Clearing overdraft with credit card, switching to close account before DMP

SpireCaptain

Pulse /Newday are actually still offering me a £7,500 loan which seems crazy but I take your point of applying to pay off all 4 overdrafts and then defaulting on the loan. A bit underhand on my part I fear.

SpireCaptain

Thank you, very safe advice to bite the bullet and just start. I'm only waiting on 2 house sales to complete and then I can start. I'm hoping by October it's time to start as September minimum payments are over £1600 all added up and there isn't that much wiggle room left.

SpireCaptain

It turns out I had no spare availability on my credit cards due to interest being added so I've had to leave the overdrawn account open. Thank you any way for advice.

Yesterday was the day I first missed a credit card payment in my life. And like you guys on here say all along, the world hasn't stopped turning and no baliffs are at the door.

Barclaycard actually texted saying I can pay up until the 17th before a £12 pate fee is added. I was quite surprised. I still made my MBNA payment as need to use the card one final time so didn't want it to be frozen.

I'm just updating email and phone numbers to new ones in all my creditors apps and have seen in the Tesco and pulse apps the button to click to close the account.

Would closing a maxed out account myself benefit me in any way? I'll still not be making payments and they still say minimum payments will be due so I guess it'll still run it's course of 3-6 missed payments before defaulting.

dumpster_fire2025

https://forums.moneysavingexpert.com/discussion/comment/82137824#Comment_82137824

Closing an account with a balance would just close it to any new spending. If you were concerned that you might continue to spend and increase the balance then it might be useful to do that, but it won't cause it to default any faster.