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  • FIRST POST
    Super_Ram
    Payday Mess
    • #1
    • 3rd Jan 11, 8:28 PM
    Payday Mess 3rd Jan 11 at 8:28 PM
    Hi All,

    I was not sure where to post this so thought I would post it here.

    I have been reading a few topics around sorting out payday messes and have kind of formulated a plan of what I am going to do to sort mine which doesn't involve not paying them.

    Firstly my sitaution is I have 4 paydays(don't ask) and have got to the point where I am just paying them off and then having to get them out again to survive. On top of this the Interest is killing me and its just a vicious circle I need to get out of.

    My Loans are

    Company: PTPD
    Borrowed: 485
    Interest: 145.41
    Paying back: 630.41

    Company: WD
    Borrowed: 485
    Interest: 140
    Paying back: 625

    Company: Wonga
    Borrowed: 550
    Interest: 213.70
    Paying back: 763.70

    Company: OML
    Borrowed: 300
    Interest: 90
    Paying back: 390

    So in total I am paying 589.11 in interst each month to them which ultimately is down to my fault but I cant go on paying this.

    So my plan is to

    Step 1 - Transfer my wages to go into another bank account they cannot touch

    Step 2 - Cancel all my DD on original bank account so Loans cannot be taken and re-setup bills on another account

    Step 3 - Ring and advise bank not to authorise any setup of any direct debits on account for paydays.

    Step 4 - Ring Paydays and advise I cannot afford to pay them and need to arrange a monthly payment instead.

    So after doing this I will have saved 589.11 in interest.

    From here my 2 options are to either split the 589.1 into 4 parts and pay what I can to paydays and then do a similar thing each month till all paid off. Or what i could do is pay off the OML of 390 to get rid of that payday and that leaves me with 199.11 which I can split 3 ways to the other paydays as the 1st payment in monthly installments.

    Now there are a few questions I have which I am unsure of which are:

    1. What rights do the paydays have in terms of what action to take. I mean is there next step to pass to a debt management team which I am not too fussed about as can setup monthly payments with the fine.

    2. What sort of effect will it hav on my credit rating which is bad anyway but just wanted to know?

    3. If I ask my bank not to set any direct debits on my account from requests by these companies am I covered from any unauthorised charges if the companies do this and try and take the money and the bank dont stop it?

    4. Also is there anything else I should be worried about apart from harrasment form these companies which I can handle

    5. Most imporatantly what happens with interest in terms of will they still charge me the same interest every month i dont pay or should it freeze?

    Thanks for any help or advice
Page 1
    • woodbine
    • By woodbine 3rd Jan 11, 10:10 PM
    • 18,345 Posts
    • 24,708 Thanks
    woodbine
    • #2
    • 3rd Jan 11, 10:10 PM
    • #2
    • 3rd Jan 11, 10:10 PM
    they wont freeze the interest,and if you ask me it looks very much like you are trying to avoid paying them,hence setting up new bank account.
    thats whay these people charge 2800%apr
    • themull1
    • By themull1 3rd Jan 11, 10:12 PM
    • 4,197 Posts
    • 4,113 Thanks
    themull1
    • #3
    • 3rd Jan 11, 10:12 PM
    • #3
    • 3rd Jan 11, 10:12 PM
    they will probably charge more interest/charges on your loans.
  • Super_Ram
    • #4
    • 3rd Jan 11, 10:16 PM
    • #4
    • 3rd Jan 11, 10:16 PM
    Okay, thanks for your reply but views I have had from other posters are they are obliged to freeze the interest if setting up a repayment plan so will have to look into that further.

    On paying them back yes I will be, the reason I am moving to another account is I cannot afford to pay them all back this month and form what I have heard regardless of any payment plan or agreement they will try and take the full amoutn anyway.

    I have already stated the Interest I wont have to pay in the 1st month will go towards paying the OML off in full and then pay a substantial amount to the other over the next couple of months to clear there debt.

    One thing I am not intending to do is not pay them back and have said that but if I carry on paying the interest every month then eventually none of them will be getting paid anything so trying to rectify it now
    • fozmcfc
    • By fozmcfc 3rd Jan 11, 10:24 PM
    • 2,991 Posts
    • 2,185 Thanks
    fozmcfc
    • #5
    • 3rd Jan 11, 10:24 PM
    • #5
    • 3rd Jan 11, 10:24 PM
    I would post the same post on the debt free wanabee section of the board.

