having to glue all there shoes as we couldn't buy anymore.......

This is really low income for two adults working. When you say your husband is self employed, can he become employed? You say you can work extra hours are you working part time. Neither of you if full time is on minimum wage, so something has to change there.

You should be on about 1400 a month after tax. And before things like child benefit. You also will bring in about 80 pounds a week in tax credits, and were getting 100, is that correct? So all in about 1800 -2k a month with child benefit and rent 650?

You shouldn't have had to use your credit card before to eat. Do you have high commute costs? Can you look at your expenses and work out if anything further can be cut back?

If tax credits have dropped a huge amount due to overpayment you can call them and tell them the reduction is putting your family in hardship and they could reduce what they are taking.
If your dh isn't earning enough self employed his only option is to top it up with a salaried job op.
Self employment needs to pay at least minimum wage to be a viable option.
In regards to holidays etc it's only the last two years of having two full time wages coming in that we have managed cheaply uk breaks and not been abroad for many years so do t worry about keeping up with other families.
There are some great online show sites that sell slightly marked shoes at a fraction of the cost and eBay is brilliant for kids clothes and shoe outlets.
Frugal living can be great with a bit of practice.
Step change are great for helping with impartial advice and setting out a long term plan

Bit of a long shot but if one of you earned less then £11,500 and the other earned more have you applied for married tax allowance?

The lower earner can transfer some of there unused tax free allowance to the other so you pay less tax between you. It's only a few hundred quid a year but it's backdated so you might get a rebate from last few years which could help in the short term.

I'm going to just have a huge moan seen as some of you have brought it up. I don't mind my dh being self employed but it as as when suits him. So if he wants to go on a bike ride that's fine but if I need him to do something he's all of a sudden working. It drives me mad that he treats it like a hobby then moans at how stressed he is etc about it. Either it's work or not. I feel like I'm carrying all the financial burdens. It's alright for him to spend money on his bloody biking but I never spend any (and I mean none) money on me. I know that sounds really petty, I'm sorry.

I don't think that sounds petty at all Hun. He should feel as much pressure as you xx

That doesn't sound pretty at all, your ment to be a team so should each do an equal share of work (in or out of home) and get an equal share of treats, if funds permit any. He cirtainly should not be spending on luxuries whilst your having to use credit card for food.