Personal loan

sarahH1979

Hi I've spent all evening on the Internet searching this question up but cannot find an accurate answer. 
I'm moving housing in just over a weeks time due to the area I'm living in is not longer safe for me and my daughter. The problem I've got is that my rent will be higher than what I'm paying now but it's a small price to pay to move away. I've spent weeks looking into money going out an seeing how I can cut back. 
I've applied for a loan for £2100 to consolidate debts I have on store cards an catalogues ect. The lone will cover my debts an leave me with £400 to use towards the deposit for the new home. My big worry is that loan has been accepted and already paid into my bank but will this affect my housing benefit as it will show in my bank. 

calcotti

The loan is treated as capital. Capital is ignored if your total capital is not more than £6,000.

calcotti

Are you staying within the same local authority? If you are you can continue your existing Housing Benefit claim. If you move to a different local authority you will have to claim a Universal Credit because you will not be able to make a new Housing Benefit claim (unless you receive a disability benefit and are entitled to a Severe Disability Premium).

sarahH1979

Yes I'm staying in the same local authority as I'm actually only moving a couple of streets away. Will I have to tell them about the £2100 loan. I don't have any saving whatsoever an once I've paid the debts from the loan there won't be anything left except the £400. I've gone for the loan as cuts my monthly payments down and then is only one payment per month. Just panicking that I've rushed into it an that now it's in my bank they could stop my housing benefit or tax credits then I'll be in even more of a mess financially. 

calcotti

If the maximum in your account is £2100 you don’t need to tell them.

sarahH1979

Thank you so much for reassuring me. There will be a little bit more than that due to my wage but not much more than that an certainly not even over £3000 especially now I've started to pay the debts off.
I feel much more at ease now and can focus on getting myself debt free 😊

Robbie64

sarahH1979 said:

Thank you so much for reassuring me. There will be a little bit more than that due to my wage but not much more than that an certainly not even over £3000 especially now I've started to pay the debts off.
I feel much more at ease now and can focus on getting myself debt free 😊

Yes, as calcotti posted, if all you have in your account is your loan (and wages) then you don't need to inform the council. It's only if it takes you above £6000 where you would be required to inform HB.

sarahH1979

Robbie64 said:

sarahH1979 said:

Thank you so much for reassuring me. There will be a little bit more than that due to my wage but not much more than that an certainly not even over £3000 especially now I've started to pay the debts off.
I feel much more at ease now and can focus on getting myself debt free 😊

Yes, as calcotti posted, if all you have in your account is your loan (and wages) then you don't need to inform the council. It's only if it takes you above £6000 where you would be required to inform HB.

Thank you so much for your help in reassuring me