Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • StephenSimmons
    • By StephenSimmons 11th Apr 18, 4:19 PM
    • 6Posts
    • 0Thanks
    StephenSimmons
    New Financial Statement - Living Together
    • #1
    • 11th Apr 18, 4:19 PM
    New Financial Statement - Living Together 11th Apr 18 at 4:19 PM
    Hello everyone,

    I previously posted a question and had some great help and advise regards to potentially moving in with my partner, although I have £25.000 of debt in the form of loans and credit cards which are currently being paid via £1.00 payments each, due to only working part time and the Citizens Advise Bureau working out my financial statement.

    Having decided that I want to move in with my partner and now that I have come clean about my debts, she is happy for me to move in but for us to have no joint financial arrangements re credit or accounts etc.

    What I need help with, is having calculated child tax credits, working tax credits, council tax supplements etc she has given me a bill that would need to be settled which is £850 a month. This would include rent, council tax, her loss of credits, gas, electric, water, phone, internet, car insurance, car breakdown cover.

    How do I evidence this to my creditors at the next review ? Is it even possible ?

    I am very worried that this is not going to be possible. Please can anyone help who might have been here before.

    I have no CCJ's, no priority debts and I communicated with my creditors before I became ill and have never missed a payment ever, I have just not been able to pay what they desire. I do all my correspondence with creditors via the Citizens Advice Bureau due to my mental health problems.
    Last edited by StephenSimmons; 11-04-2018 at 4:21 PM. Reason: Typing error.
Page 1
  • National Debtline
    • #2
    • 11th Apr 18, 4:58 PM
    • #2
    • 11th Apr 18, 4:58 PM
    Hi Stephen


    If you are getting help from the Citizens Advice Bureau (CAB) it's very likely you could get an appointment with them and they would help you work out your new budget sheet, if you would find that easier.


    From a creditor's point of view they want to know you and your partner are splitting your household bills fairly. Generally the person with the higher income should pay a higher share of the bills. That's why they prefer to see a joint budget sheet so they know how much income you each have and how much your outgoings are. However they shouldn't ask your partner to contribute towards your debts as she is not liable. You can work out how much of the joint household surplus is yours personally and then use that as your offer towards your debts. The CAB or another free advice agency can help you work that out.


    Alternatively you could complete a sole budget sheet only showing your income and outgoings. It would be tricky for your creditors to work out if £850 per month was a reasonable outgoing if you list it as one single figure. It may be better to break that down as a contribution towards each household bill. Good luck with the move.


    Susie
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • Sncjw
    • By Sncjw 11th Apr 18, 7:04 PM
    • 1,969 Posts
    • 1,155 Thanks
    Sncjw
    • #3
    • 11th Apr 18, 7:04 PM
    • #3
    • 11th Apr 18, 7:04 PM
    Is she paying anything at all?
    • a_silver_lining
    • By a_silver_lining 11th Apr 18, 7:24 PM
    • 342 Posts
    • 949 Thanks
    a_silver_lining
    • #4
    • 11th Apr 18, 7:24 PM
    • #4
    • 11th Apr 18, 7:24 PM
    £850 is loads. How much is she paying? How much do you pay now?
    19/12/14: Spent 10 years of savings!!
    ..... to buy my first home.

    2018: 3.3k personal savings --- Family Loan (6k paid direct) 6k/ 10K paid 60%
    Extra cash made 2018: 1021.41
    • reason2
    • By reason2 12th Apr 18, 11:29 AM
    • 336 Posts
    • 375 Thanks
    reason2
    • #5
    • 12th Apr 18, 11:29 AM
    • #5
    • 12th Apr 18, 11:29 AM
    Why would you have to pay her loss of credits...

    They are a benefit, not a bill you should have to pay surely?
    the likelihood is she is losing them due to your contributions to the living costs, ie shared rent / utilities.

    if it was me id be removing the loss of credits... but maybe i am wrong
    • Tarambor
    • By Tarambor 12th Apr 18, 2:18 PM
    • 3,976 Posts
    • 3,018 Thanks
    Tarambor
    • #6
    • 12th Apr 18, 2:18 PM
    • #6
    • 12th Apr 18, 2:18 PM
    She isn't entitled to be compensated for the tax credits she'll lose. You are going to be contributing to the bills so the food, the rent, the water, the gas, the electric, all the bills for stuff for the house are all going to cost her less than when she was living on her own.
    • indesisiv
    • By indesisiv 12th Apr 18, 2:39 PM
    • 6,234 Posts
    • 20,444 Thanks
    indesisiv
    • #7
    • 12th Apr 18, 2:39 PM
    • #7
    • 12th Apr 18, 2:39 PM
    What I need help with, is having calculated child tax credits, working tax credits, council tax supplements etc she has given me a bill that would need to be settled which is £850 a month. This would include rent, council tax, her loss of credits, gas, electric, water, phone, internet, car insurance, car breakdown cover.

