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Debt and Benefits

Being unemployed, disabled or having extra responsibilities such as being a carer for a friend or relative can make life more challenging. When dealing with debt as whilst on benefits this problem can be more difficult to solve due to government caps on benefits. You can speak to us even if you are on benefits, we may be able to help you out. Call us now on 0808 208 5198.

This problem is compounded when you add in debt problems as debts can build up faster and are able to get out of control. This is because to a person’s income may not be as large or go as far as someone in different circumstances. In instances such as this it is best to assess your circumstances and the benefits that are available to help.

When dealing with debt whilst being on benefits it is always worth checking what you are entitled to maximise your income.

Tax Breaks

Whether or not a person is in debt does not discount the fact that there may be tax breaks and benefits available to you that could work in your favour. If you are out of work, you may be able to claim JSA, job seekers allowance which could provide some income which you could use to pay your debts. if you have become unemployed and currently your only income is benefits you could phone your creditors to inform them of this and request a payment break. If you are granted one you should use this time to seek financial advice to determine what your best course of action is in order to get your finances back in order.

Getting Help

Getting help with your debts when you are on benefits can be difficult as not as many options are open to you as others due to your financial circumstances. In Scotland you would not be able to set up a Trust Deed as legislation prevents benefits or other state income such as a state pension in order to fund a Trust Deed or IVA in England, Wales and Northern Ireland.

Elsewhere in the UK, if you are unemployed and on benefits then an IVA is still potentially an option for you. By entering into an IVA you and your creditors would agree on a monthly repayment scheme over the course of 5 years. This would be negotiated by looking at your monthly income and expenditure to find a figure in which you can afford to pay to settle your debt. It is worth noting that assets you have could be taken into account depending on their value such as homes and cars. You are allowed to use benefits as source of income in order to enter an IVA which is one option available whilst here are some others.

Do you have over £5,000 of debt? Call today and find out how we can help.