Payday Loan Nightmare - Help PLS

superstar24

Hey Everyone,

I am new here... Firstly a little about myself....

I 25 yrs old, live and work in london and have managed to get myself into so much debt over the last 18 months that I have no idea where to begin and would really appreciate any help or tips or pointers whilst I try and take control of my life....

Well below is a brief outline of the money I owe:

Payday Loans (the first column is the amount outstanding, the second column is the interest each month and the last column is how much I pay in interest each month to keep them rolling over

Cheque cashing1000150150Quikquid750150150central800100100paydayuk562.5112.5112.5roundworld500130130h&t6007878maxcroft5005050kerrs2002020nikolas micheal2002424



Next is a list of my Credit cards and loans with their outstanding balances and limits in brackets:

1) Cap1 - £494 (500)
2) Aqua - £1010 (1050)
3) Monument - £745 (750)
4) Lloyds TSB Duo - £741 (750)
5) Barclaycard - £242 (260)
6) HSBC Flexiloan - £2769 (2700)
7) Moneyshop - £2300 (2400)
8) JB Debt recovery £1100

Next is my overdrafts current balance and limit

1) Abbey National £-1250 - (£1500)
2) Lloyds TSB £-1949 - (£2000)
3) HSBC £-50 - (£850)

Next is what I owe friends and family

1) Sister - £3500
2) Brother in law - £11300
3) Friend 1 - £1500
4) Friend 2 - £1850


That brings a grand total of - £34812.5

My guaranteed income per month is £1300 however I do earn commision which has been scarce lately.

My outgoings are as follows:

1) Rent £250
2) Loan Brother in law - £254
3) Loan sister - £200
4) Travel - £120
5) HSBC repayment interest only - £38
6) Cap 1 - £26
7) Barclaycard - £6
8) Lloyds TSB - £15
9) Monument - £22
10) Aqua - £36
11) Payday loan interest - 814.5
12) JB Debt recovery - £30
13) Moneyshop - £100
14) Personal Misc - £100

Total - £2001.5 (as you can see I am - £700 at the moment).

I cant reduce the amount paid to my sister or brother in law as they are loans that they have taken out for me due to me having a very poor credit score.

My question is has anyone successfully negotiated with any of the payday loan and cheque cashing companies before and had them agree to a reduced amount every month?

Thanks for reading...

superstar24

it seems that the spreadsheet from which i copied and pasted these figures got messed up somehow:

Cheque cashing 1000 150 150
Quikquid 750 150 150
central 800 100 100
paydayuk 562.5 112.5 112.5
roundworld 500 130 130
h&t 600 78 78
maxcroft 500 50 50
kerrs 200 20 20
nikolas micheal 200 24 24

terakris

Fill out one of these buddy and format it for MSE (button at the bottom), then copy and paste the results here, then the guys will be able to look at all your expenses in a clear format and comment where applicable.

http://www.makesenseofcards.com/soacalc.html

gazelle8760

superstar24 wrote: »

it seems that the spreadsheet from which i copied and pasted these figures got messed up somehow:

Cheque cashing 1000 150 150
Quikquid 750 150 150
central 800 100 100
paydayuk 562.5 112.5 112.5
roundworld 500 130 130
h&t 600 78 78
maxcroft 500 50 50
kerrs 200 20 20
nikolas micheal 200 24 24

Hi

This is interesting reading.

It is really a vicious circle you are in, as the idea of the Payday Loan is, you pay it back on payday which they debit from your account by either Debit Card, or Direct Debit, but then after you pay it back plus fees, you are then short, hence you borrow another amount and so on and on it goes, a never ending vicious circle.

Very rarely do they let you roll-over from month-to-month, and if some do then they load hefty interest charges, as you have found to your peril.

These APR rates can be as high as 2000% or more, so the longer you leave it, the more it escalates.

I don't know much about your situation other than what you write, but you seem to be right up to your limits on everything, and the only way out from this would be for you to declare yourself bankrupt, or go and see CAB and ask for advice regarding this situation. Your BIL and Sister have been very good taking out loans for you, but in-fact not really helped your situation at all, as you have to pay them, to protect their Credit rating, and if you fail to pay, they have too, so they either trust you with their lives and love you dearly, or they clearly don't know the extent of the mess you are in.

Your so young, 25 is no age really, and it is sad to see your in such a situation so young in life, but if you declare yourself bankrupt, you at least have a fighting chance, so when you get in your 30s, you can put this sorry state behind you, I am sure this will be a valuable learning curve for you, and will stand you in good stead for the future.

Other than approaching your lenders directly and telling them you simply cannot pay, and reduce your payments that way, which in turn will result in your cards being lost (no great shame though) and try and get yourself to within budget, some companies may enforce Defaults or CCJs on you, but in reality you have to realize that if they won't work with you, then it is in your own interest to try and work with them.

Of course, only you can decide which is the best avenue that you take, but which ever route you chose, it is not going to be easy initially so you have to just grin and bear it, but either way you have to ACT FAST, and don't continue to struggle month-to-month as you are doing, you have time on your side, and whilst you didn't get into debt over nite, it won't disappear that fast either, so take your time, get contacting those creditors of yours and get an action plan going, you shouldn't have to live like this from month-to-month, there is help for you if you ask. Good Luck.

