Government plans to change Disability Living Allowance (DLA)

On May 14, 2012, in News, by Lewis Alexander
  • Half a million people could be affected by the plans of Government to change the DLA benefit over to a new structured Personal Independence Payment (PIP).
  • The new system is due to replace the disability benefit later this year. Currently people receive disability living allowance for help and assistance in moving around and it is based on capability not sickness.

The Government has information to hand that suggests that DLA claims have risen at a rate that does not relate to statistics in other areas of daily life monitored closely by government offices.

  • A 30% rise in recent years has been calculated for DLA claimants.
  • The annual cost of benefits in UK is soon to reach £13 billion!

One problem has been continuity of DLA payments without re-assessment, if people were previously awarded DLA; they usually were never questioned or re-assessed again. Some DLA benefit may no longer be justified under the new Personal Independence Payment or PIP system and this could involve a possible half a million people currently claiming DLA or Disability Living Allowance in the UK.

Living with personal debt problems whilst on Disability Living Allowance or DLA can be a struggle in itself and here at Lewis Alexander Financial Management we understand the problems faced.

People usually struggle with cash loans and catalogue debts and unsecured credit agreements with high rate lenders when in personal debt on DLA.

This type of lender will prey on the vulnerable in society and this can end up in people utilising most of the DLA they receive to repay credit and interest.

If you are making multiple payments to credit and loan companies each month and are struggling on benefits such as DLA or Incapacity, you may wish to consider getting advice or help from a financial management company.

Once you study who your money is being paid out to each month, along with a consultant or debt advisor that can assist, you may be able to find a way to reduce your payments and make the money you get stretch further for living costs and daily life.

This should certainly be considered if you find that your DLA payments will not be as much, if at all, once the new Personal Independence Payment or PIP gets introduced.

Speak with a trained personal finance consultant and obtain further advice and help to clear personal debt problems whilst on DLA or benefits.

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Cash Loans and Christmas Spending

On December 3, 2009, in News, by Lewis Alexander
  • Are you in the clutches of doorstep lenders?
  • Do you borrow money off companies such as Provident, Greenwoods or Shopacheck?
  • Have you been refused credit or loans for Christmas?

The amount of cash loans, doorstep loans and further personal credit taken out over the run up to Christmas is astonishing.

Christmas is most certainly one of, if not the most expensive times of year.  We all rush out trying to buy items that we think will please our loved ones when really, the only winners seem to be the retail shops.  Most of us save and budget for Christmas when others just spend like next year is not going to arrive!

  • This is where a lot of people, mainly people on low incomes or state benefits, get parted with hard earned money.

There are unscrupulous financial companies waiting to charge you very high rates of interest for short term loans that are really not affordable.  When we advise people that call us for doorstep loans or cash loans that only millionaires can afford these types of loans, they laugh!

It is not funny when the bills for these, loans arrive and the interest compounds beyond a point of ability to repay that interest and makes it near impossible for the individual to reduce the total debt.

These cash loan companies then have you in their grasp, it is very difficult to break this grasp and it makes the vulnerable consumer an easy target for further credit or final collection procedures to recover money owed.

You must accept that if you are used to borrowing from a door to door lender, you should consider starting a debt management plan that will consolidate your loans, overdrafts and credit cards or store cards into one, new, lower and affordable monthly repayment.

  • This way, by the time next Christmas arrives, you will have enough money set aside to buy gifts without needing to borrow money at very high rates.

It is usually the most desperate of people that get stuck in this cycle of personal debt and because of their desperation, they fail to see the true picture when being offered loan products that only seem to be of benefit to the lender, not the individual borrowing the money.

If you are on DLA or other types of benefits, loans are very difficult to obtain and people often get offended when refused for cash loans or doorstep loans. This refusal is actually the best thing that the individual could hear, it is just the acceptance of the refusal that the individual needs advice about and this is where a debt management plan could possibly help if circumstances allow.

To start a financial management plan for most seems a negative thing to do, if you need one then it is the most positive thing you could possibly do.  A structured repayment plan would get your finances in order and make a stable foundation for your financial future. Just because someone is not offering you cash does not mean that you are not being offered help, think and think again!

Think before you borrow!

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