Budgeting loan

[user1471173214]

Hello Posting for a friend as she doesn't have an account on here.

She would like to know if there is any chance that you can get a second budgeting loan from the government when she's still paying one off?

The story goes - she used to claim a while back, (a year or so ago) it was a joint claim. She got a budgeting loan when she moved house. Then her partner started work. And once her partner started work, all the money that was being taken for the loan was stopped and she then started paying it back at £5 a month. Now her and her partner have split and he has left her with nothing. She has three kids. If she applies for a budgeting loan when she's been claiming long enough, even though she is still paying the previous one off, will they give her the full amount? X

There is a maximum amount a claimant can ask for re a Budgeting Loan. If she already has a loan, they look at the max amount for her circumstances then remove the amount she already owes.

I'm not sure if there are other criteria as well, but I have had loans when I already owed, and the above was the criteria they used in my case.

You have to have paid a certain amount off and can only have a certain amount at any one time.

Give them a call and they will be able to tell her the exact amounts.

There is also a crisis loan which is a little harder to get.

And if you have a local credit union they can be good too x

I had to get a second one this year due to moving. I think if you have kids the maximum is £812 (or thereabouts) but they will subtract what is still owed. I owed £500 so got just over £300.

I've noticed on the application that they ask if you need the loan due to recently splitting with a partner, so there may be exceptions to the rule. No harm in filling out the application just in case. Unfortunately crisis loans no longer exist in England and Wales - they have been replaced with the Budgeting loan and a council discretionary grant bit the max awarded is £60.

I didn't know credit union give loans to people on benefits?

Thank you for all the info guys. I will pass it on and tell her to give them a ring and see what they say xx

Credit unions will give loans but it's not as straightforward as just applying. What I did was open up a savings account and agreed to pay £20 a month into savings out of my child benefit. CB goes directly to credit union and they transfer what's left over to you. Once you've signed over the CB you can apply for a starter loan. They take the loan repayments out of the CB same as with savings. My credit union approved the loan the day they got the first CB payment paid to them so they were pretty quick with it.

I was told I couldn’t apply as I still owe from my last so I’m wondering if I pay the amount I owe off in one payment will I then be able to take out another full advance on the same day?