    How do I evidence this to my creditors at the next review ? Is it even possible ?
    Originally posted by StephenSimmons
    I don't see how you can evidence this. You could evidence your relative share of the rent, council tax, gas, electric, water, phone, internet, car insurance, car breakdown cover

    But not the Tax Credits.
    “Time is intended to be spent, not saved” - Alfred Wainwright
    • cms-help
    • By cms-help 12th Apr 18, 5:10 PM
    • 180 Posts
    • 164 Thanks
    cms-help
    • #8
    • 12th Apr 18, 5:10 PM
    • #8
    • 12th Apr 18, 5:10 PM
    This makes no sense, to me anyway.

    Your partner currently supports their household and their family with a salary. They receive credits as a benefit to assist with that.

    You move in and start paying towards the rent and bills etc. You replace the income that the credits previously provided.

    So you shouldn't be paying towards the rent/bills and the loss of credits. You pay for one or the other - otherwise they are double-dipping and making a "profit" from the situation so to speak. That hardly seems fair. Perhaps they haven't appreciated this and have just considered the loss rather than the gain.
    • HampshireH
    • By HampshireH 12th Apr 18, 6:42 PM
    • 1,169 Posts
    • 1,402 Thanks
    HampshireH
    • #9
    • 12th Apr 18, 6:42 PM
    • #9
    • 12th Apr 18, 6:42 PM
    I may have missed something so I apologise.

    Is your partner saying you can move in if you pay £850 A month?

    So her current outgoings on bill is 1700 a month?

    Ask for a complete breakdown. Why will you be paying for her car insurance and breakdown will you be driving it 50% too?

    For you does this add up to reasonable costs?
    • MEM62
    • By MEM62 13th Apr 18, 9:49 AM
    • 1,893 Posts
    • 1,533 Thanks
    MEM62
    Reading between the lines I suspect that the OP's other half has approached it from the viewpoint that 'this is what you moving in will cost me and this is the figure I need to break even'. If her budget is tight and she is supporting a family this might not be unreasonable.

    Whether the OP accepts that or not is there choice.
    • StephenSimmons
    • By StephenSimmons 14th Apr 18, 12:46 PM
    • 6 Posts
    • 0 Thanks
    StephenSimmons
    Hello everyone,

    Many thanks for all the different responses. I will try to explain a little more.

    My partner is divorced and has 2 children. She sold the family home and now she lives alone as a single mother working part time and bringing up her 2 children.

    The last response was very accurate. She has calculated the costs of me moving in. Given I come with serious debt baggage and possible risks, the last thing she also wishes to impact is her monies. She only works part time, lives pretty much hand to mouth and me moving in means that I would need to contribute £850 for her to be in the exact same financial situation other than she no longer gets 25% off council tax and no longer receives child tax/working credits.

    This includes rent contribution, council tax contribution, gas, electric, water, bt, internet, food, the child tax credits she would loose from me moving in and finally car insurance, car tax, car recovery (these last 3 exist as I sold my car panicking my creditors would take it in the future, so she bought a second car which I use but belongs to her on the log book and all other documents).

    I hope this helps.

    Does anyone know the legal technicalities of this type of situation when creditors want to scrutinize your financial situation. I think someone said it has to be proportional of you and your partners income. For example, if she earned 10k a year and you earned 5k a year, creditors would expect on your financial statement for her to pay 50% more than you. i,e mortgage cost is £600, she pays £400 and you pay £200.

    I just want to try and ensure at my next review I am proceeding in the correct way.
    Last edited by StephenSimmons; 14-04-2018 at 12:49 PM. Reason: spelling
    • Nannytone
    • By Nannytone 14th Apr 18, 4:45 PM
    • 147 Posts
    • 236 Thanks
    Nannytone
    You need to run your circumstances Sarah benefit calculator because she won't lose all benefits if you only work part-time.
    Any claims for housing benefit or tax credits would have to be made as a couple anyway so although you have separate bank accounts you will have a financial link and that can't be avoided
    • John-K
    • By John-K 15th Apr 18, 8:00 PM
    • 654 Posts
    • 1,024 Thanks
    John-K
    Reading between the lines I suspect that the OP's other half has approached it from the viewpoint that 'this is what you moving in will cost me and this is the figure I need to break even'. If her budget is tight and she is supporting a family this might not be unreasonable.

