Need To Clear Overdraft

another_casualty

Hello everyone,hope you can help. I'm on a DMP , with Payplan
since 2012. I have been paying that ,and all of my bills on time as per usual.
Unfortunately, my mother passed away 2 weeks ago in Ireland and the funeral was 11 days ago.
I had to go over a couple of times for the funeral and before that obviously due to her declining health.
Trouble is, I am now on a £1,500 overdraft which I am getting way too close to going over that.
I assume the answer will be ''NO!'' , but is there any chance my bank
(nationwide) would give me a small personal loan to help?

I am equity rich/cash poor. My property is worth £400,000 approx
Mortgage about £75,000 Homeowner loan about £14,000
payplan will take settlement of £14,500 to clear.
I contacted Reach Financial services via payplan, and they couldn't find anyone to help.
I have thought about moving out of London, and going to poole in the not too distant future.Being 53 and living alone , I would find it daunting. The upside is I could have money in the bank for once .
Don't want to waffle on too much , but thanks for looking at my situation.

Playing_with_Fire_2

So sorry for your loss.

Can you ask for a payment holiday on your mortgage payments to save some money for a couple of months? Do you know anyone that would rent a room off you to make some more money? Do you have a budget that you can review and stop or pause some expenses for a few months?

Avoid making big decisions in the next few months, you might find you need time to heal before you can weigh up moving and selling your home.

rockm87

Hi, so sorry for your loss.

You already know the answer, so stick to your guns, getting into more debt will not help your situation.

Get a budget together, I would open a basic bank account without an overdraft, get your wages paid into that, and then pay off your overdraft a bit at a time, or get it added to your DMP.

another_casualty

Thanks very much for your kind words and advice.
I have been on my best behaviour with the dmp which is almost 4 years, plus I pay all bills on time etc.
What I was hoping to do, is get a loan ( £5000 max)
This would clear overdraft and leave emergency fund for me and some breathing space . The other scenario would be to remortgage for extra £5000. With this, there should be a fixed lower payment for a couple of years which would seriously help me . It sounds daft, but rather that than go past my overdraft limit in a couple of weeks before next salary .

another_casualty

Forgot to mention , my nationwide acct was the new one when I joined Payplan , so I don't want to change from that . Would a payment holiday work?
I would need 4 /5 missed payments of my mortgage .

rockm87

How much more money do you need to make it til next payday?

another_casualty

Well, about £600. Trouble is the overdraft is still there.£1500 clears it.;)

rockm87

Is there anything you can sell?

Can you do some cash in hand work? Or evening work (delivering take away, shelf stacking, pouring pints) to help you out?

I wouldnt use the account with the overdraft, as everytime you clear it, you use it again. its just a vicious circle!

glentoran99

If you are using your overdraft you are actually violating the terms of your DMP as you shouldn't be taking out more credit, so taking out a loan is also out of the question, if you are struggling on a DMP you need to cut the amount you are paying to the DMP, that's one of the benefits to it, flexibility

another_casualty

I was going to tell Payplan about my situation . If it wasn't for the funeral etc. I would've been ok. When I joined nationwide, I told them no overdraft. Tbh, it helped at the time .
I have heard of people being thrown off Payplan , so I'm not sure whether to let them know.
I have about £20 in a savings acct with nationwide and have been with them since 2001.

glentoran99

another_casualty wrote: »

I was going to tell Payplan about my situation . If it wasn't for the funeral etc. I would've been ok. When I joined nationwide, I told them no overdraft. Tbh, it helped at the time .
I have heard of people being thrown off Payplan , so I'm not sure whether to let them know.
I have about £20 in a savings acct with nationwide and have been with them since 2001.

Im not sure about them throwing you off, but even if they did you can self manage a DMP you don't need someone to do it for you