Debt management universal credit is an online query that marks the search for a way to manage your money struggles. Here are some options for you.
The cost of living in the United Kingdom is squeezing the residents of their hard-earned cash in more ways than one. If you are living in the UK, you are well aware that the price of essentials is also rising swiftly, adding to your tension. For example, the percentage increase has gone up in essential things that include heating oil (up 128%), gas (up 95%), electricity (up 53%), petrol and diesel (up 42%) and insurance (up 23%).
Such a dire situation increases your money struggle and you have to look left, right and centre for ways to save money. But then it’s not about savings, isn’t it? It is about staying out of debt, and if in debt, then doing debt management in the best way possible.
Taking the debt management universal credit route could give you relief in how you take care of your day-to-day essentials. Here are a few points to keep in mind.
The tested option of debt management universal credit
If you get Universal Credit (UC), you can use it as a valuable debt support ally. You can get precious help with debt and rent arrears on your Universal Credit. This would be the extra help if you are struggling with money. You can get money early from your Universal credit, or even if you have applied for UC recently.
Your first UC payment comes to you five weeks after you have applied for it. If you want it sooner due to your deteriorating financial situation, you can apply for ‘advance payment’. This becomes a loan, and the repayments are automatically taken off your UC payments.
If you are repaying debt with a universal credit debt management strategy, you need to inform your creditors or debt management company that you have applied for universal credit. You can request them to accept a late payment.
Help with rent
The cost of living in the United Kingdom has created a gaping hole in the monthly budget for renters/tenants also. In the unfortunate situation where you are two or more months behind on your rent, your Universal Credit can give you some support. Your landlord can come to you and request that some of your UC be paid directly to him. This could be a big help in paying off the debt you owe to him. Of course, you do need to make the regular rent payments to him.
Then again, if you feel that the cuts in your UC for paying owed rent to your landlord could mean that you are unable to pay for food or bills, there is a way out. You can call the UC helpline and they can arrange to make lesser payments to your landlord for rent arrears.
How to handle universal credit deductions for debt
Among the major criteria for getting Universal Credit, a benefits payment is that you are unemployed or have a very low monthly income. But what happens if you are facing financial hardship due to UC deductions for debt?
You need to request that:
- You get lower deductions for rent arrears
- You get some delay or extension to repaying an advance on UC
- Deductions can be cancelled as you can set up an affordable repayment plan with your energy or water supplier, landlord or council
This should prove helpful as you implement your universal credit debt management strategy to keep you afloat in these trying times.
You can comment on this debt management universal credit post below and even subscribe to our newsletter.
