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Loan repayment

  • Mineral1968Jehovahgod1956
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4 years 3 months ago #255803 by Mineral1968Jehovahgod1956
Loan repayment was created by Mineral1968Jehovahgod1956
My Wife has only just claimed for universal credit and is at the stage waiting for her first payment, I have savings of over 6,000 and I am paying back a car loan and having to use my savings to pay it back, is a loan counted as income and will it affect my wife's universal credit?

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4 years 3 months ago #255845 by latetrain
Replied by latetrain on topic Loan repayment
Hi Alan

Unless the car loan is sitting in your bank a/c then it will not be classed as capital, it is a debt with scheduled payments, this will not affect your wife's UC, however savings over £6k will affect your wife's UC.

Any capital/ savings you have under £6,000 is ignored.

Any capital/ savings you have between £6,000 and £16,000 is treated as if it gives you a monthly income of £4.35 for each £250, or part of £250, regardless of whether it does or not.

So if you have £6,300 in a savings account, £6,000 of it will be ignored and the other £300 will be treated as giving you a monthly income of £8.70.

If you have capital/ savings over £16,000 as a single claimant or as a couple you will not be entitled to Universal Credit.

Gary

Nothing on this board constitutes legal advice - always consult a professional about specific problems

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