Loan for single mother on benefits

woody01

carlbcfc wrote: »

She can pay out about £100 per month +-, and apart from receiving income support/child benefit, has a spotless credit rating. It is just getting on top of her and she knows she is going to struggle very soon. One payment would solve it.

Anyway, can we keep on topic.

Can you not see....?
She cannot afford this.
If she is going to struggle soon, she will go under completely with more debt.

£700per month, with the various housing/council tax benefits, should be more than enough to keep herself and her children without trying to get in deeper sheite.

woody01

carlbcfc wrote: »

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.

Can you not see how ridiculous your questions are.
Why on earth would anyone lend money to someone that cannot afford to live now, and cannot afford to pay the money back.

Benefits are to live, and not to service further debt.

PC_Gabriel_Kent

The OP seems to know a heck of a lot about his friends finances. Do people really divulge such detailed info to their friends?

carlbcfc

PC_Gabriel_Kent wrote: »

The OP seems to know a heck of a lot about his friends finances. Do people really divulge such detailed info to their friends?

They do yes. Funny I mention a single mother of 2, and my username suggests I am in fact a man!


There is no conspiracy. Get your tin foil hats off!

Trying2save

I would advise your friend not to take out a loan while she is on IS. She may have worked out she has 100 quid spare a month at the moment but what if her benefits get reduced after the emergency budget, or if an unexpected bill popped up? I understand her wanting to pay back her mother but surely her mum would be able to understand she's unable to pay the full amount back at the mo?

If she desperately needs the money then maybe a Social Fund loan would be helpful, but like someone said they only lend upto £1500

~Brock~

Any reputable lender will not lend to anyone on income support, and this will only get worse when the OFT's irresponsible lending guidance kicks in.

All this debt seems a big price to pay for a bit of independance. Would it not be easier on both of them if she moved back in with mum and pooled resources?

Fiddlestick

carlbcfc wrote: »

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.

It's unfortunate that she is in this situation, but can she not move back in with her mother?

State benefits are designed to give someone an utter minimum standard of living and are not there to service debt - us taxpayers are already funding the nation's debt as it is!

Taking on more debt to fund the initial debt is really not a good idea, especially when your personal circumstances (i.e. being on benefits) suggest that any rate offered is going to be sky high.

Other than wanting "independence", is there any reason why she cannot swallow her pride and move back in with her mother?

You say the mother lost her job, so can she not look after the kids whilst her daughter tries to get a job and kill two birds with one stone?

Angela84

I dream of the day I can pay off my catalogue and my 2 overdrafts, but sadly in my situation that is a luxury.
I know interest rates on catalogues are stupidly high, but surely her overdraft can wait till the future when she has a job maybe? She's not a risk of missing payments on it, so why try to clear it right now?

I'd suggest she just gives her mum £100 a month back, my mother wouldn't be pleased knowing I took out a loan to pay her back, and have to struggle with repayments, and risk ruining a perfect credit history.

Hope I haven't caused offence, this is just my thoughts.

the_insider

I think that's the best advice Angela, the £100.00 a month toward a loan with interest would be better going to her mother. Or even £50.00 and save the other £50.00 for all the other things she needs. OP, I would suggest your friend visits the Debt Free Wannabees, she can get some advice on minimising her expenditure.

verystupidwithmoney

Please advise her to not do this. It will end in tears, sorry to say. Be a real friend and make her seek proper help and not burying her` further.