Advice on applying for budgeting loan
wildmovieguy
Posts: 8,342 Forum Member
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It says on the form to state what savings you have and that can affect the amount you will be offered. The whole point of savings is that is hard earned money that is put away incase things get really bad and you need to start using them. Do people be honest and put the real amount of savings in there? For instance what if you put £1000 in there? Would they only offer you like £50 or something? I do need the loan to buy household goods and if i was to use my own savings it would not leave me with much hence the reason i am applying for the loan. What is the best thing to do?
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Why don't you use your savings and then whatever money you would have used to pay off the loan pay back into your savings account.
Just because the money is available for you to apply for it doesn't mean you have to have it. Personally I think it is a ridiculous idea of even asking for it if you have savings that would cover the costs of what you want.
How was I suppose to know that the loan was from the social?
No not everyone WANTS to - but everyone else HAS to - why on earth should social pay you a loan when you have savings??
Basically the budgeting loan is for people in dire need. If you have savings but don't want to use them then you're not in dire need (maybe dire want? lol)
Either way, be careful lying, they may want proof.
I'm speechless :eek: I really am.
You may have savings of up to £1000 or £2000 if you are over 60. The minimum size of the loan is £100 and the maximum is £1500.
If you have savings above the £1000 limit then the loan awarded is reduced by the amount of the excess capital. For example if you have £1100 in savings and applied for a loan of £300. They calculate that in your circumstances you may receive a loan for the full amount. The amount loaned would be reduced by the size of exceess capital which is £100 and you would therefore receive a loan of £200.
The main condition when applying for a budgeting loan is that you must have been on income support, jobseekers allowance (income based), employment and support allowance (income based), or pension credit for at least 26 weeks.
The amount they award depends on numerous variables which include your personal circumstances and the circumstances of your local authority.
I hope that helps.:)
So am I :eek:
Thankyou for that information, that helps me out a lot and explains it a lot better than the paperwork i have does.
After my father died I applied for a funeral grant which was accepted but left me with £466 still left to pay. So I applied for a bugeting loan for that amount being honest telling them what it was for, It was refused on the grounds that the reason wasn't one of the accepted reasons.
So I reapplied with reason as wanting new clothes.
I recieved £450 of the £500 I applied for :rolleyes:
Budgeting loans are for people who really need help and have no other way of getting it. Its not a bottomless pit of money- there is a finite amount and you applying for some when you already have saving is selfish and thoughtless.
I looked into getting a budgeting loan for help with emergency home move costs- the most you will get as a single person is about £400.
As another poster said- use your saving and then pay what you would have repaid the social in to your savings account.
Did you treat yourself to some new shoes and t shirts?
Take a look at that poster, mr or mrs Job Seeker. They know what i'm talking about or another great poster like elke. They give advice when needed, they don't sit and point fingers and judge and for the record i don't exactly have tons and tons of money in my savings account. If the Job Centre says no, you cannot apply if you have savings then i agree, i shouldn't be doing it. But when the Job Centre say you have to state what savings you have, that means they will offer you something. I'm entitled to it. Don't think i'm a bad man just because i'm applying for a budgeting loan and have some savings.
i will stand beside you , its known as a crisis loan round here and the SS refer to it as such ..............
Who wants to be my benefactor. Those with a tight budget need not apply. :cool:
Agree totally. No wonder we are in such a mess in this country.
Budgeting and crisis loans are different. Crisis loans are for day to day living expenses and usually a small amount. Budget loans are larger and for expenses such as needing a new washing machine and so on.
If you can afford to save, you don't need a state hand out.
ahhhhhh sorry , my apologies
I quite agree ....... but most of us can't do anything about that.
How absolutely dreadful of them.
Sorry, but your remarks came over as a little arrogant.