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 😢

How much is the debt? Was it accrued after the job loss? How much is the outstanding mortgage? If you have a reasonable LTV the mortgage company may be more accommodating even if you're the only one working.

@andweallsingalong some debts are 'priority debts' though where you get in to s**t if you don't pay, op what is the debt for?

@beeniebeamer

You're so right, life can change so quickly. I think you're very right to be cautious about selling. Once you've sold, the cost to rebuy at a later date somewhere will include stamp duty (potentially), solicitors fees, removal costs and searches not to mention the fees to actually sell your house. That's also if you're term is up with your bank. If its not, there could also be an early repayment charge.

I think the £600 debt repayment is where you start. Have you contacted any to temporarily freeze payment or even interest?

There are free phonelines that offer debt consolidation advice. This I think is the first place to examine every option.

Someone said life insurance is a luxury. Don’t get rid of it. I know it is a luxury but if something did happen to you or your partner, think about how you're struggling now. Without an extra person for an extra income, you'd not be in a good place financially. Could you look at switching to a new deal though?

What about weekly food shops? Do you plan a menu for breakfast, lunch and dinner and ONLY buy that. Scour the Internet for cashback deals or discounts with online food shops.

You can get cashback on changing your insurance provider, I got £75 just to move to Admiral. Cashback also for changing bank account. A faff i know but I am sure HSBC are offering £175 to new customers.

Petrol, are you looking around for cheapest prices? There is a website that compares prices daily. In a month it could save you nearly £20-£30.

Shaving off pennies in all places and switching accounts etc could save £100ish a month and raise £100-£200 as a one off.

I hope you get yourself sorted. Try to keep your asset where possible and good luck.

@level32 op tried step change they told her to sell the house

@Dagnabit perhaps OP can’t work FT in between caring for her DH and family. Her DH must be pretty poorly to sectioned and may need support.

@Inthevirtualwaitingroom OP said earlier that her DH gets ESA.

it is only bricks and mortar op.

@sleepingstandingup

spot on!!!

Call Stepchange to see what you can do about your debts.

Sorry, just RTFT.

If step change won't help, wait and see what you'll get from UC, then ring each creditor, explain the situation and tell them what you can afford to pay them.

The first thing to do is to get the debt payments frozen till you get back on your feet - organisations mentioned by PPs above. Also Council Tax relief, and temp referral to a food bank. Talk to citizens advice re Sky - if you are in dire straights they will usually freeze your payments and service till your contract expires. Do a SORN declaration for your car unless you really need it. Ask citizens advice for any other help and advice eg emergency grants.

Second thing is as your husband has had a serious MH issue you need to be realistic - it's unlikely he will return to being the main bread winner for some time and possibly not at all. So, how are you going to get back to work FT or at least 4 days a week so you can start to make the £1500 pm you need right now? You don't need to solve it instantly, but you need to get thinking about it now - get advice in real life and post on here. How old are your kids, is your husband sufficiently recovered to take care of them, or could another family member help.

If returning to fuller work really isn't possible, then it does seem like the only solution is to try and rent out your place and move into a cheaper flat, but that may not balance the books and clearly is bad for you and the kids, so last resort.

I am really sorry this is happening to you OP, but things will get better - but please start by freezing your debts right now.

@Inthevirtualwaitingroom

it is only bricks and mortar op.

Idiotic comment.

If StepChange can’t help then you could try contacting the companies you’re in debt to and explain your situation. Most credit giving companies are required to offer payment plans if you’re struggling. It could take the heat off and stop your interest payments until your husband is well enough to work again.

Remortgaging to BTL won’t work because op has debts. I am presuming there has been some debt consolidation which was based on county court judgements or an IVA being applied. Some BTL mortgages may not be based on PAYE earnings but you still have to prove you can pay the premium, they are more often awarded to BTL landlords who use rental income to fund them.

If it helps, I lost my job last year and went from a two full-time income household to just univers credit which didn't even cover my outgoings.

I rang all my creditors after my 3 month payment holidays and explained the situation from start to finish. They were all surprisingly understanding and have set me up on further payment plans and frozen the interest with regular reviews .

Speak to them and see what they will do. I imagine they will be very helpful

OP have you tried cancelling your SIM only? You could go with SMARTY, they are mega cheap. I pay £8 a month and if I dont use all my data I get money off my next bill. I know its not a lot but its something.

With an income of £800 for the household, im sure UC may be able to top you up. It won't come up to 3k though. You should also be entitled to child benefit as well

I don't understand why you can't try for a full time job or increase your hours or get an extra job? If your DH is ill it doesn't sound like full time work is appropriate right now, so you'll need to step up. Do you have any family around who could help with childcare etc.? How old are your DC?

The cars need to go. Cycling and walking is the way you do it when you're poor....and I know because I spent many (recent) years doing that.

People think they can't cope without them but you can.

Priroty bills, mortgage, electricity and gas
Second important council tax, if you haven't claimed council tax benefit then please do and explain your situation also call up the councils debt team who are there to help
Get rid of the other car it's not needed
TV licence, simply easy tell them you don't watch live TV and you simply won't pay it anymore, you can send them a letter.. As u watch sky you record it or pause it a few minutes but never watch BBC programes
Phones ect are important
U may need to work full time

@Inthevirtualwaitingroom

it is only bricks and mortar op.

Wrong.

Pop over to the Martin Lewis website and have a good old peruse on there, the main board along with all of the forums starting with the Debtfree Wanabe board, they will ask you to put up a SoA with all incomings and outgoings including debts and interest rates.

forums.moneysavingexpert.com/categories/debt-free-wannabe

www.lemonfool.co.uk/financecalculators/soa.php (format for MSE before posting on the forum)

www.moneysavingexpert.com/?_ga=2.129254409.446127110.1614540159-592396820.1575319073

Oh, and only sell your house as an absolute last resort

Seconding anyone who recommends:

Benefits and Work: www.benefitsandwork.co.uk/forum/10-dla-esa-queries-results

entitled to: www.entitledto.co.uk/

Christians against Poverty (non-denominational despite the name): capuk.org/

Step Change: www.stepchange.org/

Step Change also has the helpful Debt in Mind initiative: www.stepchange.org/about-us/campaigning-for-you/debt-in-mind.aspx#
If you're dealing with any mental health issues (including stress and anxiety) while also dealing with debts, it can help to let your creditors know.

You can do this by sending them a 'debt and mental health evidence form' (DMHEF) completed by a health or social care worker. This may encourage them to be more considerate when dealing with you.

DMHEF: www.stepchange.org/debt-info/debt-and-mental-health-evidence-form.aspx

Council tax - If one of the adults is severely mentally impaired, a 25% discount on Council Tax payments may be awarded - your partner would probably qualify.
Mobiles - change to giff gaff if you’re not tied to a contract.
Debts - do anything and everything to get most or all transferred to 0% card.
Car tax/insurance/fuel - get rid of 1 car, it will halve monthly cost.
Sky - ring up and quote financial hardship.

Hopefully your dp will qualify for PIP (after a fight of course 🙄) Then your UC will increase.