Crippling debts.

Kadoo987 · 24 June 2017 at 4:28PM

Hi guys,

So I'm at a point now where I haven't paid any of my unsecured/payday loans for quite some time.
It got to the point where they had mounted up so much I was choosing which ones to try and pay because they were totalling more than I was earning!
In the end when I was switching jobs I decided to just give up.
It looks like a lot of them have been sold off to collection companies now and I'm worried about what this might lead to.
My dad has agreed to lend me the money to pay them all off (including a credit card) when he gets a windfall from his pension.
This is taking a long time to process and the weight of it all is really starting to affect me.
Just to clarify, the total debt amounts to around £9k, which would be totally affordable if I could just roll them all into one over a longer period, but obviously I have no chance of my bank consolidating for me.
Are there any other avenues I can take to try and solve this?

Many thanks,

sourcrates · 24 June 2017 at 4:34PM

Hi and welcome,

There are debt solutions in place to deal with almost any situation, far better you chose one of them, instead of raiding your dads pension pot.

9k is not a Hugh amount compared to a lot of people, but i understand its not affordable with interest charges etc.

Best you do a statement of affairs, remember to format for MSE, post it up on here and people will be able to offer you there advice.

SOA calculator :

http://www.stoozing.com/calculator/soa.php

Also you might find this interesting :

https://debtcamel.co.uk/payday-loan-refunds/

Lucylocks · 24 June 2017 at 4:34PM

The first thing I would do is write to each; inform them you are in financial hardship and request an immediate stop on interest. If these are still accruing at payday lender rates unfortunately you may owe more than you think

datlex · 25 June 2017 at 10:04AM

Kadoo987 wrote: »

Hi guys,

So I'm at a point now where I haven't paid any of my unsecured/payday loans for quite some time.
It got to the point where they had mounted up so much I was choosing which ones to try and pay because they were totalling more than I was earning!
In the end when I was switching jobs I decided to just give up.
It looks like a lot of them have been sold off to collection companies now and I'm worried about what this might lead to.
My dad has agreed to lend me the money to pay them all off (including a credit card) when he gets a windfall from his pension.
This is taking a long time to process and the weight of it all is really starting to affect me.
Just to clarify, the total debt amounts to around £9k, which would be totally affordable if I could just roll them all into one over a longer period, but obviously I have no chance of my bank consolidating for me.
Are there any other avenues I can take to try and solve this?

Many thanks,

What makes you so sure your bank won't help consolidate these into one loan. Consolidation is not normally recommended on here, but I found it useful and it can reduce interest. My highest debt was £11000 and I am now debt free, I actually paid it off a year early. I now have savings. You have nothing to lose from talking to them. Your bank can see your income. I find the advice of writing to debtors is bad, I have always spoken to mine before things got out of hand and found I got decent treatment. When I had difficult times they were accommodating because I kept up a dialogue.

fatbelly · 25 June 2017 at 10:10AM

While the debts remain with the payday lenders you can follow sourcrates advice and get them reduced or written off

Whatever remains can be repaid through a debt management plan, or full & final settlement, or maybe dealt with by a DRO. You'll need to look at the options

Don't think about consolidating.

EssexHebridean · 25 June 2017 at 4:01PM

OP Please listen to the advice given by Sourcrates & Fatbelly above - these guys know their stuff and have helped more people out of debt black holes than you can shake a stick at.

Don't panic- it's unlikely anything will happen over night so you have time to follow the steps of creating and posting your SOA and then we can take a proper informed look at your situation from there.

fatbelly · 25 June 2017 at 6:56PM

EssexHebridean wrote: »

OP Please listen to the advice given by Sourcrates & Fatbelly above - these guys know their stuff and have helped more people out of debt black holes than you can shake a stick at.

Reminds me of a Groucho Marx line:

'he's got more women than you can shake a stick at...if that's your idea of a good time. '

EssexHebridean · 25 June 2017 at 7:48PM

fatbelly wrote: »

Reminds me of a Groucho Marx line:

'he's got more women than you can shake a stick at...if that's your idea of a good time. '

:rotfl::rotfl: Is this wishful thinking?!

debbie_debt · 26 June 2017 at 1:23PM

Any debt that is unmanageable for you is too much, but ignoring the companies isn't the way forward, despite feeling like the only option sometimes. Ring them, throw yourself at their mercy and ask for any help they can offer people in financial hardship. There will be support available. I'd then maybe try to discuss your situation with a debt charity, such as Step Change and see what they recommend next. NEVER pay anyone in a private company for help - this can be sorted for free.

Crippling debts.

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