Budgeting Loan to help clear Debt?

SimIsOnTheUp

Hi,

I have a £500 'PayDay loan' which is due to be repaid in 2 1/2 weeks time, and I'm so worried as I won't be able to clear it. I certainly won't be able to afford to extend the loan either.

Realising I've been silly, I've also been struggling with mental health and addiction issues. I've not been thinking too clearly, and am now trying to put this right and clear this loan as they'll only pile on the charges and it'll escalate.

I'm on ESA, and have just checked with the DWP, who have confirmed that I am eligible for a Budgeting Loan.

My query is for anyone on here who's applied for a Budgeting Loan from the Social Fund - Regarding the SF500 form (which I've requested to be sent to me from the DWP) - I'm going to tick the box on the form that says 'for HP and other debts'..

But should I then specify what the debt is I'll be clearing on page 8 - 'Other Information' box?

While I want to be honest, I also don't want to trip myself up at the first hurdle. Will the DWP consider the PayDay loan as a 'proper debt' that they'd help clear?

Also, should I state on the form the amount I'd be repaying per week to the PayDay loan company, under the 'money you have to pay out' section or leave this blank too?

I really need some help here, but I'm also worried that the Social Fund might turn me down as I already owe them about £600 in Crisis Loans from last year (due to DWP delays with my claim).

Any advice would be most appreciated.

Thanks,

Sim.

Jowo_2

Post your debt related problems on the Debt Free wanabee board and they will tell you your options in how to handle it without having to take out a third loan to help pay off the previous ones.

SimIsOnTheUp

Jowo wrote: »

Post your debt related problems on the Debt Free wanabee board and they will tell you your options in how to handle it without having to take out a third loan to help pay off the previous ones.

Thank You.

I've now posted on the DFW board too.

However, I was hoping for some specific advice regarding how to complete the Budgeting Loan form, hence I posted here.

I realise I shouldn't think of taking out a further loan to pay off an existing loan, but the Social Fund is going to work a LOT cheaper to repay than accruing any extra charges from Money Shop, that's for sure!

Any advice would be appreciated.

Thanks again,

Sim.

BASFORDLAD

why should the public purse cover your irresponsible spending?

karenx

I doubt you will get much to cover the loan as you already have debt with the social fund.

KimYeovil

You don't need to provide details, just tick the appropriate boxes in the list of what you want it for. Note that the maximum amount for a single person is about £340. (Not affected by the £600 crisis balance (if it is just crisis and not budgeting.))

You will not receive it within two-and-a-half weeks, though.

It should not affect your repayment amount - crisis and budget loans are usually paid off serially one after the other, not together.

SimIsOnTheUp

KimYeovil wrote: »

You don't need to provide details, just tick the appropriate boxes in the list of what you want it for. Note that the maximum amount for a single person is about £340. (Not affected by the £600 crisis balance (if it is just crisis and not budgeting.))

You will not receive it within two-and-a-half weeks, though.

It should not affect your repayment amount - crisis and budget loans are usually paid off serially one after the other, not together.

That is most helpful Thank You.

My outstanding balance to the Social Fund is indeed for past Crisis Loans and not the Budgeting Loan from over two years back (99% certain), so it sounds like they may well approve it?

I will tick the relevant boxes and keep it simple.

It is a relief to hear that it should not affect my repayment amount!

Should I ask for £500 or £340?

One last thing, do you know approx how long Social Fund take to process it?

Many Thanks,

Sim.

AsknAnswer2

£348 is the maximum budgeting loan for a single person.

SimIsOnTheUp

AsknAnswer2 wrote: »

£348 is the maximum budgeting loan for a single person.

Thanks for the info.

Very helpful to know!