Payday Loan Nightmare - Help PLS

superstar24

sammy115 wrote: »

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..

Well I failed to mentioned - I live with family so I pay 250 P/M towards rent, the 150 I have put down for entertainment is meant to be for food and contributions towards bills. the 120 on the other travel cost is my monthly travel card to get to and from work. and finally I also forgot to mention that I get the 45 for my mobile reimbursed by my work.

Apologies my mistake.

dancingfairy

I'm just shocked you have managed to rack up 35K while still living at home and having minimal bills to pay.
I would definately get in contact with one of the debt charities and see what they suggest as it's not like you have any outgoings to cut down on really.
Good Luck
df

Trollfever

Do you keep a spending diary?

Tixy

Thats good superstar and makes more sense, thanks for explaining - does your income of £1290 include the reimbursed work expenses or do you get this in addition to the £1290?

What did you spend the majority of the £35k debt on? You need to be honest with yourself so you don't get into further debt or make the same mistakes again.

I'd still get some professional, free debt advice though - you are never going to be able to cut back enough to meet your repayments so need the professionals to work out a way forward for you.

dancingfairy

Could you get a second job?
Maybe ask your parents to not pay rent etc on the condition that you put the money towards paying off your debts?
Anything to sell at all?

Good Luck
df

dancingfairy

P.S This would have to be done in addition to a dmp - I thought it might make things easier with regards to the family debts.
You have 700 pounds a month spare to pay debts , with another 400 from your family you could have 1100 a month, plus some selling on ebay/car boots and a second job, if you could then go on a dmp and get interest stopped you could maybe throw 1200 a month towards your debts?
Other than that it's an IVA or bankkruptcy as far as I can see - but see what the debt charities suggest.
df

superstar24

Tixy wrote: »

Thats good superstar and makes more sense, thanks for explaining - does your income of £1290 include the reimbursed work expenses or do you get this in addition to the £1290?

What did you spend the majority of the £35k debt on? You need to be honest with yourself so you don't get into further debt or make the same mistakes again.

I'd still get some professional, free debt advice though - you are never going to be able to cut back enough to meet your repayments so need the professionals to work out a way forward for you.

The 1290 does not include the 45 i get reimbursed. my manager just gives me that in cash every month and I in turn go and pay it straight to 02 in cash on the day.

I battled a drink and gambling addition since 2007 until early this year, which I am seeking help for. With regards to the gambling I am seeing a free counsellor every week and have barred myself from the casino (i was never into online gambling). I started playing big after chasing a few loses and before I knew it things spiralled out of control. Things got really bad this year after the markets took a downturn and i stopped earning commission - until then i always managed to pay off whatever needed to be paid off and still have anough left over to go out and spend. as you can see things sort of snowballed from this and got out of control.

at this moment in time i have cut out as many expenses as possible, i take lunch from home, stopped smoking.

I am trying to get a second job but it has not been very usefull at the moment, as the only jobs i am being offered coincide with my current working hours.

I would ask family for money except my parents dont live here and to be honest they dont have the money. I have already taken a lot from my family and if i tell them the extent of where i am right now that would mean i would probably lose the roof over my head too as they are one step away from the edge (trust me i know my family and even a hint of gambling and thats it for them).

actually i do have another question - basically if i have issued cheques using my guarantee card is the bank obliged to pay them irrespective of funds in my account? as i have close to 4k of the payday loan issued via cheques. i could then deal with bank as they would be alot easier then the high street payday lenders - agreed it would ruin my credit file, however right now i dont think that would be a such a bad thing as it would stop me from being able to get additional credit. i am approaching the online lenders and am going to see what they say...

Ames

Cancel the cheques NOW! If your bank honours them, then you're massively overdrawn and you'll find the crap really hits the fan with your bank. If they bounce, you'll have massive charges to pay, as well as the 'loan companies' on your back. If you cancel them, you'll just have to deal with the loan companies, and if you get help from a debt charity then they'll help you with that too.

There's an ex gamblers support thread on here, I'll find the link in a min, it might be worth you posting on there. People on there have dealt with telling their nearest and dearest, and might be able to help you with either telling them, or living with it yourself. Either way I think support would be good.

TotallyBroke

superstar24 wrote: »

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

Monthly Income Details
Monthly income after tax................ 1290
Benefits................................ 0 Apply for working tax credits, look at https://www.entitledto.com and see if you are eligible
Other income............................ 0 See if you can get some part time work, bar, nightclub etc
Total monthly income.................... 1290 1245
Monthly Expense Details
Rent.................................... 250
Mobile phone............................ 45 0 If this is reimbursed then do not include it, instead reduce your wages by this amount
Other travel............................ 120 Have a look and see if there is anyone driving in the same direction as you that you could carshare with, could work out cheaper for you.
Entertainment........................... 150 This needs to be cut back, ask your parents to accept just the £250 for a few months to get back on your feet
Total monthly expenses.................. 565

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

This what I suggest you do with July's pay (month August)
1. open a basic bank account with no overdraft
2. have your wages paid into this account
3. set up a standing order to pay your board, BIL and sister from new account.
4. cancel all direct debits and payments on old accounts, write to them explaining that you are experiencing money troubles and you can only afford to pay them £1 at the moment. Ask them to stop interest as well.
5. Look in your wardrobes etc and sell everything you possibly can and use it to pay off a debt. Ask family for donations of things you can sell to make money
6. Once wages are paid in and you paid bills you will have £400 left over.
7. Pay off 1monthloan this will leave you approx £10 for the month.

Then in September (August pay)
1. You will have £490 spare each month plus the £10 from last month
2. Pay PaydayUK this will leave you with nothing for the month but it will be less debt for next month

It is a hard slog but you need to do it and quickly. Part time work will get you socialising etc.
Have a look at https://www.whatsthecost.com and look for snowballing. Put in the figures to see what your debt is costing you.
Remember that while you are concentrating on one particular debt the ones with sister and BIL are stll reducing and will soon disappear. Just do not take on anymore debt.

Ames

http://forums.moneysavingexpert.com/showthread.html?t=1090463&highlight=gamblers+support+thread