bail on the bank ???

pepe2008

Must read up on these 'payday loans'. I know what they are in principle and can only see that they are crazy expensive and will lead to trouble ( much as 'log-book' loans do) but I do feel the need to find out why and how...

Does anyone know of a reputable payday loan Company that will give me the truth?:rotfl:

JasX

well rough estimate with all those interest only payments you're being fleeced with an overall APR of 155 % (yes one hundred and fifty five percent ->£4500 each year for interest only on your £2900 loan).

even if you throw it all at your bank and they pass it on to a debt collection company your interest would very likely be alot less (esp if you start talking to them about a repayment plan)

I imagine they'd quite likely be happy with you paying off your existing £375 odd per month repayments except you'd actually be paying off the debt then rather than just rolling it over.

at the moment you're wasting your money on interest only, and i'm not sure what state of mind you must have been in to take out so many loans at a typical APR of over 150% ? most people here wince at the 15-35% you usually get hit with for 'impaired credit' lending on cards etc.....

if you can post an SOA you'll probably be able to get more help

katsu

OP I believe credit unions can help people with loans to pay off payday loans. Why not look into a local credit union?

antony85

tried a credit union my dad was with a while back, they practically laughed at me wouldnt lend me £500 which is all new members can apply for.

things arent going to great the bank is paying some cheques but are bouncing others, have no idea why,they bounced 2 on the 14th, then let four different ones go through on the 19th, 20th, and 21st. i dont understand what there doing, bear i mind all cheques are £100 or under, and are guaranteed. have an appointment with natwest to discuss my financial situatuion, does anyone know what type of help they will / can offer?

also i have aproximatley £60 spare this week, (avaible on wed) what should i do, should i offer natwest it as a token payment ?

any advice will be much appreciated

also apr on the loans is not 150%, wish it was ! they all vary from 300% - 700%

"But Pepe, that's how payday loans work - when he issued the cheques he was assuming his wages would be in the bank to cover them. Now he realises that that will lead to no money for living costs and so he'll have to take out the loans again. A vicious circle. Now the bank are saying to let the cheques go through without money to cover them as a way of avoiding that circle - and making the bank lots of money in charges.

That's the way I see it anyway.

A way out depends on your other circumstances, so stick up an SOA and people can see the whole picture. "


that was exactly it, i always saw it as i would have the money on payday, then when it came to it and i realised i didnt i got another one out to pay them and hope that the next month i could afford it, but obviousley i have come to a point where i have realised i cannot. yes the bank may make a bit in charges, but when speaking to my advisor she said she would help with claiming for financial hardship and have charges removed and interest frozen etc . but obviously so far some of the advice has been incorrect, the bank isnt accepting all the cheques like she said they would, only some, no clue why im confused bout it, and its really getting me down. yes i realise it is all my fault, and yes i admit im stupid for doing it, and fair play to those who say if i took out the loans i can pay them back, i understand your point but the simple fact is i cannot afford to pay them back, and is why i kept rolling them over and taking out new ones.

abl sent me a letter yesterday asking for £210 withing 7 days, or they will send it to a dca and charge 35% on top of the debt. - however to save that kind of action, i have scraped together £210 - not borrowed !

also one more thing, the money shop, sent me a text saying my payday is due for renewal on the 28th, then 5 mins later got another one saying, its due in full, and theres £300 remaining with them, dont know what they wanna do there, because currently i am still complying with the agreement, all there cheques have been paid, and only 1 loan is due for renewal on the 28th, then the other 2 are on the 1st, n 2nd feb, so why they are asking for the full amount i dont know ive paid my fee for it to stay on till 1st n 2nd feb.


where can i do an SOA that isnt so confusing, so that i can post it up for you all to see, it needs to be easy to do, because if its confusing ill get bogged down with whats what.



many thanks for any help and advice, antony85

Poosmate

You can use this to do your statement of affairs:

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

What I don't understand is, if you are only writing cheques for the interest to these loan sharks, you are not transferring the debt to the bank? Or am I having a Pepe moment? (Sorry Pepe - we're in the same boat - I am confused too!).

