Loan and uc

perdita
perdita Online Community Member Posts: 107 Contributor
in Universal Credit (UC)
Evening, just a quick question. I am about to take out a loan to consolidate some credit card debt. However the amount will be paid straight to my bank account and is slightly over the 6k threshold. Obviously this will be paid straight to my credit cards. Am I right in thinking that I will have to put a note on my journal making them aware of this and to provide bank statements afterwards. 
Thanks 😊 

Comments

  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    Yes you will need to tell them once the money goes into your bank. Paying off debt is allowed when claiming UC so there won’t be an issue here. You will just need to make sure you tell them what you did with the money. 
  • perdita
    perdita Online Community Member Posts: 107 Contributor
    Thanks Poppy, thought so. Thought they would pay my creditors direct but apparently not. Just makes me anxious that it will mess up my claim but will let them know and send anything they need.
  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    It won’t mess up your claim at all. Paying off debt is allowed when claiming UC as it’s written into the UC regulations 2013. 

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