Payday loans have got me in a mess

mithuthecat

Yes I know that I should not have taken them out but its to late now, I have two pay day loans with poundstill pay day and wage day advance, these being the only people i could approach as I have a basic bank account with no debit card, what I want to do is make a arrangement to pay them back over a period of time and this will enable me to live. I have signed agreements with them and they take out the money owed by direct debit, I have cheked my account and the only direct debits that are showing are for last month,nothing is showing for the debits that will come out this month, am I correct in saying that if I cancel my dds then they will not be able to collect money this month when due, then I can set up a repayment plan with them, Can anybody advise me or should I talk to my bank regarding this

spikescot2005

Cancel the direct debits so that the money due to be taken isn't. Also cancel any bank / debit card associated to that account. The payday companies will contact you requesting full payment. Advise them that you are unable to pay the balance in full but offer to pay in installments at an amount you can afford. (stand your ground on the amount as they will push you for more)

Sometimes they will refuse but again stand your ground they will accept in the end.

DarkConvict

Did you issue the payday loans company with guaranteed cheques? If so and you fail to make payment, they will cash the cheques regardless of your current balance. Depending on your OD charges and interest this can be cheaper than letting the debt sit with a payday loans company.

If you cancel the DD, you will find some companies set it up again. You'll need to write to your local branch and the company asking the DD not be setup again, and add in to the payday company how you would like to pay.

barnettsarah

My parnter has 11 of these due to gambling, be very carefyl,i cancelled all dds however,yesterday they still managed to take out 200! go into your bank and advise them on your sitiuation if need be give the bank a 'notice of appropriation" google it and you can read about it and get a template. Good luck!

mithuthecat

I Only have as cash card so it cannot be used as a debit card, also I do not have any checks, so I will cancel the direct debits and drop a letter of at my branch of the HSBC and tell them that under no circumstances are monies to be paid to the payday loan companies

Tixy

Hopefully the above action will stop the DDs.

Are these your only debts mithu? If they are perhaps write to them offering a monthly repayment amount that you can afford - here is a template that might be a good start for you to adapt as necessary http://www.nationaldebtline.co.uk/england_wales/temp/9830_29751.pdf

If you have other debts then you may want to contact one of the free debt advice charities and send this letter in the meantime - http://www.nationaldebtline.co.uk/england_wales/temp/9908_54461.pdf

this is a list of the charities recommended by MSE - http://forums.moneysavingexpert.com/showthread.html?t=2077631

As mentioned above sometimes creditors do manage to get dds set up again even after you cancel them, so I'd recommend you keep an eye on your balance or even withdraw any cash in your account that you need urgently.

DarkConvict

A potential alternative is to borrow from local credit unions whos rates are alot lower than payday loan companies, generally they want you to save with them first before borrowing, but they have helped before http://www.moneysavingexpert.com/banking/credit-unions

mithuthecat

Have cancelled the dds on line and will call in bank tomorrow and inform them that they are not to be re-instated