Help with unique financial situation

Stevie733

Hope it’s okay to post this here and apologies for the long post.

I was in the Royal air force until a couple of months ago and had been saving most of my money since I joined at 18. I am now 24 and whilst on an assault course I really badly injured my lower limbs which I am waiting for various surgeries for, and I was subsequently medically discharged. I need a number of surgeries on my legs and the consultant was saying whilst they can fix most of the damage to my legs it will never be quite the same again. It probably won’t be until 2017 when I am fully recovered.


I applied for the armed forces compensation scheme but it usually takes half a year for a pay-out and even then I’ll probably only receive £10,000. I am receiving ESA & DLA but from next tax year I won’t be able to claim because I’ve too much in savings. Before the accident I was planning on buying property in my home village and still wondering if it might be possible.
Income


I’ve £69,000 (7,000 of it stoozing from credit cards) saved in bank accounts (Santander x 2, TSB, Llyods, BOS x3 and Nationwide) paying around £150 a month.

I receive £600 in ESA & DLA every month.

I am waiting for an expected pay-out of £10,000 from the armed forces compensation scheme.

Expenses

£150 every month I give to my parents to help with household expenses. They’ve been so good to me in letting me stay and I feel it’s the very least I can do.

£5,000 for minor private surgery.

After April 2016 I will only receive DLA unless I spend all my savings. I did consider using the lot on surgery but the timetable won’t be much quicker than the one private surgery and then the NHS that I am currently expecting. I also doubt I’ll be able to carry on stoozing as I am now unemployed and doubt credit card companies will jump at the chance to take me. Most of my credit cards lose the free credit in and around September 2016.


My plan

Before I was injured I was saving up to buy property in my village where my parents could keep an eye on it. I am still considering it I can’t get a buy to let mortgage because of my situation (not that it’d be worth doing with the recent tax changes) but I do just have enough to buy a property here.

For £69,000 I could get a decent house with a sitting tenant paying £380 per month. That could help with the cash flow after April; although I am nervous about using the 7,000 I’ve saved with credit cards to pay for it.

But then I am careful and don’t spend any more than I need to and with the expected £10,000 I could be okay. Is this stupid? I don’t know what else to do to provide enough income after April. The job market here is awful never mind my current issues. Even the nearest call centre is a good 80 miles away.

Any advice would be really appreciated!

Westie983

DLA isn't means tested so it doesn't matter how much in savings you have, there was a story
a few years ago about lottery winners still claiming DLA but they could because the disability still stands regardless of whats in the bank.

I dont know about ESA though, I think that is means tested along with Housing Benefit and Council Tax Benefit, so you can only have 6k in savings, be careful thought it maybe seen a deprivation of capital if you suddenly spend your money

https://forums.moneysavingexpert.com/discussion/3176622

enthusiasticsaver

I think in your situation with your health issues I would be wary of taking on a large financial commitment like buying a house when you are not sure where your income will come from until your surgery has taken place and no doubt you will then need to recuperate and maybe retrain. I personally will not consider buy to let because of the problems sometimes with tenants not paying or causing damage and the high legislation and red tape there is now for landlords. Even if your £69k was enough to buy a property (it certainly would not be down here) you will no doubt have to invest a certain amount to make it rentable and if that is your sole income apart from benefits and an uncertain payout which may or may not come soon then you are leaving yourself vulnerable.


You are lucky enough to have savings to tide you over this difficult period so I would sit on that until your future is more settled.

jonesMUFCforever

Get legal advice about putting your compensation in trust.

colsten

Use some of your savings to invest in yourself so you can acquire different skills? E.g. an Open University course in a subject that might enable you to set up a self-employed business from home, or as a remote worker?

jimjames

Stevie733 wrote: »

But then I am careful and don’t spend any more than I need to and with the expected £10,000 I could be okay. Is this stupid? I don’t know what else to do to provide enough income after April. The job market here is awful never mind my current issues. Even the nearest call centre is a good 80 miles away.

Any advice would be really appreciated!

Far too many people have got into serious financial difficulty with a situation and thought process like that. "I could be ok" if the money comes through.

What happens if it doesn't? I certainly wouldn't plan on things until you actually have the money in your bank.

xylophone

If you bought a suitable property outright, you could live in it yourself?

You could take a lodger?

Will you be able to drive when you have recovered from surgery?

What are your plans for employment once you have recovered?