    Whether the OP accepts that or not is there choice.
    Originally posted by MEM62
    Who said romance is dead, eh?

    On the side of love, companionship, sharing life, nothing mentioned, on benefits lost, a bill presented.

    OP, you’ve posted asking for advice, so here it is, run, don’t walk away.
    • MEM62
    • By MEM62 15th Apr 18, 10:14 PM
    • 1,893 Posts
    • 1,533 Thanks
    MEM62
    On the side of love, companionship, sharing life, nothing mentioned
    Originally posted by John-K
    Because the OP did not post looking for advice on that aspect of his relationship. I guess he is OK with that side of things and is now looking to see how they can make it work financially.
    • Karonher
    • By Karonher 15th Apr 18, 10:59 PM
    • 518 Posts
    • 2,165 Thanks
    Karonher
    I must admit I agree with those saying you will be double paying. if you pay for your share and then for what is lost you are paying twice. Hope it is just an over sight when the figures were worked out.

    You don't have to reply on here, but is the father paying a fair share?
    Getting ready for Christmas 2018

    Aiming to make £5,000 online in 2018.
    • reason2
    • By reason2 16th Apr 18, 12:51 PM
    • 336 Posts
    • 375 Thanks
    reason2
    If the issue is you coming with risk of debts, then surely overcharging you for things you are not responsible for is just heightening the risk.

    again i would say you split the bills 50/50 but you are not responsible for any loss in credits and asking for them is selfish.

    your financial situation shouldnt be punished with extra costs, he loss of credits are being made up on the 50% savings she is making on household bills.

    i dont want to get personal or anything, but the difference between your situations doesn't in any way make her superior nor in control.

    bills are 50 50 and that is it.
  • National Debtline
    Does anyone know the legal technicalities of this type of situation when creditors want to scrutinize your financial situation. I think someone said it has to be proportional of you and your partners income. For example, if she earned 10k a year and you earned 5k a year, creditors would expect on your financial statement for her to pay 50% more than you. i,e mortgage cost is £600, she pays £400 and you pay £200.

    I just want to try and ensure at my next review I am proceeding in the correct way.
    Originally posted by StephenSimmons

    Hi again Stephen


    You're quite right, creditors want to see you split household bills fairly. If you have the same amount of income, a 50/50 split is fair. But if one person has more income, they should pay proportionally more of the bills.


    When you live as a couple creditors prefer to see a joint SOA, but remember your partner cannot be held liable for your debts, and you should only use your share of the spare household income to pay your debts. From what you've told us so far you may find that even with a new SOA you'll still be offering token payments.


    Creditors won't be as keen on a budget sheet only showing your income and outgoings, but it's still an option if you prefer. I'd suggest a breakdown of the £850 contribution you are going to be making to your partner otherwise it will be difficult for you creditors to work out whether this is fair. You can get help with your SOA from any of the free debt advice agencies. I hope all goes well.


    Susie
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • StephenSimmons
    • By StephenSimmons 16th Apr 18, 6:41 PM
    • 6 Posts
    • 0 Thanks
    StephenSimmons
    Hello again everyone,

    Thank you for all the contributions so far. Its very much appreciated. I would like to just clear one issue up that has trended in this conversation. In terms of love, companionship etc, everything is perfect. I want to do right by my girlfriend and for me, I do not want my situation to impact upon her finances. Her current financial situation should not, in my opinion change for me moving in. Fir example, I do not believe she should be any better or most certainly, any worse off. So after much scrutiny with all bills, receipts etc, the total of £850 is what is required from me to her, in order for her finances to remain the same.

    To me, this makes perfect sense. If I wanted someone to move in with me, I would not want to carry them or to be impacted upon financially. Generally, both parties would normally gain, in these circumstances that is not the case.

    I will obviously be breaking the £850 down in to all component parts, just like I do for my own monthly outgoings when I do my financial statement.

    Maybe I will give the national debtline a call to help get some further clarity.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,727Posts Today

7,576Users online

Martin's Twitter
  • Many asking "what does leaving EU actually mean for me?" both with or without a no-deal. The MSE guide to Brexit t? https://t.co/ULimpQPlHp

  • I'm very glad my poll today has caused such unity and consensus. It feels like a real moment of rapprochement in th? https://t.co/QVCzqsiVOi

  • RT @CourtBasedPSU: This week we hit a major milestone. PSU volunteers have now provided support to Litigants in Person on 300,000 occasion?

  • Follow Martin