Budgeting loan advice needed please?

Fading_Star

Hi all,

I'm asking this question on behalf of a friend. She recently applied for a budgeting loan of £500 - her limit was more but she still owed some from a previous loan. She's had a letter saying that her application has been accepted, and that she'll have to pay back £8-something a week. She's already paying back £8 something a week from the previous loan. So she wants to know, will she be paying £16 a week, or will she pay the £8 till the other one finishes, then start paying the new one....if that makes sense?:P I said I'd see if anyone on here had experience of the same thing and could advise....hopefully someone will know! Thanks a lot for reading and in advance for replies

welshmoneylover

Fading_Star wrote: »

Hi all,

I'm asking this question on behalf of a friend. She recently applied for a budgeting loan of £500 - her limit was more but she still owed some from a previous loan. She's had a letter saying that her application has been accepted, and that she'll have to pay back £8-something a week. She's already paying back £8 something a week from the previous loan. So she wants to know, will she be paying £16 a week, or will she pay the £8 till the other one finishes, then start paying the new one....if that makes sense?:P I said I'd see if anyone on here had experience of the same thing and could advise....hopefully someone will know! Thanks a lot for reading and in advance for replies

She will be paying back £16 a month on her interest free loan.

Fading_Star

welshmoneylover wrote: »

She will be paying back £16 a month on her interest free loan.

Thanks for your reply, I'm a little confused though....do you mean £16 a week? The reason she's asked me to ask is if it's £16 a week, thats a lot for her to miss being as she's on a very low income. I had a quick look on a site (forgot which one) but remember reading that they cap it at 10% of your income? £16 would be more than 10% of her income which is why she is unsure of whether or not to accept.

richard9991

Fading_Star wrote: »

Hi all,

I'm asking this question on behalf of a friend. She recently applied for a budgeting loan of £500 - her limit was more but she still owed some from a previous loan. She's had a letter saying that her application has been accepted, and that she'll have to pay back £8-something a week. She's already paying back £8 something a week from the previous loan. So she wants to know, will she be paying £16 a week, or will she pay the £8 till the other one finishes, then start paying the new one....if that makes sense?:P I said I'd see if anyone on here had experience of the same thing and could advise....hopefully someone will know! Thanks a lot for reading and in advance for replies

she will continue to pay £8 pw then when that loan is paid she will then pay £8 pw to start paying the second loan you only ever pay one loan at a time.

tcr_3

richard9991 wrote: »

she will continue to pay £8 pw then when that loan is paid she will then pay £8 pw to start paying the second loan you only ever pay one loan at a time.

You're correct.

AsknAnswer2

The social fund can only collect on one loan at any given time. Once her current loan is finished, they will initiate recovery of the current loan.

Fading_Star

AsknAnswer2 wrote: »

The social fund can only collect on one loan at any given time. Once her current loan is finished, they will initiate recovery of the current loan.

I thought that was the case, but just wanted to double check, so thankyou everyone!

welshmoneylover

AsknAnswer2 wrote: »

The social fund can only collect on one loan at any given time. Once her current loan is finished, they will initiate recovery of the current loan.

I didn't know that, I apologise for giving out duff info