Loan on universal credit?

Emma0021

Looking for some advice as it’s not stated, but I was made redundant while pregnant last year, so I signed up for UC, as we wasn’t sure how much we was going to get we took out a loan, quite a bit to consolidate our other debts, and make sure it all comes out in one place, what we had spare helped with baby items and a funeral cost, I spoke to my work coach before hand when I first met them and they said it shouldn’t be a problem, but I’ve just had my yearly review and they asked to see everything, just wondering if it is an issue or not?

We don’t have the money anymore so it’s all gone and used to consolidate.

Thanks for your help

WhenIam64

What was the loan secured on? Did it have the effect of reducing your capital to within certain limits?

huckster

Confused !

Who provided the consolidation loan ?

Universal Credit provides advance payments, which on a new claim is a new claim advance which can be repaid over 12 months through your Universal Credit claim. If the advance cannot be repaid through the UC claim, because for example earnings are too high to receive any UC payment, then the advance amount outstanding will be sent to DWP Debt Management.

When you say, they want to see everything at a yearly review, what are they asking to see ?

Job Centres can arrange what is called Personal Budgeting Support, but as far as I understand this, it is purely information about how to manage your household finances while on UC.

WhenIam64

Job Centres can arrange what is called Personal Budgeting Support, but as far as I understand this, it is purely information about how to manage your household finances while on UC.

It is - as it is core to running things whether you are on UC or not. PBS can also be a gateway to grants and better terms for utilities and such like,

sportsarb

I think the maximum you can get on an advance is somewhere towards £1350, I stand to be corrected on that, but unless you had £5500 at any point then I don't see why the work coach would be interested in anything regarding this.

It is, as suggested above, probably just a meeting to help with budgeting.

Emma0021

Thanks for the replies everyone, I got a loan through the bank as my other loan and my partners was on it, so basically we’ve combined this loan as one, it’s cheaper for us to pay it back, and used the rest of the money to pay off our store cards and credit cards, and the help with funeral costs
Like I’ve said it’s all been used so we haven’t kept any of it,

huckster

Probably a misunderstanding by the sounds of it. Perhaps it was thought that your financial situation might have changed, when you have just taken out a Bank loan to pay off various outstanding debts.

Just take with you all the relevant documents to any appointment you have and this should enable your position to be clarified.