Urgent Advice Please - anyone help!

symesd

We have been in DMP with CCCS since Sep 2008, all going great for a while until last year when we had some car problems and lot of costs for repairs, so I did the wrong thing and took out a payday loan with WONGA, but couldn't afford to pay back, so again did another wrong thing took out another to pay off the Wonga one only they only gave me a bit of money and could still not pay it off....


Any way now some time later and lots of wrong decisons I have 5 payday loans, have bounced 1 months mortage (which I managed to pay before the next payment was due), bounced last months Mortgage (which I have managed to pay off £100, still owe £368), and in a panic as next payment on mortgage due on 15th September.

BUT Wonga will not extend the loan another month and are expecting full payment of £694.30 ..due out of account on 17th September

Along with the other payday loans of £47.50, £91.50, £45 and £60 all due out of the account on 15th

I am in a state and do not know what to do and to add to all this - I sort out the money in the house and my house and have not been able to tell my Husband about all this ... he will throw me out I am sure as I promised last year all would be ok.

I have just found out that Welcome Finance have gone bankrupt and thinking - I pay them £392 a month .... secured loan on negative equity house, should I stop paying this for a couple of month to pay off all these pay day loans to get back on track ... and make an arrangement with them once someone contacts me ???

I want all this to stop am sick of being in debt and worrying about money - sick of telling my 3 kids we have not got any food in for snacks and sick of ....

well just sick of everything..

The annoying thing is that both my husband and myself have pretty well paid jobs and we would be quite comfortable if we had no secured loan or debts....

Can we just rent find somewhere to rent and stop paying everything ... and once we are settled in out new rented house file for bancrupsy .........

Please anyonce help what shall I do

Thanks

dancingfairy

Hi - clearly things have got in a mess but I think you are panicking slightly and perhaps going about things the wrong way.
Your mortgage and secured loan are more important than payday loan (Wonga or anybody else). If bankruptcy is the way forward then you still would not be paying the payday loan.

df

dancingfairy

I think you need to start again - at the begining. Reassess your budget - figure out what failed (ie lack of emergency savings or genuine unexpected expense? lack of budgeting? etc).
Speak to CCCS - yes you may have to suspend your dmp and you may have to go with another provider ie via your local CAB or National Debtline or do your own but you need to sit down and clinically assess whether a dmp is the way forward still (with a few adjustments ) or whether something else like bankruptcy would be better for you.
You may need to get a new bank account so Wonga can't take their money out and then decide how to deal with them once you have decided whether to go for a new dmp (well a continuation) or what.
What perhaps would have worked better would have been if you had spoken to CCCS and advised them you had an unexpected expense and for them to let your creditors know they would be getting a month of reduced payments or none at all and normal service would be resumed.
Don't panic - you can unpick this mess.
df
Edit: if your house is in negative equity you may be able to keep it anyway even if you go bankrupt - but one thing at a time
I think I would get in touch with the mortgage people and possible secured loan people and tell them you are having some problems with your bank account (ie the Payday loans people are about to raid it), cancel the direct debit and send them what you can and let them know you will be in touch - this will give you time to sort out your options.

Trollfever

Having problems with your mortgage payments?


http://mortgagehelp.direct.gov.uk/default.aspx

saltnvinegar

Hi Symesd

Well done for posting, I know that first step is really difficult and it takes a lot to face up to things. Stop beating yourself up about 'bad decisions'. We're all human beings and make mistakes thats a part of life.

The important thing is you've now made a good decision and are trying to correct the poor ones.

Ok, I'm on a coffee break so have to be quick, just didn't want to read and run.

First things first........ whats more important, paying your mortgage or paying your payday loans?

I think you already know what the answer is to this!

First thing you need to do is stop the payday loan companies getting at your money. You will need to set up a basic bank account which has no financial links to any of your existing debts and then get your salary paid into there.

Then make sure you are paying your priority debts, which includes clearing the arrears on your mortgage if you can.

Can you post a SOA? This will help some of the people here understand what room you've got and give you some guidance.

SnV

NorthernLas

If wonga are taking money using your bank card details, calling your bank and telling them that you you have lost it may stop the payments. As DF said a new bank account may be required.

saltnvinegar

NorthernLas wrote: »

If wonga are taking money using your bank card details, calling your bank and telling them that you you have lost it may stop the payments. As DF said a new bank account may be required.

Completely agree on the new bank account. I don't know the exact banking term but its something like 'recurring credit/debit authority' or similar and this is what PDL companies use in their credit agreements.

The trouble with this is that even if you report the card as lost your bank may still authorize the transaction (and I have even read posts of people even having payments authorized after changing their bank account numbers but keeping the same bank).

Apparently this is all above board.........

In the Short term reporting your card as 'stolen' seems to be more effective at stopping payments being taken, but for a belts/braces approach I would still recommend changing banks (ensure they are not part of the same banking 'group')

The last thing you want is these companies taking the money ear-marked for your mortgage (because they will if you let them).

SnV

symesd

Thanks for all your advice - I have already applied for a basic bank account as I think Wonga and the others will go for the money even if I cancel cards and dd's, Our house is on the market and we are thinking about reducing the price (meaning we will lose some money) and would not cover the cost of the secured loan - but we just want to get ot of this house and pay off everything - anyone know about any companies who will but houses in need of modernisation with negative equity - have done lots of searches on line and not sure if any are ok.

Thanks

saltnvinegar

Hi Symesd

If they're not too personal may I ask what the reasons are for wanting to sell the house?

The reason I ask is that if you're in negative equity I'm not sure how this action is going to help pay off the rest of your debts as your creditors can (and most likely will) pursue you once its sold anyway.

Whatever you do don't go to any of those companies who claim they can buy your house off you and 'release equity' etc. If memory serves some of these companies were on one of the consumer tv programmes not so long back and not for the right reasons.

I noticed from your signature that you've paid back over 20% of your debt in only 2 years. This is a great achievement and something to be really proud of, and I can only urge you to not give up now after all the good work you've done.

Have you tried posting on the CCCS 'ask a question' thread as to what their take on your situation would be? I doubt they will be judgemental, but will just want to help you come to a solution.

If it just payday loan companies you have taken out loans with since starting your DMP I think you have some options open to you still, I just get the impression you've lost sight a little of how far you've come and have just had a little 'remission' (if that is the right word)

I'm sure if you could detach yourself from the 'debt stress' you would see this and maybe reassess your position in a different way.

SnV