Loan for single mother on benefits

kje_2

If she can pay/save £100 per month then how about a credit union ? Save some money and then try for a CU loan. A lot depends on if she needs the money now or whether she can wait. It also depends on what she wants/needs the money for (ie. consolidate current loans or something else).

Tixy

Whether or not she can afford it is irrelevant. She won't find anyone to loan to her at anything like a reasonable APR.

If she is having difficulties with the debts she already has and thinks she is about to start missing payments I think you would be best off advising her to contact one of the debt charities to talk through her options with them. https://forums.moneysavingexpert.com/discussion/2077631

When you are struggling financially taking on more debts is rarely the way to tackle it.

dmg24

Tixy wrote: »

Whether or not she can afford it is irrelevant.

So you advocate people taking out loans that they cannot afford to repay? Are you sure you are on the correct website?

carlbcfc

She moved out of her mothers house to get some independence. She borrowed 1.5k to move (deposit, month up front etc), but had a reality check when it came to utility bills. Her mother lost her job, so the girl wants to pay her mother back asap as she is in it herself. She also wants to pay a catalogue bill (kids clothes etc), and get out of her overdraft. As I said, she has no marks on her credit file, and ha cash income of £700pm.


Those that are helping, thanks. Those that are going off topic with their sarcastic, unhelpful, bandwith wasting comments, I will be reporting to admin, where hopefully you will be banned. You really are putting me, and others off this website.

Tixy

dmg24 wrote: »

So you advocate people taking out loans that they cannot afford to repay? Are you sure you are on the correct website?

Did you actually read all of my post?

dmg24

If she can afford to repay a loan each month, why not repay her current commitments at the same rate?

The idea of paying off debt is to reduce your overall liabilities. Taking out a loan in order to pay off debt is actually increasing your liabilities.

dmg24

Tixy wrote: »

Did you actually read all of my post?

I did, and your first sentence stuck out to me as absolutely ridiculous.

The fact is that some dodgy lender of last resort will lend her the money. She will not be able to afford the payments, and so get into more debt. Therefore whether she can afford it or not is entirely relevant.

Tixy

Maybe the first sentence could have been better worded to 'Whether she can afford it is irrelevant' but from the rest of the post it is entirely clear that I am not advocating someone takes out a loan that they cannot afford. To read one sentence from a post in isolation is ridiculous.

My point is that the OP is saying she can afford it, but that is irrelevant as she won't get a £3k loan. And which is why in the same post I have suggested a more sensible alternative.

tcr_3

The Social Fund is available to people on benefit, they offer interest free crisis loans, budget loans and community care grants ... they're part of the Dept Work & Pensions. But I doubt they'd stretch to £3,000 ... I think their lending limit is £1,500 at the very most, but what they offer varies with a persons circumstances.

You pay them back by deduction directly from benefit. Might help out a wee bit ?

slobs

I think the point the OP and his friend are missing is that she is on Income Support.

Income Support is only given to those on the very lowest income to bring their income up to the "miniumum amount needed to live on by law".

So although I sympathise with her wanting to pay off her mother and sort out her bills, she is already on the minimum amount she can live on, so taking on further debt will just make things worse as she will struggle to meet the repayments.

There is no company that will loan to people on benefits without either charging exhorbitant interest rates or taking fees up front to find loans which then turn out to have the same exhorbitant interest rates.

Not much help OP I'm afraid