Payday loans and DMP's

Little-pea2010

Hi,

I wonder if anyone can help me?

I have been silly and got my self into a mountain of debt, totalling about £30k. The majority is made up of loans and credit cards but more recently i have stupidly taken out several pay day loans.

I finally plucked up the courage to come clean and have spoken to the CAB who are recommending that i enter into a DMP, which will help me out greatly and mean I can afford my mortgage and general living costs.

My question is does anyone know if I can include these payday loans on a DMP? The most recent one was taken out about a month ago, a good three weeks before i spoke to Citizens Advice. These are due to be paid back on the 18th and I'm worried about phone calls chasing these as the DMP would have only just been received and my creditors may not have all been informed by then.

Any advice would be much appreciated.

Many thanks

bottleofred

Hi Little-Pea,

I think you should contact the cab and explain the situation. They may not like it, but at least it was before you contacted them about the dmp, although they'll probably want to know why you did not mention them previously. Hopefully someone with more knowledge than me can provide additional info/advice.

Good luck in getting sorted

Ames

You can include them in a DMP, and as you took it out before the DMP I can't see any real problem.

However, these companies are like a dog with a bone, they try any possible way to get money out of you. How is it supposed to be paid back and what details do they have? You'll probably need to cancel your cards and change bank accounts, and even then some people have found the old bank honours the payment. So you need to report the card stolen, close the bank account and open a new one with a different bank asap.

Little-pea2010

Thanks for the Advice.

I did tell the CAB I had these when I contacted them and they have included them in the pack that they have sent me. Only problem is its listed as one lump sum so I don't think the guy grasped exactly what they were.

My card has already been cancelled and so have any direct debits. I am opening up a new account, but the problem I have is that I work for a bank, so I can't close this account as they wont pay me into any other account. My employer is aware that i'm entering into a DMP, i was advised to tell them after speaking to my union.

I'm starting to really worry about persistant phone calls and possible further action from these guys until my plan goes through, does anyone have any advice on how i could possibly deal with this in the mean time?

Any advice is much appreciated.

Thanks!