Short Term cashflow problem?

foreversomeday

Hi all,

Not sure where would be the best place to post this. I was wondering what advice anyone could offer me.

We are having a temporary cashflow situation. It will be difficult for a month or two, but possibly a lot longer than this depending on circumstances. It is at the point where the money we have coming in this month is not going to cover the essential bills.

We are putting in claims for the tax credits etc we are entitled to, but that could take weeks. We have been refused a loan application from our own bank, and refused any 0% interest cards we have applied for. I am too scared to apply for any other cards because I don't understand them or trust them. The main reason we are in this mess is because I have stopped work in order to apply for Maternity Allowance and I now find that MA have a backlog and may not be able to pay me for months. But in the meantime, I still can't work as it will affect my claim.

DF has got a few friends round this evening and is selling some of his PS3 games and DVDs to them, he might end up selling his PS3 as well but I don't see this is a good idea as it is one of the free entertainments he has at the moment and also I can see him buying another one when we come into more money which just seems like a huge waste. I might suggest he rents it to a non PS3 owning friend. We have to get my ebay account up and running again first as that is closed due to non payment of fees (direct debit bounced). And they won't accept my debit card to pay them for some reason. My mum has suggested we phone up our utility companies etc and explain we are having a temporary problem paying and see if we can go into credit with them for a while until our situation improves - but I don't know if this is just putting off the problem. Is it a good idea?

DF is also doing loads of overtime which I'm not happy about because he will make himself ill, but what can we do? I in particular feel helpless because I can't work at all, apart from doing some paid survey sites.

Is there any other advice you could offer on a short term money situation such as this? Legal rights etc - how long would it be after we didn't pay a bill etc before we would get cut off, get CCJs etc? It's all very scary. I am going to sit down with DF tonight and work out the next 2 weeks or so and go from there.

barnaby-bear

foreversomeday wrote: »

Hi all,

Not sure where would be the best place to post this. I was wondering what advice anyone could offer me.

We are having a temporary cashflow situation. It will be difficult for a month or two, but possibly a lot longer than this depending on circumstances. It is at the point where the money we have coming in this month is not going to cover the essential bills.

We are putting in claims for the tax credits etc we are entitled to, but that could take weeks. We have been refused a loan application from our own bank, and refused any 0% interest cards we have applied for. I am too scared to apply for any other cards because I don't understand them or trust them. The main reason we are in this mess is because I have stopped work in order to apply for Maternity Allowance and I now find that MA have a backlog and may not be able to pay me for months. But in the meantime, I still can't work as it will affect my claim.

DF has got a few friends round this evening and is selling some of his PS3 games and DVDs to them, he might end up selling his PS3 as well but I don't see this is a good idea as it is one of the free entertainments he has at the moment and also I can see him buying another one when we come into more money which just seems like a huge waste. I might suggest he rents it to a non PS3 owning friend. We have to get my ebay account up and running again first as that is closed due to non payment of fees (direct debit bounced). And they won't accept my debit card to pay them for some reason. My mum has suggested we phone up our utility companies etc and explain we are having a temporary problem paying and see if we can go into credit with them for a while until our situation improves - but I don't know if this is just putting off the problem. Is it a good idea?

DF is also doing loads of overtime which I'm not happy about because he will make himself ill, but what can we do? I in particular feel helpless because I can't work at all, apart from doing some paid survey sites.

Is there any other advice you could offer on a short term money situation such as this? Legal rights etc - how long would it be after we didn't pay a bill etc before we would get cut off, get CCJs etc? It's all very scary. I am going to sit down with DF tonight and work out the next 2 weeks or so and go from there.

The benefit boards and parenting ones will probably have people / similar threads that might help. You may be entitled to crisis loans (you do not have to be on benefits) http://www.jobcentreplus.gov.uk/jcp/Customers/WorkingAgeBenefits/Dev_013949.xml.html
The people on the benefit boards know the 'key access' phrases.

Can your partner's employees offer a workplace loan advance - some companies will do this although don't advertise the fact?

Highest priorities. Pay your council tax. Pay your rent/mortgage.

Probably pay something towards the utilities even a token amount. Talk to them and financial providers. An authorised overdraft is cheaper and better than an unauthorised one.

Utility companies aren't allowed to cut vunerable people like pregnant women off. Put things in writing as there is lots of comeback from regulators if customer vunerable and genuinely trying to pay.

Unsecured debt is lowest priority probably but talk to official sources of advice.

foreversomeday

barnaby-bear wrote: »

The benefit boards and parenting ones will probably have people / similar threads that might help. You may be entitled to crisis loans (you do not have to be on benefits) http://www.jobcentreplus.gov.uk/jcp/Customers/WorkingAgeBenefits/Dev_013949.xml.html
The people on the benefit boards know the 'key access' phrases.

Can your partner's employees offer a workplace loan advance - some companies will do this although don't advertise the fact?

Highest priorities. Pay your council tax. Pay your rent/mortgage.

Probably pay something towards the utilities even a token amount. Talk to them and financial providers. An authorised overdraft is cheaper and better than an unauthorised one.

