What to do if you are struggling to repay benefit overpayments

How to deal with benefit overpayment debt

If you have debt as a result of an overpayment of state benefits, you will need to make arrangements to pay this back to the government. You will be required to pay back any benefit overpayments which have been made to you in error or because they had the incorrect information about your financial and/or living situation.

Unlike other forms of debt, there is no time limit as to how long the government can chase you for repayment of benefit overpayments. While credit card and loan debt becomes statute barred after five years in Scotland, there is no such rule when it comes to debt which is as a result of an overpayment of state benefits. It is therefore of high importance that you put a plan in place to deal with this type of debt.

How to deal with a benefit overpayment

If you realise that you have been overpaid your benefits, you should set this money aside and contact the Department of Work and Pensions immediately so that the money can be paid back. While it may be tempting to keep the extra money until you are asked for it back, this is only likely to make the situation worse, particularly if you do not have the money at hand to repay the debt when requested.

In order to enter into a Trust Deed you will need to enlist the help of an expert debt advisor who will be able to talk you through your options and recommend the most appropriate course of action. At Scotland Debt Solutions, our advisors are perfectly placed to help you navigate the personal debt landscape and set you on the track to a debt free future. Contact the team today.