I literally can’t afford to live anymore.......

[Beaniebeemer]

Things have just gone to shit over the last year. My DP tried his hand at being self employed after being made redundant a year ago but he’s been ill recently (mental health, sectioned) and the business wasn’t viable so he’s unemployed now. I work part time earning about £800 a month. We have two children. A mortgage and a lot of debt. The house has about £100k equity but it’s tiny and we can’t downsize. I really don’t want to lose the house as the mortgage is cheap and rent would be so much more. We are in the universal credit system but I'm unsure what money we will get going forward. DP is getting ESA and he’s applied for PIP but I believe that takes ages. We probably need £2000 a month to survive 😢

@Wondermule

Hi OP. Can I have some more info please? How much is your house worth and where (roughly) do you live? How much are your debts overall? Are either or both of you qualified to work in anything specific? How old are your kids?

Why do you need all this info?

That kind of information is key to providing useful advice.

You could try Christians against poverty? They're a free (& obviously faith based charity) and will make a plan with you and call your debtors to halt or reduce payments where needed.
I've heard positive things.

[quote Psychonabike]**@ilovemydogandmrobama2* and @Beaniebeemer*

These are the forms you need regarding mental illness and debt:
www.moneyadvicetrust.org/advice-services/dmhef/?

You will need a form for each organisation you owe money to. Ask your husband's psychiatrist to complete them. Send them on. You should not be charged for the completion of these forms.[/quote]
Thank you @Psychonabike (great name btw).

Out of all the advice on this thread, this is absolutely the most practical, and helpful and opens the door to solving the situation.

Your DH is ill. You don't need to take on 5 extra jobs to pay for your debt.

Drive a van 22K, so double equals 44K. Do you have a pet.....perhaps he/she could drive part time of one of the tiny children?

Don't sell the house. Long term this is not a good idea.

@FredSoftly

I’m asking because I want her to go on the new series of Shameless 🙄 why do you think I’m asking? So I can ascertain more about her situation and make helpful suggestions.

For example if OP lives in an expensive town, is there the possibility of selling the house and buying something cheaper nearby? If Op’s house is worth, for example, 300k, that’s going to be a much better idea than if it is 150k in a cheaper area. Asking kids ages in case any of them are at nursery etc or all at school, in terms of fees and working hours etc

OP you could, if desperate, get a bed into your living room and rent that room to a lodger. Facebook pages, British Heart Foundation, Freecycle etc is where to find cheap or free furniture. Put your TV and anything precious in your bedroom. Make sure you charge enough for the extra utilities they'll be using.

Go to your local council webpage and apply for

council tax relief, local council tax reduction

You May qualify for money off your council tax as your income is low and this benefit is not connected with UC

If you work less than 5 miles away then get the car off road, stop the insurance and reclaim car tax and don’t use. Take the battery out as it’s better to stop it going flat

Stop life insurance payments, you need to live and the money for food

I’m paying £31 a month for home phone, mobile with data and broadband. Your paying £10 more for two mobiles, shop around and get better deals

Unfortunately no mortgage lender is going to lend op any money, it really unlikely as her income is so very low. Even remortgaging on the property they are in is unlikely. So downsizing or moving to a cheaper area would be very difficult as lenders won’t take the gamble

@OverTheHandlebars

Could you look at a debt relief order of some description? Without those payments you might be much better able to cope. If I were you I'd be contacting one of the debt advice charities to go through options.

Can't have a DRO with being a homeowner.

Citizens advice are operating on the telephone instead of face to face, I’d contact your local office and get advice about the debts you have.

OP how are you this week?

Such a hard situation @Beaniebeemer it's extra hard I think when you have greater expenses because you had more income. Really hoping something works.

You keep mentioning your partner going to FT work. But he sounds very unwell. Can he handle childcare and you to go FT work? That may be the best solution especially if your dc are in school.

Is your partner is not well OP can you not be the one to work full time? Look for another job?

Is your partner in a fit state to cope with another job.

@Beaniebeemer

Mortgage is £500 Debts cost about another £600 Council tax £172 Gas electricity £85 Water £30 Tv licence / sky - £54 I can’t cancel sky I’m in contract I’ve tried 😢 Life / house insurance - £46 Cars tax and insurance X2 £80 Fuel - £100 Sim only mobiles x 2 £20 each so £40 The rest goes on food or other child related things......

Apply directly to your council for council tax benefit and it should reduce your payment.

Talk to debt charities like Christians against Poverty who will help negotiate with your creditors.

Do you need two cars right now?

This will sound crazy but you are looking at what you need, you need to look at what you have and cut your cloth accordingly.

