Not paying a loan.

merlin68

I've recently lost my carers allowance and dd's dla +xtra tax credit. I am paying for a sofa loan from sfc. I literally haven't got the money to pay it. what happens.

bengalknights

You make an arrangement with them to come to some payment agreement or expect letters calls and a ruined credit record.

merlin68

DLa is for extra expenses, and kids with learning dissablilites have a habit of wrecking stuff.

somethingcorporate

All kids wreck stuff, that's life.

The best you can expect is a ruined credit record.

Poosmate

tomjonesrules wrote: »

So you get a second hand sofa off ebay, in the knowledge that it doesn't have to be perfect because you'll have to replace it in the future anyway. A weeks DLA + carers would have covered the cost.

Sorry but I'm with TJR here.

You seriously need to inform Sfc and come to some sort of payment agreement with them.

Poo

sulkisu

How much do you owe on the sofa? What other income do you have?

[Deleted User]

have you appealed the decision on the dla?

geoffky

10 month waiting list for dla appeals..

MentalMinnie

I have a question...I see people posting regularly that benefits aren't for paying loans, buying cars, home improvements etc. My mum is on DLA, and will be for the rest of her life. Is she therefore not allowed to use the money for whatever she sees fit i.e. if she decides to buy a new sofa?

Tixy

merlin68 wrote: »

I literally haven't got the money to pay it. what happens.

Check out your original paperwork for the purchase/loan.
How much have your repaid so far? how much more have you got to repay? how much longer left in terms of repayments?

How much are your monthly repayments? and how much can you afford now? (the answer isn't nothing by the way, you'll be able to afford something, even if its only a few quid a month).

Depending on the terms of your loan agreement they may be able to take back the sofa (but you'll still be expected to repay quite a lot ofthe loan), or they may not be able to take it back, in which case you'll be expected to repay in full.
They may allow you to reduce your repayments so you pay less each month.

Best thing to do is to work out a reasonable income & expenditure account to see what you have left after paying for essentials (such as food and rent) but before paying for luxuries (sky, entertainment, holidays etc). Then you need to cut back on all non essentials and make an offer at a rate you can afford and hope that they accept it.

If they don't then their options will depend on what type of loan agreement it is, maybe they'll take back the sofa, maybe they'll pass the debt to debt collectors, maybe they'll start court proceedings.