Budgeting Loan?

Leigh73

shazrobo wrote: »

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,

Hi shazrobo,

Thanks for the info.

Do you mind me asking, which company you approached for a loan while you were on IS?

I have thought long and hard, as to whether or not I can afford to run a car. I can, as my outgoings are minimal, due to living back with family temporarily.

So, any pointers as to which company to approach, would be most appreciated.

Thanks again

Leigh.

Leigh73

shelley_uk wrote: »

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.

Thanks Shelley,

I thought that the DWP would be strict regarding the 26 week rule, which is fair enough.

I have 7 weeks to go, before that is up!

Thanks for the info re the Community Care Grant, however I've already applied for this as of the 2nd April. I called the DWP last week, and it appears that they're still 'processing' forms dated 10th March! :rotfl:

So, it looks like I have to give them another 3 - 4 weeks to catch up..

On the CCG form, I asked for help with buying a second hand car, due to having to get to see my counsellor / G.P. / alcohol support group, and explained to them that I've been relying on Taxi's, and that there are no buses..

I don't hold out much hope with this application though, and I have a bad feeling I might have to borrow.

I am determined to get back on my own two feet though, and if that means borrowing in the short term to help me keep healthy and find work, then so be it.

In hindsight, I wish I'd told the DWP that the money was for, as you put it, 'necessary household items' ie - cooker, fridge etc, but I thought it best to be honest.

We shall see.

In the meantime, I'm racking my brains just as to how on earth I can raise the money for a cheap motor! :cool: In fact, I saw an ideal car on Friday, parked up for sale; a Honda Accord, P reg ('96), very good nick, with 10 months MOT and Tax..for £600 ono, so I probably could've haggled him down to £500.

They've been rated by 'Warranty Direct' as the most reliable car of the last decade. Obviously, I'd have to have a proper look, and well, it would help to have to money first!

Thanks again Shelley,

Leigh.

Leigh73

dmg24 wrote: »

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

Thanks dmg.

I am sorely tempted to try Black Horse anyway, as I desperately need transport, to move forwards with my Life.

Do they really help people on benefits though?

40% sounds ridiculous, so I'll hope that the DWP come through, wither with the Community Care Grant, or (more likely) the Budgeting Loan, which I can apply for in 7 weeks time.

By that time, I'm confident that I'll find a half-decent job too! :T

Thanks again dmg,

Leigh :beer:

dmg24

Black Horse will lend to anyone, to me they are little better than a doorstep loan shark.

One particularly bad example I know of they lent to someone with no income (he was just out of prison) and a terrible credit report. The APR was over 40%, and they insisted that he took out payment protection in case he lost his job (they knew he didn't have a job!). The payment protection was half of the loan amount again, and if he wanted to pay off the loan early he would have had an almighty early repayment charge (even though he had told them he would be able to pay it back within a few months!).

Is there any chance of a family member lending you the money? You can pick up an older car for a few hundred pounds until you can afford something better - so if you paid them back £50 a month you could pay them back within six months? x

shazrobo

Leigh73 wrote: »

Hi shazrobo,

Thanks for the info.

Do you mind me asking, which company you approached for a loan while you were on IS?

I have thought long and hard, as to whether or not I can afford to run a car. I can, as my outgoings are minimal, due to living back with family temporarily.

So, any pointers as to which company to approach, would be most appreciated.

