Overdraft being reduced. Advice please.

elyphant

Hi, newbie here so please bear with me if I'm in the wrong place/being an idiot.

Just received a letter about our current account with Nationwide. They are reducing our overdraft from £2500 to £1650. We do reach our limit monthly and sometimes go over, so I can see why they might want to rein us in. We can find the money to make up to the new limit, by taking out of savings and borrowing from parents. However, am wondering if this is the best course of action.

We did have a loan and credit card with NBS, both of which we have gradually paid off over the past few months and are now at zero. The overdraft was coming next.

I am wondering whether to just scrape the money together to get to the new limit, or whether to contact NBS to see if we have other options. Am worried though about getting into some tricky arrangement with them.

The letter arrived today 23rd October and the new limit will apply from 30 October so this is 7 days to sort things. Is this right?

Hope someone can help me out. Before anyone asks, yes for years we have been following the actions on this site for cheapest home insurance etc., have done all the 'non-painful' budget cutting and are already in painful territory. My income has actually gone up a little in the past few months and hubby's has stayed the same. Basically food, petrol and heating costs are making us really struggle. We are a family of 4.

grumbler

elyphant wrote: »

...
I am wondering whether to just scrape the money together to get to the new limit, or whether to contact NBS to see if we have other options.

Don't waste your time. The only other option can be a loan, and don't expect it to be cheap after managing your current account with them so bad.

The letter arrived today 23rd October and the new limit will apply from 30 October so this is 7 days to sort things. Is this right?

Why not? All overdrafts are repayable on demand.

apesxx

Nationwide were very good with me when they reduced my overdraught and let me reduce it in chunks. I paid £100 a month til it was paid off. I'd give them a ring and see what they can do for you x

elyphant

Thanks apesxx, they did give me that option over the phone and have also moved the date to end November, as the letter was dated 5 Oct but only reached us on 23 Oct.

Think we will pay off the lump sum by scraping together bits of savings (Have come round to that making more sense, despite the emotional side of things - won't go into that here!), as then the interest will be less and we can reduce what's left of the overdraft ourselves, as planned.

We will get there!