Budgeting Loan questions

video

Has anyone had a budgeting loan before from the social fund. I have a few questions regarding a loan. I have had income support for 8 years and I am thinking of claiming for one of these loans for the first time. I am single and I don't have any savings, so I would think I would have a good chance of getting one.

How long does it take for a decision and for the money to be paid. Also do you have to show the Dwp some proof of how you have used the loan. Also with the repayments how do they calculate the amount to deduct from your fortnightly benefit payments.

Sorry for the amount of question, I just want to make sure it is the loan is suitable for me.

Thank you in advance for any replies.

stazi

More info about BL's is here-
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_10018905

PipsoG

The Social Fund locally is cash limited and each area decides its own "priorities" as to what they think is right type of item that you want the loan for as well as the National Rules.

It is an interest free loan which is excellent but are you able to afford deductions from your benefit?

video

Thank you for your replies. I will just clarify my circumstances. After having cared for my father for a number of years until he died of bowel cancer and also having lost the rest of my family to cancer. I now have osteoarthritis and other problems with my back and feet, and so unable to work. My father left his flat to me when he died as this was where I was caring for him. I have to pay a monthly service charge on my flat which is going up from £70 to £80 in April. I receive £11.54 a week in my income support for housing costs towards the service charge. In addition to the other necessary bills and living costs I am finding it very difficult to manage at the moment.

I am now having to use more of my bank overdraft which obviously is not a good idea. I rarely buy any clothes and try and cut down as much as possible on food. I have never had a problem getting credit due I suppose to being a home owner and being on the electoral register. I could get a loan from my bank Natwest but of course I would have to pay interest. I really could do with some extra money at the moment to tide me over, so I thought a budgeting loan would be the best course of action.

missmontana

You may be able to get a Budgeting Loan if you or your partner have been claiming or getting payment of one of the following benefits for at least 26 weeks:
Income Support
income-related Employment and Support Allowance
income-based Jobseeker's Allowance
Pension Credit
and you need help to pay for any of the following:
furniture or household equipment
clothing or footwear
advance rent or removal expenses for a new home
travelling expenses
things to help you look for or start work
improving, maintaining or securing your home
repaying hire purchase or other debts you took out to pay for any of the above

You normally have to repay a Budgeting Loan within 104 weeks.

Hi video, as long as when you put a couple of the things on the list above, stating how much they cost, depends how much you need really, then you shouldn't have a problem getting the loan. Work out how much you need and divide it by 104, that should give you an estimate of how much you will pay back per week, they usually take this out of your benefits.

You don't have to prove what you have spent the money on.

Hope that helps!

AsknAnswer2

The current maximum rate for a budgeting loan for a single person is £348.

If you have other debts to repay, tell them as they take this into consideration to lower the rate of your repayments.