ESA moving to UC credit card debt

Caterpillar1

Edit: Forgot to add, the credit card is in my mums name, as I couldn’t get one, so she said I could put it on hers. Does that make a difference? I can show if needed it is my debts, not hers.

I am looking for some advice really on what is the best thing to do, as I don’t want to get into trouble and not sure of the rules.
So I am currently on Income based ESA (support group) and due to move over to UC in March.
I have credit card debt of about £2000, it is not a 0% and last month I had to pay an extra £64 in interest on top of a payment. So I am wanting to pay it all off as soon as possible.
I have 2 accounts my current (where my benefits are paid into) and a savings account. I have under £6k in total. If I paid off all my credit card from my savings account, (have £2000 in it) before I move over to UC will I be in trouble? As far as I know you can do that on UC but not ESA. I would prefer to pay it off before as I would like to move over to UC with just 1 account to make things simpler, to keep an eye on.
So can I pay off in full or would it be just better to pay off say £200 instead a month?
It’s just when I have to have a review at some point they may ask where the £2000 went and say that wasn’t allowed.

HillStreetBlues

Caterpillar1 said:

I am looking for some advice really on what is the best thing to do, as I don’t want to get into trouble and not sure of the rules.
So I am currently on Income based ESA (support group) and due to move over to UC in March.
I have credit card debt of about £2000, it is not a 0% and last month I had to pay an extra £64 in interest on top of a payment. So I am wanting to pay it all off as soon as possible.
I have 2 accounts my current (where my benefits are paid into) and a savings account. I have under £6k in total. If I paid off all my credit card from my savings account, (have £2000 in it) before I move over to UC will I be in trouble? As far as I know you can do that on UC but not ESA. I would prefer to pay it off before as I would like to move over to UC with just 1 account to make things simpler, to keep an eye on.
So can I pay off in full or would it be just better to pay off say £200 instead a month?
It’s just when I have to have a review at some point they may ask where the £2000 went and say that wasn’t allowed.

You're thinking of Deprivation  of Capital, and that only applies if a person has over £6k capital on working age income related benefits such as ESA or UC
As you are under £6,000 you can do whatever you wish with your money.

Caterpillar1

Ok so it’s still ok to pay it off on ESA as opposed to UC as I know they have different rules about paying off debt.
i have just edited my post, as i had forgotten to mention the credit card is in my mums name, but it is my debt. Do you know if that makes a difference? (can prove it is my debt to them if needed, not my mothers)

poppy12345

Capital of less than £6,000 is ignored regardless of which means tested benefits you’re claiming. 

HillStreetBlues

Caterpillar1 said:

Ok so it’s still ok to pay it off on ESA as opposed to UC as I know they have different rules about paying off debt.
i have just edited my post, as i had forgotten to mention the credit card is in my mums name, but it is my debt. Do you know if that makes a difference? (can prove it is my debt to them if needed, not my mothers)

Under £6k you can just give it to your mother, you can give it away to anyone, you could even burn  it as it doesn't increase your entitlement to the income related benefit.
There are different rules ESA is suppose to be when due, but UC can pay off anytime, but as stated above it doesn't affect you.