× Members

Means-tested benefits and loans

More
2 years 6 months ago #272115 by MariW
Means-tested benefits and loans was created by MariW
Dear Mods,

I am going through a very difficult financial period that I anticipate will not ease for the next eighteen months or so. I have savings below the £6,000 limit for IR ESA. This money will not last much longer.

Two people have generously offered me interest-free loans should things become impossible. How might this affect my payments?

1. Would a loan that took my bank balance over £6,000 reduce payments?

2. Would a loan that took my balance to over £16,000 render me ineligible to claim means-tested benefits?

The proposed loans are just that—not gifts.

Thanks for any advice.

Mari W

Please Log in or Create an account to join the conversation.

More
2 years 6 months ago #272137 by Gary
Replied by Gary on topic Means-tested benefits and loans
Hi MariW

If you take out a loan it could be classed as capital and may affect any means tested benefits.

You do need to seek advice from your local Welfare Rights Organisation, who will be able to take all your details into consideration; you can find your local Welfare Rights Organisation to help you with advice by clicking on the link below and putting in your post code, it will then come up with a MAP with a list of agencies. advicelocal.uk

Gary

Nothing on this board constitutes legal advice - always consult a professional about specific problems
The following user(s) said Thank You: MariW

Please Log in or Create an account to join the conversation.

More
2 years 6 months ago #272418 by Angel
Replied by Angel on topic Means-tested benefits and loans
Martin Lewis’ site has lots of useful information. I would personally not actively seek debt. Interest rates are going to rise, and the next couple of years are going to be tough for a lot of people.

Please Log in or Create an account to join the conversation.

Moderators: GordonGaryBISCatherineWendyKellygreekqueenpeterKatherineSuper UserChrisDavid
We use cookies

We use cookies on our website. Some of them are essential for the operation of the site, while others help us to improve this site and the user experience (tracking cookies). You can decide for yourself whether you want to allow cookies or not. Please note that if you reject them, you may not be able to use all the functionalities of the site.