MoneyShop Loan - Can't pay it - DWP Budgeting Loan?

SimIsOnTheUp

Hi,

(I just posted this on the Benefits board, and was advised to post this here...)

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.

SimIsOnTheUp

PS - I realise it isn't 'good form' to take out another loan to repay an existing loan, but I've worked out that it'd be far cheaper each fortnight (deductions from ESA) while I'm looking for a job.

This is going to be better than paying Money Shop £90 a month (or God forbid £190 if I was to repay one of the cheques), just to 'extend the loan' surely?!

Many Thanks.

SimIsOnTheUp

Any ideas pleas guys, as to how to best deal with this Money Shop debt?

Thanks.

BASFORDLAD

Dont expect the public to pay of a private loan

podperson

If you have declared it as a hp or debt then I don't think you would need to specify the company in other information. If they have it down as an option then they must at least consider giving the loans for this purpose.
If they do turn you down could be worth trying your local credit union, they will often give lower interest loans to try and get people out the payday loan cycle.

SimIsOnTheUp

I'll just tick the relevant options.

Thanks for the idea re credit unions also.

Wee_Pilsbury

Hi there

There is no need to be any more specific that ticking the box to say what the loan would be for. No other information is needed about the cause of the debt or to whom it would be paid.

The only thing I would say is that the Budgeting Loan may not be as much as you want. Are you a single person with no children? If so, the amount offered won't be as high as £500. Also, even if you send your form off right away, you will still have to wait to get it processed and then for the offer letter to arrive. After that you would need to wait until DWP have received a signed acceptance from you and then another few days until the loan credits your bank account. I think it would be wise to consider your options with your other creditor because you may not be in a position to clear all that debt by the due date despite the fact that you may get your Budgeting Loan.

Good luck

SimIsOnTheUp

Thank You.

I am single / no kids.

Will be getting form off today, and appreciate I'll have to allow time for it to be processed.

Cheers,

Sim.

Wee_Pilsbury wrote: »

Hi there

There is no need to be any more specific that ticking the box to say what the loan would be for. No other information is needed about the cause of the debt or to whom it would be paid.

The only thing I would say is that the Budgeting Loan may not be as much as you want. Are you a single person with no children? If so, the amount offered won't be as high as £500. Also, even if you send your form off right away, you will still have to wait to get it processed and then for the offer letter to arrive. After that you would need to wait until DWP have received a signed acceptance from you and then another few days until the loan credits your bank account. I think it would be wise to consider your options with your other creditor because you may not be in a position to clear all that debt by the due date despite the fact that you may get your Budgeting Loan.

Good luck

JasX

Ref the below I'd suggest you add evidence you spent the money on stuff from the list below eligible for budgeting loans.... basically because if you can't provide proof and they think its a case of "taking out a loan frittering away the money on god knows what and had no plan how to pay it back and/or now can't pay it back" you won't be getting a penny cause thats not what budgeting loans are for

You may be able to get a Budgeting Loan if you or your partner have been claiming or getting payment of one of the following benefits for at least 26 weeks:

• Income Support
• income-related Employment and Support Allowance
• income-based Jobseeker's Allowance
• Pension Credit

and you need help to pay for any of the following:

• furniture or household equipment
• clothing or footwear
• advance rent or removal expenses for a new home
• travelling expenses
• things to help you look for or start work
• improving, maintaining or securing your home
• repaying hire purchase or other debts you took out to pay for any of the above

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_10018905

SimIsOnTheUp

JasX - Regarding the providing of 'proof', apparently that is not necessary according to the DWP.

Having spoke to them yesterday, they advised me that I did not need to supply 'proof' of where the money had gone at all.

DWP also advised that I did not need to explain anything in the 'further info' section either, and that it just a case of ticking the relevant boxes.

When I explained to them (over the phone) what I needed the money for, the DWP chap checked my records and confirmed that I'd definitely be eligible for the Budgeting Loan.

This was great to hear!

Thanks,

Sim.