Payday loan nightmare ...

JAM999

Hi, I'm fairly new to Moneysaver so firstly apologies if I'm posting this in the wrong place.

I have been very silly over the past couple of months and got myself in a situation I'm struggling to get out of with 5 payday loan companies.

Firstly a bit of background, I wouldn't normally use payday companies - but I've not had any maintenance from my ex husband since 1 August, and he's apparently now claiming benefits (even though he's still working - I see his van all the time :mad:). Being £250 down a month and a single mum to 2 girls was hard, especially at school uniform time of the year

I turned to payday companies as I knew there was no one who I could get a loan from, not even my bank. I have other debts as well as these payday loan companies, plus I am financially associated to my ex husband (who is an ex bankrupt) with an old loan, so my credit rating isn't good. I'm also in arrears with my mortgage company (but on a repayment arrangement now) and with my council tax and other utilities.

In total I owe approximately £1200 plus interest to the 5 payday companies (Quickquid, Wonga, Debit card loans, Wage Day Advance, Lending Stream). I couldn't afford to pay these loans from my salary and I couldn't afford to roll them over either this month, so having looked on the internet for similar stories, I cancelled the direct debits and reported my debit card 'lost'. I felt awful doing this but I felt I had no choice.

I've had a few phone calls this morning, so far only one to my work phone. I said it was inconvenient to talk and I would phone them back.

My question is what do I do now? Do I tell them on the phone that I'm struggling to pay and ask for a payment arrangement over a few months? Or do I ignore their phone calls and put it in writing? I work at a solicitors and I don't want them to keep hounding me with calls at work, which would be really embarrassing. I work in an open plan office with all the solicitors and partners. I'm so embarrassed and worried now about the aftermath of what I have done. I'm also considering perhaps an IVA or a debt management plan, because as mentioned above, I do have other debts and I would like once and for all to get everything sorted out.

Any help or advice from fellow money saving expert members would be greatly appreciated.

Thanks for reading

lamarsi

I can't advice you as I know nothing about these but i'm sure ppl will be on soon to help just want to wish you luck and i'm sure you'll have some brill advice coming your way on how to handle things best

Tixy

Hi Jam
Have you tried talking to one of the free debt organisations? http://www.moneysavingexpert.com/loans/debt-help-plan#help
The guys on this link are the ones recommended on here. They will help you work out an affordable budget and then hopefully suggest a suitable solution for you (maybe a debt management plan would be the way forward). They will also inform you of any consequences to what you decide - such as ruining your credit rating (although it sounds like its already pretty bad).

It also might help if you posted a statment of affairs on here (SoA) so we can see if we can see areas you can save money or where you could cut back. http://www.makesenseofcards.com/soacalc.html

Are you getting all the benefits you are entitled to? If you are no longer getting maintenance from OH I would guess you nay be entitled to more tax credits perhaps?

Alfie983

I got myself into a similar situation with payday loans, began to depend on them and took to many out so that I could afford to payback the month roleover fee. Entered into a DMP with them and I am now paying them what I can afford a month, the CCCS where really very helpful in my situation. You could try them and they will be able to give you a suitable solution for your situation.