LDJ's quest to get rid of my payday loans thread

DP27

hi LDJ2009 I am in much the same position as you i have 4 payday loans that i will not be able to repay this month, I have yet to pluck up the courage to confront any of them yet though so I have read your posts with interest - I hope it works out for you I will update with my progress as well

LDJ2009

Thanks for the replies everyone. It means a lot

I spoke to QQ today - they want £87 from me (extension fee plus £12 late charge) to take the account out of default, then the rest is due at the end of the month. If i can't pay that, it'll go to one of three DCA's

PTP - the account will stay with them until the end of the month before it goes to Clarity - DCA. They can't accept payment in the meantime unless it's for the full balance.

I gave Payplan a call this afternoon and an adviser is going to call me back tomorrow to go through my income/expenditure to see if a DMP is an option.

I just feel that this debt is short term and really don't want to add my other debts to a DMP because of the payday loans.

I'll see what they advise tomorrow

Thanks again

LDJ2009

There may be light at the end of the tunnel :j

I've just been told that work are moving offices next month to a new building about 15 minutes walk from home (instead of the 45 minutes drive i currently have)

I've checked with the dealer i bought my car from last year and they're interested at buying it back from me but will only pay £4950

I can do without a car until i get myself sorted out moneywise, so i'm going to sell it and pay off the payday loans.

Problem i have is that i'm about £1600 short so i'll have to clear the highest value ones first.

I've been googling full and final settlements for payday loans and it looks like if the accounts go to the debt collection agencies (only QQ and PTP are almost at that stage now) they might offer a reduction if i can clear the loan.

I just wonder if it's worth allowing the defaults to go on my credit file just to get a lower settlement. I can't find the money from anywhere else so that might be my only option

sunnydais

you have my full sympathy am trying to extricate myself from them as well but it sure aint easy ..crippling interest rates

incesticde

LDJ2009 wrote: »

There may be light at the end of the tunnel :j

I've just been told that work are moving offices next month to a new building about 15 minutes walk from home (instead of the 45 minutes drive i currently have)

I've checked with the dealer i bought my car from last year and they're interested at buying it back from me but will only pay £4950

I can do without a car until i get myself sorted out moneywise,

Try selling it yourself instead of through the dealer.. you may get a better price (check parkers.co.uk to get an idea of what you could get)

good luck

puddy

yes try and sell it yourself, put a lowish price on it so you get shot of it quickly, dont forget that you should get a refund of tax and insurance so that should add to your pot too.
you also wont be paying petrol so you can budget that into your payments to the rest of the debts that dont get paid off with that car money,,, well done

Insomniac666

PTP shot down my offer of setting up a payment plan, I didn't even mention a figure... so I may have to go down the route of DCA though I have been told about the Credit Union place earlier, I have no idea how that works but luckily there's on about 2 miles from my home. Does anyone know whether they would loan out, for multiple payday loans in mine and spouses name, at the same time?

purple81_2

I too am in a similar position and am struggling to pay everything off at the moment. About £2000 would cover my payday loans, even asked the folks to lend me the money paid back at £200 a month for 12 months - they would make £400 but they still said no!

That was a shock and a half but their money is all tied up in my dads business.

Looks like I've got no other choice but to contact all my lenders and offer payment plans now. eeek its a bit scarey and I'm not quite sure what to say or how easy it will be to get under control so any advice would be more than welcome.

If they pass my account to a DCA will this appear on my credit file? I want to try and get my credit rating back up to scratch so that in a few years I can try to buy a house of my own

dancingfairy

A couple of quick points for you all:
1) your motgage and bills are more important than paying your payday loan.
2) yes if you don't pay I believe they will put a default on your file
3) Free advice can be sought from National Debtline, CCCS or your local CAB although waiting times and services do seem to vary
4) I would suggest everyone does a full budget - there's a good calculator here: http://www.makesenseofcards.com/soacalc.html to see if there's any areas you can cut back on or see if you can get a better deal on any of your bills to free up more money to pay off these payday companies.
Hopefully you will find some of these points helpful to you all in your quests - oh and good luck.
df

ajberry

Hi.

I would suggest NOT paying them off in full. Bear with me.

When they go to Debt Collectors, they will accept payment plans. Offer partial payments, then affordable repayments on the rest (i.e 2/3rds of the balance, then x a month for the remainder) on all of the accounts. They are likely to accept these as it is showing a willingness to pay and you are offering a payment that is at least half.

They may even accept a lower balance to pay the whole debt off.

I don't believe that you get a default if it is passed to a debt collection agency, it's only if the DCA then issue a CCJ against you. (Not 100% on this, but I have had a couple go to DCA and can't see the defaults on my file).

Insomniac666 - You will only be able to get 1 loan at a time from them, and maybe not straight away. They usually ask you to have been saving with them for 6 months before loaning...

purple81- Do a SOA and work oput how much you will have every month. Then work out who to pay what to and offer it. Post here for advice and people will help