Struggling to make ends meet.

[Seren96]

Morning Everyone. So today is my first pay day after a big change in circumstances. I have been a student but due to being unwell have had to take a year (or more out). I am a single parent with one child. I am working now but only 16 hours per week until I feel a little better health wise / can find a better paid job. So today is my first pay day, and due to a change in circumstances I have now migrated over to Universal Credit. This seems to have trigger overpayments from Tax Credits and also an overpayment from the overlap of migrating over. Along with other debts I have done the maths and I have approx £40 a week left after all bills. This is for food and petroleum. I estimate petrol will be £20 a week. I'm currently thousands into my overdraft also due to my no longer being a student and migrating my account back to a standard one. My question is - is this possible / doable. £20 for food / extras etc. I have accounted for every little bill I can think of so this is disposable so to speak. And this means that I am at least paying small amounts off my debts. Some advice / support from others who've been in a similar spot would be amazing on how to cope. Thank you x

How old is your dc op? Do they get school meals etc? Is the car absolutely non negotiable?

In all honesty op, no, £20 a week is unsustainable for any period of time. There will be things that come up and there us just no give in such a small budget. How long would it be for?

Hello. He's in school and I think we're eligible for free school dinners. Usually has a packed lunch. But that could be changed. At the moment over £350 a month is going on debt repayments. I estimate in possibly 2-3 months that will drop to £150 a month once the overpayments that have been triggered are cleared. Within that I have accounted for any outgoing I can think of, but you're definitely right small things will crop up. In that instance I would have to cover it out of our weekly income, or I would have to use an interest free credit card I have but that is counter productive in itself. I am actively looking for a better paid / more hours job. The car is a definite must as I travel with work at the moment. So completely a necessity... x

£350 a month in debt repayments on your income is too much. Contact a debt management agency such as Christians against poverty (you don’t have to be Christian or any religion) or something similar and see if they can help.

I agree it's too much. My bank consolidated my accounts into a loan which is £150 odd a month. £50 is credit card - I could potentially lower this but thought I'd just try get it cleared ASAP and the rest is overpayments accrued via the migrating over. I can't understand the tax credits overpayment as because I was a student I wasn't getting working tax credits etc just the child elements but it's there and needs paying. These amounts are set by them... I will google your advice now about contacting some agencies for support. Thank you x

You’d be eligible to access food banks in this situation.

Is there anyone who could give you lifts to work to save you petrol?

Ebay things, online surver is (e.g ipsos) can get you small amounts of amazon vouchers etc.

Could you do even a couple of hours extra a week?

Definitely get he free school dinners. Porridge for breakfast etc.

If it’s only going to be really hard for 2-3 months, it makes it easier psychologically to get through i think.

Could you switch the credit card to a 0% deal if it’s not already?

Could the car be sold and buy a cheaper one? To put towards debts etc (obviously only works if you can afford to buy a reliable runaround otherwise you’ll be out of pocket on repairs etc).

Don’t pay off the credit card at £50 - pay the minimum + £5, and IF you have spare at the end of the month make an extra payment.

Call up the tax credits people and ask to complete a statement if outgoings- they should be able to lower your repayments so you pay over a longer period.

As soon as you get more hours you can rethink, but don’t leave yourself so tight right now.

For food check out Jack Monroe's Bootstrap Cook blog, lots of ideas for food on extremely low budgets. Your local food bank may be able to give you help - ours is overrun with pasta so always check if you can have extra explaining your circumstances. Getting your petrol down would be better, no chance or walking or cycling? Theres a good website that advises how to drive using the minimum petrol which saved me about 10% of my petrol costs.

You definitely need to contact a debt management agency and set up a debt management plan to pay off the debt with the interest frozen. As a PP has mentioned about here are ones that will do this free of charge.

Hi. None of my debts have interest except the loan. I actually own my car outright, I pay a monthly plan for its maintenance and insurance then, so no finance on it. X

I think you're right about lowering payments. I just thought a few tough months would be better earlier and was hoping to hear some success stories about living short for a while. I think I'm being over ambitious. You're advice is useful to all that's replied thank you xx

Re driving. I work over a few different sites. So with collecting child from school and then getting to work it won't work logistically. The only plus is I don't have childcare costs atm x

Don’t know how old your child is, but foodbanks often have things in place for Christmas, advent calendars, mince pies, age appropriate gifts as well

Give step change a call. They are a charity who help people with debt repayments plans. The problem is not so much your income but the about if debt you have.

seren op over to Martin Lewis' Money Saving Expert/Debt Free Wannabe section.
They'll ask you to post a Statement of Affairs (SOE) and will work out the best way to handle your debt plus give advice on budgeting.
Best of luck.

anniehm what's the driving website please ?