Can't find a way out

maddiem

Would be ok but I'm in arrears and on a court order to pay extra a month.

MyLastFiver

Hmmm. I see your point but what would actually happen if you missed a month?

My point is that breaking the downward spiral of Payday loans will be painful and will involve some sacrifice somewhere. If you don't want to sell the car and don't want to miss the mortgage then fair enough, but where else are you going to get the money from? I guess that with interest charges the Payday loans will quickly become unmanageable unless you nip them in the bud quickly. Getting rid of these toxic debts would absolutely be my top priority.

Lara44

Hi Maddie

I am sorry to hear about the last few years, it seems as if they have been very tough.

I can see that you are worrying about the payday loans coming out of your next wage, leaving you with no money to pay them.

I am really glad you are getting in touch with Payplan and CCCS as they will give you the best possible advice.

In the meantime it seems as if you have the choice between opening a new basic bank account and having your wages paid in there, and defaulting on the payday loans, or defaulting on the mortgage. Do you have family or friends that you could borrow from for this month only as an alternative?

As it's quite easy to apply for the basic bank account, why don't you do that on Thursday? Then you have an account up and running if you need to put your wages in there.

If I was choosing personally, I would default on the payday loans. However, they are nasty and you need to get them off your back.

How big is your house? You could make some easy extra money by renting out a room, especially if you're on the outskirts of London. You wouldn't have to pay tax under the government rent a room scheme. More info here -
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4017804

Can you list those ebay items tonight? Could you get an extra job, or visit the Up Your Income board for some ideas? It seems that you just need to get a few grand together and then you would be comfortably repaying your debt. If you could make one big giant 'push' to get the payday loans repaid you would be in a much better position.

You also need to deal with the bank charges account. Visit the Bank Charges board here to get started reclaiming all the charges from the last 6 years, it's very easy. You will need to cite financial hardship for your claim to go through as the test case is proceeding. But this would give you a large chunk back to pay off the account, or perhaps even the payday loans. I got back £300ish from Natwest with no court case, so do check *all* your accounts. Even £30 helps!

Do stay positive, you have got loads of people here to help and support you. :cool:

gratefulforhelp_2

Dear Maddie M,
I am worried people are advising you to default on your mortgage. Contact RAS or 10 past 6 by pm they are v.good and clever on this kind of thing.

On the depression front, any exercise you can do will help, however tiny. xxx

MyLastFiver

gratefulforhelp wrote: »

Dear Maddie M,
I am worried people are advising you to default on your mortgage.

Not advice GFH, just saying what I would consider were I in the same situation. If her figures are correct then life will look much rosier for the OPer once those payday loans are behind her.

Good luck Maddie whatever you decide to do.

penniesgrowintopounds

Just popping by to give you a hug, Maddie. You have had a very tough time of things, and it must have taken a lot of courage to post here. You're stronger than you think, Sweetie. I'm subscribing to your thread, so that I can offer any support and encouragement that I can.

Good luck, Sweetie ~ if you can get past those awful payday loans, I'm sure that things will start to look up for you. Please keep posting, as we're all here, wishing you well x

maddiem

Thanks all. Sitting down again on Thursday to hash things out as I am on 12 hour stints at work. (I know sounds like excuses but I'm out of the house 15 hours and barely sleep as is). Taking everything on board. Thanks again. (Oh my advice, regardless of what threads may say about life insurance make sure you have some. If that was the case I wouldn't be so badly. Didn't think by the age of 35 we'd need it.)

TotallyBroke

Please please do not miss paying the mortgage, if it is already at court stage and they have ruled you pay xx amount each month if you don't you could lose your home.
I know nothing about these payday loans so please enlighten me. If you borrow £500 in February do you have to pay back £500+interest in March or is it like another loan where you have to pay it back with weekly or monthly amounts.
What else do you have to pay before your next payday? How much money is in the bank? I'm going to pm you a spreadsheet that I use for working out my monthly spends please do adapt it to fit around yourself this week and next until you get to payday. You can see where you can juggle money, might be that you get no shopping this week or walk to zone 5 to save some money on travel.

maddiem

No I won't miss a payment on mortgage. I am going to speak with them tomorrow, see if they will change my agreement for a year at least to bring payments down. I don't think they'd add arrears to the amount but I will see.

As far as payday goes, can't still work this out. When they all go out I have nothing left in my account so no bills would be paid. Have to work on this quickly.

A&L want to change my loan to secure - can they do this?

Nargleblast

If a bank wants to change your unsecured loan to a secured one then that means you having to sign forms agreeing to it. The security for the loan is usually your home - they would take out a second charge on your property which means if you have to sell up then they get second pick of the takings after the mortgage lender. Not a good idea to be putting your home at risk in your current situation, methinks. Don't be bullied into any hasty action by creditors until you have run things past your debt counsellors.