Guidance Needed: temporary cashflow issue - can't get an overdraft

simoja

Hi folks, I've got a bit of a problem that I'd really value people's guidance with.

I've just taken a new job. It's more money but is a big, and expensive, commute. As such, until I can sell the house and relocate, I'll need to rent midweek away from home.

Because of the initial outlay for a deposit and travel costs and because there will be a slight gap in my income, I am forecasting a temporary cashflow issue that will start in a couple of months time. The shortfall is only likely to be around £600 and will have been reduced to nothing in six months so my first step was to simply apply for an overdraft to tie me over. However, this was declined and having subsequently been into the branch to talk about the situation, I'm told that due to already having a mortgage and a joint loan with my wife, that I can forget being offered any credit.

So I'm starting to get a bit panicky now. I've done all the financial streamlining I can and there is nothing left to reduce. We're already on a shoestring budget for provisions and everything else goes on childcare. I'm really worried that I'm going to be in a position in a couple of months where I might not be able to afford to get to work.

If anyone has any suggestions I'd be most grateful. Many thanks.

PollyOnAMission

Would you be likely to be accepted for a credit card?

simoja

I'm not sure, but from what the bank told me I suspect not. I'm also scared now that having applied for an overdraft and been declined, that further applications for credit are going to be unsuccessful and will just wreck my credit rating.

JimmyTheWig

Can anyone you know (e.g. parents) lend you the money?

Archi_Bald

Have you tried Nationwide FlexDirect?

Can your wife get an overdraft?

Can you get an advance from your employer?

JuicyJesus

simoja wrote: »

I'm not sure, but from what the bank told me I suspect not.

Different banks have different criteria, so while you may be successful/unsuccessful with one, the opposite may be true of another. Try the soft search MSE offer for credit cards, which takes your details and tells you what you're likely to be accepted for, and apply for one of the cards listed: http://www.moneysavingexpert.com/redir/cb7f4d1a

If none of that pans out and you HAVE to borrow the money, and can't sell any possessions or whatever to raise funds, and you can't borrow off of any friends or family, you're into the realms of payday loans, which from the sounds of things you couldn't pay off within the typical 30 day loan periods they offer anyway, will cost you an absolute packet and will pork your credit rating, but are a lender of last resort should you need to use them. Last resort here being genuinely after all other options, including selling property and borrowing off family and friends, have been exhausted.

simoja

Thanks all for the excellent advice and ideas. I'd sell a kidney before going to a payday loan company so am exploring all other options.

I think the best is to arrange a mortgage payment holiday for two months which will cover the shortfall and as I understand it seems to be exactly for this kind of thing. Won't do me any harm I hope re credit rating and avoids getting in any more debt!

MABLE

simoja wrote: »

Thanks all for the excellent advice and ideas. I'd sell a kidney before going to a payday loan company so am exploring all other options.

I think the best is to arrange a mortgage payment holiday for two months which will cover the shortfall and as I understand it seems to be exactly for this kind of thing. Won't do me any harm I hope re credit rating and avoids getting in any more debt!

A pay day loan used sensibly can be invaluable. Unfortunately some people have no idea how to handle credit.

simoja

MABLE wrote: »

A pay day loan used sensibly can be invaluable. Unfortunately some people have no idea how to handle credit.

Interesting thoughts Mable, although I suspect you haven't actually grasped the topic of the thread. However, despite your compelling argument I remain unconvinced that the pernicious nature of payday loans can in any way be a positive thing for individuals or society. It is simply a case of those devoid of morale or social responsibility preying on those in need.

Please note that my thanks preceded your post.

fabforty

MABLE wrote: »

A pay day loan used sensibly can be invaluable. Unfortunately some people have no idea how to handle credit.

simoja wrote: »

Interesting thoughts Mable, although I suspect you haven't actually grasped the topic of the thread. However, despite your compelling argument I remain unconvinced that the pernicious nature of payday loans can in any way be a positive thing for individuals or society. It is simply a case of those devoid of morale or social responsibility preying on those in need.

Please note that my thanks preceded your post.

Wow, that was unnecessarily rude, even for a newbie.

JuicyJesus

simoja wrote: »

Interesting thoughts Mable, although I suspect you haven't actually grasped the topic of the thread. However, despite your compelling argument I remain unconvinced that the pernicious nature of payday loans can in any way be a positive thing for individuals or society. It is simply a case of those devoid of morale or social responsibility preying on those in need.

Please note that my thanks preceded your post.

Payday loans are a product like any other in that there is a need they can fulfil. If the urgency justifies the cost and other drawbacks, you can repay it in full without causing hardship and you haven't got any other means of getting cash, then they can fill a need - i.e. to provide cashflow.

They can be a positive thing for individuals so long as they are used as what they should be - lenders of last resort to be used in dire emergencies. Society not so much, although that's mainly due to them being hawked as easy ways to buy consumer tat/to fill a gap caused by overspending or used by people who forget that loans are not free money.