Budgeting Advance, Budgeting Loan and Crisis Loan Info
Campaigners and charities naturally raised concerns regarding these changes. Between 2011/2012, more than 2.1 million CLs and 216,000 CCGs were provided. CLs were always popular because they were available to everyone and they were processed very quickly. CCGs were considerably less taken out since they were selectively issued, since the receiver didn’t have to pay anything back. Now that both of these options have been removed the solutions for those in need of emergency funding are certainly limited. This has naturally directed those in desperate need of cash on to high cost online lenders and we have of course witnessed the rise of the food banks.
So now that the changes have been enforced, what is there out there? At this time you can still receive a Budgeting Loan, although this is eventually being replaced by what’s called a Budgeting Advance. This will be obtained through Universal Credit that is replacing certain benefits, but this is being phased in slowly and we won’t see a complete transformation until late 2017. Since a government Budgeting Loan is still available, we will look further at the specs here. This is importantly an interest-free product and they are fairly easy to obtain. This assumes that you (or your partner) has been receiving selective benefits for at least the past 6 months.
This must include either income-based Jobseeker’s Allowance, income-related Employment and Support Allowance, Income Support or Pension Credit. The funds can be taken out for a variety of purposes such as to pay for clothing, furniture, rent, unsecured debts and so on. The amount granted depends on such factors as whether you are single, if you have any children, your current financial circumstances etc. The full range available is £100 to £1500 with the term being no more than 2 years. To apply you need to complete the SF500 form that you must send or take to your local Jobcentre Plus. You can Download the Form Here to proceed.
