My S.O.A. - inc Payday Loans Nightmare

velrist

If you're keeping up to date with your payments then I don't think you need a DMP. You've been burnt by the payday loans but I think you've learnt that lesson!

I'm in the same position with needing a car for work as I work at various sites during the day. If you're driving for work do you get a car or petrol allowance/business expenses?

The plan you've listed should see you right for the next 6 months or so, I'd just plow everything you can into it and then see where you are then. If you don't apply for any credit in the meantime then you might be able to move some of your more expensive credit cards onto lower rates but I wouldn't bother just now.

Also I would check your credit file to make sure it is correct, just in case.

In 4-6 months your salary may be different and you can revisit things then.

Good luck!

BigTone

I had a look at credit unions but none near me - Lancashire

Have been thinking about trying to list one item for sale every day on e-bay and so have a rolling selling account to build up some money for cards.

Thankyou for just speaking about this, things seem far worse when you have been worrying about them for months/years.

Time to knuckle down and keep track of everything, I will now be somewhat of a regular to these boards and hope that I can help someone else one day.

Thanks again

velrist

Out of interest, how close are you to your limits on your credit cards? If there is any spare capacity then, even at cash advance rates, it might be worth using them to pay off your payday loans more quickly.

If you're pretty close then I wouldn't do this but it's got to be less than £25 per £100. There is an article on credit card shuffling that explains it better than I can.

RAS

BigTone wrote: »

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly.. .APR
Loan - Abbey...................5000......212.......10
Loan - Family..................5500......0.........0
AbbeyCC1.......................900.......25....... .10.9 what is the limit? If not full transfer some of the debt on Vanquis to this card.
Vanquis........................500.......25....... .35 - you need to pay off this as soon as you can get rid of the payday loans
HSBC...........................1250......50....... .20 what is the limit? If not full it is worth trying to transfer some of the debt from Vanquis or Barclaycard
Barclaycard....................4100......90....... .30 - this is the next target
MBNA...........................2200......50....... .25 - then this
AbbeyCC2.......................1300......35....... .10.9 what is the limit? If not full transfer some of the debt on Vanquis to this card.
Total unsecured debts..........20750.....487.......-

You need to know the limts on your cards. Do not increase the debt but if there is any spare capacity on the Abbey cards or HSBC, you need new cards.

Use them to pay your petrol and groceries, then the same day pay exactly the same amount off your Vanquis card. That way your debt does not increase or reduce BUT the amount of interest you pay each month reduces. Once the vanquis is clear, close the account and then start to hit Barclaycard.

BigTone

velrist wrote: »

I'm in the same position with needing a car for work as I work at various sites during the day. If you're driving for work do you get a car or petrol allowance/business expenses?

I get expenses to cover fuel when I am travelling for business, but I am based at various areas/sites and am expected to get there under my own steam. If I have to visit anywhere during work hours then that is subsidised.

velrist wrote: »

Also I would check your credit file to make sure it is correct, just in case.

I have checked my credit file (free) and would like to stay on top of things, which method of checking do you reccommend?

velrist wrote: »

Out of interest, how close are you to your limits on your credit cards? If there is any spare capacity then, even at cash advance rates, it might be worth using them to pay off your payday loans more quickly.

I am fairly close to my limits regarding cards, and have cut them all up so i dont have the details for them. I think I will just pay off one per month and NEVER get another.

Thanks for all your help

RAS

Even if you are close to your limits, it is worth transferring £100 onto the cheapest cards if you can do this.

Have a look at the snowball on www.whatsthecost.com to understand what we mean. You can put different scenarios in and see the impact.

RAS

Which Payday loan has the worst/highest APR? Pay that off first.

BigTone

AbbeyCC1 - Account closed, rejected rate increase
AbbeyCC2 - As above
HSBC - Same again
Vanquis - 500 Limit 500 Debt
Barclaycard - 4300 Limit 4100 Debt
MBNA - 2300 Limit 2200 Debt

I could move 300 in total from vanquis but the interest rates, because they are cash, vary very little, and with a handling fee do not know if this would be worthwhile.

Payday loans - 3 months - Cleared
Vanquis - 2 months - Cleared
Barclaycard - 6 months - Cleared the majority

Then I will revisit things and maybe in 12 months I will be able to shift whatever debt is left onto a 0% deal somewhere, what do you think?

Choo_Choo_4

Well Done Big Tone on addressing the situation and making plans to become DF

Payday Loans are as you have already pointed out your biggest problem!
Unsecured debts of £20k must see min. monthly contributions at around £500-550 so technically you're not insolvent until you look at the colossal amounts requested in repaying Payday loans. SO yes - these need to go.

The only other thing (but more than likely won't be an option) is if your parent is in a position to release equity from the property (that is if it's a mortgaged property and if there is equity) - it's the cheapest loan you'll ever get.

And if this was then transferred to you to pay off your unsecured debts you would only have one monthly repayment then into your parent's account BUT this might not be an option.

Other than that if you do manage to clear the PayDay loans in the anticipated 3 months then you will have at least £995 per month to satisfy £20,750 unsecured debts - I say at least because you are due to get a salary increase yes? With the possibility of overtime so hopefully things will look up in the next few months ...

Good luk!

BigTone

Choo_Choo wrote: »

Well Done Big Tone on addressing the situation and making plans to become DF

Payday Loans are as you have already pointed out your biggest problem!
Unsecured debts of £20k must see min. monthly contributions at around £500-550 so technically you're not insolvent until you look at the colossal amounts requested in repaying Payday loans. SO yes - these need to go.

The only other thing (but more than likely won't be an option) is if your parent is in a position to release equity from the property (that is if it's a mortgaged property and if there is equity) - it's the cheapest loan you'll ever get.

And if this was then transferred to you to pay off your unsecured debts you would only have one monthly repayment then into your parent's account BUT this might not be an option.

Other than that if you do manage to clear the PayDay loans in the anticipated 3 months then you will have at least £995 per month to satisfy £20,750 unsecured debts - I say at least because you are due to get a salary increase yes? With the possibility of overtime so hopefully things will look up in the next few months ...

Good luk!

Seriously, thankyou for the support, "unfortunatley" the parent that i live with rents (I only say unfortunately because the loan then would have been an option) which means "I'm on my own" which is fine.

I am not looking for an easy way out, I was prepared to spend this money so I am prepared to repay it, just want to ensure that I am making the most out of my money, and if it wasn't for these boards I wouldn't have a clue what to do.

But yes, fingers crossed, things should start looking up soon, I have started a diary in the sub-board and will update it reguarly to hopefully help others in the same situation.