Please help with a hopeless situation. (Extending my overdraft)

kay0981

First of all, I'd say hello to everyone on this forum. I apologise if this thread ends up being a little long-winded... But I'd like to try and be as detailed as I can.

I'm in my third & last year at university; my course is ending in just a few months. I have a student account with HSBC, with a £2,000 agreed overdraft, which is currently almost maxed out. I was hoping to extend my overdraft limit to at least £2,500 (the overall limit with HSBC is £3000), so I could pay my rent for next month. Unfortunately, when I went to the bank today, I was refused the overdraft extension. The woman didn't really give me any reason for it, she just said that the computer rejected my request & to try again in a couple of months. She said it could be that I already have a very high overdraft limit.

I have a big lump of money coming in on the 21st next month (over £2,000), but unfortunately, that is too late for me to pay my rent on time. I need at least £500 for my rent (I rent a very overpriced flat, but there is nothing I can do about that, unfortunately), and if I don't pay it, I will end up being kicked out of the flat, with virtually nowhere to go. My family lives on the other side of the country, so that would mean I wouldn't be able to commute to university. They themselves live on a 16k salary per year, supporting also my younger brother, so I don't even have the option to borrow the cash.

I know that HSBC does not have to agree to me extending my overdraft any further, especially considering that it is already at £2,000. Therefore, I ask you, please, is there anything I can do to convince the bank to lend me the further £500? I just want to know whether it is worth me going back there again, say tomorrow, and asking for the overdraft extension again. Is there anything I can say to them, anything at all? I know it seems really desperate, but I am desperate; if I lose the flat, I'll have nowhere to go. I have thought long and hard and this overdraft really is the only way I will be able to get through this month.

I really appreciate any help and advice you can give me...

Mrs_Soup

Does your university have a hardship fund as they may be able to help you short term?

kay0981

Mrs_Soup wrote: »

Does your university have a hardship fund as they may be able to help you short term?

Yes, there is the Retention Fund, which I have applied for last term. Last term I received 60% of my 'calculated additional need', which was £600. I have just submitted the application for the further 40%, but it takes up to 28 working days for the application to be processed, and a further 7 for the payment to come through. Even if I did receive the fund, it wouldn't be anywhere near in time for the rent.

Tixy

You can't get kicked out the flat for being less than 1 month behind with you rent. Your tenancy agreement will protect you from that.

I would inform your landlord you will unfortunately be late paying this month and tell them when it will be paid. If you can afford to pay some of it on the due date then do that, and then pay the remainder as soon as you can.

kazwookie

as above you cannot be kicked out for 1 month behind in payment, once you have paid up, can you arrange to move somewhere cheaper / get a job to fit around your studies to help you out / house share. etc

Gaz83

How reasonable is your landlord? Maybe if you explain to him / her the situation and give him something in writing saying that you will be paying late he / she will accept that?

kay0981

Gaz83 wrote: »

How reasonable is your landlord? Maybe if you explain to him / her the situation and give him something in writing saying that you will be paying late he / she will accept that?

I'm not sure, he's normally friendly, but in the almost three years of renting I have never been late with rent. I'm not sure what he gets like when he doesn't get his money.

I had a look and my tenancy agreement states that if the rent is not paid within 15 days from when its due (mine would be delayed by 21 days), then the landlord has the right to re-enter the property. Furthermore, that 2,000 pounds I'm getting on the 21st is there to cover the remaining three months of tenancy, so either way I wouldn't have enough to paid the rent in later months.

Do you think there is any chance that HSBC would allow me to extend my overdraft if I just keep going back there and try to explain my situation? The woman I had today wasn't being very helpful, but I doubt it was really down to her personal choice that I got turned down.

I really appreciate all your responses so far, so thank you all for your input. I have a good job placement ready for me by the end of July, so I'll be able to pay all my debts/overdrafts off once I start it. I just need to find a way to last until then... I just wish HSBC would let me extend my overdraft.. I'm really scared I will lose my flat...

BitterAndTwisted

You won't lose your flat. At least, not immediately. In order to be legally evicted the landlord won't be able to apply to the court for possession until there are two month's worth of rent due. Before he can do that, he's got to issue you with the correct documentation, a Section 8 Notice. Getting a court-date can take a couple of months on some parts of the country, depending on how busy they are. That stuff in your tenancy agreement about the landlord being able to gain access if the rent is late is bunkum. That's what is know as an unenforeceable clause. In any case, you can prevent access by changing the BARREL of the lock, keeping the existing one aside to be put back later. Most barrels cost about a tenner or less and can be bought from B&Q or a hardware shop and will take about five minutes to do with a basic screwdriver.

I believe the answer from the bank will be another "no" unless you can get an appointment with someone sensible face-to-face, armed with your job-placement offer letter.

Meanwhile, CONTACT YOUR LANDLORD! Receiving a warning that you might be paying the rent late is better than him getting a nasty surprise out of the blue.

Paul_the_Painter

Do you rent a FLAT, or are you renting part of a house? Basically you need to be sure you are a tenant and not a lodger. If you are sharing facilities/doors you may well be a lodger, in which case tenancy advice would not apply to you.

BitterAndTwisted

Indeed. A lodger can be turfed out onto the street with a minimum of notice. Like 24 hours or less in some circumstances.

happycamel_2

Can you open another student account somewhere else and use the overdraft facility on that? When I was a student (admittedly over ten years ago) I had 2 student accounts each with an overdraft facility.

Other than that can you get some bar or restaurant serving work. Your union should have a vacancies board. Being a waiter/ess is useful because you'll get tips in cash immediately rather than waiting for your pay date.