Personal bank loan with universal credit

160990sl

So before me and partner where on uc, I had debts of £6000. Now we have been on uc for a year now, I want to consolidate all my debt so it’s one monthly payment. Just wondered with a personal bank loan does this affect uc and count as income?

Thanks in advance

Sncjw

No chance.

Think of this you will be asking for more money on a low income. Your struggling to pay now. The banks will think you are doubling your debt actually you are. There is no garuntee you will use it to pay off debts. Also the apr will likely be higher even if you get approved.

Say you have 6k now and want another 6k that’s 12k. I very much doubt you get more than 12k in benefits.

mcpitman

You don't have enough income for that sort of loan.

How did the debts accrue?

160990sl

Nationwide have approved it in principle once I sign it off. Due to car finance/ credit card.

foxy-stoat

160990sl wrote: »

Nationwide have approved it in principle once I sign it off. Due to car finance/ credit card.

Lets hope they decline it or give you a high interest rate, doesn't sound like a good idea to take out this loan.

You already have 2 cards and 2 loans at high rates, you wont be able to get a low rate loan.

Clive_Woody

160990sl wrote: »

Nationwide have approved it in principle once I sign it off. Due to car finance/ credit card.

What APR have they offered you? Will you end up paying back more in total?

160990sl

11.9% apr but credit card like 20%

foxy-stoat

Credit card 1 =£1500 26% monthly payment £45
Credit card 2 =£1500 17% monthly payment £30
Loan 1 = £1972. 25% monthly payments £65
Loan 2 = £1654. 18% monthly payments of £110


^^ from your other thread. If you do get offered the loan then you will save money, but you need to cancel both credit cards and do not take on any more credit until the new loan is paid off. Upto you but we dont want to see you here again in 6 months saying your in double the debt and cant afford to make the minimum payments.

EssexHebridean

Exactly what Foxy-Stoat says above. First step here - before taking the loan IMO - is to put in place a proper household budget and make sure the books balance, If that returns a negative figure rather than a surplus, do NOT consolidate until you have a plan in action for living within your means. Otherwise all that will happen is that your spending will continue unchecked, you still won't have sufficient to meet your outgoings, and the credit cards will get used again.

Think about ALL your annual outgoings - and spread each of them over 12 months. Ensure that the money you budget from each month's income for say, car maintenance, or holidays definitely DOES get put aside so it is there when needed. Start to build an Emergency Fund to cover things like a broken mobile phone that needs replacement, or the fridge dying unexpectedly - then again you;'re not tempted to reach for the credit card when that sort of thing happens.

jonesMUFCforever

How long before we get a thread such as 'Nationwide have taken my benefit money to repay loan - is it legal> Can they do this?'

If OP has genuinely told Nationwide that they are on benefits I would expect the loan offer to be rescinded.

abc.xyz

Honestly, if banks and bsocs are knowingly lending thousands to people whose sole income is Universal Credit, they deserve to never get a penny back.

OP, do what foxy said and close the credit cards as soon as they're paid off.