Trying not to panic

mrseff_2

Hi
Sorry, not sure if I'm in the right forum, please redirect me if not.

I could really do with some advice here:

Quick summary (it ain't pretty)

Separated from husband in September who is still currently paying the mortgage. I am not on the mortage or the deeds but I have put a stop on him being able to sell the house without my permission.

The bills are in his name but I transfer £400 a month to him for him to pay them (they are slightly more than this)

I receive child benefit for our two children who are 8 & 13.

I receive a few pounds a week tax credit.

Until Tuesday I was employed full time on a salary of £34k. On that day my employment was terminated, no notice, no holdiay, no holiday, no redundancy. This bit of the story is very long and complicated;, there are reasons for this kind of termination and I've discussed it with ACAS - I am clear that I will not be able to reverse this decision.

By tomorrow I have to hand back my phone and laptop and by next Wednesday I ahve to return my car.

My husband has gone into complete panic and yesterday barged into the house to read the meters as he says that his only legal obligation is that he puts a roof over our heads. He is frightened of course but he also knows that I will not be sitting around waiting for people to pick up my bills etc. Anyway, that's kind of by the by other than he tells me he will be able to afford the utility bills for another month at which point he will have to start defaulting. He tells me that he has contacted his mortgage co. who will not consider a holiday of any kind as he is still working - he can't remember if he told them that there are two children at his house...

So - I have already been paid 2 weeks ago up until the end of this month and that is it. No more. I have about £300 in my account. No access to any more.

My outgoings (apart from food, clothes etc) are mainly my credit card bills which come to £450 a month across 4 cards - I've been told I can phone them and ask them to let me pay less - how do I do that, what do I say? Do they always say yes?

I have made an appointment with the CAB tomorrow morning.

I have also made an appointment at the job centre for Monday morning. My concern here of course is that as technically I 'resigned' I may not get any support.

So, in between trying to be practical, everytime I stop doing something I turn to blind panic. There is no-one in the family to help with this I feel truly on my own. Friends are being wonderfully supportive but of course they all have their own worries.

Please please can someone point me in the right direction - I feel like I'm about to tip over the edge.

Thank you so much
x

downsizer3

There is some sort of emergency benefit you can get - I'd get down to the job centre ASAP as well as CAB.
I'd also find out from them ASAP whether you've 'resigned' or not - it'll definitely affect your ability to claim benefits.

Tixy

Hi

Sorry to hear your situation.

Talking to CAB is definitely a good starting point - do you know if you are seeing a money advisor or just a regular advisor there?

In terms of your credit cards - I would send them a brief letter to state that you have lost your job and that you are seeking advice from the CAB and will be back in touch soon - see template here - http://forums.moneysavingexpert.com/showpost.php?p=21937969&postcount=52

When are your CC bills next due to go out? Do you have a CC with your main bank account? does that account have an overdraft?

If yes then I would withdraw what money you do have access to straight away and open up a new bank account with an unconnected bank - one you don't owe any money to.
If your own bank gets a letter from you about a CC that says you are in difficulties they could offset any funds in your current account and could recall your overdraft.

You'll also need any benefits etc to be paid into your new bank account.

I guess as a short term measure - do you have any unwanted/not needed things you could try selling? maybe a carboot whilst you still have the car this weekend, or maybe on ebay?

-

With ex and the finances - presumably this is something you've agreed between you so far? not anything formally documented or discussed through solicitors?

The bills are in his name but I transfer £400 a month to him for him to pay them (they are slightly more than this)

The slightly more than £400 - presumably that doesn't include the mortgage?
Do you get copies of the household bills? do you know that they are just over £400? do you know that he has been keeping on top of paying them?

It sounds like quite a high figure assuming its excluding the mortgage. Do you claim the 25% discount on council tax for being the only adult living there?

mrseff_2

Thank you for your replies:

Re credit cards / bank - one payment of £120 is due out on 4th april - the rest aren't due again until after 15th April which would have been pay day. They aren't attached to my current account which has a £250 overdraft (free) which I use every month.... So it's better to write to the credit card people than phone them?

I haven't made an appointment with an adviser at CAB - my local one only do drop in appointments apparently so I shall be pacing the floor outside their offices first thing in the morning.

Husband has just called to say that he has (or someone has!) had a word with himself and realises that he needs to offer me support rather than veiled threats. He has offered to get me a cheap contract with his mobile phone company if I provide the phone (I have a spare handset). He will also lend me a car for a month or so.

He says that once my benefits are confirmed he will still transfer the bills to my name so that I can get help with them - anything that isn't covered by any benefits he will make up the shortfall - does that sound feasible?

Tixy

That does sound like good news and far more understanding of him.
Fingers crossed you manage to find a new job soon.

I'd agree with moving things into your name. It will also give you the ability to see if you can shop around to get any utilities etc cheaper.

Its generally recommended to write to the cc companies, but you could try calling and see what they say. If they seem reasonable and agree to accept a reduced payment for so many months then you might not need to follow it up with a letter. If they say they can offer no help until you are in arrears then I would send a letter.

An obvious point but once you have informed them they will likely stop your cards to any new spending.
Whilst you should not go out and max the cards before you contact them if there is anything essential you need, such as a grocery shop or anything, then you might want to consider this and wait to contact them tomorrow/monday after you have seen CAB.

mrseff_2

Hi
thanks again.
Just a quick Q re the credit card thing - how damaging is this to my credit record? I realise I have no choice but when H and I sell the house (which will take a while) i will get a big lump sum which I'd want to use to buy a new place (mortgage) - am I doomed?

Tixy

Probably quite damaging if its for more than just a month or so.

If its just a couple of months and you manage to find a new job then it will probably just be entered as missed payment markers, not ideal but after a couple of years or so it shouldn't have a major impact.

If it goes on longer than that then its likely you'll be given defaults - these are pretty bad news - they stay on your file for 6years from when entered (although if the debt is fully paid off then they are then shown as satisfied defaults).

Defaults would affect your ability to get a mortgage - not that it would necessarily be impossible to get one, but that you probably wouldn't be looking at the most competitive high street deals but would need to see an independant broker who might advise trying subprime lenders (who typically charge a higher APR and require a higher % deposit).

So not necessarily doomed - but limited by it.

mrseff_2

Me again - a small confused update... if this information is anywhere else, do please point me in th eright direction..

Went to see CAB today - nice lady but not much help - really just fact finding mission and I have a specialist appointment in 10 days time by which time I'll have been to the job centre.

She also of course said something about phoning the CC companies. I will write to the others so it's documented but there was one with a payment due out on Monday so I phoned them.

It took him about 15 minutes til he understood what I was saying. CAB lady said I could ask for no payments on my card (ie from me) until such a time as i could provide a financial plan that I was seeking financial advice.

After much to-ing and fro-ing he came back to me and said that yes fine, I could do a late payment (which wasn't what I was asking) and that whenver I could pay I could phone them up and they would refund the late payment charge. But that ultimately if I missed a second month then the same thing would happen, blah blah

Is this right - have I asked the right thing, has he given me the right answer - he seemed really unsure.

Gah was having an oK day until this and now my confidence is completley rocked again