Impossible to live on JSA

Rikmeister

Hi, new here so sorry if simular question has already been asked.

I have basically been made redundant twice in 1 year.
I only have enough savings to last 2 months.

I am furiously looking for another job but more and more redundancys each day in my town.

JSA and Child Tax credit totals £300 per month which just covers the mortgage.

All my other important bills total £500 per month.

If i add on food money and any other overheads i have a short fall of about £700 per month.

In 2 months i am totally screwed.! What can i do.
I know i could try switching Mortgage/Fuel providers but this might only save £100 a month so still £600 short.

Anyone else in this situation or been in this situation.

Just seems like there is no answer until i get a job.

Any advice no matter how small is very welcome.

Many thanks

RIK

tanith

Any chance you could get a Mortgage holiday , I know its not a good idea but desperate times and all that...you should contact your mortgage provider and keep them in the picture anyway... so worth asking what they suggest to try to put off missing payments...

Rikmeister

Hi tanith.

That might be an idea. I will look into that.

I have also found this link on the main site which i am about to look at.

http://www.moneysavingexpert.com/loans/debt-help-plan

Cheers

RIK

Voyager2002

Firstly, ensure that the Child Tax Credit people know that you are out of work: this should increase the amount you receive from them each month.

Secondly, claim Council Tax benefit so you get rid of at least one bill. Claim immediately since it cannot be backdated.

Mortgage interest will eventually get paid for you: ask about this at the job centre. In the meantime, ensure that your lender knows what is going on.

Check what you spend on telephone/mobile phone/digital TV and broadband. Big savings are possible in these areas: see other parts of this forum for details.

Oldernotwiser

You're also going to have to cut down on your bills and the amount that you spend on food, or even when your mortgage interest support kicks in you won't be able to manage. There are lots of good ideas on MSE about how to keep costs low.

Rikmeister

Thanks voyager/oldernotwiser. I have already sorted the Council Tax through the Job Centre.

Has the government said something about them paying the Mortgage interest for people in my situation or was that a rumour.?

RIK

archie9uk

Rikmeister wrote: »

Has the government said something about them paying the Mortgage interest for people in my situation or was that a rumour.?

RIK

You may be able to get your mortgage interest paid through income support. Ask the Jobcentre (although they should really have told you when you claimed JSA....)

By the way, I completely agree that JSA is nowhere near enough to live on! I suppose it's a way of trying to push people into work, but if you want to work and there are no jobs (like at the moment) then the government is totally screwing you over!

jacklink

do you have a partner who works ?

if not are you claiming child support ?

judy2357

Is there any possibility that you could extend the payment years on your mortgage?

iltisman

You say that there are more redundancies in your town perhaps you will have to consider working further away , I used to have a 141mile drive to and from work and I have recently had job offers from much further away.

Ocean007

Aargh! System just lost my reply - I'll try again...

You are eligible for mortgage interest help after 13 weeks of signing on. If you have been signing on for 13 weeks or more on 5th Jan you are eligble from 5th Jan. If you have less than 13 weeks on 5th Jan you are eligble from the date that you reach 13 weeks.

Confirmation of that is available in this DWP document in section 4.1 http://www.dwp.gov.uk/resourcecentre/mortgage-interest-changes.pdf

Staff at the jobcentre are not up to speed yet so it's worth knowing this document exists so you can confirm your entitlement.

You can claim by requesting a form from your central local jobcentre office (not necessarily where you sign on, it's where admin/decision making is based), there's probably a phone number among the paperwork for your benefits. Choose the JSA option if you get a push button menu when you call, and ask them to send the form out to you. You will need to complete it and send it to your mortgage company for them to fill in too so worth starting the process sooner rather than later.

Another option is to chat to your mortgage company. Some will reduce your monthly payments by extending the term of your loan, say from 10 years left to 20, without any penalty or difficult paperwork. Worth a phone call to see what your options are. You can always reduce the term again and pay it off quicker when you're back in work.

Have a look at the insurance policies you've got, I saved around £300 a year by switching my buildings and contents insurance. It all adds up.

Lots of ideas for reducing your food bills in the Oldstyle threads on here.

Hang in there, you're not alone.