    People will be able to give you links to letters you can send and also advice on who too contact etc.

    Basically you've done the first bit many suggest, open a new account transfer and accept all money into the new account.

    After that go about contacting creditors, tell them you wish to communicate by writing only. You need to give them a statement of affairs, so they can assess if you really can't pay them the full amount each month. I believe there are free organisations who can help you with this.

    Ultimately your credit rating will be shot too bits for at least 6 years and you will be extremely unlikely to get any credit of any sort during the next 6 years.
  • Super_Ram
    • #6
    • 3rd Jan 11, 10:33 PM
    • #6
    • 3rd Jan 11, 10:33 PM
    Thanks fozmcfc,

    The credit rating I kinda figured would happen but it isnt very good at the moment and it is going to get to the point of not being able to pay them soon and credit rating being effected so thought I would take matters into my own hand and deal with it before it happen
    • ViolaLass
    • By ViolaLass 3rd Jan 11, 10:52 PM
    • 5,149 Posts
    • 7,148 Thanks
    ViolaLass
    • #7
    • 3rd Jan 11, 10:52 PM
    • #7
    • 3rd Jan 11, 10:52 PM
    Okay, thanks for your reply but views I have had from other posters are they are obliged to freeze the interest if setting up a repayment plan so will have to look into that further.
    Originally posted by Super_Ram
    That only works if you agree and set up a repayment plan with each lender. You can't just not pay them with the intention of sending them some money when you can, it needs to be a fixed, regular amount and they need to agree to it.
  • Hax
    • #8
    • 3rd Jan 11, 11:10 PM
    • #8
    • 3rd Jan 11, 11:10 PM
    Okay, thanks for your reply but views I have had from other posters are they are obliged to freeze the interest if setting up a repayment plan so will have to look into that further.
    Originally posted by Super_Ram
    FWIW: There is NO obligation for them to accept your payment plan and freeze interest. Quite often, interest is only frozen once the account is in default and even then, only when it has been passed on to a debt collection agency. This can take many months.
    My posts are my own opinions based on my experiences and info gathered from sites such as this.
    They are not a substitute for professional financial advice - but you knew that already didn't you?
    VSP 2011 - Member #25 - Started 6th December 2010 - Total As Of 4th May 2011 (21 weeks in!) - £323.67/£500 - So far so good!
  • jamesd
    • #9
    • 3rd Jan 11, 11:19 PM
    • #9
    • 3rd Jan 11, 11:19 PM
    Have a look at Lenders Compared to see if you can get a better deal. That's the site set up as a result of the Office of Fair Trading's investigation into doorstep lending and many providers are required to list their offers there. You may find a better deal than the payday lending. Probably will because you'll be able to take longer to repay the money borrowed so you should have a decent chance of getting ahead. Don't be put off by interest rates of 250-600%, that's much less than you're paying now.

    When I took a look I found several lenders who'd lend the Wonga £550 over 10 to 54 weeks for a total credit cost of around £250 to around £350 instead of £213 for just a month.
  • Super_Ram
    Cheers for the replies.

    I know this is not an ideal solution but the other alternative was to keep going until I cannot pay any of them anything which is no good to anyone.

    So far I have changed my wages to another bank
    I have cancelled all DD from my original account
    I have setup my bills on another account
    There will be no money in original account so not going to cancel debit card

    Next step is to ring bank and advise I do not want any DD setup from these companies

    I need now to contact these companies and advise of my situation and to see if can come to some sort of arrangement
  • Super_Ram
    Ok I have sent three of the lenders an email stating my financial difficulty to see what they say.

    I have only had one reply form Pounds Till Payday but it was to say they have forwarded on my email to the collections department. It states this department cannot contact me by email and I should phone them. Should I ring them or wait a day or 2 to see what happens.
    • Rafter
    • By Rafter 4th Jan 11, 1:08 PM
    • 3,835 Posts
    • 1,366 Thanks
    Rafter
    Strongly suggest you book an appointment with citizens advice or call CCCS or another debt charity. Having them help you will give additional weight to any offer of repayment.

