Bit of a Pickle, Family Loan and Pension Credit

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Comments

  • Mojisola
    Mojisola Posts: 35,557 Forumite
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    chunky1972 wrote: »
    The loan has not left Mum without any money.

    If your Mum has more savings above the £20k she has loaned to you, how did she get Pension Credit?

    Did she have an Assessed Income Period during which her savings increased dramatically?
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
    First Anniversary Name Dropper First Post
    So if you are debt free could you not use some money transfer and balance transfer cards to get the £20,000 (less any payments) back. As long as you have enough credit limits you can do the 0% shuffle for a few years and keep the interest rate low or 0, just pay the fees.
  • chunky1972
    chunky1972 Posts: 9 Forumite
    foxy-stoat wrote: »
    So if you are debt free could you not use some money transfer and balance transfer cards to get the £20,000 (less any payments) back. As long as you have enough credit limits you can do the 0% shuffle for a few years and keep the interest rate low or 0, just pay the fees.

    Thank you for the advice, I will try and do that, but I don't think that will happen overnight as I think credit score needs to improve. Im just worried about the DW&P and what they will do in the mean time. Last thing I want is Mum getting into trouble.
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
    First Anniversary Name Dropper First Post
    Well this thread is about how to get a loan for £20,000 - if you have defaults or missed payments or CCJ's then you will struggle to get any sort of cheap credit.

    The best you can do for your Mum is pay her an extra £23 a week until they review her circumstances again, and keep paying her £20K back.
  • chunky1972
    chunky1972 Posts: 9 Forumite
    foxy-stoat wrote: »
    Well this thread is about how to get a loan for £20,000 - if you have defaults or missed payments or CCJ's then you will struggle to get any sort of cheap credit.

    The best you can do for your Mum is pay her an extra £23 a week until they review her circumstances again, and keep paying her £20K back.


    I have no problem doing that at all.

    I apologise if my thread is misleading as I did put too much information on there.
  • Candyapple
    Candyapple Posts: 3,384 Forumite
    First Post First Anniversary Combo Breaker Intrepid Forum Explorer
    If you are working 2 jobs and your partner is also working and all you can afford to pay your mum back is £250pm you need to urgently re-evaluate your life.

    I would advise you starting a new thread over on the DFW board and posting up your statement of affairs.
    https://forums.moneysavingexpert.com/forumdisplay.php?f=76
    http://www.stoozing.com/calculator/soa.php

    The posters over there are really good at going through your budget/lifestyle and finding ways to cut your outgoings.

    Also, instead of working 2 low paid jobs, have you tried looking for 1 full-time job?
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
  • System
    System Posts: 178,093 Community Admin
    Photogenic Name Dropper First Post
    chunky1972 wrote: »
    Desperate measures, as i'm struggling to put a roof over my own house despite 2 jobs. The loan has not left Mum without any money. Believe me I did not like asking and feel awful for it, but if it had left mum short or in financial trouble then I would not of done it. I also help mum out quite a lot, so in case you think i'm some heartless deviant, i'm not.

    We don't think that but you're trying to fix the problem wrong. You're living a lifestyle you can't afford and borrowing £20k doesn't fix that, it just makes it worse and defers the inevitable. All £20k loan does is add another outgoing to the outgoings you had that you already couldn't meet and the only way £20k sorts that is if you don't repay it.

    If you're struggling to put a roof over your head despite two jobs then you're either living a lifestyle you can't afford, living in a house that you can't afford, not good at personal finance or are not earning very much so should consider a change of job. You need to make some actual changes, not just talk about doing so or just going "woe is me". You need to do all those things you think that are pointless "because its only a couple of quid, what difference will it make?" Well £3 a day spent on a Costa or Starbucks is over £1000 a year. That's just one example of "well it's only a few quid what difference will it make" that does illustrate the impact.
  • financegeek
    financegeek Posts: 140 Forumite
    Hi OP and welcome to the board,

    i agree with others who have said to head over to the debt free wannabee (DFW) board to post a statement of affairs. the users over there are super helpful and will be able to identify how you can cut back to reduce your outgoings.

    I have no experience of the DWP and how they assess things, but i think you just need to be honest with them. Are you (or any of your siblings if you have them) money savvy and can sit down with your mum to go through her finances? it sounds like she may have got in a bit of a pickle and didn't want to ask for help.

    Have you checked as well whether she's eligible for any additional benefits? as you've mentioned she's disabled and visually impaired, i'd be surprised if she didn't qualify for additional help.

    in the meantime i'd pay her back the agreed amount plus the £23.00 a week (assuming you can afford it) that she's had her pension credit reduced by.
  • Ben8282
    Ben8282 Posts: 4,821 Forumite
    Combo Breaker First Post Newshound!
    AnotherJoe wrote: »
    What possessed you to take £20k off your widowed, disabled, partially blind, low income mother that you probably will never fully pay back due to you being a high credit risk?
    To make her eligible for means tested benefits probably as the OP has never said what the loan was actually needed for.
    Equally though, there is nothing to prevent your Mum from spending her own money and then claiming such benefits.
  • dealer_wins
    dealer_wins Posts: 7,334 Forumite
    AnotherJoe wrote: »
    What possessed you to take £20k off your widowed, disabled, partially blind, low income mother that you probably will never fully pay back due to you being a high credit risk?

    See you in a month or so lol, totally agree with you by the way!
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