What happens when you run out of money ?

wendzo50

I have been struggling to find any advice on this - the situation is: I am a76 years old divorced woman and have a full state pension. I was made redundant in 2020 and took retirement. I had put an Equity release option in place in 2018, so started drawing down on this once my redundancy money ran out , to cover my bills and day to day expenses. My equity release advisor suggested I waited until I was down to my last £10,00 before applying for more equity, which I did and I was refused. I then put my house on the Market (no mortgage) for £1,250,000. I had to borrow some money from a friend to help me until the house was sold. My sale fell through as my buyer lost their buyer, last July. I did a further advance on my Equity which was only a small amount which is now running out. The house is still on the market and I have 2 interested buyers but they both still have to sell. I have gone back to L & G for further advance and am waiting to hear. My pension doesn't cover my outgoings as my council tax is £340 a month and my energy £300 - £500 for starters. What do I do if I run out of money and can't pay my bills before my house is sold ?

Vitor

Apply for a "Section 13A" Discretionary Reduction in Council Tax. Local authorities have the power to reduce or waive council tax for people in extreme financial hardship. Given OP's age and the fact that her sale is pending, she should contact her council immediately.

OP should ensure she is on her supplier’s Priority Services Register. She can ask for a "Payment Holiday" or a "Vulnerability Deferral" given her age and temporary liquidity crisis.

moneysaver470

i would talk to people before it gets to that stage-work out your run rate, try and come up with a plan using professional advice