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Original poster

Tax credits reduced by £200pw

23 replies

thinkimfucked · 30/08/2017 23:07

Please please don't flame me - I know I've messed up.
As my name says, think I'm fucked tbh. I knew the tax credits were going to reduce as we've stopped getting dla for my daughter (which is of course good in a way). But hadn't got bargained for such a drop. Wtf do I do now.

Currently working 27 hrs, live remote & rural. Will of course cancel anything remotely frivolous first thing in the morning but we don't smoke/drink it go out as it is! Applied for housing benefit tonight (which looks hopeful).
But - am I was going through paperwork I added it all up and my debt is nearly £20K. In my head I thought about £13 but clearly I'm so, so deluded that I can't count.

I think I need help, proper help. Could anyone suggest whether CAB or stepchange should be my first port of call? I'm in Scotland if that makes a difference. Also, should I go ahead and pay my cc payments due in the next couple of days knowing if I do I won't be able to put food on the table by the 14th of the month or hang fire?
I'll be up for hrs I think if anyone's about

OP posts:

4dogs · 30/08/2017 23:13

Stepchange are brilliant, CAB would refer you to them. Re housing benefit, you will not get as much in allowances as you did when your dd got dla, this means you earn a lot less before you have to pay the rent. Sorry to not be more positive.

Xeneth88 · 30/08/2017 23:25

Stepchange are really good. Give them a call, also google local debt charities. I'm in England but I'm sure there must be similar in Scotland, we have a county debt service that you can go and talk to face to face. I really hope things get better for you OP. Financial hardship is such a stress, you're working hard and doing all you can. Please don't feel you've messed up, it can so easily happen to anyone. I wish I could give you better advice.

Original poster

thinkimfucked · 30/08/2017 23:34

Thank you both, am grateful just for someone being there I guess. Will try stepchange in my lunch break tmw I think

OP posts:

Xeneth88 · 30/08/2017 23:41

Its ok. You'll work it out, they'll help you break the debt in to an easier payment that fits with what you can afford. It's not great but it's not the end of the world and nothing to be ashamed of! Try (I know its hard) not to let it affect you too much as there are places to help. Make a plan with step change and look forward. If you need a chat, pm me, I've had hideous debt too. Try to rest now, you'll get it sorted, it's just money as silly as that sounds. Chin up and keep us updated on how your call goes tomorrow.

Original poster

thinkimfucked · 30/08/2017 23:57

Xeneth, thank you for your kind words. I'm normally quite pragmatic about the whole thing but the £20k ( can hardly type that) has completely floored me. I've got a real pity/guilty party going on here.

Will head to bed and see what happens

OP posts:

4dogs · 30/08/2017 23:59

Definitely call Stepchange as soon as you can, it can take a while to get through and go over everything. Also have a look online and find out what you are entitled to, a lot of housing authorities have a benefit calculator section. Once you know your incomings/outgoings and debts you can plan, the not knowing part is very stressful. I had a Debt Relief Order granted recently and did it via Stepchange. My income crashed dramatically a few years' ago when I lost my job so I had a payment plan set up with them for creditors. Over time it has become apparent I can't work anymore (health issues) and so they supported me to get the DRO. It does take work on your part as you have to find out what all your debts are but it is such a relief to have help and once you sort out which method is most suitable for dealing with debt they can put a plan in place.
You mention paying a CC? Is that a court ordered payment of some sort? You need to be very careful missing anything court ordered as there can be dire consequences! You could phone the court, explain the situation and see what they advise.

Original poster

thinkimfucked · 31/08/2017 00:30

Thanks 4dogs. No I meant CC as in credit cards. Nothing court related and no defaults as yet but it was only today I got the letter from tax credits to give me new payment schedule. I know with a drop of £800 pm I won't manage to pay everything I normally do (credit card repayments etc) so need to plan asap what to do.

Sorry to hear you have struggled too - it's just all encompassing isn't it, all you can think about sometimes

OP posts:

FNAF · 31/08/2017 00:37

Why has DLA stopped?

AldiAisleOfCrap · 31/08/2017 00:41

Do you think your dd should still qualify for dla or have her symtoms improved considerably?

