Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Help Keep Boards Alive. Support us by going ad free today. See here: https://subscriptions.boards.ie/.
If we do not hit our goal we will be forced to close the site.

Current status: https://keepboardsalive.com/

Annual subs are best for most impact. If you are still undecided on going Ad Free - you can also donate using the Paypal Donate option. All contribution helps. Thank you.

Disability allowance and bank overdraft

  • 02-07-2021 12:34AM
    #1
    conifertrees
    Registered Users, Registered Users 2 Posts: 1 ✭


    My sister has offered to guarantee a bank overdraft of up to fifty thousand Euros for me with my bank. The money would be used together with savings to build a new primary dwelling. I would guarantee to repay my sister from a future inheritance.

    As someone who is on Disability Allowance, would this be a change of circumstances that I would need to inform the Department of Social Protection about? At what stage would I have to inform the department?


Comments

  • #2
    Dempo1
    Registered Users, Registered Users 2 Posts: 27,152 ✭✭✭✭Dempo1


    conifertrees wrote: »
    My sister has offered to guarantee a bank overdraft of up to fifty thousand Euros for me with my bank. The money would be used together with savings to build a new primary dwelling. I would guarantee to repay my sister from a future inheritance.

    As someone who is on Disability Allowance, would this be a change of circumstances that I would need to inform the Department of Social Protection about? At what stage would I have to inform the department?

    No in simple terms, your circumstances won't change as a result of this arrangement , your sisters gaurentee for an overdraft is not at all relevant, if you we're getting a physical loan then you may have to explain a substantial lodgement into your account if for example you had a review , regardless, expenditure towards a primary residence would certainly be allowable. It's income from any source you may have to explain, I certainly would not feel your obliged to report an overdraft facility, you'll be aware there are savings, income, asset thresholds regarding eligibility for DA but this transaction does not affect these qualifying conditions others may have different opinions.

    Is maith an scáthán súil charad.




  • #3
    frenchpoodle
    Registered Users, Registered Users 2 Posts: 13 ✭frenchpoodle


    can someone explain how u get a person to guarantee an overdraft , i thought bank overdraft s were for only 1,000 e . 50 k overdraft is a lot, is there interest on it and how does it work? does credit union do this as well as bank?



  • #4
    pale rider
    Registered Users, Registered Users 2 Posts: 446 ✭✭pale rider


    An overdraft can be for any amount but usually is related to a person or a businesses ability to service it, in this case it seems to be short term with a definite ending.


    of course interest is payable and often an arrangement fee.



Advertisement