stars-five-icons

Open until 8pm GMT     View office hours

Debt and Benefits

Benefits are designed to make life easier for people with financial challenges, such as unemployment, disability or being a carer. People in receipt of benefits are generally more likely to be on lower incomes, so servicing debt can be more difficult.

Dealing with debt while receiving benefits can be very difficult and stressful, especially with government caps on benefits.

The most important thing is to check that you’re receiving all benefits to which you’re entitled.

Call us now on 0808 208 5198 if you receive benefits and are struggling with debt. We may be able to help.

Checking benefits and tax break entitlements

Contact Jobcentre Plus to check if there are any benefits to which you’re entitled that you’re not receiving. You can also check this online using the Government benefits calculator.

If you are out of work, you may be able to claim job seekers allowance. This may provide some income which you could use to pay your debts.

Paying back debts while on benefits

Paying off debts can be tough at the best of times, but even more so if you’re on a limited fixed income. If you’ve recently become unemployed, speak to your creditors and ask if they can allow you a payment break while you get your affairs in order and get back on your feet. You’ll be surprised at how helpful some creditors can be. After all, they’d rather get their money back directly from you than having to take legal action.

Getting help

Getting help with your debts when you are on benefits can be difficult as you have fewer options.

For example in Scotland, you can’t use state income to fund a Trust Deed.

Elsewhere in the UK, if you are unemployed and on benefits then an IVA is still a potential option for you. By entering into an IVA you and your creditors would agree on a monthly repayment scheme over the course of five years.

This would be negotiated by looking at your monthly income and expenditure to find a figure you can afford to pay to settle your debt.

It is worth noting that assets such as homes and cars could be taken into account depending on their value.

If debts are stressing you, get in touch with Creditfix today. We offer free, impartial advice to help you take back control of your finances.

 

 

Can't find your answer?
Complete the form below to get in touch!



I agree to be contacted by the Creditfix group by phone, email or SMS. See our Privacy Policy for more information.

Do you qualify to reduce your debt?

Take our quiz

Creditfix have provided an excellent service during a very stressful time. They were helpful, considerate and relieved all stress. Can't recommend them enough if you're struggling with debt.

View case studies

What our customers say about us Trustpilot Logo

People Helped

Creditfix has helped over 92,000 people with their debts

Trustpilot Score

Excellent rating on Trustpilot with a score of 9.4 out of 10

Combined Experience

Our Insolvency Practitioners have over 70 years’ combined experience

GLASGOW
4 West Regent Street
Glasgow
G2 1RW

MANCHESTER
Lowry Mill Lees Street
Pendlebury
Swinton
M27 6DB

CARLISLE
Unit 50. Carlisle Enterprise Centre
James Street
Carlisle
CA2 5BB

[contact-form-7 id="5661" title="Exit Intent"]




Existing Customer
New Enquiry