4dogs · 31/08/2017 01:06

I wouldn't worry too much about credit cards. Give them a call, explain major financial changes, that you are currently unsure of your income and will be asking Stephange for advice. If you can offer a token payment of £10 so much the better. Tell them you will be back in touch soon with a plan. They tend to be reasonably helpful ime as long as they know what is going on and you stick to what you say you will do. Your priority debts are rent, council tax, gas and electricity and any court ordered payments. Anything else is non priority. This is because priority debts can lead to you losing housing, basic utilities or even your liberty. Interestingly your water cannot be cut off (although the supply can be massively slowed down but this rarely happens).
Are you really sure your dc is no longer entitled to DLA? Your original post sounds as though you agree with the decision.

4dogs · 31/08/2017 01:09

And yes debt and financial stress really does take over your life, especially when things are uncertain and changing. Phoning Stepchange was the best thing I ever did and like many people I wish I'd done it sooner! What's your housing situation? Private rent or housing association?

Original poster

thinkimfucked · 31/08/2017 01:30

Dla has stopped as my dd's condition has improved dramatically over the last wee while. Fingers crossed it's resolved but it's definitely the right decision. And the ridiculous thing is I KNEW it would stop and still kidded myself that it would be ok. Idiot.

Im in private rented but my landlord seems fairly decent so far. Small community which has its plus points and downsides of course. Lack of housing is a massive issue so I really don't want to have to move as there would be no where to go! Also means that transport is an issue - I had wondered if I should get rid of the car. We can walk to school and work but nearest town is about 4hr round trip & we have no public transport at all. It's also an old banger so wouldn't actually get anything for it but I would save on the running costs; something to think seriously about. Certainly won't be spending any money on it if I can help it.

OP posts:

FNAF · 31/08/2017 01:40

Any chance you can increase your hours?

Original poster

thinkimfucked · 31/08/2017 01:47

Not in my current job FNAF, but will have a look at other stuff. Unfortunately though we are a tourist destination which means that the place dies at the end of sept until Easter. The majority of jobs (other than teacher, council employee etc) are all temp seasonal. Come next year I could probably do about eleventy million cottage changeovers every weekend but that's a long way away yet!

I was worried though that by earning more it would affect my tax credits?

OP posts:

pradathescammer · 31/08/2017 01:51

800 pcm tax credits?!

Original poster

thinkimfucked · 31/08/2017 01:54

Yes Prada, unfortunately I get paid peanuts (and am not a monkey) so yes. I'm aware thats a heck of a lot btw

OP posts:

Hunkle · 31/08/2017 01:56

Sorry if you have already said, but are the credit cards O% interest?

( I thought CC was ChidCare costs at first)

Original poster

thinkimfucked · 31/08/2017 01:59

1 of them is Hunkle, another 1 is partly 0%. A different one is coming to the end of its 0%. And 1 isn't at all. God that sounds horrific - 4 credit cards. Ffs

OP posts:

Hunkle · 31/08/2017 02:03

Ring Stepchange first, they can advise on you not paying any interest.

It will get better. You are at the first hurdle now, you will look back and be so pleased when you cross the finish line debt free

lyssie29 · 03/09/2017 21:09

Can you not apply for working tax credit? And also you dont state if you are a single mother or not? I'm a single mother after my fiance passed away and i have 2 young children. At the time i was on maternity pay so was still contracted to 16hrs a week. Because i was a single mother I was entitled to child tax credit for 2 children which is 115 a week I think and I also got around 70 a week for working tax credit i think then plus my smp. Not sure how those things work in Scotland but even working 16 hrs I was entitled to full housing benefit because I'm a single mother. After my maternity finished I had to quit my job due to no childcare and lost working tax credits and went down to income support. But if I can find child care for 16 hrs I will qualify again for working tax credits and with the pay being more than income support plus working tax credit I will be 100 a week better off. But of course if you have a partner whonis working you wont be entitled or perhaps get a small amount. The CAB should be able to help you.

ChickenBhuna · 03/09/2017 21:19

As others have said op , please phone stepchange and tell them everything. They will help you by setting up dmp (debt management plan) and communicating with your creditors on your behalf.

You payments will allow you enough to live on and you will be fine!

Good luck

notapizzaeater · 03/09/2017 21:29

Look for tips on Martin Lewis website - money saving expert

SkintAsASkintThing · 06/09/2017 11:16

That doesnt sound right.

The disability premium of tcs is around £60 a week. You'd only lose that. Or are you including dla in the 200 ??

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