borrowing while on disability benefit

D

dkino25

Guest
hi
could anyone tell me if i am entitled to borrow any money while i am on disability benefit
 
Entitled by whom? If you mean a lender then they will presumably assess your borrowing capacity based on your income and means. If you have means then you should probably use those in preference to borrowing. If DB is your main or sole income then I'm not sure that (m)any lender(s) would be willing to advance a loan. Can you post a bit more info if you think it's relevant please?
 
yeah disability is my sole income and i wanted to know is it legal for banks or building societies to lend me money as i dont drink or smoke and think i could afford to pay a loan over a couple of years
 
I don't know that it's illegal for them to lend to you. What is your income, normal expenditure and how much are you looking to borrow and for what purpose?
 
dkino25 said:
yeah disability is my sole income and i wanted to know is it legal for banks or building societies to lend me money as i dont drink or smoke and think i could afford to pay a loan over a couple of years
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I cannot see it being illegal but in normal circumstances but I would imagine that they would laugh at you if your only income is DB and you applied for a loan. Look at it from their point of view. they are in the busineses of making a profit out of loaning money. What happens if you stop making the repayments on your loan. Eventually, after much work trying to collect the loan, they will have take you to court. The judge will wonder what kind of clowns gave a loan to someone who obviously was not in a position to repay it. He may punish them for their stupidity. The work involved in chasing up the loan and then preparation for court case is going to cost a serious amount of money which the bank will have no hope of getting back.

If you own your own house and are over a certain age the bank may be prepared to offer you an equity release loan. This loan can be repaid when you die out of the proceeds of the sale of your house.

Your local Credit Union should be able to loan you money, without the security of owning a house, once you establish a history with them and they are satisfied that you can repay your loan.

Murt
 
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