Dh out of work and we can't pay our bills - don't know what to do

[Cantpaymybills]

I'm a regular name changer. I don't want people knowing how much trouble we're in

My dh is self-employed in the building trade and as most will be aware, the work in the construction industry is drying up fast. As of the week before Christmas, dh has no work.

Nothing is coming up despite dh's best efforts and we are basically up shit creek.

We have never been in this position and don't know what to do first.

We have contacted the mortgage co who said that they can't help until we go into arrears (which we will this month). I pay utility bill but have been paying for food etc so am now over my overdraft and have knocked up over £100 in charges so far

Bills are coming in and we have no means to pay them.

What do we do?

If I cancel direct debits can they switch off our gas/electricity/water?

We have recently purchased a new car via car finance? Can we give the car back?

I'm terrified of losing everything

Are you anywhere near any American army bases in the UK? My friend's husband is employed by Mansell as a digger driver, he works on an American base and although work slowed down a bit before Christmas they are shortly to be moving on to the next phase which will take 5 years or so and includes building new houses, school, church etc.

Good luck

I second Buda's excellent suggestion of going to moneysavingexpert.com There are so many people on MSE in a similar boat at the moment and lots of advice to be found there.

Also let everyone know what's going on as soon as possible: bank, utilities, mortgage, etc. I would also include family/friends in this, embarrassed as you may be - speaking from experience you'll be grateful of their support if tougher times are ahead.

If you have debts there's excellent advice on making token payments to creditors inc. form letters on National Debtline

Contact your bank and stress that adding charges to your account are only worsening the problem and that you're trying to be as responsible as possible - ask them what can they do to help (if you don't ask, you'll never know.)

I know you said you've contacted your mortgage company already, but any chance of taking a payment holiday on your mortgage or switching to interest only if you're on repayments?

Hope this helps and that things start looking up for you soon.

Rev - have asked this, but the payments are still more than we can afford. The only time that we can get real affordable help is when we go into arrears.

Lilyloo - thats a lovely offer. Thank you.

Fimbo - how would we find where the army bases are? Dh is willing to travel

Kitty - we have been on there, yes, its worth a look. Will take a look at the debtline stuff now.

Dh is looking to increase his overdraft for the interim but dont know whether this will be successful

The one my friend's husband works at is in Norfolk.

cantpay where in the NW are you, anywhere near Manchester? we have a small building job needs doing in our kitchen...

There are two kinds of JSA: contributions-based and income-based. Have DWP confirmed you don't qualify for either?
Perhaps try increasing the term of your mortgage, which can significantly reduce the size of your payments for a while. I don't know who your mortgage is with but I have found this a very effective short term measure and can be changed easily.
Your bank should be able to extend your overdraft to help avoid charges in the short term.
You need to put in a claim for things (JSA, Housing, council tax benefit etc) and see where that gets you. it can be a very convoluted process.
Tax credits could make a significant difference if you are on a low income, so really chase that.
How long have you had a mortgage? Usually need to have paid off a fair chunk before they allow holidays.
The Money Saving Expert site is very useful as others have said, I really recommend it.

Best of luck with coping with it all.

Paddington - yes we are near Manchaster, can you CAT me?

Peasholme - we don't qualify for either. Contributions based because dh has only paid Class 2 NI for the last two years and income-based because they say that if you are earning over £94 (and pennies) per week you are earning excess

We have had mortgage with this lender for nearly 2 years

Hi cantpaymybills,

Does your house have equity in it, or are you really just paying to keep a roof over your head? If you are just paying to keep a roof over your head, you may be better off letting a repossession go through, because then you would be entitled to help with your rent through Housing Benefit.

Do you have any way to increase your hours at work?

How about you go out and look for more work, Cant? Something is better than nothing. We've swapped shifts, cleaned, walked peoples' dogs, done just about anything to keep the money coming in.

If he hasn't go work, then he should be able to stay home, too, whilst you work.

Hope things improve soon!

There isn't a huge amount of equity lou but enough that we would definitely lose out should we get repossessed.

Have got estate agents coming tomorrow - would sooner jump than be pushed!

