Conlicting messages regarding savings threshold from loans

ernie99

There seems to be a lot of conflicting messages regarding the savings and loans threshold when on benefits.....i spoke to a senior CAB representative and given this info.....he said it was a confusing question that comes up quite often....he quoted a couple of paragraphs from a reference book...that he said a lot of advisors refer to.....

"A loan to you usually counts as money you possess.However, a loan granted on the condition that you only use the interest but do not touch the capital should not be counted as part of your capital because the capital element has never been at your disposal. If you have been paid money to be used for a particular purpose on condition that the money must be returned if not used in that way, it should not be treated as part of your capital. If you have bought a property on behalf of someone else who is paying the mortgage, or you are holding money in your bank account on behalf of another person which is to be returned to him/her at a future date, the capital should not count as yours. If, when you get a loan, you are under an immediate obligation to repay it, it should not count as your capital"


" A loan that you have an obligation to repay immediately should not be treated as your income(or capital),however it is paid".

I find the whole thing utterly confusing.

dmg24

What is your question?

Vader123

dmg24 wrote: »

What is your question?

Agreed.

Please state your question.

If you have a loan:

1) What was it for?
2) Who gave you it?
3) What is the APR?
4) What happens if you don't repay it?

You need to state your question and circs.

Vader