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- Paying off debts on an ESA persons credit card
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Paying off debts on an ESA persons credit card
- BarbaraG
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1 month 2 weeks ago #295143 by BarbaraG
Paying off debts on an ESA persons credit card was created by BarbaraG
Hello - My son receives PIP and irESA. He is autistic and has run up huge debts on his credit card by his impulsive buying. I would like to pay off these debts for him as this is causing us both huge anxiety - If I do pay them off will this action upset DWP and compromise his benefits?
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- David
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1 month 2 weeks ago #295145 by David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by David on topic Paying off debts on an ESA persons credit card
Hi BarbaraG,
I would have a read of this article from Experian which suggests that creditors can be paid off by a third party.
www.experian.com/blogs/ask-experian/can-...lse-pay-off-my-debt/
I would though get this endorsed by an official Debt Adviser. Don't pay for debt advice there are lots of free resources such as Stepchange.
It sounds as if your son would be eligible for a DRO ( Debt Relief Order ). A DRO would annul all your son's debts. You can get free advice on this from Stepchange or Community Money Advice ( I volunteer for Community Money Advice )
It is not a deprivation of capital according to the DWP to pay off a debt so his Benefits would be unaffected
www.stepchange.org/how-we-help/debt-advice.aspx
David
I would have a read of this article from Experian which suggests that creditors can be paid off by a third party.
www.experian.com/blogs/ask-experian/can-...lse-pay-off-my-debt/
I would though get this endorsed by an official Debt Adviser. Don't pay for debt advice there are lots of free resources such as Stepchange.
It sounds as if your son would be eligible for a DRO ( Debt Relief Order ). A DRO would annul all your son's debts. You can get free advice on this from Stepchange or Community Money Advice ( I volunteer for Community Money Advice )
It is not a deprivation of capital according to the DWP to pay off a debt so his Benefits would be unaffected
www.stepchange.org/how-we-help/debt-advice.aspx
David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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- BarbaraG
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1 month 2 weeks ago #295148 by BarbaraG
Replied by BarbaraG on topic Paying off debts on an ESA persons credit card
Thank you for your fast response and your time in considering my anxiety - Barbara
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- BarbaraG
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1 month 2 weeks ago #295182 by BarbaraG
Replied by BarbaraG on topic Paying off debts on an ESA persons credit card
Hello again - I was very grateful for David's advice yesterday and it prompted me to ask JobCentre Plus direct - took a bit of courage but after 1 hour and 26 ,minutes on the phone waiting I finally got the answer - it is OK to pay off the debts of a person receiving PIP and irESA. The only thing that would compromise the benefits would be to put a sum of money into that person's bank account. Phew!!!!
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- David
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1 month 2 weeks ago #295186 by David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by David on topic Paying off debts on an ESA persons credit card
Hi BarbaraG,
I'm glad they gave you an answer eventually. You can put money into your son's bank account but the amount must be less than £6000. You would be able to pay in another sum of £6000 as long as your son had spent the previous £6000 legitimately and according to DWP rules paying off debts is legitimate expenditure.
David
I'm glad they gave you an answer eventually. You can put money into your son's bank account but the amount must be less than £6000. You would be able to pay in another sum of £6000 as long as your son had spent the previous £6000 legitimately and according to DWP rules paying off debts is legitimate expenditure.
David
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