Loan on benefits

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  • calleyw
    calleyw Posts: 9,824 Forumite
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    Putting aside the question about consolidation loans. You are better off asking the question about effecting benefits on the benefits board.


    As its complicated depends if you are on income related benefits or universal credit etc etc.


    Yours


    Calley x
    Hope for everything and expect nothing!!!

    Good enough is almost always good enough -Prof Barry Schwartz

    If it scares you, it might be a good thing to try -Seth Godin
  • elle_may
    elle_may Posts: 396 Forumite
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    I have been on benefits for a number of years due to husband being disabled.We have had quite a few loans olso over the years. We have had dwp checking up a few times and been informed as long as it is a loan, and not savings, to be paid back it would not impact on our benefits. Why do people think nobody would lend to to people on benefits.We have never been turned down for a loan and get good apr's. from banks. I would take heed from people if this is right for you but to answer your question, in my experience no a loan does not impact on benefits as it is not earned income.
  • Craig1981
    Craig1981 Posts: 769 Forumite
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    OP, what you should be asking yourself is why you have racked up the debt in the first place, as you may need some budgeting advice ongoing as well.

    i strongly suggest that you cancel your cards once they are cleared to avoid spending on the again, and winding up with £20k of debt in the near future - all too easy to do
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
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    Craig1981 wrote: »
    i strongly suggest that you cancel your cards once they are cleared to avoid spending on the again, and winding up with £20k of debt in the near future - all too easy to do

    Best advice yet.
  • sourcrates
    sourcrates Posts: 28,878 Ambassador
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    Another alternative if your a low earner, instead of trying to borrow your way out of debt, which very rarely works by the way, is a debt relief order, do some research, see if you qualify.

    Consolidation is just another step in the debt dance before you seek proper help, we see it everyday on these boards sadly.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • 20aday
    20aday Posts: 2,610 Forumite
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    I can speak from bitter experience in terms of consolidation loans and not addressing the real problems, to the point I ended up in a fee paying debt management programme.

    Have you completed a Statement of Affairs, which can be found here: http://www.stoozing.com/calculator/soa.php

    If you post the above SoA in the Debt Free Wannabe forum some excellent advice about where you can save money is often given out.
    It's not your credit score that counts, it's your credit history. Any replies are my own personal opinion and not a representation of my employer.
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