Debt question

[TimTon]

Dear Gurus,

For the last 6-7 years I always had some loans/credit card balances that I always paid off in time (so no CCJs, no missing payments or any anything like that, I always make my payments in time and my credit score is very good).

For example, last year I took a loan of 15K to pay off my credit card/etc debts - I am properly making payments towards that 15K but my credit card balance now increased a bit again (around 4K) but I still make all payments for both credit card and loan promptly.

Will this affect my naturalisation application (recklessly building debt as my balance increased) even though I always make my payments in time? I have in total around 17K to pay for loan/credit card but making the payments promptly?

Also, do I need to say "Yes" or "No" to Debt question in the application form (are you in debt?)?. Thank you!

[alterhase58]

Didn't know there was such a question "Are you in debt?". News to me. If you answer yes can you input the amount?

The GCR guidance ( https://www.gov.uk/government/publicati ... le-version ) states:

"An application will not normally be refused simply because the person is in debt, especially if loan repayments have been made as agreed or if acceptable efforts are being made to pay off accumulated debts.
However, where a person deliberately and recklessly builds up debts and there is no evidence of a serious intention to pay them off, the application will normally be refused."

As long as you are able to comply with your obligations there's nothing to disclose. Everyone is in debt to some extent. Just think the average mortgage loan these days is around £200k.

[TimTon]

Didn't know there was such a question "Are you in debt?". News to me. If you answer yes can you input the amount?

The GCR guidance ( https://www.gov.uk/government/publicati ... le-version ) states:

"An application will not normally be refused simply because the person is in debt, especially if loan repayments have been made as agreed or if acceptable efforts are being made to pay off accumulated debts.
However, where a person deliberately and recklessly builds up debts and there is no evidence of a serious intention to pay them off, the application will normally be refused."

As long as you are able to comply with your obligations there's nothing to disclose. Everyone is in debt to some extent. Just think the average mortgage loan these days is around £200k.

Thank you for your answer kind Sir! Its seems it was my fault - somehow, I remember the question was there but its not there anymore, maybe I am confusing the forms.

I have no issues with payments, never missed any. My main concern is that they might see I borrowed money last year to consolidate my debt but since then I accumulated a bit on my credit card again that I am still making monthly payments to promptly but they might think I am delibaretly increasing my debt (which I am not, its just this cost of living crisis that makes it very hard to be debt free). Maybe I am overthinking all this. Just not sure if its ok to apply now or wait until I will clear my credit card balance in full?

[alterhase58]

Yes - you are overthinking - from what you are describing your credit record is fine.
No reason not to apply if you meet all requirements.

[TimTon]

Yes - you are overthinking - from what you are describing your credit record is fine.
No reason not to apply if you meet all requirements.

Thank you so much!

[Surinder]

Why I did not see this question?

[alterhase58]

Why I did not see this question?

OP saw it somewhere else - it's not on the AN form.

[HeidWolfe]

Firstly, great job on always making your payments on time and maintaining a good credit score! That's something to be proud of. To answer your question, having debt and making prompt payments towards it should not affect your naturalization application. As long as you can pay off your debt on time and manage your finances responsibly, you should be good to go. If you're feeling overwhelmed by your debt, you can always seek help from a financial advisor or check out resources such as Commercial Weblink Removed to find solutions that work for you. It's a reliable company and I recommend working with them.

Promotion of companies not allowed.

[JB007]

Don't pay a company for advice with debt, as you can get help for free, as the government states in the following link.

https://www.gov.uk/national-debtline

National Debtline

Get free, confidential and independent advice on dealing with debt problems in the UK.

National Debtline
www.nationaldebtline.org
Telephone: 0808 808 4000
Fax: 0121 410 6230
Monday to Friday, 9am to 8pm
Saturday, 9:30am to 1pm
Find out about call charges

[JB007]

For example, last year I took a loan of 15K to pay off my credit card/etc debts - I am properly making payments towards that 15K but my credit card balance now increased a bit again (around 4K) but I still make all payments for both credit card and loan promptly.

If you have ILR, have you looked to see if there are any benefits you can claim? https://www.gov.uk/benefits-calculators

As your debts are building up again, take the step to get free advice from this charity. https://www.gov.uk/national-debtline
They won't judge you and you don't even have to give your name.


Christains Against Poverty is another charity that can help

No matter how large or small your problem is, we can help. Our free, expert debt help will support you all the way to becoming debt free.

The first step is often the hardest, but it’s really worth it. Asking for help can be daunting, particularly for many people who have reached a crisis point before calling to book an appointment.

https://capuk.org/get-help/cap-debt-help