Payday Loan Hole - Debt Management Plan

dancingfairy

The rules and help available are slightly different in Scotland but there are still things available to you.
df

MrsTinks

You owe £2000ish... you are willing to pay someone £300 up front and another 17.5% each month of your payments?

Bear in mind that they cannot guarantee that the interest will be frozen and they can't guarantee that the creditors will stop calling you and hassling you...

The important bit for you seems to be to get them to stop calling you? Correct?
There is a letter template on here for FREE that you can send to all your creditors instructing them to from now on only deal with you in writing - it's legal and everything and if they don't comply you can report them.
Arranging a payment plan... you can do that with the help of the people on here - it's not complex and lots of people on here have done it.

Even if the charities are unable to help you because your debt is too low then there is certainly no reason to be paying these cowboys for sending a few letters... (and let's not get started on the amount of them who actually mismanage plans - fail to pay creditors on time or at all etc... )

Do a full statement of affairs on here and let's see what can be done about fixing the hole you're in without paying the thieves for a service they are misselling to you

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

Insomniac666

gwon wrote: »

It's very much NOT a single payday loan. There are about 3 of real ammounts (500, 800, 800). And more small ones.

I know it's loads, but over the last few years it's been the only way I could afford to eat each month.

And on the new bank account front: If I change my debit card, do I still need to change to a new bank?

I had 4 payday loans at one time each of them £700+ paying out over £500 in monthly "reloan" charges/interest... I've had mine over 18months it's a nasty vicious circle, I know. I'm not 100% aout just cancelling the card, as some people say yes and some no that's why I opened a second account. However, I contacted them before they took the next payment and said I was unable to make the payments.

Insomniac666

"Due to my current financial situation, I am unable to make a payment towards
settling the outstanding loan at this time, therefore would look to make a payment plan, in order to reduce this debt asap.

I also request that all correspondence is made via letter or email.

Please can you forward me details of the current outstanding amount so I may put forward an offer to get the situation resolved between us."

I sent this via email to one of the companies, who shot it down without me even mentioning a monetary figure however, they soon passed me to a DCA who was willing to take instalments now i'm paying £30 a month, instead of £150 a month and not reducing the balance!!

gwon

MrsTine wrote: »

You owe £2000ish... you are willing to pay someone £300 up front and another 17.5% each month of your payments?

Bear in mind that they cannot guarantee that the interest will be frozen and they can't guarantee that the creditors will stop calling you and hassling you...

The important bit for you seems to be to get them to stop calling you? Correct?
There is a letter template on here for FREE that you can send to all your creditors instructing them to from now on only deal with you in writing - it's legal and everything and if they don't comply you can report them.
Arranging a payment plan... you can do that with the help of the people on here - it's not complex and lots of people on here have done it.

Even if the charities are unable to help you because your debt is too low then there is certainly no reason to be paying these cowboys for sending a few letters... (and let's not get started on the amount of them who actually mismanage plans - fail to pay creditors on time or at all etc... )

Do a full statement of affairs on here and let's see what can be done about fixing the hole you're in without paying the thieves for a service they are misselling to you

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

The important bit is not for them to stop calling. The important bit is that I currently can't afford to eat with the way this is going.

I need to stop them taking ALL my money every month without reducing the debt. I'm managing to pay my rent, and then nothing else.

Here is the full statement from that site:

Statement of Affairs & Personal Balance Sheet


Summary

Monthly Budget SummaryAmount(£)
Total monthly income
1,650
Monthly expenses (incl. HP & secured loans)
1,279
Available for debt repayments
371
UNsecured debt repayments
2,550
Amount short for making debt repayments
-2,179



Personal Balance Sheet SummaryAmount(£)
Total Assets (things you own)
0
Total Secured & HP Debt
-0
Total Unsecured Debt
-2,550
Net Assets
-2,550


Household Information


Number of adults in household
1
Number of children in household
0
Number of cars owned
0


Income, Expense, Debt & Asset Details


Income
Amount(£)
Monthly income after tax
1650
Partners monthly income
0
Benefits
0
Other income
0
Total monthly income
1650

ExpensesAmount(£)
Mortgage
0
Secured/HP loan payments
0
Rent
485
Management charge (leasehold property)
0
Council tax
120
Electricity
65
Gas
65
Oil
0
Water Rates
0
Telephone (land line)
12
Mobile phone
35
TV Licence
12
Satellite/Cable TV
35
Internet services
20
Groceries etc.
125
Clothing
50
Petrol/diesel
0
Road tax
0
Car Insurance
0
Car maintenance (including MOT)
0
Car Parking
0
Other travel
80
Childcare/nursery
0
Other child related expenses
0
Medical (prescriptions, dentists, opticians etc.)
0
Pet Insurance/Vet bills
0
Buildings Insurance
0
Contents Insurance
0
Life Assurance
0
Other Insurance
0
Presents (birthday, christmas etc.)
15
Haircuts
10
Entertainment
150
Holiday
0
Emergency Fund
0

Total monthly expenses
1279


Secured & HP Debt
Description
Debt(£)Monthly(£)APR(%)
Mortgage
0(0) 0
Secured & HP Debt totals
0- -



Unsecured Debt
Description
Debt(£)Monthly(£)APR(%)
247 Moneybox
125

SwiftMoney
175

PaydayUK
750

wageday advance
200

payday express
500

Cheque Centre
800

Unsecured Debt totals
2550

Insomniac666

to be honest, it's not that you're overspending it's the loans that you need to clear down as you would normally have a surplus. I'd contact the loan companies and tell them you are unable to make payments this month, if need be withdraw all your money after paying your rent etc.. stop them going in.

