I just really need some advice about my debts/life

[Cupofteaonesugar]

I am a single mum to two and I currently live at my parents.
I have no savings and debts of around £15000 (I feel sick writing that).
I work part time, I have a UC top up. I cannot work any more hours then I do.
I have been on the waiting list for social housing for years and I've finally been offered somewhere. We are really struggling for space and independence at my parents. Despite loving them dearly I need my own place.
I went onto a debt management plan when I was 20. I paid it off on full and carried on with my life. I got married and had children and had some debts but everything was in control. My ex left me during pregnancy and that's when things went wrong. I spent money as a way of coping but he also left me with nothing and I had all of my baby bits etc to buy. Things just went down hill.
I don't know what to do. I don't want to turn down this opportunity of social housing but I have no idea how I will pay it and flat bills with my debts. I am worried about another debt management plan as o know it will destroy my credit rating for potentially 6 years as it did in the past. Whilst I don't want credit I know that credit rating is important and phone network and broadband companies do credit checks.
I just don't know what to do or turn.
I am planning on contacting step change but I am just wondering if anyone has any experience or advice?

Please don't come for me. It's a big step me acknowledging this and asking for help.

you can claim up to 85% of registered childcare costs through UC so there is potential there.
write down a list of income and outgoings.
if there’s less than £50 left a month you could potentially apply for a DRO. Yes it will impact your credit but it will wipe your debts.

working more hours may reduce your UC but earning more means your overall wages will be more,

i work 37 hours a week. I looked at going part time and my total income including UC would have dropped massively. You have to look at the overall income not just UC.

I don't understand why your UC would go down. If you are renting you would get the LHA rate added into your allowance: so for example if you are entitled to £500 now, and your rent was £500 (& the LHA rate was more than that) your total would be £1000 now. Then you get the work allowance before they deduct 55p off the £1 from your wages.

I’d take the house. It could be your one opportunity for secure housing. Bt does a low cost broadband/ phone for UC claimants at £15 a month. Once your in contact debt charity and find out your best options.

This sort of short-termina is what got you into your current situation.

Even if working makes you no better-off now it can get you the skills and experience that will allow you to earn more later.

You seem to want some kind of magic quick-fix, but there isn’t one. You need to find a way to work now, and then plan to earn more once your youngest is in school.

@PrincessButtercupToo
I'm not asking for a quick fix I'm asking for advice and experience and options so I can understand what is best for me and my family.
You know very little about me but I have told you that I cannot work anymore at the minute.
I've never not been in work, I'm not lazy. I did not chose a single parent life. I've paid my taxes, NI, been to uni, tried my best at everything. I prioritise my debts and children but what I'm doing is t sustainable and working more isn't an option. Like o said before.

What are you looking for advice on though? If you can’t work any more and can’t afford the house then that’s that, isn’t it?

You mentioned financial abuse. 100% mention this to a debt counsellor. If your ex coerced you into signing for loans against your will or signed documents with a fraudulent signature they can use it as ammunition to fight your creditors.

Hey what's the point in debt charities if the ONLY option is for people to work beyond their means and ability!
You actually don't even no how many hours I work do you despite telling me my only option is to work more 🤦🏼‍♀️ 🤦🏼‍♀️

I would definitely take the house; you may not be offered social housing again. Muddle through until you are in and broadband etc set up (so debt management plan won’t affect you being able to set that up) and then bite the bullet and contact stepchange or Christians against poverty ( you don’t have to be a Christian) to sort your debt out.

You will have the UC housing element.

You will have to seriously tighten your belt, use food banks and whatever you need to get through atm. There may also be charities that would give grants for basics - carpets/ white goods and so on.

Can you do free college or online training to update your skills and increase your earning potential?

It wont be forever; you’ll have your debts under control , the kids will get older and you will be able to work more hours - it will get better. But I do think you should accept the housing.

Onwards and upwards, you can do this OP!

I didn’t tell you that.

Again, though, if you can’t earn more and can’t afford the house then you have no option but to stay put.

Step Change can arrange an IVA on your behalf. This means that for 5/6 years you repay one monthly amount which is affordable, and which is divided between your creditors. If any debt remains after the IVA term finishes, it is written off for good. You will be able to get a bank account etc., and can start to rebuild your credit rating. An IVA prevents any more demands or interest charges and effectively wipes the slate clean, good luck 🤗

Your ignorance is embarrassing and unhelpful. You seem to have no idea about debt resolution. Unless you are being spiteful deliberately?

I’m not being spiteful, just trying to work out what sort of advice the OP is looking for. Even should all of the debts be written off then without additional income or reduced costs I don’t see how she can afford the house.

Step Change will calculate all costs, income and expenditure-OP can use the rent figure for the new property so that when the monthly IVA repayment is (hopefully) accepted by her creditors, her budget will allow her to live in the social housing she has mentioned. And I apologise for my reaction to your post, I didn't believe it was at all helpful, but shouldn't have called you spiteful.
I just really feel for anyone in this position 😞

But will she have enough for the house even if the IVA only costs a couple of pounds a month? There needs to actually be an excess available for this to work.

Thank you! Is an ova another term for a debt management plan?

Iva*

No, it’s a legal insolvency agreement that’s used as an alternative to bankruptcy.

It may be right for you, but it can have downstream effects for years afterwards too

@Cupofteaonesugar , honestly I would go for a DRO if I were you. Wipe the slate clean, no more debt and no more worry about debt collection agencies. You'll be able to afford SH rent (do you know how hard it is to get social housing?). Just start again from scratch.

OP you don't want an IVA as they're for people in more debt with assets to protect.

Definitely take the house first, because you absolutely NEED your own secure home - you would be foolish not to take it. Then get help with the debts once you are moved.
Then look into finding some free or cheap counselling to look at why you spend emotionally beyond your means (if that is the case - apologies if these are debts your ex left you with and you don't overspend).

How old is your youngest child? Once you are settled into your new home and have a bit of head space, you need a long-term plan. How many years until the youngest is in primary? In secondary? Think about training or education for a future career - you probably won't be retiring until you are well into your late sixties so plan for a career.

Another vote for take the housing. Look at it this way, if you get your own place and at some point down the road you really can't manage, then you can go back to your parents (I'm assuming). But if you don't take the housing, then you're at your parents indefinitely and may not get another offer like this. Private rental is a whole different ball game.
Speak to the charities mentioned here and see what can be done. There is a way through I'm sure, you just need some help to get there. Wishing you lots of luck, it sounds like you deserve it.

Yes you are right. Your work allowance (the amount you're allowed to earn without 55p in every £ being deducted) would go down from £573 to £344.

Please do everything you can to accept the social housing. It's your route to a new life. The debt, while it seems large, is not unmanageable through eg. a DRO and as your DC get older you will be able to work and earn more.
In the meantime, use the childcare available on UC (85% of costs up to £1108 for two or more children) and from family to work as much as you can.

You were disingenuous yesterday when you asked about turning down an offered house and today seems little different.
You need to ask clear concise questions.

Accept the housing - even if your debt reflects on your credit file for 6 years, you'll be in a stable housing situation - you'll be able to get a management plan for your debt, have some breathing space, get yourself together, look at working more hours when your children are in school. MSE and Stepchange are a good start.