I'm guessing that your debt is going to get much worse than £2900 because (please correct me if I'm wrong someone) the interest and default charges won't stop until the debt is passed on to a DCA and it will take a couple of months possibly before that happens.

A loan would be better than all this faffing about you are doing, even one at a slightly higher rate of interest or even a credit card! Unless you're in debt with them too?

I am confused so forgive me if what I've said is gibberish! lol

Poo

antony85

your having a pepe moment lol, you cannot pay the interest on these with a cheque, or any type of card, you have to pay in cash if you want to roll it over, ( so basically they want all your physical cash so you cant even go buy yourself any bread milk etc !)


a loan would be nice, but noone will give me one, believe me i have tried, tried all the online, usecured stuff, the no credit check stuff etc, they pass you round to a million and one people, want to charge upfront fees, or send you off to a DMP company, who claim you lower you payments stop interest etc, but want 17.5% of your monthly installment, or £30 at a minimum, so if you can only afford £50 a month, they keep £30 of it, and your creditors only get £20 split between them, so im sure companies would prefer, if DMP companies were left out, yet one i spoke to, (the money shop) will only help if a cheque bounces, or a DMP company contacts them. ive tried the free ones they wont help cos they say its not a big enough debt.

do you think, that if i show the bank every penny im paying out now, and tell them how much i would need to clear it all, and prove to them that i would be able to afford their repayments on a loan, if the loaned me the money to clear all my debts.

i doubt they would though cos ive not paid any money into my account for 3 weeks, and have racked up a fair bit in charges, and my current balance is -£999.46 £750 over my agreed limit.

ive asked them previously for a loan, but it was a blank no, but i never went into detail on how much it would reduce my monthly payments, proving i would be able to afford it,

i will have a look on that SOA thing now, and post it up withing 10 mins

antony85

A loan would be better than all this faffing about you are doing, even one at a slightly higher rate of interest or even a credit card! Unless you're in debt with them too?


a loan would be better as explained above, biut i would get one, i have a capital on credit card, had it since april 09, never missed any payments, yet never got the promised limit increase on 4th statement, my limit is still £100 smaller than my overdraft !

could i also state that i have never missed a payment on anything that shows on my credit file, and it is only recently i stopped paying money into the bank, and stopped paying the payday companies, none of which appear on my file, yet for some strange reason my credit score is still low, i reall dont get it !! my file still shows as completly clean to this date, (obviuosly when bank updates next month things will change!)

anyways gunna grab a cig, then will do my SOA

antony85

firstly want to point out, my income on 720, can change for the worse at anytime, as that is based on overtime im currently doing on top of my normal hours! if this happened my wage would drop to £640.

also as im am currently refusing to pay my payday loans, and letting the bank take the hit of the debt, the debts may change from who i owe it to, but its still owed!! but if i get rid of my payday loans, and just pay the bank and agreed amount, it couldnt possibly be a decent amount a month something like £80

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0
Monthly Income Details
Monthly income after tax................ 720
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 720
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 147.8
Rent.................................... 180
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 45
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 30
Groceries etc. ......................... 0
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 60
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 12.5
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 475.3

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 2313.34..(147.8)....42.6
Total secured & HP debts...... 2313.34...-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
HTP -agreement to pay..........375.......25........0
money shop.....................500.......75........780.2
cash generator.................600.......100.......979.2
empire stores..................497.......52.44.....0
additions direct...............146.......7.........44.9
littlewoods....................585.......35........0
great universal................464.......35.36.....0
marshallward...................150.......5.........44.9
overdraft natwest..............999.11....0.........19.24
cash convertors................400.......40........0
abl............................600.......84........527.3
Total unsecured debts..........5316.11...458.8.....-

Monthly Budget Summary
Total monthly income.................... 720
Expenses (including HP & secured debts). 475.3
Available for debt repayments........... 244.7
Monthly UNsecured debt repayments....... 458.8
Amount short for making debt repayments. -214.1
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -2,313.34
Total Unsecured debt.................... -5,316.11
Net Assets.............................. -7,629.45
Created using the SOA calculator
Reproduced on Moneysavingexpert with permission, using IE browser.

can you see how ive manged to get in this vicious cycle, i definatle got more going out than i got coming in.