Expat - I am working! I have asked to increase my hours and am waiting on a decision.
Have also asked around for evening work/shelf stacking/bar work etc.

Dh is the same.
Will accept anything to keep the bills paid.
He has started to look for other jobs that aren't exactly his normal line of work, but there's not much out there.
People are holding on to their money.

Yes, I saw that you are working, that's why I said 'more' work.

Wishing you both some serious luck finding more work.

I'm looking around for some more myself!

Cantpaymybills, just checking in to see how you're doing. I really really hope you find a way through all this, and sending you and your DH lots of luck in finding more work.

cantpay - we are in a similar position to you so I really do know how you feel.

Go back to the CAB and ask to be referred to a debt counsellor. They will write to all your creditors and come to an arrangement with them so you pay them what you can afford (not what they want)

They will also be able to arrange for them to put a hold on any interest payments so you don't get further into debt.

In the meantime, speak to the people you owe money to, let them know what's happening. If they can see that you are doing your best, they are more likely to go easy on you.

Pay the mortgage and the council tax first. Everyone else can wait. If the leccy or the gas doesn't get paid, it's not the end of the world but you NEED to keep up with the mortgage and council tax if at all possible.

If you need to whinge off the board, you can cat me, as I say, I'm in a very similar position so I can sympathise with you totally.

No probs cantpay and if you near Manchester i not too far away please do contact me if i can help!

have tried to CAT you cantpay but it won't let me - says it can't find the user!

I'm not sure why paddington. Have Cat-ed you, can you please let me know if you receive it?

Thanks for trying

Thanks whinegums

Squonk - unfortunately its easier said than done saying we have to keep up with the mortgage and the council tax - we have barely any money coming in, and certainly nowhere near enough to pay those bills. We can't even cover an interest only mortgage on my wages.

We have learnt a very harsh lesson.

Will look into seeing a debt counsellor - that sounds useful, thanks.

...and thanks for the offer of a good ole whinge, unfortunately for you I may take you up on the offer

whinge at me any time.

I know it's easier said than done, believe me! But if you do find yourself wondering who to pay, those two should come first.

Make sure that you talk to the building society who holds your mortgage and keep them fully appraised of what's going on. They'll probably be well used to people in this kind of position at the moment.

I presume you have applied for working families tax credits or child tax credits?

If you can't get IS, then surely you can get WTC? You need to say you work 30+ hours per week and bring in eg £100 a week.

You should then get a reduction in your Council Tax (I am trying to get a 50% reduction currently since we are hit hard by this down turn).

sorry if this is teaching granny to suck eggs etc...

you only need to be working 16 hours to get working tax credit, but the income threshhold for it tops out at around £15,000/annum. gross. joint income if you're married or living with a partner.

and being in receipt of WTC does not automatically lead to a reduction in council tax.

you'd still need to apply separately using a council tax benefit form, which you should be able to download from your council's website.

working families tax credit is now working tax credit and administered through HMRC.

it's the same form to apply for both WTC and CTC (child tax credit).

hth

cantpay just to let you know, I haven't received anything yet...

I really feel for you. Its so unfair that you can't claim stuff due to your DH being self employed.

I think others have said similar things but I would definitely suggest that your DH puts flyers through people's doors. Is he able to do things like fitting new bathrooms, decorating or carpentry (making fitted cupboards). People who can't sell their house and move might be thinking of updating the existing house, knowing they are likely to stay there longer.

What trade is he in.... I have some building contacts in manc area that may be useful. Site managers QS's etc.

A lot of the big house builders are picking up social house buids, but laying off permanent staff and using subbies. Connaughts and Bellways are the 2 that have got the most at the moment.

Good luck

Paddington - I have tried again, fingers crossed this time

Happywomble - a colleague of mine is knocking us up some flyers, I will ask her to add on 'handyman' jobs, dh is really good and can turn his hands to most things. Thanks.

Anifrangapani - dh is a groundworker. Contacts in manc would be very useful, thanks! Have googled Connaughts and Bellways and found their websites - i will bookmark them for dh. Thank you.