Help me - I don't know where to start :(

chazsucks

ok so I haven't used this forum in a while. I don't even know if this is the right place to be asking but I'm sure someone can move this to the right place if it's not?

Basically I don't have a LOT of debt. but for me it's a lot!!

I'm 21 and I have a son and another baby due in January.

My partner earns just under £1000 a month

I don't earn anything, I don't work as I'm studying from home at the moment.

We pay £500 rent. plus bills, food, travel, and other household crap we basically spend my partners wage every month. We used to pay £900 when we rented privately but now we basically rent 2 rooms in my dads house as it's the only way we can afford to live.

I get child benefit, and used to recieve tax credits.

I got a letter through the other day saying I didn't renew my tax credits. I guess I'm not the smartest person as I didn't even realise we had to renew. They said they sent us a form but I have a box for everything related to money and I put every letter in there. I couldn't find this one. My partner also said he never remembered the letter. Now they are asking us for £1000

We paid off a credit card last year, and it was the best feeling in the world. I used my tax credits to pay it off.

We still have one more card which is around £1,200. I'm making the minimum payments, but it's not getting me anywhere. We have NO extra income to pay off any more at all.

and now with this £1000 from the tax credit people I just feel hopeless. We thought we were getting somewhere, sorting ourselves out and now suddenly we're back where we started 2 years ago.

I just don't know what to do?

mr.ton

The secret with tax credits is to cause as much of a fuss as possible & make it out in whatever way you can to be their fault
They are a completely useless/incompetent organisation & are very sensitive to public opinion shall we say :cool:

chazsucks

thanks lol i've been phoning them constantly for the last few days and it gets to a certain point and says 'we're extremely busy if it's not urgent please phone back another day' and hangs up!!!!!!!!!!!!!!! grrr

barbiedoll

Go back to the tax credit people and explain that you did not receive a renewal letter. It sounds as though they have "overpaid" you for a period for which they have no claim form. You cannot live on just your partners wage, you will still be eligible for the tax credits but they are processed by a computer so if there's no current claim form, the computer will not pay you.

Have you claimed all that you are entitled to for the new baby? The "Health in Pregnancy" grant of £190 is still available until 1st Jan 2011, so you will be able to claim that if you haven't already. Ask your midwife for a form if necessary or if you received the ante-natal Bounty pack, there should be a form in there. You can claim after the 25th week so make sure that you ask at your next appointment. And don't forget the MATB1 form which you'll need for other benefits. Also, pick up any free pregnancy books at the clinic, although you may not need the advice, there are loads of money-off vouchers in them which all come in handy!

What's your partner's credit rating like? Is there any chance that he can apply for a 0% balance transfer credit card to pay off your existing balance a bit more cheaply? But you must NOT spend on it, the rates are horrendous so if you can get one, cut it up or give it to someone to hold for you so that you can't use it.

Can you put a SOA up for us to have a look at? We may be able to help you cut down. As you're living in your Dad's house, you should be able to cut down on the household stuff that you buy and use his instead. Cheeky, I know, but you really want to get rid of this debt so needs must. Don't panic too much, I know it seems like you'll never be free of this but at least you have realised that you have a problem early on. The tax credits issue is urgent, call them as soon as you can and get it sorted out first. Good luck!

NorthernLas

Don't dispair, there will be a way to sort things out.

With the tax credits, you may get a better response on the benefits board. But I guess what you will need to do is phone them up. One thing I know is that you can go to the job centre and use their telephones for free - this will stop you getting an expensive bill as their lines are realy busy.

You may be waiting a few weeks for them to sort it out, so what can you do straight away - are you getting all of the benefits you are entitled to?

Could you come to an arrangement with your Dad at all? until the tax credits are restarted?

barbiedoll

chazsucks wrote: »

thanks lol i've been phoning them constantly for the last few days and it gets to a certain point and says 'we're extremely busy if it's not urgent please phone back another day' and hangs up!!!!!!!!!!!!!!! grrr

It may be worth complaining by letter as well, there's the address here..

http://www.hmrc.gov.uk/taxcredits/things-go-wrong/complaints-appeals/how-to-complain.htm

mr.ton

chazsucks wrote: »

thanks lol i've been phoning them constantly for the last few days and it gets to a certain point and says 'we're extremely busy if it's not urgent please phone back another day' and hangs up!!!!!!!!!!!!!!! grrr

I can sympathize with you that they are a nightmare to get through to.
Dont use your phone to call them, go to your local inland revenue office & make them pay the bill.....for causing all the fuss