NI Crisis Loans survive budget cuts

Crisis Loans are the perfect answer for rent problems. They are available to people with sketchy credit. There are no interest charges. As perfect as these appear, there are some limits to relying on these to handle delinquent rent.

The main issue is that Crisis Loans may not be around much longer. Governments in Wales, England and Scotland have already terminated the programme. Northern Ireland though is still keeping the programme alive for now.

What are Crisis Loans?

These zero interest loans are approved for certain hardships of a temporary nature. The government provides the capital used to make the loans.

They cover shortfalls that could cause irreparable harm to an individual or family. This could include any immediate crisis that is causing extreme financial hardship. Emergency situations or financial disasters are often the cause behind approved loan requests.

The total amount repaid is limited to the amount borrowed. No finance charges will accrue. There is no preset limit either. The amount approved is based on an assessment of the proceeds needed to offset the hardship.

Repayment is based on a plan developed with a Jobs and Benefits adviser or Social Security adviser. Plans are structured so that the proceeds are recouped in a reasonable period of time without putting undue pressure on the borrower. Benefit payments can be used as a part of the repayment plan.

Loans are commonly approved for residents who need rent in advance so that they can move into a new home. Living costs and fuel are also eligible needs.

A request for a Crisis Loan may be made at the closest Jobs and Benefits or Social Security office. Applicants must be at least age 16.

Some households suffer through financial difficulties because they are too proud to rely on public assistance. This option does not run counter to self-reliance. First of all, these loans are paid for through tax dollars. Many families are only utilising benefits that they have already paid into. Secondly, it is not charity or a handout. Crisis loans must be repaid. The advantage though is that the government does not charge interest, since most recipients can hardly afford to pay interest on a debt when they have just experienced a crisis situation.