Loans while on benefit?

[eddyned]

I have been on disability benefit for nearly 2 years because of a heart condition. ( I just had triple bypass in June). I have managed my finances reasonably succesful during that time, but have now reached an impasse. My phonebill and other utilities have all arrived at the same time and are surprisingly large. Is there any firm out there that does small loans, �500, for people on benefit and also tenants.

[pinus]

Do all you can to avoid places like Provident or Shopacheck. The rates of interest can be 400% - 500%. Is there a Credit Union in your area? Speak to the utilities providers sooner, rather than later, and they may well agree to accept instalments.

[londondave]

DO NOT approach loan companies you will be paying it off forever. Go to the DSS first and tell them what you need it for, If they grant it they will deduct a small amount from your benefit. Or try your bank for a small loan.

[Tennis Coach]

Unfortunately Eddy, unless you are also in receipt of Income Support you will not be entitled to a Budgeting Loan from the DSS, there is however a scheme called direct payment which basically means that you ring the utility company in question who will in turn send you a form to complete which is then passed on to the DSS. They will sort out any arrears and it is also possible to pay small regular amounts in this way (I work for the DSS so trust me on this one!!) I hope this has helped!

[Sproutstick]

Apply to your local council for a Discretionary Housing Payment.  If you are not getting full rent due to a Rent Officer's Decision or your applicable amount is too high then they can see if they can help you out.  Every council is allocated an amount of money each year (about �20,000 depending on the size of your authority) and they can use this to help those in your situation.  You will not be able to receive a Social Fund loan from the DWP as you are not in receipt of Income Support or JSA(IB).  The DHP award from your local council (if you are successful) will be awarded for a period of time (usually a few months) and you will not have to pay it back at all.  When the time runs out, a review will be performed on you to see if they can continue for longer.  Whatever you do, DON'T GET A LOAN!!!!!  See the Citizens Advice Bureau if you need any further help!  :)