    If the lenders start hounding you incessantly for payment, make sure you log all their calls and ask for all further correspondence to be in writing or you will report them to the police for harrassment.

    You really need some professional help to get out of this situation though.

    Good luck

    R.
    Smile , it makes people wonder what you have been up to.
    • DC34
    • By DC34 4th Jan 11, 1:09 PM
    • 62 Posts
    • 30 Thanks
    DC34
    Who are OML?
  • Super_Ram
    One Month Loan DC34

    I am paying these off with the interest I have not had to fork out this month, however to ensure the other companies do not take the money form my account I have cancelled all DD and all money going into that account.

    I am just hoping that OML accept a full debit via credit card to pay them
    • molerat
    • By molerat 4th Jan 11, 4:38 PM
    • 17,484 Posts
    • 11,717 Thanks
    molerat
    If they have not already got your phone number do not call them but if you must then use a phone box or buy a throw away mobile / sim card.
    www.helpforheroes.org.uk/donations.html
  • Super_Ram
    Ok so I have had a reply of someone form Wage Day Advance advising me before they can consider a payment plan they need me to fill out my income/Expenditure on a for they have sent me.

    Do I fill this out and send it back beofre doing anything else?

    Also I have not made any of the Loan companies aware of each others debt so do I keep it like that or let them know I am going to be paying other payday debts as well

    Also is there ant tips on filling these out so I dont trip up and they try and fleece me for more than I can afford as I have noticed the form doesnt include basic things like food etc
    • ViolaLass
    • By ViolaLass 4th Jan 11, 6:03 PM
    • 5,149 Posts
    • 7,148 Thanks
    ViolaLass
    This is why you need to follow the advice in the first paragraph in post 12.
  • Hax
    You're probably best off using the SOA link in the DFW section to itemise your expenses and debts.

    As for the other debts, yes, you need to let your lenders know the magnitude of ALL of your debts. The idea of a DMP is that your (reasonable - £150/month on entertainment is NOT reasonable! ) outgoings are subtracted from your income and the remainder is divided pro rata between your creditors.

    Let's say you have £400 left over each month and you have four debts, one for £500, one for £750, one for £1250 and another one for £1500 - a total of £4000. Then, you would make monthly payments of £50, £75, £125 and £150 respectively. This ensures that all creditors are treated fairly and that your debts are all paid off at the same time - assuming that you can get the interest stopped!
    My posts are my own opinions based on my experiences and info gathered from sites such as this.
    They are not a substitute for professional financial advice - but you knew that already didn't you?
    VSP 2011 - Member #25 - Started 6th December 2010 - Total As Of 4th May 2011 (21 weeks in!) - £323.67/£500 - So far so good!
  • Super_Ram
    Ok have used this and works outlike this

    This is how my SOA worked out

    Household Information

    Number of adults in household 1
    Number of children in household
    Number of cars owned 1

    Monthly Income & Expense Summary


    Monthly Budget SummaryAmount(£)

    Total monthly income 1,250
    Monthly expenses (incl. HP & secured loans) 939
    Available for unsecured debt repayments
    311

    Monthly Income & Expense Details


    IncomeAmount(£)

    Monthly income after tax 1250
    Partners monthly income 0
    Benefits 0
    Other income 0
    Total monthly income
    1250

    ExpensesAmount(£)

    Rent 490
    Council tax 80
    Electricity 20
    Gas 20
    Water Rates 15
    Mobile phone 25
    Satellite/Cable TV 20
    Internet services 10
    Groceries etc. 75
    Clothing 5
    Car expenses (fuel, tax, insurance etc.) 165
    Pet Insurance/Vet bills 14

    Total monthly expenses
    939

    Debt Details & Offer to Creditors


    Unsecured Debt DescriptionDebt(£) Offer(£)

    Pounds Till Payday 630.41 97.1
    Wage Day Advance 625 96.27
    Wonga 763.7 117.63

    Unsecured Debt totals
    2019.11 311
    • ViolaLass
    • By ViolaLass 4th Jan 11, 9:16 PM
    • 5,149 Posts
    • 7,148 Thanks
    ViolaLass
    Are your gas and elec high enough? Also, you don't have anything set aside for entertainment, hair cuts etc, which I don't think is realistic.
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