Help Please!!!!

fatlassie

Hoping that can get some advice please.

After a period of being very stupid with money, I am now at a point where I think I need to get a grip and sort myself our before I go over the edge. About a year ago, I was short of money and got a payday loan. well, unsurprisingly one thing led to another and I now stupidly find myself with four payday loans and a Provident loan. I have also missed two payments on my mortgage.

I wrote to my mortgage company last week asking them to spread the arrears over the next 11 months payments, or to add them to the total mortage to be repaid. I haven't heard back yet so don't know what their response will be.

My problem is the payday loans:

Poundstillpayday: £708.95 (outstanding)
1 month loan: £225 (paid this month's interest)
Payday UK: £537.50 (paid this month's interest)
Wwagedayadvance: £431.25 (they were to take interest of £82.50 on Friday but hasn't come off accout yet)

I seriously regret getting them and am desperate to get rid of them as I can only just afford to make the monthly interest payments. Is there any point in me writing to the companies to offer a payment each month for the next 11 months to pay off the balances? Would they take this?

Really hope I can get some advice from you all

DadsDown

Hi there,

Am in much the same position myself with stupid payday loans, and a recent convert to the site.
Have found that you can pay a little off most of the loans each month along with the interest payment, except for Wageday Advance - they will only accept payment in full. Mind you i only asked a brief question via email, I didn't push too far, so if you needed to approach them in a 'desperate' manner, you may get a better response. My plan is to pay a little off the others each month whilst maintaining the minimum on WDA until the others are paid off and I can snowball the other money into WDA. I guess this may not be the most cost effective route, but if you cannot pay off a loan in its entirety each month then it has to be an option.
I'm sure more knowledgeable members will be along soon with more sound advice, but good luck in any case.

DarkConvict

The debts are small, but i know the interest is a killer.

Best way forward against pay day loans are using a credit union, so the interest rate is lower and affordable to pay back the debts. http://www.moneysavingexpert.com/banking/credit-unions
This is one of the few circumstances that consolidation loans can help, needs to be the right consolidation thou, low interest but high repayments to get debt free quickly.

DadsDown

Credit Unions are often advised as being an answer to this sort of problem. I joined a local one last year, and they seem to lend depending on your savings. As a result, i have an outstanding loan of around £100. However it has been advised that if you approach them properly they may be able to assist. Certainly worth a try.

fatlassie

thanks for that both of you.

On the credit union thing, I had thought of applying, but I have a terrible credit history and have been declined loans by other lenders, so assumed that I wouldn't stand a chance being accepted by them.

Does anyone have any experience of them being understanding with things like that?

DarkConvict

Personally no, but its usually credit unions or family/friend are the best route to stop the interest.

DadsDown

I'm not sure credit unions carry out a credit check as such, not initially anyway, as I managed to open an account and get two small initial loans, based on savings. I haven't approached them about a larger loan which can't be based on savings, so can't advise.

Oneday77

The best thing here is make sure you mortgage comes first in future. It is a priority debt and these blood sucking payday companies can wait for their cash.

The credit unions certainly sound like a good idea. Even if it covers the lowest of your loans it will help by giving you a little more each month to pay towards another one.