Will a loan affect my benefits?

dinosaurs03

Hi all, needed some advice. I’m in an absolute financial pickle and can’t see a way out other than taking a loan out for £1,000, can’t really elaborate too much so I don’t identify myself. Ideally I’d have taken a smaller loan but my bank only start at a grand. 

Some payments have bounced and I need them to go through to be able to support myself and children till benefits are sorted which won’t be until the end of this month, but I’m worried that taking this loan out will affect things like housing benefit, universal credit and accessing legal aid. Does anyone know if it would? Is it a bad idea? 

MattMattMattUK

dinosaurs03 said:

Hi all, needed some advice. I’m in an absolute financial pickle and can’t see a way out other than taking a loan out for £1,000, can’t really elaborate too much so I don’t identify myself. Ideally I’d have taken a smaller loan but my bank only start at a grand. 

Borrowing is never a solution to debt. You are not going to be able to be identified from a few details on an internet forum so do not worry about that.

dinosaurs03 said:

Some payments have bounced and I need them to go through to be able to support myself and children till benefits are sorted which won’t be until the end of this month,

You can ask for an advance on benefits once you have submitted your claim, you can ask for a referral to a food bank for help with food and there will potentially be other short term help available as well.

dinosaurs03 said:

but I’m worried that taking this loan out will affect things like housing benefit, universal credit and accessing legal aid. Does anyone know if it would?

The answer is that it is complicated, it is well under the threshold so it should not, but it may complicate some things rather than make you not eligible. 

dinosaurs03 said:

Is it a bad idea? 

It is almost certainly a bad idea. Have you already taken out the loan, how much would you actually need to get you through to a deadline, have you applied for Universal Credit already etc. ?

Nasqueron

Do you have a job and an actual income (aside from benefits which haven't kicked in yet)?

How will you repay a loan with interest - do you have enough income from benefits + job to cover payments as well as living costs?

Clive_Woody

Forgive my blunt response, but if you have no income then I don't think you are going to be offered a loan.

dinosaurs03

Hi all sorry for delay I was having issues accessing my account. I do have an income, part time salary comes in around £1080. 

I have applied for benefits but don’t have an ID check until next week so I can’t apply for an advance until after that. 

My car insurance is what’s bounced specifically though thankfully not been cancelled yet, car is also due an MOT this month (before I am paid). Collectively that’s just over £100 before fuel.

I don’t even want a grand I just want to be able to pay those bills. My bank only starts loans at £1,000 and didn’t want to go down the payday loan route as I’ve not heard good things about those. Not taken out the loan at this stage. 

I have access to food via vouchers and have fled  DV recently and the entire situation is just a nightmare, if I don’t have my car I can’t take my children to school (not walkable and I don’t know how we would manage it with buses). 

Hope this helps add some context. 

dinosaurs03

And sorry the benefits I’m referencing are universal credit. 

Altior

Children involved, you might be able to obtain a grant:

Turn2us Grants Search

Or utilise your local council's welfare assistance scheme.

fatbelly

I agree it's pretty important to keep your car insurance valid.

Are there some things you could avoid paying for a month that wouldn't be illegal and don't charge interest? Water, gas, elec come to mind

dinosaurs03

Thanks Alitor for the link that was helpful. 

Fatbelly, I’m not paying out for any of those thankfully and it’s covered where I’m staying. I need to speak to the bank r.e mortgage as I’m not living there at the moment and can’t cover my half going forward and that’s where I went wrong this months pay, left us very short.