Payday Loans

emilyxxx8

Hi All,

I've been brought to this site whilst looking for advice on how to get myself out of a viscous circle of payday loans.

I'm only 21 and last year was offered a credit card my my bank with a £500 limit, thinking it was a good idea at the time i accepted it. Stupidly i used up the credit and struggled to pay it back and was receiving charges and what not. I was obviously upset and stressed out about this and my brother kindly offered to give me the money to pay it off and i pay him £100 a month back. This was great until one month i was short of money so borrowed some from a payday loan site, i paid it back at end of month but since then its got worse, as soon as i get paid all my money goes straight out of my account paying off 3 different payday loans, so then i'm left with no money so re-use them.

I know this is all completely my own fault and stupidity, but i feel like i'm stuck now and its getting worse. I can't ask my brother or parents for anymore help and am completely stuck. I have thought about having a loan but am worried this will make things worse...?

Please, if anyone can give me any help or advice i would be soooo grateful because i am so stressed about this.

Thanks for reading, Em xxxx:(

chesky369

How much was the original payday loan and how much do you owe now?

chesky369

Oh, my mistake, there are THREE payday loans. Let us have full details please.

chesky369

and how much is left on the credit card (or payback to brother)?

emilyxxx8

I have one payday loan which is now overdue, but today i owe £308, one which is due 10.09.10 which is for £110 and one due 30.09.10 which is £250.

I do not owe anything on my credit card but still owe my brother £300.

Please help!!!

chesky369

Either :
Go along to CAB if you can't do it yourself and ask their help in contacting the payday loans to try to set up a realistic pay plan. At the same time ask your brother if you can reduce your payments to him - 6 @ £50.
Or
Ask your parents to help you by paying off the £308 and paying them back monthly.
How much do you earn, by the way.

NEVER ever again borrow more money to pay off another set of debts. It's stupid and costs an absolute fortune, as you are finding out.

And, lastly, don't do the 'I'm only 21' rubbish. When I was 21, I had a husband who had two jobs and was studying; a child and I worked full-time. Grow up.

AllieBallie

Emily, pop up a Statement of Affairs (SOA) - there's a link at the top of the page if you're unsure, and we'll be able to help you save some cash from your outgoings which can then go into paying off these horrible payday loans.

I'd also explain to your brother the situation and im sure he'll understand and will maybe reduce/pause payments so you can get rid of the loans with the interest on them first.

I may be wrong but it sounds like there is a few hundred pounds of debt (as opposed to thousands of pounds) so that means that with a good budget and will power/strictness you could clear off some of these debts really quickly.

emilyxxx8

Thanks everyone, i take home £936 a month.
I have just paid off the £308 but now have no money left for the rest month and have bills to pay still.

brokepaolo

chesky369 wrote: »

And, lastly, don't do the 'I'm only 21' rubbish. When I was 21, I had a husband who had two jobs and was studying; a child and I worked full-time. Grow up.

a bit harsh..

Emily, I've fallen foul of the payday loan trap on a much larger scale than you, I racked up £3000 worth of debt to 11 separate payday lenders within the short period of 1 year so I know exactly how easy it is to slip down that hill and feel like you'll never get back on top of it. It's very easy to succumb to them and I know full well what a foolish mistake I made to get involved in the first place.

But no point beating yourself up about it, you need to take action fast before you end up in the situation I was in.

Firstly, I would be honest to your brother and explain the situation you find yourself in and ask him if he can hold off for a bit on you repaying the money you owe him. It is far more important you get the payday loans off your back than it is getting him off your back, believe me. If he had the £500 to lend you in the first place, I would hope he;d be understanding of your current predicament.

Secondly, yes, seek advice from the C.A.B. or other counselling services such as the CCCS on how to approach your creditors with offers of monthly installments. They can send you letters for you to send to your creditors and provide advice on what to do with letters or phone calls coming to you from the loan companies.

Thirdly, if and when you reach an agreement with your creditors to pay them back in monthly instalments, you MUST MUST MUST cancel your debit cards upon which the payday loans were first agreed. These companies may well agree to your proposed monthly instalment payments but when you next get paid(a date they will have recorded from your original loan application) they will think nothing of withdrawing the funds and whatever charges they have applied to the loan's balance directly from your account. They can do this because they have your card details and they will try relentlessly to take money from your card without telling you. Cancel them immediately. As long as you pay them the instalments as agreed, it doesn't matter where your money is coming from.

Finally, resist the urge to take out a top up payday loan from companies offering them to you, this will only cause you more grief and in some instances, the offers are actual traps whereby a payday loan company you already owe money to send you an email under a different company name in order for you to submit your account details/new debit card details from which they will withdraw the full balance you owe and they won't give you the loan you applied for.

Trust me, £300 really is very little to be dealing with, just make sure it doesn't get any bigger. I started with a £200 payday loan back in July last year and this year in July I found myself with another 10 payday loans and a debt of £3000. Don't make the same mistake I made.

PARIS_5000

emilyxxx8 wrote: »

Thanks everyone, i take home £936 a month.
I have just paid off the £308 but now have no money left for the rest month and have bills to pay still.

If you cannot pay the other loans I suggest that you contact the companies in writing and explain your situation and offer reduced payments.

I would open a new bank account and pay your wages into that account and cancelled the debit card that you gave to the loan company because they will keep requesting payments from it.

Good luck

emilyxxx8

I can't find the SOA link. I have my MOT (£60), car insurance (£45), phone bill (£35), broadband (£10) and rent (£200).

I know my debt is small compared to a lot on here, so sorry to moan, but i am genuinely worried that its going to get out of control.