MrsTinks

gwon wrote: »

Statement of Affairs & Personal Balance Sheet


Summary

Monthly Budget SummaryAmount(£)
Total monthly income 1,650
Monthly expenses (incl. HP & secured loans) 1,279
Available for debt repayments 371
UNsecured debt repayments 2,550
Amount short for making debt repayments -2,179


Personal Balance Sheet SummaryAmount(£)
Total Assets (things you own) 0
Total Secured & HP Debt 0
Total Unsecured Debt -2,550
Net Assets -2,550


Household Information
Number of adults in household 1
Number of children in household 0
Number of cars owned 0


Income, Expense, Debt & Asset Details
Income
Amount(£)
Monthly income after tax 1650
Partners monthly income 0
Benefits 0
Other income 0
Total monthly income 1650

ExpensesAmount(£)
Mortgage 0
Secured/HP loan payments 0
Rent 485
Management charge (leasehold property) 0
Council tax 120 are you getting single discount?
Electricity 65 High – are you in arrears?
Gas 65 Ditto
Oil 0
Water Rates 0 Do you live in Scotland if not how much is this?
Telephone (land line) 12
Mobile phone 35
TV Licence 12
Satellite/Cable TV 35
Internet services 20
Groceries etc. 125
Clothing 50 This needs to come down for now!
Petrol/diesel 0
Road tax 0
Car Insurance 0
Car maintenance (including MOT) 0
Car Parking 0
Other travel 80
Childcare/nursery 0
Other child related expenses 0
Medical (prescriptions, dentists, opticians etc.) 0
Pet Insurance/Vet bills 0
Buildings Insurance 0
Contents Insurance 0 you should really have this!
Life Assurance 0
Other Insurance 0
Presents (birthday, christmas etc.) 15
Haircuts 10
Entertainment 150 HOW much?????
Holiday 0
Emergency Fund 0

Total monthly expenses 1279



Unsecured Debt
Description
Debt(£)Monthly(£)APR(%)
247 Moneybox 125
SwiftMoney 175
PaydayUK 750
wageday advance 200
payday express 500
Cheque Centre 800

Unsecured Debt totals 2550

Now... as mentioned if not for your debts you should have plenty of spare cash each month so... what happened? Was there a one off event that started this spiral or did you over spend on going out, clothes etc? It's really important to work out what caused you to get into debt in the first place... because otherwise you'll be back there in no time!

I would suggest a DMP with prorata payments to your creditors with a total that you can afford each month - You can easily throw about £400 at this each month! Providing that they agree to stop interest it could take you as little as 5-6 months to be debt free... Then you can spend all your money on clothes and partying as you please

RAS

Hi

You could certainly skin another £250 per month out of this SOA and actaully pay it all off in 6 months.

gwon wrote: »

Statement of Affairs & Personal Balance Sheet


Summary

Monthly Budget SummaryAmount(£)
Total monthly income 1,650
Monthly expenses (incl. HP & secured loans) 1,279
Available for debt repayments 371
UNsecured debt repayments 2,550
Amount short for making debt repayments -2,179

Personal Balance Sheet SummaryAmount(£)
Total Assets (things you own) 0
Total Secured & HP Debt -0
Total Unsecured Debt -2,550
Net Assets -2,550

Household Information

Number of adults in household 1
Number of children in household 0
Number of cars owned 0

Income, Expense, Debt & Asset Details

Income
Amount(£)
Monthly income after tax 1650
Partners monthly income 0
Benefits 0
Other income 0
Total monthly income 1650

ExpensesAmount(£)
Mortgage 0
Secured/HP loan payments 0
Rent 485
Management charge (leasehold property) 0
Council tax 120
Electricity 65
Gas 65
Oil 0
Water Rates 0
Telephone (land line) 12
Mobile phone 35 - reduce you package and consider PAYG
TV Licence 12
Satellite/Cable TV 35 - you need to reduce your package or go freeview for a while
Internet services 20
Groceries etc. 125
Clothing 50 - you can certainly cut this back - wear what you own. Shoes and knickers only for 6 months
Petrol/di esel 0
Road tax 0
Car Insurance 0
Car maintenance (including MOT) 0
Car Parking 0
Other travel 80
Childcare/nursery 0
Other child related expenses 0
Medical (prescriptions, dentists, opticians etc.) 0
Pet Insurance/Vet bills 0
Buildings Insurance 0
Contents Insurance 0
Life Assurance 0
Other Insurance 0
Presents (birthday, christmas etc.) 15
Haircuts 10
Entertainment 150 - this really is not sensible whilst you are in this sort of debt. Allow yourself £10-20 per month and learn to do free stuff
Holiday 0
Emergency Fund 0

Total monthly expenses 1279

Unsecured Debt
Description
Debt(£)Monthly(£)APR(%)
247 Moneybox 125
SwiftMoney 175
PaydayUK 750
wageday advance 200
payday express 500
Cheque Centre 800

Unsecured Debt totals 2550

Insomniac666

whoops missed that £150 when I scanned down...

gwon

Yeh, I agree with you both. The reason I'm in this situation is because my income WASN'T this good until recently. So now that I can afford to pay it back, the extension fees are so high that I'm still left with no money and the debt doesn't move.

I spoke to the CCCS, and they have go an appointment for a call back on the 23rd - which to be honest feels like a long way away..

And those ammounts there in the list are just estimates, and I probably spend much less than that. I'm also cancelling my sky subscription.

I am more than happy to live cheaply, I just need to start paying these people in a way that actually reduced the debt, and allows me to buy food each month.

Is there anyone else but the CCCS?

ps: thanks for the advice so far - I just want to feel in control again..