If you think that you might need help with certain expenses in your life, or you’re struggling to make ends meet when it comes to paying the everyday bills, then you may be looking for solution. Many people find that they simply don’t have people in their lives that they can turn to for extra help when the going gets tough, which means that they need to think about loans instead.
If you think that you may be in need of a loan, it might be worth seeing whether you can apply for a budgeting loan, instead of potentially having to pay huge amounts of interest because you need to borrow from doorstep lenders or payday loans. Alternatively, you might also find that you can get access to different forms of assistance and financial benefits depending on where you live and what your circumstances look like.
Defining a Budgeting Loan
For many people, the term “budgeting loan” isn’t a very common one. In fact, these types of loan aren’t considered very often at all, and there is not a great deal of information about them online. However, budgeting loans can be very beneficial for a range of reasons. For example, a budgeting loan can help you overcome concerns regarding a wide selection of expenses, including clothing or footwear, household equipment or furniture, removal expenses, and even travelling expenses. Some budgeting loans can also be applied to circumstances that will help you to start or look for work, or maintain something in your home.
Budgeting loans are designed for people who are in a situation wherein they need access to finances as quickly as possible – without having to place themselves in serious amounts of debt. Sometimes, you might consider a budgeting loan if you need to pay funeral or maternity expenses, or repay the purchase of various other debts you owe.
Who Can Get Budgeting Loans?
Unfortunately, budgeting loans aren’t necessarily available for everyone. In fact, many people will not be able to access this unique form of credit. In order to apply for a budgeting loan, you will need to be receiving either income support, jobseeker allowance based on your income, employment and support allowance based on your income, or pension credit.
Other things may affect the amount of loan you are eligible to receive too, such as having a set of pre-existing social funds, or savings that reach more than £1,000. You will need to discuss your eligibility in depth with your local government or loan providers to find out more.
The Process of Paying Back Budgeting Loans
One of the most appealing things about a budgeting loan is that the repayments are completely interest free, and they can be worked out for you at the time that your loan is agreed upon. Instead of having to worry about making sure that you can afford to meet the repayments every month, with a budgeting loan the amount you owe is generally taken out of your benefits. This means that if you are not receiving any benefits and you are still able to get a budgeting loan you will need to come up with a different solution for paying the money you borrow back. If you have a loan and you can no longer afford to make the repayments and continue making payments for food and bills, then you will need to speak to the office that gave you the loan in the first place.
If you are claiming Universal Credit, then you may also be able to claim a budgeting advance, and there are various local authorities throughout the UK and the development governments of Wales and Scotland that can help you to access additional support if you are in an emergency situation.
In many locations, you will find that there are financial assistance bureaus and locations where you can schedule an appointment to discuss the options that might be available to you if you are in desperate need of some help. These locations will be able to not only discuss which benefits might be available to you, but could also help you understand more about budgeting loans, loans in general, and how you can manage your money more effectively in the future.
Budgeting loans can be an ideal solution for people who have nowhere else to turn for the finances that they need, but want to make sure that they don’t end up paying off their debts for a number of years. Without any interest to worry about, the concern of taking out a loan can be greatly reduced and you may be able to gain access to the cash that you need without putting yourself in a difficult living position – which is what can happen for people who rely on payday loans or high interest borrowing schemes.