Payday Loan Hole - Debt Management Plan

arlenecanavan

gwon wrote: »

Oh, and a bit of a side question:

Being advised (even by the CCCS) to change banks. If I cancel all DD (can do via online banking) and change my debit card number - can they still access my account? Do I really need to change bank accounts?

you should be changing bank accounts to a bank you have no debt with, however, you need to be aware that the payday loans co can go to court, get decree and arrest your bank account to recoup their money, Unfortunately for you these co's a ruthless and with do this straight away to get their cash back.

How much do you owe them in total?

arlenecanavan

gwon wrote: »

Going to call this afternoon!

Thanks

Does it make a difference that I'm in Scotland?

As you are in scotland, you can enter in to a Debt Payment Plan - Under the Debt Arrangement Scheme (only available in scotland) - you have to speak to your local CAB or money advice centre to find your local Approved Money Adviser, who will be able to take you through your options. DPP stops interest & charges, and lets you pay back your debt in full at a more affordable rate. Your creditors do get a chance to object to the plan, however, it is worth a shot and the plus side is that your creditors cannot take any legal action against you once the plan has been approved! debt paid in full and no charges/fees etc!

Oneday77

If you have setup the repayments to be debited from either a debit or credit card I don't think switching cards or cancelling them will work. You effectively setup preauthorised card payments. If it is a direct debit arrangement then you can just cancel it and then make alternative payments.
As mentioned above do NOT go to a Debt advice service if they charge.
Send the letter from the templates to stop the calls, ease the stress. The most likely reason for you needing to speak to the CCCS will be due to your entertainment costs being past their recommended limits. Reduce it down and then you will probably be able to get the ball rolling with no interview. That's how i got my DMP started.

gwon

OK guys. Thanks a lot for all of your advice. You've all been great.

Going through the CCCS online form again, I found that if I adjust my living expenses more options opened up towards the end (including setting up the debt management agreement online) (concious effort to cut down smoking, and I will call Sky tonight to either cancel the premium packs - or tell them I can't afford it and see if they offer a reduced rate etc).

I have now done that, and now it's just a matter of time to wait for the mail to come out and sign the paper work.

I'm cancelling my debit card tonight, and all direct debits on the account to these people. I don't have any secured debt, or debt to my bank so I don't see the real need to change accounts. From what I understand, if I cancel my card and cancel all direct debits there's no legal way for them to charge me this month or next?

Is my best bet to call each company and tell them that I'm entering into an agreement, and pay them a nominal good will ammount? Or with the shady !!!!!!!s they are, will that maybe force them to quickly jump up their legal proceedings before I have a chance to enter into the DMA?

It's worth pointing out, that right now, these payday loans are my only debt...and I am yet to miss a payment on any of them...so if I simply don't pay them this month, that'd be the first missed payment.

Again thanks for all the help so far. Can't believe how much money has been saved just by jumping to the CCCS from 'Fresh Start Financial Management'.

gwon

PS. Apparently I'll be debt free in 10 months

Insomniac666

Well done stick at it... just think all that lovely money you'll have to go out next Christmas time with no guilt.

Within reason of course!!

gwon

Time to email Fresh Start and tell them to forget my case and not to expect any money I suppose.

Oneday77

gwon wrote: »

Time to email Fresh Start and tell them to forget my case and not to expect any money I suppose.

I would go with recorded letters, more binding and harder for them to say they never got it.
But good for you just stick with it, there is always a way out the dark holes we can find ourselves in

gwon

Keep in mind Fresh Start are just the DMP company I nearly went with before finding the CCCS. No paper work signed, and no money changed hands. Just going to tell them I'm no longer interested.

playmate86

Hey All

I am completely confused with this whole thread thing, i have no idea how to start my own for some advice regarding my own personal circumstances, so i hope you don't mind but im effectively "hijacking" this thread for my own advice (if anyone wants to point me in the right direction that would be great! lol)

Basically, i made the stupid, stupid, stupid mistake of getting a pay day loan out a few months ago. The time came for the payment to be made...but they offered me this shiny sparkly temptation to extend the loan... so i did, i paid the extension fee and that was it until the next month. But then the next month came, i hadnt worked out my finances correctly and i didnt have the money to pay this so i took out another loan from another payday loan company to pay this one off... sadly not the full amount. This kept happening and it wasn't until this month i realised i have now taken out SIX, yes SIX payday loans and im completely snowed under and in a mess and don't know what to do. I have read many things about debt management plans, cancelling your card and bank etc and all these different things... i dont even know where to begin!

I have opened a new account but currently waiting to receive the card/details etc for this account before i could actually take it any further if i decide to take this route.

I have read many things about the companies i owe money to, and its like reading a horror story!

Listed below are the companies i have taken loans out with and a average-ish amount of what i owe each - everyone, take a deep breath before you read this... and please, no one give me a lecture after reading the following. I'm already shooting myself in the foot! trust me!

Payday Express - 350 - Late by 2 days as of today
Wonga - 480 - Due on the 22nd - cant afford to pay it!
Payday UK 0 £250 - Due on the 28th - again cant afford to pay it!
Quickquid - £810 - this is including the extortionate rate of interest and extension fee due 28th
Peachy - £115 - this includes the interest due on 25th
Txtloan - 234 - Due on 22nd

All in all i owe nearly £2240 and i earn around £800 a month... a mere pittance compared to what i owe!

Silly me!

It really hits home when you write it all down and add it all up....

So anyway. Monthly expenditure i have worked out to be about £400 so i have £400 to play with each month.

However, i dont know where to start or who infact to start with. Do i pay them all an equal amount? or do i divide it by who i owe the most to? I hear most dont accept repayment plans and if they do they only accept 3 months... as you can see it will take me about 6 months to pay these off providing they freeze interest etc...

Is there anyone out there that can help me? please?

:(:(:(:(:(:(:(:(:(:(:(:(:(:(:(:(:(:(:(