Payday Loan mess :(

Woodsman123

Ok, this is the first post I've made but after reading through the forum I don't think I am the worst off here but certainly not the best.

Essentially I fell into the payday loan trap. I have a fair credit rating due to 3 defaults on my account from 2007. Since then I have not missed a payment on credit card or telephone and haven't had so much as a charge on my bank account. I curerntly have a small loan with Oakam finance which I am completely up to date with and have never missed a payment.

My problem arose when I needed some money to help my father out the only credit I had accepted was with payday loans companies. As a result of the ongoing revolving debt I know owe £1892 over 3 seperate loans. None of the loans are currently on my credit file.

I have been trying to get an unsecured loan so I can consolidate these payments and spread out of a longer period of time but have had no success.

I have been thinking about going with a debt consolidation company but am worried that this will effect my credit rating.

Can you anyone offer any assistance? I can't sleep at night for trying to work out how to get out of this mess.

Thanks in advance.

andymc29

Maybe you could apply for a Zopa loan using the listing feature on their site. You cna explain to people why you need the loan and see what rate you'll get offered.

dancingfairy

Have you checked all three credit agencies - they all hold different info.
Anyway one way to deal with payday loans is to set up a new bank account and get your salary put into the new account, change all your direct debits/standing orders etc (apart from the payday loans), default the payday loans and then try and get them to agree to repayment agreements - yes this will trash your credit rating but may be the best opton. Also you will need a new bank account as some payday companies will continue to take money from your bank account and if you have a new account you will be more in control.
Also it might be worth getting in touch with one of the debt charities Martin recommends - National Debtline, CCCS or your local CAB amongt others but don't go for the ones you see advertising on the t.v as they likely pay for these adverts by taking your hard earned money before the creditors even get a look in and b) they aren't necessarily any better than the free places and c) some can do more harm than good.
Good Luck
df

Woodsman123

AndyMc - Thanks - I've just tried Zopa and have been told I can't apply with them. I am guessing this is due to the historic defaults.

Dancingfairy - I guess I am wanting too much but I've worked hard to rebuild credit rating and although it's not great yet there is currently nothing negative on it from the last 3 years so I am desperate for a solution that want destroy this now.

LeeSouthEast

You can do a Zopa Listing, rather than a traditional loan. I'd fun you (it bypasses their usual credit check), if they still do them. I've not looked for ages.

Woodsman123

Lee - I tried the listing option but it didn't allow me to process saying they had cancelled the application. I had hoped this was the answer as it removed the "computer says no" element to applying but alas the computer said no before I could get through.

Any other ideas?

jamespounder1

Hi,

Very sorry to hear your in this mess, I am currently paying off 7 payday loan companies at the moment.

Unfortunately unless you can get hold of any 'clean'/'good' credit you will have to pay these people of on a monthly basis.

Some payday lenders are more sympathetic, wage day advance, payday express and payday uk or some of the 'nicer' ones.

And plus if you make monthly payements to these creditors instead of defaulting completley they should record it as an arrangment to pay which only lasts 3 years on your credit file instead of a deafult which lasts for 6..

Hope you get things sorted, I know 1st hand how things can spiral.

J

Woodsman123

Thanks James. I suppose I am in a fairly decent position in that I could afford monthly repayments but I really am trying to avoid damaging the credit file.

I suppose my options are limited though. Thanks for the responses.

katsu

You could try your local credit union - google or the phone book should help you find them.

Gorgeous_George

There is a new P2P lender called yes-secure. Despite the name, I understand that they are less risk-averse than Zopa and you may be able to get a small loan from lenders on that site.

GG

wayne99

sorry to jump in on your thread, just looked at that site george.

they use call credit to check you.

there is a screen where you have to register your bank card to varify your id, it says that no payment is taken, but then they go ahead and take £10.00 from your account.

Looks good tho, and for the peeps who have a clean call credit file its great.