Can a bank overdraft be wrote off in certain circumstances?

fitzykev

I have been putting off posting this but i feel i need to find out. On the second of april my 74 year old mother took four sizures and got rushed to hospital. It turns out she has lung cancer which has spread to her brain. Anyway i had to stop work immedieatly. I am in the process off sorting out carers element. My wife just started university in feburary we also have a five year old and my wage was the only one coming in until this. We have a universal credit claim in but as of yet have not recieved anything because of my earnings so far. I have an overdraft of £1500 sitting at £1499 i have been paying the overdraft charge monthly for over a year. I have been told banks will clear overdrafts in certain circumstsnces. I am not holding out much hope but i though i would see what i could find out here

Emmia

I may be being cruel, but I'm not sure why you had to quit your job in these circumstances, my parent died of a brain tumour and I worked full time throughout that period. 

Edit: However it does sound like you're struggling financially, is it just the overdraft or do you also owe on credit cards, loans, rent/mortgage payments? You should probably head over to the debt free boards, post a statement of affairs and get some advice for your circumstances.

Section62

fitzykev said:

I have been putting off posting this but i feel i need to find out. On the second of april my 74 year old mother took four sizures and got rushed to hospital. It turns out she has lung cancer which has spread to her brain. Anyway i had to stop work immedieatly. I am in the process off sorting out carers element. My wife just started university in feburary we also have a five year old and my wage was the only one coming in until this. We have a universal credit claim in but as of yet have not recieved anything because of my earnings so far. I have an overdraft of £1500 sitting at £1499 i have been paying the overdraft charge monthly for over a year. I have been told banks will clear overdrafts in certain circumstsnces. I am not holding out much hope but i though i would see what i could find out here

Are you hoping you'd then have a full £1500 overdraft to cover new spending?  If (and it is probably unlikely) the bank did write off the £1499 then I think it is unlikely they would give you a new overdraft or continue using the existing one.  In effect you'd be telling them that your circumstances meant you couldn't afford the (existing) overdraft, which isn't compatible with them then lending you new money.

Otherwise you'll just be back in the same position in a few months.

You might have more luck getting them to agree to suspend charges/interest for a period of time.  I don't mean to be insensitive, but if your mum's doctors have given her a limited prognosis then share that information with the bank... e.g. if you could expect to be back at work and earning in 'x' month's time, rather than having to give up work for several years.

Talk to Macmillan Cancer Support.  They have advisers who can point you to any help or benefits you or your mum can get which you might not know about -

https://www.macmillan.org.uk/cancer-information-and-support/impacts-of-cancer/benefits-and-financial-support

I feel for you and your family.  You mum's cancer is bad enough, dealing with that and having money worries on top isn't something anyone should have to experience.

fitzykev

Section62 said:

fitzykev said:

I have been putting off posting this but i feel i need to find out. On the second of april my 74 year old mother took four sizures and got rushed to hospital. It turns out she has lung cancer which has spread to her brain. Anyway i had to stop work immedieatly. I am in the process off sorting out carers element. My wife just started university in feburary we also have a five year old and my wage was the only one coming in until this. We have a universal credit claim in but as of yet have not recieved anything because of my earnings so far. I have an overdraft of £1500 sitting at £1499 i have been paying the overdraft charge monthly for over a year. I have been told banks will clear overdrafts in certain circumstsnces. I am not holding out much hope but i though i would see what i could find out here

Are you hoping you'd then have a full £1500 overdraft to cover new spending?  If (and it is probably unlikely) the bank did write off the £1499 then I think it is unlikely they would give you a new overdraft or continue using the existing one.  In effect you'd be telling them that your circumstances meant you couldn't afford the (existing) overdraft, which isn't compatible with them then lending you new money.

Otherwise you'll just be back in the same position in a few months.

You might have more luck getting them to agree to suspend charges/interest for a period of time.  I don't mean to be insensitive, but if your mum's doctors have given her a limited prognosis then share that information with the bank... e.g. if you could expect to be back at work and earning in 'x' month's time, rather than having to give up work for several years.

Talk to Macmillan Cancer Support.  They have advisers who can point you to any help or benefits you or your mum can get which you might not know about -

https://www.macmillan.org.uk/cancer-information-and-support/impacts-of-cancer/benefits-and-financial-support

I feel for you and your family.  You mum's cancer is bad enough, dealing with that and having money worries on top isn't something anyone should have to experience.

thank you for your advice. no i definitely do not want another overdraft.

fitzykev

Emmia said:

I may be being cruel, but I'm not sure why you had to quit your job in these circumstances, my parent died of a brain tumour and I worked full time throughout that period. 

Edit: However it does sound like you're struggling financially, is it just the overdraft or do you also owe on credit cards, loans, rent/mortgage payments? You should probably head over to the debt free boards, post a statement of affairs and get some advice for your circumstances.

everybodys circumstamces differ. i dont want to stop work for the sake of it i am doing this out of necisity. she cant be on her own incase of more sizures for a start

fatbelly

fitzykev said:

I have been putting off posting this but i feel i need to find out. On the second of april my 74 year old mother took four sizures and got rushed to hospital. It turns out she has lung cancer which has spread to her brain. Anyway i had to stop work immedieatly. I am in the process off sorting out carers element. My wife just started university in feburary we also have a five year old and my wage was the only one coming in until this. We have a universal credit claim in but as of yet have not recieved anything because of my earnings so far. I have an overdraft of £1500 sitting at £1499 i have been paying the overdraft charge monthly for over a year. I have been told banks will clear overdrafts in certain circumstsnces. I am not holding out much hope but i though i would see what i could find out here

Any debt can be written off.

Obviously you will need to be banking with a bank unconnected to this debt.

If you cannot afford to pay the contractual charges (which are equivalent to 40% apr) then stop paying.

You will have to wait a few months before this is terminated as you are not even over the overdraft limit yet.

Then you can make a pitch for a write-off. You will have to explain what has changed since you were making the contractual payments, probably present an income/expenditure statement, and evidence what you say.

There is a factsheet here

https://nationaldebtline.org/get-information/guides/write-debt-ew/

And initial letter

https://nationaldebtline.org/get-information/sample-letters/write-off-debt/

Earlier advice that this is something for the debt-free wannabe board, is probably right. Shall we ask for it to be moved?

born_again

Chances of bank writing the O/D are pretty slim. They may come up with a repayment plan, but that will affect your credit history.

TBH, would your mother be better off in a care home with 24/7 care?
Especially given your wife is training as a nurse & the placements required, which will impact on care for your child?
Given your 2 posts in the benefits section.

Olenna

@fatbelly is probably the best person to listen to.

Without actually defaulting on £1500, you could could see if you can convert the overdraft to a loan (the APR is likely to be substantially lower and you could gradually repay over a number of months).

Also, has your wife approached her University to see if they have any assistance available. 

jackjones01

Be mindful overdrafts are repayable on demand. 

You might want to ask the bank if they could put you on a reducing overdraft so it lowers by x amount every month. 

Alternatively check if you get a credit card that offers money transfers to pay off the overdraft. 

fatbelly

Moving your debt to a different place isn't going to help if you are just going to default on the new product.

And you are not going to have much spare income on UC. It's not that generous despite what the media would have you believe.

The urgent thing is to get your income paid into, and essential direct debits paid out of, a new account with a bank that isn't linked to the old one.

fatbelly

Moving your debt to a different place isn't going to help if you are just going to default on the new product.

And you are not going to have much spare income on UC. It's not that generous despite what the media would have you believe.

The urgent thing is to get your income paid into, and essential direct debits paid out of, a new account with a bank that isn't linked to the old one.