Government loans to help pay bills

The national government and local authorities may provide loans to help pay bills. There are many different ways to borrow money or apply for funds. The government loans are for emergencies only, but the money can help pay a variety of bills including rent, tenancy deposits, heating or electric costs, car repairs, basic items such as clothes and so much more.

In general, a loan from the government will have a lower interest rate than other lenders, such as banks, payday companies, logbook lenders, or even credit unions. Some of the funds from the government will come with zero interest rates and in certain cases the money does not need to be repaid. In addition, the loans often come with other forms of help ranging from money management to free advice, information on social services, and so much more.

Types of government loans

There are three main options. They can include loans for rent or deposits from a local council or housing authority. Another option will be to use central government Budgeting Loans or advances, which is interest free funds for anyone on benefits including Universal Credit. Last, but not least, will be local council loans to assist with paying bills from welfare type schemes.

All 3 of those sources of funds can be used as well and combined together. Since there are multiple schemes out there, a wide variety of expenses can be paid. Government loans can help pay for maintenance, rent, damage deposits or utility bills on a flat or home. Or the funds can pay for travel costs, consolidating payday loans, clothes, furniture, white goods and other living expenses.

Housing cost assistance from government loans

The cost of rent and owning a home continues to increase. Government loans can be used to pay for housing costs. Many councils provide funds to help with rent deposits or rent in advance costs. In general, this form of help is for the vulnerable, people on the risk of homelessness, prospective tenants that lack the money to move on their own, and those leaving care. These loans are part of rent and/or deposit schemes that almost all council housing authorities offer. Learn more on loans to pay for rent deposits.

The funds come with many restrictions. While each of the government loans from a council will have different criteria in place (and some governments do not issue loans but instead offer bond guarantees), they can be an option. In general the applicant needs to have an income and limited savings, or be on benefits, in order to get these government loans to help pay for their housing needs. If addition to the options above, some charities or lenders may also offer help and find emergency loans to help tenants pay rent.

Mortgage help is provided by the SMI – Support for Mortgage Interest repayable loan. The money can not only help pay the mortgage, but also for repairs or maintenance costs to a home. The interest rate will be very low (usually under 2%) but the funds do need to be repaid. The government will process applications, and for more information or applications to the central government SMI is to ring Jobcentre Plus (phone 0800 169 0310) or Universal Credit welfare line of phone 0800 328 5644.

Emergency loans from the government to help with bills

Welfare scheme government loans are also usually offered by a council. While the central government in London (and Parliament), often set the national budget and allocation for welfare schemes, applications are taken by local authorities. In general, these government loans can be used to assist with fuel or utility bills, furniture, travel, furniture, funeral costs, and other emergency bills. The funds are also combined with help from Citizens Advice as well as other charity organisations. All of this type of help is discretionary, funding comes and goes, and councils set their own application process. Get more details on welfare scheme loans near you.

Budgeting advance loans are becoming more widely available. The aim of this government schemes tit to provide additional financial help to families on some form of government benefit. The funds can be provided to people on Jobseekers Allowance, Pension Credits, Income Support, Disability, or Universal Credit. The budgeting loans from the government can also be used to pay for bills, mortgage, or a rent payment while waiting on the application to benefits. More on budgeting advances.

There are many ways to borrow money from the government. The loans tend to be affordable and have favorable repayment terms. Whether on a low income, benefits, or in a financial crisis, the government loans can be one other source of money for paying bills.