RAS

Hi

You need to talk to one of teh debt charities listed here http://www.moneysavingexpert.com/loans/debt-help-plan#help who can sort through your finances and discuss your options.

You could do the CCCS on-line debt remedy in advance of talking to them.

If you decide to go bankrupt you have to be very careful about the accounts with you family and friends as you cannnot be seen to be making preferential payments to them.

What I would suggest as a starter is that you open a new basic bank account and get you salary paid in there.

You have made no allowance for any living costs, like food.

And you really really do have to understand how you got in this state, as otherwise you will find yourself in the same state again.

VanillaDelia

Hi I have 2 of your payday loan companies on my CCCS DMP and they are QuickQuid and PaydayUK. Payday uk have been good with me and forwarded the debt ontop Keys whitlock almost straight away with no added fees and have accepted the CCCS offer of £5 a month on £100 owed. Quickquid have been nothing but a nightmare but we are now getting there slowly. They have just forwarded the debt onto 1st credit as they refused the £5 a month offer on £480, they wanted £45 a month minimum but hopefully now its in a debt collectors hands they will accept this.

Payday loans really are a nightmare once your in them as we actually had 4 of them - 2 with wonga but they couldnt be added to cccs because they have no ref numbers so me had to muddle through with help from family to get those paid off.

If your not going for a dmp i would really advise this for you by going through a remedy on the cccs website.

If you have any questions about my payday loans, just ask and I will help you as much as possible.

bank_of_slate

The other thing you must do superstar is to figure out how you got into this mess in the first place!!!!

You'll just repeat the behaviour if you don't do something about it.
What has this money been spent on?
Is there anything you can sell?
...Linda xx

superstar24

Hey guys,

Thank you for all the responses. Apologies for not getting a chance to put this up earlier.

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 4
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1290
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1290
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 250
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 45
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 0
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 120
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 150
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 565

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Capital One....................500.......28........30.34
Aqua Card......................1050......38........39.9
Monument.......................750.......22........34.9
HSBC O/D.......................850.......20........19.9
Lloyds TSB O/D.................2000......20........19.9
Abbey O/D......................1500......20........18.9
Loan from Friend 2.............1800......0.........0
Loan from Friend 1.............1500......0.........0
Loan from Sister...............3500......200.......0
Asda Loan (from BIL)...........11300.....254.......13.9
Wageday advance................420.......100.......1500
1monthloan.....................390.......90........3000
Nikolas Micheal................200.......24........1200
Plandeal.......................400.......56........1500
Maxcroft.......................500.......50........1200
H&T............................600.......78........1500
Roundworld Trading.............500.......75........1500
PaydayUK.......................562.5.....112.5.....2000
Central Jewellers..............1000......125.......1500
Cheque Cashing.................1000......150.......1500
HSBC Flexiloan.................2700......108.......18.9
Barclaycard....................260.......6.........19.9
Lloyds TSB.....................750.......15........19.9
Total unsecured debts..........34032.5...1591.5....-

Monthly Budget Summary
Total monthly income.................... 1,290
Expenses (including HP & secured debts). 565
Available for debt repayments........... 725
Monthly UNsecured debt repayments....... 1,591.5
Amount short for making debt repayments. -866.5
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -34,032.5
Net Assets.............................. -34,032.5
Created using the SOA calculator at (wont let me put the lik)
Reproduced on Moneysavingexpert with permission, using IE browser.[/

So anyways this is my SOA - As you may notice there have been some increases to the payday loans which didnt really help.

Has one dealt with any of the cheque cashing places? I was wondering how they would deal with such a situation. I am in the process of contacting everyone this week to show them my situation.

sammy115

Can I be a bit harsh perhaps....your SOA mentions rent, mobile at £45!! Other travel, entertainment at £150!!!

No food? nothing else...does someone buy your food. £150 per month on entertainment is extortionate for someone in your position..

Tixy

You need to get advice from one of the free debt advisors as a priority. I would do this before you contact your creditors to explain your situation.

You are in a difficult position as you have debts in your relatives name. Make the debt advisor aware of this as obvioulsy if the suggest bankruptcy you would leave your relatives having to repay these loans themselves and would also be unable to repay your friends.

To clear up your expenses do you live with your parents? Is the £250 rent actually board including food, and your share of elec, gas, ctax etc?
You need to cut the mobile spending right down. If you are in contract phone up and say you are in financial hardship and ask to be dropped to the lowest tariff they will allow. Then make sure you don't use anymore than the included mins & texts. If you are out of contract switch to PAYG and only top up £10 per month.

This link has a full list of free debt advisors
http://www.moneysavingexpert.com/loans/debt-help-plan#help

memelalou

I have to agree with sammy115.
Wheres money for food is this included in with rent?
The mobile and the entertainment have to go, its almost £200 a good amount to throw at your debts.
if your not paying the min on your debts already throw any 'extra money' on those with the high intrest rates such as those payday loans.
have you considered an IVA? I don't know much of these myself but i think you be eligable, but you have to have to ask other users for their thoughts on this.
Im sure as your 25 your also eligble for working tax credits too, it may be only a few quid a month but every little helps when your struggling to keep your head above water.
If you haven't already, cut up your cards and really try to stop borrowing. It may sound obvious, but i'm working my way out of debt because i thought it be a good idea to borrow more to help relive the pressure, truth is it just got me into a lot more debt.