CCCS DMP + payday loan debt

thejesus

Hi all,

over the past few years I have gotten my self into serious debt with several companies - this is mainly my fault (spending more than I earn etc..)

These are my following debts:

£2500 overdraft
£1180 Credit card
£1050 Crecit card
£500 Credit card
£500 Credit card
£280 Credit card
£400 Payday loan
£5000 outstanding on car finance

This month I have come to a hault and am not able to pay council tax (who will issue a CCJ in the next couple of days unless I pay £150)
+ Owe utilites bill £70

I have contacted CCCS and they recommend a Debt management plan and stressed that I need to treat the council tax payment as my first piroity as they have more power etc.. and not pay any of the outstanding debt above.

My main concern is the Payday loan company, I have been using them for the last 2 years (i dont even want to think on how much money I lost due to interest over this). CCCS said I should not pay them this month and sign up for this DMP, after reading the pack they provided me it states they cannot garuntee that any credit companies will freeze the interest, if this is the case I will probably owe double to this payday loan company as the APR is 2300% which will obovislly make the situation worse.

However if I do diecide to clear the debt with the payday loan company I will not be able to pay council tax + I need to move out next week as our landloard sold our flat (another £200 agency fees). My question, has anyone been in the same situation with CCCS DMP + paydayloans. if so what was the outcome?

Any advice will be very appriceated!!

Thanks,

Max.

CCCS_Sue

thejesus wrote: »

Hi all,

over the past few years I have gotten my self into serious debt with several companies - this is mainly my fault (spending more than I earn etc..)

These are my following debts:

£2500 overdraft
£1180 Credit card
£1050 Crecit card
£500 Credit card
£500 Credit card
£280 Credit card
£400 Payday loan
£5000 outstanding on car finance

This month I have come to a hault and am not able to pay council tax (who will issue a CCJ in the next couple of days unless I pay £150)
+ Owe utilites bill £70

I have contacted CCCS and they recommend a Debt management plan and stressed that I need to treat the council tax payment as my first piroity as they have more power etc.. and not pay any of the outstanding debt above.

My main concern is the Payday loan company, I have been using them for the last 2 years (i dont even want to think on how much money I lost due to interest over this). CCCS said I should not pay them this month and sign up for this DMP, after reading the pack they provided me it states they cannot garuntee that any credit companies will freeze the interest, if this is the case I will probably owe double to this payday loan company as the APR is 2300% which will obovislly make the situation worse.

However if I do diecide to clear the debt with the payday loan company I will not be able to pay council tax + I need to move out next week as our landloard sold our flat (another £200 agency fees). My question, has anyone been in the same situation with CCCS DMP + paydayloans. if so what was the outcome?

Any advice will be very appriceated!!

Thanks,

Max.

Hi Max

Your council tax and utilities are priorities and you need to pay these first. You will also need your agency fees for your living accomodation.
I can understand your concern regarding the interest on your payday loans, but at the end of the day, you cannot pay them money you do not have.
Even if you were not on a DMP your payday loans would still be charging interest.

If you are going on a DMP, we do write to all your creditors with an offer of payment, and we ask them to consider stopping the interest and charges.

In most cases, there is nothing you can do to stop interest and charges being added. However, if you make reduced payments over a long period of time, usually several months, most creditors will eventually stop charging interest and adding late payment charges.
Usually, a creditor will stop interest and charges either after they issue a default notice or they pass it onto a debt collection agency, although this does not always happen.
At least by going on a DMP,’ you are starting to take control over your debt situation

Regards
Sue

saltnvinegar

Hi Max

I have been in exactly the same situation as you and the CCCS were brilliant in helping me put together a SOA and payment plan.

Your council tax most definately should take priority over paying a payday loan company.

Take a look at my LBM thread (in my signature) and you can see what I've done to tackle my debt.

The most important thing at the moment is getting any priority debts sorted. The unsecured stuff can wait.

Above all, try not to get too worried about this, although I know its not easy. You're making the right steps.

Best
SnV

eyeopener2

With regard to the Payday Loan don't worry about them, they will shout and scream and threaten allsorts but as long as you do as CCCS say they will come onboard. I have three and they have all stopped interest. They will probably refer you to a Debt Collector but thats easy to deal with.

Don't even think about paying those parasites before your council tax. That is your number one priorty now.