Payday Loan Mess!

cakey_baby

Hi Everyone

Im wondering if anyone can give me some advice. I currently have 6 payday loans out totalling about 1200, they are quickquid, payday uk, wage day advance, cash genie, speedloan and uncle buck. I have been paying interest only now for months and am ending up with nothing to live on after paying my other expenses such as phone bill, car insurance, petrol etc. I have looked for advice online and most people say open another bank account for your salary and cancel all the direct debits then contact the companies by email to set up a repayment plan. Just wondering if this is the best way to go about it and also will this affect my credit file? Ive heard some horror stories about these companies just emptying your account and i dont want to risk this as my monthly wage wouldnt even cover what i owe to them.

Hoping someone can give me some advice.

Thank you.

DizzleUK

I haven't a lot of time as I'm about to leave for work, but here's a quick guide. I'll pop back this evening to see where we are then and provide more info if necessary....

Step 1. Open another bank account to get your wages paid into asap. This will stop them helping themselves.

Step 2. Cancel your debit card (by reporting lost/stolen) to prevent monies being taken (this doesn't always work hence step 1). Cancel any that are by Direct Debit too- but be aware they may reset them up again without permission.

Step 3. Contact all companies and try to negotiate a repayment plan. You'll find most won't want to know until you have defaulted.

It'll be a lot of hard work, but ignore the threats and stand your ground. Explain things without going into sob stories. Keep all contact by email only and tell them that is how you will communicated. DO NOT DEAL WITH THEM BY PHONE.

Good luck.

Also, search for my posts in a thread called "Toothfairy Finance" in this section.

cakey_baby

Thank you Dizzle, thats very clear advice. Im going to open another bank account today and have already cancelled the DD for three of them on my online banking.

Do these payday loans show on your credit file? I got a copy from equifax a couple of months ago and they wernt on there then.

KingElvis

^^ If you default on them you can bet your last dollar your credit rating will be riddled with these slime balls.

CHR15

cakey_baby wrote: »

also will this affect my credit file? .

It is going to Royally smash it to bits.

With so many Payday loans, it appears far too late to get out of this unscathed.

Protect your money as has been advised, this will give you something to live on.

The second they hear you are having problems paying, at least a couple of them will swoop into your account and grab as much as they can up to the amount outstanding (you agreed to let them do this when you took the loan out).

It is going to be almost impossible for you to get any kind of credit for the next 6 years whilst this lot drops away.

Sadly, your question should have been posted before taking out the very first loan. All the advice would have been NOT to take one out, instead, pop into the Debt Free Wannabe board for helpful advice about how to manage your outgoings.

Still go into the DFW board as you now have an even more difficult time trying to manage outgoings which now include clearing 6 Payday loan debts (with nasty charges).

CLAPTON

without knowing your financial circumstances and why you took out these loans it's not possible to give sensible advice
certainly your course of action will ruin your credit rating for 6 years and maybe greatly increase your debts

post up an SOA before such precipitous action

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

cakey_baby

Monthly salary after tax is £900 outgoings including lodge, car insurance, mobile phone, internet, petrol, food etc £450 - £500.

So would you advise not to change banks and go down this route? If im honest my credit file is rubbish anyway hence the reason me getting payday loans as im unable to obtain any other credit even my bank wont give me a current account after 4 years of being with them.

Not really sure what to do for the best now though,

CLAPTON

you need to fill in the SOA

clearly you do not have 400 or 450 left over each month otherwise you won't need payday loans

how much is it costing to roll over the loans each month?

can you increase your income.. part time job to clear these loans?

Apples2

cakey_baby wrote: »

Not really sure what to do for the best now though,

Stop borrowing...

Take the SOA advice and get in the DFW Board.

They will help you control your spending.

cakey_baby

My outgoings are £450 to £500 clapton not what i have left then i have around £400 left over to pay outstanding debts. Anyway thank you all for your advice.

mrLazy

How much interest do you pay on each??? This is REALLY important that £1200 can turn into £20K £50K really quick.

Its normally a really stupid idea to borrow money to pay another debt, but pay day loans are worse than stupid. Find the lowest interest loan you can get and use this to pay them. Then pay that back ASAP.


Best advice is phone the national debt advice line or talk to citizens advice. Do this like yestarday.