Loans for people on benefits

Andy054

Loans for people on benefits

If your on incapacity benefit you can not get a budgeting loan.

Is there any other commercial loan provider for people on benefits.

dmg24

How will you pay back a loan if your only income is IB?

immoral_angeluk

Yea.. loan sharks and 'doorstep' type companies such as provident.

The last people you need to be getting a loan from.

immoral_angeluk

Would you be better off claiming employment and support allowance?

Andy054

dmg24 wrote: »

How will you pay back a loan if your only income is IB?

I'm guessing the answer to my question is going to be no then.

immoral_angeluk

Andy054 wrote: »

I'm guessing the answer to my question is going to be no then.

For many various reasons you will struggle to get a loan on benefits. Mainly because you will be seen by creditors as an extremely high financial risk, so they won't lend to you. There are loan sharks and doorstop companies like I mentioned, but they prey on the vulnerable and charge extortionate costs. If you claimed employment support allowance instead of incapacity benefit you would be able to claim from the social fund and the amounts are also higher once you get past the assessment period.

woody01

Andy054 wrote: »

I'm guessing the answer to my question is going to be no then.

Honestly, even if you could find someone....don't!
If you are on benefits, and need a loan, can you not see the problems it will cause paying that back with little funds available aswell.

Andy054

All I'm after is a few hundred pounds to buy a second hand car. Any ideas, I would be very grateful.

JasX

Andy054 wrote: »

All I'm after is a few hundred pounds to buy a second hand car. Any ideas, I would be very grateful.

Basically save up,

do you have stuff you can sell on ebay?

savings you can make on bills/groceries/other costs by making sure you are gettting best buys (and cashback where available) -see other parts of this board, or even post a SOA

could you get an extra part time job?

could you take in a lodger?

mattlfc79

Could you approach family/ friends who may be more understanding and wont have predetermined acceptance crtieria and/ or extortionate rates of interest?

One thing though, if your on benefits make sure you can afford repairs/ mot's/ tax and most importantly insurance. Sorry if that sounds patronising, it is not meant to!

What is the public transport network like near you, buying a banger could be very expensive as they tend not to be reliable!

Dont touch the payday loans or provident though, you will end up paying for it for a long time!!!! Trust me I have experience!!! Payday loans are the worst, I ended up paying back around £1000 on a £200 loan!!!

dmg24

immoral_angeluk wrote: »

For many various reasons you will struggle to get a loan on benefits. Mainly because you will be seen by creditors as an extremely high financial risk, so they won't lend to you. There are loan sharks and doorstop companies like I mentioned, but they prey on the vulnerable and charge extortionate costs. If you claimed employment support allowance instead of incapacity benefit you would be able to claim from the social fund and the amounts are also higher once you get past the assessment period.

This would only apply to income based ESA, plus I would not advise anyone to give up a current IB entitlement as they are likely to be called for a medical much more quickly on ESA.

OP, are you sure that you are getting your full benefit entitlement? Some people on IB are entitled to IS also. How much IB do you receive per week? Do you receive DLA, and do you have any other household income?