DWP Budgeting Loan Repayments

Orville

Vader123 wrote: »

If someone is taking a loan and then moaning about the repayments, surely it makes sense to suggest taking less of a loan?

Is it not common sense and very much in the ethos of MSE?

Vader

I think it's the way some people do the suggesting that is the problem here. Especially when the op is only following the advice of an advisor.

Vader123

Orville wrote: »

I think it's the way some people do the suggesting that is the problem here. Especially when the op is only following the advice of an advisor.

"Advisors" unfortunatly don't always know the full facts.

Thats why people post on here. If advisors were that good the benefits board on MSE would be barren.

MSE is used for advice because they contain people who know the system, know the issues and indeed even work in it.

Suggesting taking out less of a loan when repayment rate is questioned is a valid answer.

Vader

dreamylittledream

Sadly Vader you show your own ignorance here.

Social Fund loans have the same repayments rate if you borrow £50 for a crisis loan for some food or £600 on a budgeting loan.

12% of benefit income providing recovery can be complete within 104 weeks (which if you owe nothing is always a shorter period than the max loan permitted for BL debt).

As you so rightly said advisors don't always know the full facts

The only reason payments will be lowered below 12% is if you have additional financial commitments as 12% is deemed to be an affordable deduction from benefit.

What was that you said about advisors not knowing the facts?

Vader123

dreamylittledream wrote: »

Social Fund loans have the same repayments rate if you borrow £50 for a crisis loan for some food or £600 on a budgeting loan.

.....

What was that you said about advisors not knowing the facts?

Fact # 1 The OP needs a loan and is worried about the repayments

Fact #2 Posters have suggested taking less of a loan to help with the burden of repayments.

Fact #3 Posters have shown the OP examples on how to get what she wants for 50% of the money she wants to borrow.

So its 12% regardless of amount borrowed, the fact still remains:

If you borrow less you have less to repay.

Meaning that she pays it off quicker.

Meaning she has less payments to worry about (since she is having worries about the amount taken off her benefit).

Ok, am I on some mind altering drug here that stops me comprehending basic facts?

Vader

Jowo_2

I'm not overly familiar with Credit Unions but my basic research into them show that they offer loans for low income people on relatively low interest rates (compared with high street banks) and that some require the new member to have saved with them for awhile before they grant a loan.

I really don't know how they compare with DWP budgeting loans.

Perhaps the OP can investigate Credit Unions in their local area and come back and let us know if this is a suitable way forward to borrow the £400 required? Their feedback may help other people on the forum in a similar situation that don't qualify for budgeting loans and will be rejected by conventional lenders.

Also, might be worth checking if there are local charity furniture organisations, like the British Heart Foundation, Emmaus and similar, who offer cheap second hand electrical goods. OP, are there any furniture charities in your local area (or further afield as you can drive and collect it)?

dreamylittledream

Budgeting Loans are interest free.

12% repayment rate aside you don't get a better deal on credit full stop