£2800 payday loan debt

antony85

hi im currently experiencing alot of trouble with payday loans, i have been struggling to keep up with them, i had £2800 all guaranteed by cheques,

i was advised that if i stop paying them the bank will as they are guaranteed, now so far its been hit and miss, i think the bank decides when they do and dont want to pay them! sometimes they'll bounce the cheque, then when its claimed at a later point, they pay it out ?? madness i know,

so far they paid out £870 leaving me with £1930 but when my balance reached -£999.11 they stopped paying out, they bounced about 7 of them, then when a cheque for £120 was cashed they paid out ! but my card only guarantees £100 :S so im a little confused to how they work!

anyways my points is im recieving letters demanding payment within 7 days, but 1 letter i got the other week said 7 days but i only had 3 days by the time i recieved it! so far i have been extremeley lucky (dont know how, ) but when they have turned up at the door ive been able to pay them before anything becomes of them, but i have a strong feeling this will no longer be the case, is there anything i can do to stop this happening,

one letter quoted i owed £220 payable withing 7 days, from albermale & bond, who used transax (i.e they get paid no matter what transax do the chasing) and if i didnt pay, it would be transferred to a dca, with 35% added onto the debt.

im really starting to worry about this, none of them seem to want to help, ive tried making payment plans but they dont wanna listen. the only ones who helped me were HTP i owed them £600 and have paid them £25 every week (lthought its a bit high for me) but now only owe the £350 and hopefully by end of the week only £300. but as i said others arnt so helpful. the money shop sent me a letter today they wacked on a £25 charge, onto the £100 bounced cheque, and are demanding payment within 7 days,

i only earn £170 a week, and many weeks i find it hard to meet the repayments on these loans, let alone other bills, which is why i have stopped paying them all, what im doing now is praying the bank pays them and if they dont, when i recieve debt letters hoping i got the money for them,i cant pffer them any payments as i have tried and they arnt willing to help!!!! but as i said, i cant see me having the money for them when all of em turn up. i have spoken to my bank they cant help, they just said pay a regular payment in, and when debt collections take it over theyll see your comitted to your debt, and they will be a lot more helpful with you, compared to if i stop all payments to the bank.

p.s i have opened a new account and pay my money into that now, so my money isnt eaten up by the bank.



does anyone know what my next course of action should be?

GeorgeUK

Is it possible to post up a statement of affairs?
http://www.makesenseofcards.com/soacalc.html

I think the first thing you should do is contact CCCS or Payplan. You only earn about £700 a month and i'm not sure how much you will be able to repay towards the debt. I would usually recommend looking at getting a loan from a credit union to deal with payday loans, but you may not be able to afford that.

CCCS or Payplan may be able to help you set up a repayment plan with the creditors.

DarkConvict

General advice is goto credit unions, but now you have let them bounce i do not think this would be a valid option.

I would instead contact a debt charity like national debtline, CCCS or PayPlan and setup a debt management plan (DMP) to deal with this matter. Your credit history will be ruined for 6 years, but as it is only a small debt (main problem was interest not the debt), i do not think there are any other realistic options unless someone else like family can finance you and pay them off, and you pay them back instead.

Oneday77

Sorry I had to chip in with a passing comment. When they turn up at the door don't entertain them. They can't force money from you ad have no legal right ot come in. If they refuse to go away or start getting abusive call the police.
Can you not cancel the cheques that are issued to them?

antony85

no the bank wont cancel a guaranteed cheque. local credit union isnt an option either, they rejected me last summer, when i was kind of ok for money. both payplan and cccs have said they cant help, as my debt isnt big enough, to them it may not but to me its massive. plus as darkconvicy said my main ;problem was the interest only payments, meaning the debt would never go, which is why i have now stopped paying them , cos i cant go on like this!

im not to fussed about my credit file anymore, couldnt give 2 !!!!!!, tried my best for ages to keep it clean, but still no one seems to want to lend to me, which is why i got stuck with payday loans, as my file stands at the moment, my file is clean as a whistle but they still give me a low score for some reason
, things will soon change when natwest update it at the end on the month! will hit rock bottom!

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 could 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..............1119.11....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

WASHER

Do you eat? That is your first priority, secondly you need help first thing in the morning, phone the CCCS or Payplan, you simply cannot afford to repay all these debts at this moment in time.

antony85

yes im well fed thanks, mother takes care of that part! would love to ring payplan or ccs but i have rang em before and they said my debt isnt big enough and id have to do everything myself, n i have tried but my creditors wont listen. also im working from 7-5. thankfully i have a lot of overtime thisweek, so it should help working 6 days 7-5

dktreesea

Oh wow! The APRs on some of the debts are mind boggling. I think those kinds of interest rates are so greedy, the companies in question don't deserve to be paid back. Have you considered just going bankrupt as an option? Lending money maybe a socially acceptable activity, if the interest rates are reasonable, but imho, anything over 20% per annum is usury and should be a crime.

GeorgeUK

If there is another credit union in your area, it might be worth trying there. Some require you to be a member for a few weeks, but you might get lucky. you only need to borrow about £3k and you should be able to pay around £200pm towards this. I don't think you have anything to lose at this stage.

Are you on the electoral roll at your current address? This can have a big impact on your credit score.

Did CCCS and Payplan not send you anything to assist with dealing with this yourself?

Right, if you are stuck with dealing with this yourself we can make some suggestions for that.

You've set up a new account so that you are in charge of who gets your money. Good start.

Next you need to write to all your creditors making an offer of payment. Don't do this over the phone and don't talk to them about the debt on the phone. All communication should be in wrting so that you have proof of what is agreed. It also stops them from making threats about what may or may not happen if you don't pay.

Are the accounts with 0% really at 0% or do you not know the rates for these?

If you were making equal payments to each debt, it would be as follows
HTP -agreement to pay..........375.......25........0…......13.79
money shop........................500.......75........780.2…..18.39
cash generator....................600.......100.......979. 2…..22.07
empire stores.....................497.......52.44.....0…........18.28
additions direct..................146.......7...........44.9….......5.37
littlewoods........................585.......35....... .0….........21.52
great universal...................464.......35.36.....0…........17.07
marshallward......................150.......5........ .44.9….....5.51
overdraft natwest..............1119.11....0.........19.24…...41.17
cash convertors................400..........40........0….......14.71
abl..................................600.........84....... .527.3…..22.07

Personally i would be tempted to pay those that have made an agreement and stopped interest and charges the agreed amount adn the others could get what was left split between them.

There are template letters here and on the nationaldebtline website for sending to creditors requesting payment be stopped and a repayment plan be made. Don't forget that you can't rely on overtime though and the amounts should be based on your basic wage. The above i have based on £200pm.

Rainbow_Liberty

Not sure how helpful this is going to be to you but I'd just like to calm your nerves a little if possible.

I was in a similar situation a number of years ago and wrote to everybody concerned - the same letter, with all the debts to everybody included in the letter and each address as a cc. at the bottom of the letter. I enclosed a copy of my financial statement (much the same as you have done here) and showed that between my creditors I had a total of £5.11 a month to pay between 6. To one debt alone I owed over £16k the smallest one being £200. At the time I didn't know about pro rata and having asked for help from the CCCS but also being told that the amount I had to available to repay was too minimal I did it all myself.

The outcome - Each company had no choice but to accept a payment of £1 a month to the five big ones and the £200 debt receives 11p - I set up standing orders so that I can't possibly miss a payment.

And guess what they are still receiving those same payments now - almost 10 years later, I can't afford to increase them, my health has deteriorated since then and I will never work again.

So please try not to worry too much, they can't take what you haven't got