Ames

antony85 wrote: »

firstly want to point out, my income on 720, can change for the worse at anytime, as that is based on overtime im currently doing on top of my normal hours! if this happened my wage would drop to £640.

also as im am currently refusing to pay my payday loans, and letting the bank take the hit of the debt, the debts may change from who i owe it to, but its still owed!! but if i get rid of my payday loans, and just pay the bank and agreed amount, it couldnt possibly be a decent amount a month something like £80

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0
Monthly Income Details
Monthly income after tax................ 720 This is really low, are you under 22?
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 720
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 147.8 What's this secured on, as you live with parents and have no car?
Rent.................................... 180
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 45 Ouch this is high, try and cut the tariff then go payg asap.
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 30 This is really high, you can usually get it for a tenner tops. Or is it one of those deals with a 'free' laptop?
Groceries etc. ......................... 0
Clothing................................ 0 Really nothing ever?
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 60
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 12.5 What's this? You have nothing to insure!
Presents (birthday, christmas etc)...... 0 There should be something in here
Haircuts................................ 0
Entertainment........................... 0 Really nothing?
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 475.3

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 2313.34..(147.8)....42.6
Total secured & HP debts...... 2313.34...-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
HTP -agreement to pay..........375.......25........0
money shop.....................500.......75........780.2
cash generator.................600.......100.......979.2
empire stores..................497.......52.44.....0
additions direct...............146.......7.........44.9
littlewoods....................585.......35........0
great universal................464.......35.36.....0
marshallward...................150.......5.........44.9
overdraft natwest..............999.11....0.........19.24
cash convertors................400.......40........0
abl............................600.......84........527.3
Total unsecured debts..........5316.11...458.8.....-

Monthly Budget Summary
Total monthly income.................... 720
Expenses (including HP & secured debts). 475.3
Available for debt repayments........... 244.7
Monthly UNsecured debt repayments....... 458.8
Amount short for making debt repayments. -214.1
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -2,313.34
Total Unsecured debt.................... -5,316.11
Net Assets.............................. -7,629.45
Created using the SOA calculator
Reproduced on Moneysavingexpert with permission, using IE browser.

can you see how ive manged to get in this vicious cycle, i definatle got more going out than i got coming in.

I've put a few things in above.

antony85

yes im under 22

im put that down as secured loan, it is with flm, its unsecured but its backed by a guarantor (my aunt) and i promised her i would never miss a payment on this, as it would put her in the !!!!, cos they would try getting the money from her.

can't cut the tariffs until sep 10, (will be halfway through contract then)

yes it was a free laptop deal with the internet for £30, needed it to do my open uni course contract ends in oct

well not really spent my own money on clothing, had to do it on the catalogues, cos i dont have any money :L

the £12.5 is for halifax ultimate reward, this benefits me, as i spend most of my time overdrawn, so i dont pay any other fees aslong as im withing agreed limits, otherwise its £1 a day. also this comes with home evergency cover, mobile insurance, etc

i got nothing in presents, birthdays etc, because i cant buy people things with money i havnt got

and yes really no entertainment, not been out for over 6 months, except for works xmas do. going out costs, if i were to put a cost in, wouldnt the creditors turn round and say, pay your debts first ??


sorry for short answers that are just a straight list, currently in shock, after doing that soa, didnt realise how much more i had going out than i got coming in.