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Loan for person on benefits
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DiscoDoctor
Posts: 7 Forumite
in Loans
Hey Guys
I am looking for a small loan of possibly £5000, I am on DLA and Jobseekers and a local housing tenant. But i have had problems trying to get a decent loan. I have had contact with (Un)Welcome finance but i dont know as the apr is through the roof and i dont know where to turn. The money is needed for some outstanding debts and a possible holiday.
Any advice?
Disco
0
Comments
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You owe money already, and want to borrow more to spend on a holiday.
You should never borrow money to pay off money.
Would you lend money to yourself in that scenario, with no security or collateral?0 -
Never borrow for a holiday and don't touch Welcome, they are part of Provident and will charge up to 69% apr.The "Bloodlust" Clique - Morally equal to all. Member 10
grocery challenge...Budget £420
Wk 1 £27.10
Wk 2 £78.06
Wk 3 £163.06
Wk 40 -
Do you have a local credit union? If you do, it may be worth joining them. the APR will be a lot lower, and they will look at your case as an individual, not just another number. You may not get the full amount you are asking for, but they will definitly steer you clear of the sharks.
Have a look into it (and they are regulated by the FSA, just like the big guys!)
Regards0 -
Is your Jobseekers income based? If so, and you have been receiving it for at least 26 weeks, you could apply for a budgeting loan for your outstanding debts. The loan would obviously not cover a holiday but is interest free.
Further info on https://www.dwp.gov.uk
HTH0 -
Our HA offers loans to tenants at decent APRs. I havent used them so am unsure of procedures etc.
PP
xxTo repeat what others have said, requires education, to challenge it,requires brains!FEB GC/DIESEL £200/4 WEEKS0 -
nomoneytoday wrote: »
Would you lend money to yourself in that scenario, with no security or collateral?
I love this comment; it’s what I think.....this isn’t a dig at any one person(especially DiscoDoctor) but a lot of people need to be educated about lending at school or college. In my world No income + other debts does not = Northern Rock loan at 6.3%!!!
When I talk to people about borrowing my advice is to be realistic, either take the hit on the APR set by the lenders ( they set it for a reason and not for fun!) or don’t borrow from anyone. :cool:
At the moment the BoE rate is 5.25% - Lenders will lend at 6%-10% only to people they know will repay, they take no chances as margins are too tight. :think:0 -
Hey guy
Right to answer your questions, I am on income based JSA and i get middle rate DLA. My debts are mainly to Scottish power. which is going up into the near £2000 mark (yes i know it shocking) all i wanted was possibly £3000 max to pay all of it off and also that wee bitty extra for a holiday. Now as it goes on my ability to pay I can. But where i am staying just now the credit from a another person is really peeved me off to be polite. and i am being annoyed for outstanding debt that arent mine.
So in short i want to be honest but the banks wont. As for my LCU, i am aware of the credit union.. i am looking into them.
Penny Pincher, I used my allocation up towards a much needed new bed..
Disco0 -
Have you spoken to scottish power about payment plan or having a pre-payment meter fitted?The "Bloodlust" Clique - Morally equal to all. Member 10
grocery challenge...Budget £420
Wk 1 £27.10
Wk 2 £78.06
Wk 3 £163.06
Wk 40 -
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DiscoDoctor wrote: »Hey guy
Right to answer your questions, I am on income based JSA and i get middle rate DLA. My debts are mainly to Scottish power. which is going up into the near £2000 mark (yes i know it shocking) all i wanted was possibly £3000 max to pay all of it off and also that wee bitty extra for a holiday. Now as it goes on my ability to pay I can. But where i am staying just now the credit from a another person is really peeved me off to be polite. and i am being annoyed for outstanding debt that arent mine.
So in short i want to be honest but the banks wont. As for my LCU, i am aware of the credit union.. i am looking into them.
Penny Pincher, I used my allocation up towards a much needed new bed..
Disco
Can I pick up on a couple of points?
Is all the £2000 Scottish Power debt yours or are you saying it is partly to do with a previous tenant?
The other debts which aren't yours why are they hassling you? As long as you have no financial connection then get the CAB to write to them and tell them they are not yours and to cease the harassment.
I wouldn't advise borrowing to pay Scottish Power, try and agree to a repayment that covers current usage plus a bit towards the debt.
Also does your disability cause you to use extra energy? For example additional heating or electricity for laundry? If so you can claim for an increase in benefits to offset the additional usage. Make sure you are getting all your entitlements.
Lastly, as for a holiday look on the travel board, watch for The Sun £9.50 deals, or convert Tesco club card points to deal vouchers, or ask for advice on there from the regulars who will find you a break for less than £1000. You really don't want to incur further debt just to get away.I have a cunning plan!
Proud to be dealing with my debts.0
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