Utility companies aren't allowed to cut vunerable people like pregnant women off. Put things in writing as there is lots of comeback from regulators if customer vunerable and genuinely trying to pay.

Unsecured debt is lowest priority probably but talk to official sources of advice.

I very much doubt DF's employer will be able to offer an advance - they are a very small company and he gets paid weekly anyway.

I would have thought priorities bills-wise was this:
Rent
Food
Car costs (petrol etc) - because OH needs it for work.
Electric/Gas (Dual fuel)

What happens if you don't pay council tax? I thought they just chased you for it. Just curious to know why it is top priority. Things like TV licence and BT bill I would have thought would be lowest priority (we can live without watching TV, and though the internet is very useful can access for free at library etc.) - but we are locked into a BT contract for phone and internet and I don't think we can get out of it. Not sure if the same is true for TV licence.

I don't know if we can just not pay back the debts, they are with Lloyds and linked to DF's main bank account, so I don't think they are on direct debits as such. We didn't get PPI on them but not sure that would pay out anyway. I think he can ask for a month's repayment holiday so that might be worth looking at.

Overdrafts are pushed to their limits so can't get any higher authorised overdraft. Also the interest on these each month is really high now.

Will have a look at crisis loans but I have heard you need absolutely zero in the bank and no food in the cupboards at all - food is a pretty high priority at the moment due to me being pregnant as I refuse to put the health of my baby at risk.

Sorry I sound so negative Have asked some clarification questions too so hope you don't think I'm not grateful for the advice.

barnaby-bear

foreversomeday wrote: »

I very much doubt DF's employer will be able to offer an advance - they are a very small company and he gets paid weekly anyway.

I would have thought priorities bills-wise was this:
Rent
Food
Car costs (petrol etc) - because OH needs it for work.
Electric/Gas (Dual fuel)

What happens if you don't pay council tax? I thought they just chased you for it. Just curious to know why it is top priority. Things like TV licence and BT bill I would have thought would be lowest priority (we can live without watching TV, and though the internet is very useful can access for free at library etc.) - but we are locked into a BT contract for phone and internet and I don't think we can get out of it. Not sure if the same is true for TV licence.

I don't know if we can just not pay back the debts, they are with Lloyds and linked to DF's main bank account, so I don't think they are on direct debits as such. We didn't get PPI on them but not sure that would pay out anyway. I think he can ask for a month's repayment holiday so that might be worth looking at.

Overdrafts are pushed to their limits so can't get any higher authorised overdraft. Also the interest on these each month is really high now.

Will have a look at crisis loans but I have heard you need absolutely zero in the bank and no food in the cupboards at all - food is a pretty high priority at the moment due to me being pregnant as I refuse to put the health of my baby at risk.

Sorry I sound so negative Have asked some clarification questions too so hope you don't think I'm not grateful for the advice.

I *really* don't know much about this - so this is amature thoughts not quality advice.

It sounds like you need proper advice on priority debts/expenditure.
There are links in this post http://forums.moneysavingexpert.com/showpost.html?p=13397231&postcount=24

Council tax has a weird debt status they really want people to pay this so the balliffs have more powers to enforce and you can even go to jail at the end of the line. It's regarded legally as more of priority and serious than CC/unsecured debt I think.

Rent is a priority because ASTs mean you can't mess around your landlord or references regarding that and if you do end up with a spotty credit history it would be hard to find a new place.

Given the emergency nature you need advice as to whether the loans/CCs really are priorities and the linked bank accounts/overdrafts sound a problem - there is usually advice given about opening another unconnected basic account so the overdraft becomes a debt that can then be negotiated on. You really need some advice to minimise the cost of this and the impact on your credit history.

If you are up to overdraft limits - it sounds like you do have less than nothing in the bank and I would have thought a MA delay is a crisis scenario and one to kick up a fuss with health visitors/MP etc. It maybe a no-goer but I think you should exhaust every possible avenue.

I'm sorry nobody knowlegable has replied, your situation sounds very unfortunate given you should be receiving MA and have been working to pay the NI etc. and you have my sympathies.

Gemmzie

Hi, have you done an SOA yet? Maybe we can save you some money?

barnaby-bear

Gemmzie wrote: »

Hi, have you done an SOA yet? Maybe we can save you some money?

http://forums.moneysavingexpert.com/showthread.html?t=1105125

Think she has and has a diary but I think the MA issue is the crisis problem - I suspect she may get some better replies if she can bump this thread on a week day when the CCCS staff are online.

Gemmzie

Maybe we should PM one of them this thread?

Billy_two_speakers

foreversomeday wrote: »

Hi all,

Not sure where would be the best place to post this. I was wondering what advice anyone could offer me.

We are having a temporary cashflow situation. It will be difficult for a month or two, but possibly a lot longer than this depending on circumstances. It is at the point where the money we have coming in this month is not going to cover the essential bills.