Thanks again

Leigh.

got my car from car people not sure off the top of my head what the interest rates are, but i knew i could afford the monthly fee.
since then the bank, halifax, has offered me personal loans, presumably cos of good credit rating

shelley_uk

HiIt is very unlikely they will allow a grant for a motor. If / when they refuse you are entitled to complete a new application straight away as long as it is not for the same item previously requested....so you could make a new one for....say..... household esstentials !Otherwise it will be a social fund loan when your 26 weeks is up. Keep the following mind when you apply1 They only have so much in the pot and have to prioritise the claims. Priority is decided on emergencies, What items are required ,how long the person has been on benefits, how much they have already borrowed, if they are disabled, and if they have young children in the householdDont forget There are alot of charities with money to spare, you can find details of local ones in your library (ask for the directory of grants for individuals in need )..Different charities require a different criterias eg where you live, parents previous occupations, some are even just available for being a female. !you will be surprised just how many there are.....i suppose its their way of avoiding the tax man!!Anyway...hope this helps and good luck with the recoveryHope this helps

dmg24

shelley_uk wrote: »

HiIt is very unlikely they will allow a grant for a motor. If / when they refuse you are entitled to complete a new application straight away as long as it is not for the same item previously requested....so you could make a new one for....say..... household esstentials !Otherwise it will be a social fund loan when your 26 weeks is up. Keep the following mind when you apply1 They only have so much in the pot and have to prioritise the claims. Priority is decided on emergencies, What items are required ,how long the person has been on benefits, how much they have already borrowed, if they are disabled, and if they have young children in the householdDont forget There are alot of charities with money to spare, you can find details of local ones in your library (ask for the directory of grants for individuals in need )..Different charities require a different criterias eg where you live, parents previous occupations, some are even just available for being a female. !you will be surprised just how many there are.....i suppose its their way of avoiding the tax man!!Anyway...hope this helps and good luck with the recoveryHope this helps

shelley_uk, MSE is not about suggesting people commit fraud, which is what you are doing by telling the OP to lie on their application. If such an act was discovered, at best it would impede any future application, at worst it would lead to a criminal conviction.

Ice_2

black horse are ok if you don't miss any payments you can also have a holiday period of 1 month with them...I only wanted £1000 which is what I got...but a friend of mine who was on IS got a £1000 to although she wanted more they started her off with a £1000...she also had a poor credit rating but once you have paid it off they offer you more you have to gain there trust that you will pay it back then you can build up your credit rating with them...but I would only go with them as a last resort really...as I have heard some horror stories about them...also try the joseph roundtree foundation used to be based in york I think they are a charity who help people down on there luck...also try for the social fund grant as you don't have to pay that back you can get up to £1000 with that...good luck with it all and hope this helps...Ice:)

Leigh73

Many Thanks all.

Thanks Ice, for the info.

I've decided to see if I can get some help from the DWP first.

Failing that, I *might* go with Black Horse..as you say, as a last resort.

How bad was your friend's credit rating, if you don't mind me asking?

I don't want to be paying any interest if I can help it, so it looks like a DWP Community Care Grant or the Budgeting Loan is the best way to go!

Thanks again,

Leigh.

Leigh73

Ice wrote: »

black horse are ok if you don't miss any payments you can also have a holiday period of 1 month with them...I only wanted £1000 which is what I got...but a friend of mine who was on IS got a £1000 to although she wanted more they started her off with a £1000...she also had a poor credit rating but once you have paid it off they offer you more you have to gain there trust that you will pay it back then you can build up your credit rating with them...but I would only go with them as a last resort really...as I have heard some horror stories about them...also try the joseph roundtree foundation used to be based in york I think they are a charity who help people down on there luck...also try for the social fund grant as you don't have to pay that back you can get up to £1000 with that...good luck with it all and hope this helps...Ice:)

Hi again,

Out of interest, just to see what they'd say, I applied online to Black Horse Finance...

They texted me about 10 minutes later, followed by a phone call to both my mobile AND landline another 10 minutes later! Do you think they're keen for custom? :rolleyes:

Anyway, I called back, and as soon as I explained that my only income was 'Income Support', they said it would be a straight NO. Why on earth did they hound me, after I'd put the very same info on the online form?!

The fact that I've been declined, is probably a blessing in disguise though..

My next (and probably far more sensible) option is to wait and apply for a Budgeting Loan with the DWP. The annoying thing is, that I can't apply for another 7 weeks..

Thanks for all your help,

Leigh x