Payday Loans are ruining my life

jamespounder1

Hi

I am currently a teaching assistant and on a low salary of £13500 per annum which equates to about £930 after tax per month.

Over several months i have got myself into a really bad situation with PayDay Loan companies. I owe £1500 in total and it costs me £325 a month in interest only!!

Ive managed for about 2 months but i feel enough is enough, the fact its like 30% of my wage it getting in the way of putting food on the table.

Things i have tried so far:

Asked friends and family to help loan the money
Applied for a consolidation loan but my credit history is poor

I have thought about defaulting on them but dont know the implications of that, I know that i cant keep paying the interest as its killing me!

Any suggestions

JP

dougyd

Who are they with and how much do you owe each one?

pwally2

Jamespounder I was in a similar situation to you was living from one payday loan to the next was a nightmare. I ended up talking to the CCCS and set up DMP eventually the payday loan companies had no choice but ot except and eventually passed loans onto DCA and they even glader to except payments. Hope you get things sorted

dougyd

I seem to say this every day on here, but I negotiated with most of my payday loan lenders to freeze interest and set-up a payment plan over a period of months to clear the debts.

jamespounder1

Quick quid £375
Payday UK £300
Payday Express £240
1 Month Loans £195
Cash Genie £195
Wageday Advance £195

if I set up an arrangement how would that affect my credit file?

dougyd

Out of that lot i've dealt with QQ, PUK, PE, 1ML and WDA.

I'd say Cash Genie, QQ and 1ML may be your problems.

PM on the way with a template on what to say..... none of them have reported to my credit files.

jennihen

They will show as defaults until they are settled but I'm assuming your credit wasn't great to have been using these companies in the first place.
Dougyd has given the best advice but you need to come up with an affordable repayment plan - this means doing a comprehensive budget and sticking to it.
Good luck!

dougyd

If they accept payment plans and don't send them to the DCA which QQ, PUK, PE and WDA did for me then it probably won't show on your file.

Just my experience.

EDIT*** Template, edit to suit:

***edit dates and payment info***

Username/account number

Dear sir or madam,

I'm aware that I have an outstanding balance due *** It is with regret that due to high priority bills I am going to be unable to meet this financial obligation.

My request is for all interest and fee's to be held on my account until this current debt is paid in full.

I would like to offer a payment plan starting with £50 in ***, £50 with payments increasing so that the loan is fully settled in ***.

As stated it is with regret that I can't meet this obligation, but I would like to resolve the problem swiftly.

I look forward to your response.


Just a hint to anyone else reading, once you get out of the mess make sure you ask each lender to blacklist you so you can't fall in to the trap again.

chambta

jamespounder1 wrote: »

Quick quid £375
Payday UK £300
Payday Express £240
1 Month Loans £195
Cash Genie £195
Wageday Advance £195

if I set up an arrangement how would that affect my credit file?

As you're credit rating is already poor and you say you're struggling to fund essentials I wouldn't worry about that.

jamespounder1

thanks dougyd

I will get in touch with them tomorrow and update you

Thanks

dougyd

If they don't accept on the second attempt of arrangement then maybe do as Pwally suggests and seek bargaining power from the CCCS.