Start with the debts. Are they credit card companies? They can actually be quite helpful, Write out a full budget as you have done above but start with 'priority debts'.

So you NEED to pay your mortgage, gas, electricity, water, TV licence. If you can reduce these good, but if not keep paying them. Ask your mortgage provider for a payment holiday.

All the water companies and some other providers of utilities have funds to help people pay less / write off some of your debt.

OK so once priority debts / outgoings are sorted look at your other debt. As I said cc companies can be helpful, partly because you have the power, they can take you to court and get a CCJ but that costs them money and the court will make an order for you to pay a small amount each month. This costs the company so they might as well make an arrangement with you directly.

If they do get a CCJ and you don't pay then they can send bailiffs round, but they cannot enter your home if you are 'vulnerable', the CAB give excellent advice and it's worth reading their web page but basically your DH is classed as 'vulnerable' as are any children.

Do you need two cars if only one of you is working? If you will need 2 in the near future then take one off the road and get a refund on the tax.

Do you need contract phones? PAYG might be cheaper, also if you have been with a provider for a while you might get a discount. I pay half of what you do for unlimited calls and texts and more data than I ever use.

Sign up to a cashback site and use that to shop around for better deals for everything. You can get some cashback for free eg sign up with top cash back, then click through to 'compare energy' to see if there is a better deal, if there is then you get up to £44 for changing.

Oh and you can come back from this, many people are struggling right now which means more companies are looking to help.

Sorry I forgot to add, I'm with Severn Trent for water, I hate them but they have a charitable fund which can wipe out some / all water debt and can also provide some household items FOC, mainly beds and cookers. Other companies have other schemes.

I'd write to your creditors , make offers.
Pointless selling the house , It costs a fortune to move with solicitors , etc
Christians Against Poverty are supposed to be good ( you don't have to be religious) .
Can you get a council tax reduction if you're on UC ?
All local supermarkets here are looking for delivery drivers.

Sorry I forgot to add, I'm with Severn Trent for water, I hate them but they have a charitable fund which can wipe out some / all water debt and can also provide some household items FOC, mainly beds and cookers. Other companies have other schemes

Definitely talk to Severn Trent Trust Fund if you are in their area, if you're not, see if your Water Board has a Trust Fund. ST Trust Fund regularly pay off debts in full.

Citizens Advice for help in reducing those debt repayments.

@Beaniebeemer

Mortgage is £500 Debts cost about another £600 Council tax £172 Gas electricity £85 Water £30 Tv licence / sky - £54 I can’t cancel sky I’m in contract I’ve tried 😢 Life / house insurance - £46 Cars tax and insurance X2 £80 Fuel - £100 Sim only mobiles x 2 £20 each so £40 The rest goes on food or other child related things......

The main thing I were focus on here is your debt, definitely talk to StepChange or talk to your creditors directly, tell them you can't afford your current payment plan and offer a more affordable amount. £600pm is a lot, is it utilities, credit cards, loans?

Maybe ask StepChange about a debt management plan, you fill out a detailed budget with all your income and outgoings and it suggests an affordable amount for your debts and then you give them that amount each month and they spread it across the creditors. I've found it really helpful and it means I'll be debt free in a year. Also makes things much more organised and less overwhelming as you just make one payment a month.

Council Tax: Have you applied for a council tax reduction if on UC? My local council gave me a 80% discount so it's definitely worth contacting your council.

You could also ask your energy provider about the warm house discount as you are on UC and a low income.

Everything else I don't see how it can be reduced so those are the things I'd focus on.

DP was also out of work due to mental health problems and was awarded £238 per month in PIP, if you need any help or advice with the application feel free to PM me.

Debt adviser here. What are your debts? If they are credit cards etc them then they are non priority. Concentrate on paying your priority bills first - mortgage, energy, council tax (esp council tax). You won't get UC to cover your mortgage. You can't get a debt relief order as you own your own home. There are other options open to you though re your debts, depending on the ins and outs of your situation. First off you need to find out what your income might be and talk to your creditors - they may put your accounts on hold for a while. DO NOT pay your non priority debts - eg loans, credit cards etc over your mortgage. Consumer credit lenders often shout the loudest and write the nastiest letters but have the least powers. Prioritise your mortgage, council tax, TV licence, energy etc. Speak to Citizens Advice or similar. Do a benefits calculator eg on Turn2Us to see how much you might get.

Oh and definitely apply for council tax reduction. Councils run their own schemes. Talk to them asap - councils have a lot of legal power when dealing with arrears.

DP needs to find a job. What is he doing about that ?