Budgeting Loan?

Leigh73

Hi,

Does anyone on here know anything about the DWP's 'Budgeting Loans'?

I've been on Income Support since early December 2007, and I'm led to believe that you had to have been on IS for 26 consecutive weeks, to be eligible to claim. Is this correct?

I was on IS some of last Summer, but then this stopped, when I started working P/T.

So, obviously, there was a 'gap' between claiming IS in the Summer, and then when I started claiming again in December.

My question is, how strict are the DWP, when it comes to their definition of 'consecutive'?!

I'd like to apply for a 'Budgeting Loan' but I doubt they'd allow it, as I've 'only' been in receipt of IS for 17 weeks. Do they sometimes take into account the IS claim from an earlier time?

Many Thanks

Night night

Leigh.

dmg24

They will allow for gaps in your claim, but only up to 28 days at a time. There is more information available here.

Leigh73

Many Thanks dmg.

It looks like they wouldn't class the earlier period of IS claiming then.

Never mind!

I've just worked it out, and I've been claiming IS for 19 weeks.

If eligible, and if I can not find work, after 26 weeks, I would like to apply to the DWP Social Fund and apply for a Budgeting Loan.

I am looking for help with buying a second hand car.

I realise that this sounds like a want and not a need etc, however, I live a very rural area, with no buses, and I've been spending money I just don't have on Taxi's.

I desperately need a cheap motor!

The only way I'm going to be able to borrow the money for this, without going to a 'loan shark' is through the DWP.

Would they lend money, to help buy transport though?

I reckon they'd see it as a 'luxury' even though I need this to help me get back on my own two feet again, and to get back into work!

Apparently, my local JobCentre Plus is part of the new 'Pathways to Work' scheme as of the 28th April, so I'm hoping they might be able to help with this, and with looking for work.

Any advice would be most appreciated.

Kind Regards,

Leigh.

dmg24

I don't know to be honest, I know they will loan funds for travel expenses when using public transport, but I'm not sure about funding private transport.

You also need to consider the costs of running the car, which may be more than the initial cost of the car itself!

I know that some Pathways providers offer driving lessons, so it may be possible to secure some funding for a car through them.

Hopefully someone will be along in the morning that knows a bit more, if not give the JCP a ring on Monday for more information x

Leigh73

Thanks dmg.

I'll look into this more on Monday!

Thanks for the helpful link too re the DWP info.

Must get to bed!

Night

Leigh x

Ice_2

if they don't and I have a feeling they wont then try black horse its a partner of TSB bank they do loan's which you can pay back over 1-5 years and get yourself a better car...still second hand but just a better second hand one if you get what I mean...they are based in Darlington I think and if accepted you'll get it into your account within days...I got a £1000 off them and paid it back over a year at £101 amonth so I paid £212 more within the 12 months which was there interest for lending it me...then I could go on to bigger loans if I wanted to once I had built up a good credit report with them...but after that I didn't need to get anymore...be aware though that they will pester you to take out another one once the 1st is paid off...:D

http://www.blackhorse.co.uk/

Leigh73

Hi Ice,

Thanks for the info.

However, did you not read that I'm on Income Support?!

I'd love to think I'd be accepted, but there's no way they'd accept me on IS surely?!

Were you on benefits when you applied to 'Black Horse'?

Also, my credit rating is pretty awful!

When I say awful, Equifax - shows 1 Satisfied CCJ from a year ago; 1 Unsatisfied CCJ which will drop off in September of this year; 1 default (drops off Jan '09); It is improving though, as I now have a new O2 contract since December last year paid on time each month, and a Co-op basic current a/c, again showing lots of nice, healthy [0]'s!

Experian on the other hand I think shows 3 defaults, the same CCJ's, but also a (Discharged) Bankruptcy which will drop off in Jan '09.

Other than this credit rating problem, I have no debt, obviously very little income (£220 per month), but I'm desperately in need of a car, so I can look for better jobs further afield!

Is it really worth trying this Black Horse firm 'Ice'?

Many Thanks

Leigh.

Leigh73

Ice wrote: »

if they don't and I have a feeling they wont then try black horse its a partner of TSB bank they do loan's which you can pay back over 1-5 years and get yourself a better car...still second hand but just a better second hand one if you get what I mean...they are based in Darlington I think and if accepted you'll get it into your account within days...I got a £1000 off them and paid it back over a year at £101 amonth so I paid £212 more within the 12 months which was there interest for lending it me...then I could go on to bigger loans if I wanted to once I had built up a good credit report with them...but after that I didn't need to get anymore...be aware though that they will pester you to take out another one once the 1st is paid off...:D

http://www.blackhorse.co.uk/

Just looked at their site.

I'm very wary of taking on any debt, but I am tempted to apply, as over 2 years, the repayments work out at £54 a month I think, and I could just about afford that.

Saying that, I'm not sure that this would be a good idea committing to a loan until I'm working I've got a much better steady income of my own!

Even if I was working though, they wouldn't lend to me, given my credit rating would they?

Must get to bed!

night night,

Leigh

shazrobo

some places do offer loans to people on income support, i got a loan for my car, which i saw as a necessity having two kids with special needs, public transport wasnt really an option.
however make sure you can afford to pay it back, they are not cheap to run,

shelley_uk

The DWP are strict with the 26 continuous benefit rule, they will return the aspplication stating you do not qaulifyDo you know of the Community Care Grant ? This is from the same DWP pot but does not have to be repaid and the 26 rule does not apply. It exists mainly for those leaving care (eg prison, hospital, hostel) But it is also available to those who would have exceptional pressure eased from their household if they received the grant.....this is where most applicants apply under. There is too much info to provide you with what items can and can not be applied for but if you were to list neccessary household items such as bed cooker fridge etc they will normally pay out. You do not have to prove where the money will be spent but to stand a better chance always list the item cost as basic (low) as poss.

dmg24

Please be careful with Black Horse. They are likely to offer you an interest rate of 40%+ (the rate given on the website is only an example, but even that is 27.9%).

There is a helpful leaflet available here detailing the different types of funding from the Social Fund.

I wonder if the JCP would accept an application for funding to be paid once you reach 26 weeks? If it takes them, say, four weeks to process the application anyway, then you won't be far off 26 weeks by then x