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Dealing with debt is a significant concern for individuals regardless of their income level. However, for those on low incomes, every penny becomes crucial. That’s why it’s imperative to explore whether you qualify for benefits and other forms of financial assistance.
In this comprehensive guide, we’ll delve into the intersection of debt and benefits. We’ll discuss how benefits can potentially alleviate your debt burden, explore the various benefits you may be eligible for, and provide guidance for those already receiving benefits and grappling with financial difficulties.
Many individuals in the UK might not realize they qualify for financial assistance, despite the existence of various benefits. At MyDebtPlan, we’re dedicated to ensuring you’re aware of potential entitlements that could provide essential support during challenging times.
Eligibility for benefits and the corresponding amount depend on both your financial circumstances and personal situation. You may be eligible for benefits if you:
To ascertain your entitlement to specific benefits, visit the UK Government website and utilize their debt calculator. Click here to begin your assessment.
If you’re facing financial difficulties, several benefit payments are available in the UK to offer you much-needed support:
This comprehensive benefit combines several previously available benefits into a single monthly payment. It’s the standard benefit for most local councils.
Designed for individuals actively seeking employment, JSA provides financial support during the job search. Eligibility is based on being out of work or working less than 16 hours per week.
Intended for individuals with low income or no earnings, Income Support has been superseded by Universal Credit in most council areas.
While mostly replaced by Universal Credit, individuals receiving child tax credit may still qualify for Working Tax Credits.
Aimed at assisting low-income individuals with housing expenses, Housing Benefit may be available depending on your council area.
Offered alongside Working Tax Credits, Child Tax Credits provide financial assistance to eligible families.
Families qualifying for Child Benefit receive a designated amount for each child, with the total amount varying based on the number of children. From 6 April 2024, families where the highest earner has a salary of up to £60,000 a year will not be subject to the High Income Child Benefit Charge (HICBC). Previously, a person who had an annual income of £50,000 or more would be liable to pay the charge if they or their partner were receiving Child Benefit.
If you’re already receiving benefits and still facing financial challenges, consider these steps:
Ensure You’re Maximizing Benefits: Utilize online tools like the UK Government benefits calculator to verify your eligibility for additional benefits.
Communicate with Creditors: Don’t ignore communication from creditors; instead, engage with them to explore potential repayment arrangements or assistance programs.
Seek Free Debt Advice: If your debts are becoming unmanageable, seek guidance from debt management charities or companies offering free advice.
Consider Debt Solutions: Formal debt solutions such as Individual Voluntary Arrangements (IVAs) or Trust Deeds can help manage debts effectively and potentially lead to debt write-offs.
If you’re experiencing financial difficulties and need guidance, expert advice can make a significant difference. My Debt Plan specializes in helping individuals manage and alleviate problem debts. From debt advice to formal debt solutions, we’re here to support you. Contact us at 0161 660 0411 to explore your options and regain financial control.
Tell us about your current debts and one of our experienced and friendly advisors can help you get the ball rolling.
Dependant on your circumstances and financial situation, we'll let you know if an IVA is a potential solution for you.
If you qualify for an IVA, we will take the necessary steps to set up and arrange this for you.
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Credit Score Pop Up Wording : An Individual Voluntary Arrangement (IVA) is a formal agreement with creditors to repay a portion of your debts over time, but it does have an impact on your credit score and it will be difficult to obtain further credit whilst on an IVA. Once an IVA is approved, it is recorded on your credit report and will typically remain there for six years from the date it starts.
However, it’s important to note this is the case for most debt solutions and your credit score will likely already have been affected by being in debt in the first place.
Once your IVA is complete you will get a fresh start to begin rebuilding your credit rating.
IVA costs are charged for the preparation of your proposal and the administration of the arrangement for the full term (usually 5 years) these costs are charged from the monthly contributions you make into the IVA and are not in addition. Costs will only be recovered on approval of your arrangement and once you commence making payments to it. The fees for preparation of the proposal to creditors and calling the meeting for creditors to vote on its approval are called nominees fees, the fees for running the arrangement once approved are called supervisors fees. There are also some expenses incurred in the running of the arrangement such as the registration fee and the statutory insurance that needs to be taken by law, these are called disbursements. For our arrangements, the total of all of these is £3,650 although this may be adjusted by creditors when they vote on whether to accept. No matter what the end total of costs come to, you can be rest assured that these will be taken from the monthly payment we agree with you.
For free, independent advice, you should visit to Money Helper via their