We are putting in claims for the tax credits etc we are entitled to, but that could take weeks. We have been refused a loan application from our own bank, and refused any 0% interest cards we have applied for. I am too scared to apply for any other cards because I don't understand them or trust them. The main reason we are in this mess is because I have stopped work in order to apply for Maternity Allowance and I now find that MA have a backlog and may not be able to pay me for months. But in the meantime, I still can't work as it will affect my claim.

DF has got a few friends round this evening and is selling some of his PS3 games and DVDs to them, he might end up selling his PS3 as well but I don't see this is a good idea as it is one of the free entertainments he has at the moment and also I can see him buying another one when we come into more money which just seems like a huge waste. I might suggest he rents it to a non PS3 owning friend. We have to get my ebay account up and running again first as that is closed due to non payment of fees (direct debit bounced). And they won't accept my debit card to pay them for some reason. My mum has suggested we phone up our utility companies etc and explain we are having a temporary problem paying and see if we can go into credit with them for a while until our situation improves - but I don't know if this is just putting off the problem. Is it a good idea?

DF is also doing loads of overtime which I'm not happy about because he will make himself ill, but what can we do? I in particular feel helpless because I can't work at all, apart from doing some paid survey sites.

Is there any other advice you could offer on a short term money situation such as this? Legal rights etc - how long would it be after we didn't pay a bill etc before we would get cut off, get CCJs etc? It's all very scary. I am going to sit down with DF tonight and work out the next 2 weeks or so and go from there.

My gut feeling is you want to thinks its "temporary" but its not, and the reason I say that are comments in your thread like "we have been refused" and "direct debit bounced"

I think you need to sit down be honest with yourselves and do a SOA and post it

you don't need temporary soloutions you need to think long term with baby coming because if you think you have problems now, wait till baby starts costing

barnaby-bear

foreversomeday wrote: »

Hi all,

Not sure where would be the best place to post this. I was wondering what advice anyone could offer me.

We are having a temporary cashflow situation. It will be difficult for a month or two, but possibly a lot longer than this depending on circumstances. It is at the point where the money we have coming in this month is not going to cover the essential bills.

We are putting in claims for the tax credits etc we are entitled to, but that could take weeks. We have been refused a loan application from our own bank, and refused any 0% interest cards we have applied for. I am too scared to apply for any other cards because I don't understand them or trust them. The main reason we are in this mess is because I have stopped work in order to apply for Maternity Allowance and I now find that MA have a backlog and may not be able to pay me for months. But in the meantime, I still can't work as it will affect my claim.

DF has got a few friends round this evening and is selling some of his PS3 games and DVDs to them, he might end up selling his PS3 as well but I don't see this is a good idea as it is one of the free entertainments he has at the moment and also I can see him buying another one when we come into more money which just seems like a huge waste. I might suggest he rents it to a non PS3 owning friend. We have to get my ebay account up and running again first as that is closed due to non payment of fees (direct debit bounced). And they won't accept my debit card to pay them for some reason. My mum has suggested we phone up our utility companies etc and explain we are having a temporary problem paying and see if we can go into credit with them for a while until our situation improves - but I don't know if this is just putting off the problem. Is it a good idea?

DF is also doing loads of overtime which I'm not happy about because he will make himself ill, but what can we do? I in particular feel helpless because I can't work at all, apart from doing some paid survey sites.

Is there any other advice you could offer on a short term money situation such as this? Legal rights etc - how long would it be after we didn't pay a bill etc before we would get cut off, get CCJs etc? It's all very scary. I am going to sit down with DF tonight and work out the next 2 weeks or so and go from there.

Bump. OP didn't get much useful advice on what constitutes priority debts.

piglet39

foreversomeday wrote: »

What happens if you don't pay council tax? I thought they just chased you for it. Just curious to know why it is top priority. Things like TV licence and BT bill I would have thought would be lowest priority (we can live without watching TV, and though the internet is very useful can access for free at library etc.) - but we are locked into a BT contract for phone and internet and I don't think we can get out of it. Not sure if the same is true for TV licence.

HIya sweetie

Sorry you're having such a difficult time at the mo. Hopefully someone with more knowledge will post soon but just wanted to makke a few comments...

Council Tax is a priority and legally classed as such so you need to pay it.

Rent for obv. reasons also needs to be paid.

TV Licence - a nice easy one to not pay but - as the ad says - they got you on the database and regardless of whether you actually watch it or not, if you have a telly you need a licence or they will take you to court.

HTH

Piglet

foreversomeday

Hi all,

Thanks for your advice. I have managed to get through to the MA people today and explained the situation and they have put my case in the urgent pile - they sounded a bit begrudged to do it because apparently it is usually only for people who don't have a partner and have no other income at all, but they said the urgent pile is fairly empty at the moment and it wouldn't be likely to put someone else off who was in need.

Piglet, my understanding of the law is that if you don't watch live (as in, as it is broadcasted) TV you don't have to have a TV licence. We mainly watch DVDs anyway, so if we had to give up the freeview that wouldn't be too much of a hardship - but I don't know how it works, whether you can cancel it in the middle of the year or not.

I'm going to move discussion over to my other thread to keep things together - barnaby-bear linked to it in his post. I don't know if a mod could close this thread?