Government State Benefits and Personal Debt Repayments

On June 26, 2012, in News, by Lewis Alexander
  • free credit report UK from ExperianHow much of each households weekly state benefit goes toward personal debt repayments on a weekly or monthly basis?
  • Could we find another way to relieve the many unemployed benefit claimers or the disabled on DLA etc who are suffering with personal debt problems and the associated stresses?

When we speak with our new clients daily at Lewis Alexander Financial Management, that happen to be claiming state benefits of some kind, we ask them at what point they borrowed the money they owe to their current creditors.

Some respond and say that it was when they were working but most respond by saying it was when their circumstances were the same, however, the borrowing dates back a number of years.

 

It is unfortunate for people that have and do suffer changes in personal circumstance and when this happens most financial commitments need re arranging.

If however, the individual has had no change in circumstance and they are on state benefits, the chances are that the borrowing that they were involved with was most probably at the time of 2005-8 where irresponsible lending was big business and many were caught up in believing that they could afford to borrow and that it was okay to consider borrowing against state benefits considering them as a regular income.

  • State benefits are not given out with the intent for the recipient to use to borrow against, they are a short term or long term supportive measure from the Government!

The suggestion we have at Lewis Alexander is for the Government to consider in a selection of trial cases, paying off directly to the lender by means of settlement in full and final, a clients debt who is currently receiving state benefits, therefore hopefully obtaining a discount for the early settlement on behalf of the client.

Yes, this would involve maybe more quantitative easing but would then be possible for the Government to reclaim the monies owed by the client by deducting it from the clients benefit payments at source. This claw back would have to be at an affordable rate to the consumer but would most probably work out less each month than currently committed to and would offer certainty of an end to the problem.

(A debt relief order was brought in for people with debts under £15000 and is a great personal debt solution but does not suit all situations.)

This may create the need for cross referencing between government departments but it would certainly relieve the pressure and stress from the individual client and add some positive cash flow to any respective creditors involved. It would also put a needed end to some of the ridiculous personal debt situations that people have found themselves in today!

Brief benefits to above suggestion;

  • Consumer peace of mind
  • Creditor cash flow
  • Government reduction in benefit payments

Here at the Lewis Alexander debt consolidation service, we believe that only an economist, analyst or someone of such a qualified standing would be able to work out further if our suggestion has any potential benefit to any party involved.

If you are struggling to clear personal debts and find that you need the help of a debt consolidation service or financial management company, then contact our Lewis Alexander personal debt helpline today in absolute confidence.

  • Call 0800 018 6868 today!

Your call is usually free from a UK land line, however, mobile call costs may vary, please check with your service provider before calling.

Find us on Google+

Comments are closed.

Find us on Google+