Unusual situation : is it possible to have a loan while on a dmp?

DCFC79

another_casualty wrote: »

I wonder if nationwide would increase my o/d for a few months.
Not sure whether to ask or not .
I'd forget about the loan , which is now a bad idea.

Any thoughts ?

Ask Nw, the worst they will say is no.

meer53

An overdraft increase is further lending, if you're already on a DMP, i can't see Nationwide agreeing to any increase. You will need to go through an assessment for them to agree it. If your DMP payments are made from your Nationwide account, they'll spot them straight away.

another_casualty

Thanks meer. On my statements, it a standing order to,pay link .
Not keen on the means testing .
It's too tough these days ;(

National_Debtline

An increase in your overdraft would be further lending and could cause you the same issue as a loan. (I am a bit surprised you have been allowed to keep an overdraft whilst in a DMP but if the debt management company is aware then it is fine). I think you need to assess what you actually need this money for because in your first post you were considering a £10,000 loan and now you are considering a £500 increase in your overdraft - that is a big difference.

Try not to spend money you are expecting (easier said than done). Stick to your DMP and once the house sells and you exchange you will be debt free and from what you are describing you will have more money in the bank too. Try and hang on if you can.


Laura
@natdebtline

another_casualty

Thanks very much Laura
Yes it does sound odd, the varied amounts I quoted.
Basically , it's one of two things: I was hoping to increase overdraft initially, until my home sells ( the more sensible option )

The other amount, was to buy carpets / do up the place as after lots of viewings - 'too much work needed ' etc. I'm up to my eyeballs , and was thinking of borrowing short tem only.

I'm gonna hold fire and do nothing. Being means tested is so soul destroying and depressing . I'm just gonna pray harder

Vikipollard

This is going to sound harsh, but I make no apology for that.

Have you learned nothing through ending up in a DMP? If you're struggling then either your budget is wrong (speak to the people running it) or you still aren't budgeting properly.

What exactly is the "£5 - 10,000" you were originally hoping to borrow for?

I see that it's since become a £500 increase in overdraft, but still - what is that for? If it's to last until the end of the DMP, then that's about £25 a month....

You are relying on selling your property as the panacea to all evils - but if you haven't honed your budgeting skills, in no time at all you will be right back in the same mess you are now.

Reconsider.

another_casualty

Thanks viki
I started a thread elsewhere . It is about 50 pages now.
To try and summarise things briefly, I will say that as a single man I remortgaged a few times when I was made redundant back in 2006.
Then I got ill health, then my mother died etc.

Payplan are brilliant , but at the end of the day , everything goes up and I am always facing an uphill struggle . As mentioned above , I was going to hopefully increase overdraft . That will not happen now .

What I have decided to do , is sell my flat . Move out of London . Buy new flat outright no mortgage. Have hopefully £50-80,000 savings.
Make settlement offer to,Payplan. Work part time .
The unfortunate thing is, I put my place up for sale at the wrong time .
(The press tell you all the reasons ).

Once the place is sold, I will have to budget and be very careful.
I have had 10 years of hell , and refuse to go back .

I just need a buyer:)

Vikipollard

Sorry you've had a rubbish time this last few years; fate really does know where all the squishy bits are to pinch.

Sounds like a reasonable plan, once your property sells. Two thoughts from me:

1) could you reduce the price of your property so that it sells, but still leaves you in a position to buy outright with some left over - even if it means that it takes a bit longer to totally clear your debt?

2) have a chat with Payplan and see if what you are budgeting for everything is realistic.

I won't bore you with all the details of why, but for my sins I ended up in an IVA (fine for me, as mortgage only in (now) husband's name). Accepting that there were two of us, but that DH had a number of financial commitments, the amounts I put down on our sheet for food etc were way below the minimum I was allowed, so although it was still a lemonade budget rather than champagne, I could manage to stay within budget for 2 adults, up to 4 teenagers and 2 German Shepherds.

I just wonder if yours has been cut too close to the bone.

another_casualty

Thanks again viki Hope you and your family are doing better now.
(And of course the German Shepards:)
Happens to all of us, who think we are doing the right thing.
We all hit a brick wall in our lives.

TBH , my plan is to keep quiet with Payplan . My review is next Feb .
The selling price has been reduced twice. ( last Monday the second reduction. ) I've had lots of viewings, and since last Monday a few more unexpected and positive viewings.

I haven't missed any payments to Payplan , or all the other bills.
This should continue, if I get my home sold in the not too distant .

If things implode badly before then , then I'll probably post something on m s e again , looking for help !

Thanks