Cant pay things off

kirsty000

Ive got a few payday loans I cant afford to pay off or extend, one has allrady not cleared in my bank. Its with a local company what should I do? Should I write to the shop or to their head office? How likely are they to take monthly payments and stop the sending the cheques to the bank?
thanks
Kirsty

beanielou

Not too sure on this one kirsty so bumping this up for you.

Merlinexcalibur

I will have to have a think about this one and, maybe, get back to you on this. But my best advice right now would be to stear clear of any more payday loans. The interest on them is usually astronomical. Plus lots of other little nasties that aren't made transparent - oh, seems I am using 'MPojargon' lol - from the getgo.

But I am assuming when you say 'local' this is one of those 'shops' that has sprung up prolifically lately in 'times of crisis'.

However, I possibly would write to their head office not deal directly with the shop staff. Better dealing with the grinder and so forth. Hope that made sense to you.

jenjade

i have not had any experiance but could you get a 0% card to cover the loans? maybe you could move the money around to avoid those huge interest charges

ct24

first I would look at opening another account with a different bank and pay in your salary/benefits etc. Then I would write to the shop managers, offering your payment plans, should this fail and they are unwilling to "help" then let the cheques go through and deal with the bank. I presume that the cheques are guaranteed, so the bank will honor them, when all the cheques have gone through, then you may be able to make a payment plan with them.
Could you sell anything to pay some of the debt off?

insideinfo

I agree with ct24

better to deal with the bank and an unauthorised overdraft than deal with the hop who probably (i have a lot of experience with this) will not co operate

you may get bank charges but it's easier to get a bank to eventually freeze the account and do a deal on repayment, if you do not change banks then you may see money getting sucked out of your account

the result, the shop get paid and you end your reliance on such lenders, you have a safe bank account and with good independent advice you make an arrangement with the bank, they will get what you give them, you remain in control of your finances !

some reccomend using the likes of provident to take out a loan to pay of the money shop, this may seem ridiculous as the provi are very expensive, however it is a set repayment and if you need to modify the agreed repayment terms the loan will not grow and they usualy behave

my suggestion is change your bank and deal with the fall out, you are then in control .... hope this helps - the banks are not as expensive as the money shops routes

if you chang bank accounts cut up card and cheque books and return them to the bank and admit your problem, keep copies, this will help you if you need back up in the future - all the best

GeorgeUK

Might also be worth looking into your local credit union. They usually offer loans at a reasonable rate but many require you to be a member for a certain amount of time before you can get a loan.

Possibly worth looking at.