Serious financial problems

brentmused

Hi all

I have steadily been getting into more and more debt in the last four years where it has now come to the stage that as soon as I am paid, about 70% is gone in debt payments. I have a stupidly high interest loan that I am paying off along with 3 payday advance payments each month (These have been the worst mistake I have ever made as it is just throwing money away as as soon as I have paid them each month I need another payday advance, stupid I know) and a loan from the company I work for . The most frustrating thing is that if I could get a loan to cover all my debts which total around £7-8,000, the repayments over five years would be about £160 a month which would be an sbolute doddle, but no high street bank will touch me. I really do not know how to get out of this situation.

Thanks

pennypusher

Post up a statement of affairs and people will be along to offer you advice shortly.

brentmused

I took out a guarantor loan with FLM loans seven months ago for £3,000, ridiculous interest still owe £4,200 and have made six £150 a month payments on time. I started taking a payday loan from paydayuk about 18 months ago and steadily built that up to know where I am paying £670 a month to them and then immediately having to re-borrow £500. I also took a loan from the company i work for and currently owe £1600 paying back £200 per month. I also fell behind on maintenance payments for my son which really broke my heart and so last month I became desperate as I was so worried about not paying this so I took out another 2 payday loans (absolutely ridiculous I know) one for £200 from Swiftsterling for £200, having to pay back £260 and another with quickquid for £250, having to pay back £365 and I know that as soon as I get paid, I am going to have to use them again as I will have next to nothing to live on and I know this will become a vicious circle where I am just throwing money away for a quick fix. The first from paydayuk I could live with, but these other two I know are going to finish me. Three years ago I was debt free and now I am in a mess. Since I was about 18 I was always reckless with money and built up a bad credit rating, but for the last ten years or so I have never attemped to shy away from money I owed, and apart from a few occasions, have always paid on time and for the last three years have never missed a payment for anything and always paid on time. However, the damage to my credit status had already been done and now I cannot get a loan from a high street bank for the amount I need. I know it is advisable not to take a loan to repay debt but if I could consolidate all my debt into one loan payment with my bank, who I have banked with for 15+ years, always had my salary paid into, have never had a an overdraft, loan or gone into debt with (thanks Abbey/Santander), then the repayments would be about £160 over five years for an £8,000 loan and would be so manageable it would be ridiculous. No one will touch me with a barge pole. I have no assets, do not own my home or a car. I take home about £1400 per month.

Hax

Hi

As suggested above, please post an SOA - details can be found here: clicky-clicky

Hopefully the good forum folk can help you find a solution

facing_up_to_it

Consolidation isn't something I'd personally advocate but used in the correct manner could be a solution. I speak from my experience of consolidating a couple of times and ending up in a much worse position than when I first started but..........that's me, not you! How about speaking with your local credit union? Some stipulate that you have to save with them for a few months before you can borrow but I don't think they all work that way. It's just a thought and used correctly could possibly help. Best of luck and try not to stress too much.

theoretica

You say you 'have next to nothing to live on' - well, this board is full of experts in living on next to nothing (here and over on the old style forum). If you have to go for it and live on next to nothing it can be done. If you post your full spending as has been suggested there will be lots of suggestions, but we need to know how much your rent, council tax, travel to work, energy etc cost.

1400 income
150 FLM
200 work
170 payday (charge)
115 quick quid (charge) get rid of this loan first- it is costing you more than the others.
60 swiftsterling (charge)

This leaves £705 for maintenance (£200?) paying off debt and living which would require frugal living but is possible.

Might your parents be prepared to pay the maintenance for their grandson for a month or two to help you get rid of the smaller two payday loans?

Can you get a part time second job for a little while? Even one or two evenings a week behind a bar would help significantly.