PayDay Loan due Wednesday; In a mess;

SimIsOnTheUp

Originally posted here -

https://forums.moneysavingexpert.com/discussion/2919526

Hi guys,

Very stressed here, as it's crunch time.

I took out MoneyShop PayDay loan for £500 (5x £100 cheques) back in May - paid off in June, and then stupidly ran up again in July.

Since July, I've paid £85 each month to 'extend' the loan, having not been able to pay any of it off.

While I was trying to avoid losing my A&L / Santander bank account (fully Visa card - first normal account in years), I've got to the point where this week I'm stuck and I'm getting so low over this.

This Wednesday 22nd December, MoneyShop are due to present the first £100 cheque to their bank, and then the other cheques are due to be cashed on the 29th, 30th 31st of Dec and the 4th of Jan.

I don't have the money in my Santander account to pay these, and there is no way I can raise it by Wednesday.

Due to having quite a bit of other debt too, I've decided to bite the bullet and go for a Debt Relief Order first thing in January.

Should I cancel my Visa Card / Cheques tomorrow, before the first cheque is due to go through, or instead let the cheques go through (that is *if* the bank honour them) and end up owing the bank the £500 + charges?

I'd obviously rather the latter, as dealing with Santander is probably going to be a lot easier than dealing with MoneyShop. At least if the cheques go through, MoneyShop have been paid and then I can treat the bank debt as a seperate debt to be included in the DRO (as recommended by the CAB a few months back).

I also need to change bank accounts.

Aside from the Santander account, I have another account with the Co-op (Basic, 'Cashminder' account) which I'd rather use for my wages (next due on 31st Dec).

However, I can't remember for sure, but my instinct tells me that I think when I went into MoneyShop originally last May, the guy there took my Co-op Visa Debit Card details as well as the Santander account details (he also made me fill out a 'Direct Debit Mandate' type form for Santander too I think).

So, that rules out my Co-op account for now, as they might try and raid that account too. This is gutting as that account /Co-op's staff were excellent, and it wouldn't let me go overdrawn.

I do have a third bank account, with HBOS (again, a basic CardCash account) which I've had for years, and I could use this for my wages next week.

I'm still waiting on a new PIN (can't remember my old one, as it's been an age since using it, and ordered new PIN a week last Saturday), so hopefully that'll be here soon.

I was even thinking of 'starting afresh' with a brand new 'basic, no bells and whistles' bank account, and applying to Lloyds as my friend said they were very good. However, apparently Lloyds are connected to Santander? :-/

This is where an addiction to booze gets you...Due to stupidly falling off the wagon last Fri / Sat, I ended up taking Fri / tonight off work and so now my job could be at risk too.

I can't stop crying, and given that I'm a relatively intelligent 37 year old bloke, I should not have got myself into this mess.

Sorry to witter.

Any advice regarding what on earth I do would be most appreciated.

Many Thanks,

Sim x

SimIsOnTheUp

SOA here (you know when you're in it, when it keeps you up all night..) -

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 480
Partners monthly income after tax....... 0
Benefits................................ 372
Other income............................ 0
Total monthly income.................... 852

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 295.48
Management charge (leasehold property).. 0
Council tax............................. 85
Electricity............................. 44
Gas..................................... 0
Oil..................................... 0
Water rates............................. 30.28
Telephone (land line)................... 0
Mobile phone............................ 10
TV Licence.............................. 23.75
Satellite/Cable TV...................... 0
Internet Services....................... 22
Groceries etc. ......................... 200
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 5
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 715.51


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Rent Arrears / Costs...........110.......21.52.....0
Council Tax Arrears............459.31....0.........0
Water Arrears..................64........30.28.....0
Ex - Girlfriend................2000......0.........0
Student Loans Company..........14000.....0.........0
BT Final Bill .................27.32.....0.........0
TV License ....................145.5.....0.........0
PayDay Loan-MoneyShop..........500.......85........0
Next (DCA).....................109.......0.........0
Vodafone (DCA).................950.......0.........0
O2 Mobile 3 (DCA)..............1055......0.........0
O2 Mobile 2 (DCA)..............588.......0.........0
O2 Mobile 1 (DCA)..............488.......0.........0
Shop Direct (DCA)..............1069......0.........0
Vanquis Visa (DCA).............358.......0.........0
Capital 1 Visa (DCA)...........688.......0.........0
Housing Benefit O/Pay..........2500......20........0
DWP Social Fund................649.......18........0
Electric Arrears ..............750.......44........0
Total unsecured debts..........26510.13..218.8.....-


Monthly Budget Summary
Total monthly income.................... 852
Expenses (including HP & secured debts). 715.51
Available for debt repayments........... 136.49
Monthly UNsecured debt repayments....... 218.8
Amount short for making debt repayments. -82.31

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -26,510.13
Net Assets.............................. -26,510.13

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using other browser.

Where on earth do I start?

I've decided to bite the bullet and 1 / ask my Team Leader first thing this morning (by email), to contact Payroll and arrange for them to pay my wages into my other HBOS basic account a week next Friday (praying I'm not too late with Christmas).

Hopefully this can be done by email, as time is getting on (I have the form on computer) but I'm expecting they'll want a signature so that'll mean £5.50 Special Delivery at the PO later today. A worthwhile investment for sure though.

Then, 2 / Call Bank of Scotland this morning and find out where PIN is (ordered a week last Saturday);

3 / Let MoneyShop put the cheques through from Wednesday onwards, and hopefully Santander will not bounce them (as they were guaranteed by card back in July);

4 / MoneyShop are then paid, and off my back;

5 / Treat Santander bank account as a seperate debt for the Debt Relief Order in January.

Does this sound viable?

Many Thanks,

Sim.

blt

That could be cut down - £200 is a lot for one person. I allow £35 per week and shopping at places like Aldi really help - or the local Tesco half an hour before closing

northerngirl30_2

I think you have opted for the sensible plan! well done on sorting your bank acc/pay out! Payday loan companies are awful to deal with, mainly as they don't really understand how anyone can default on a 1 month loan (words of pounds2days DCA!)

in the long run santander will probably be less horrible to put off while you are dealing with the DRO, have u started the application process for that?

Is there anyway you can include the electricity arrears in your DRO? I mean if you can switch supplier, then the arrears would be with old company? if not have you tried ringing and explaining the difficulties you are having right now? I know npower have some hardship fund thing? which I believe is for situations like this?

Are you employers aware of whats going on? do they have a HR/occupational health department who might be able to arrange some help? or at least ensure that you don't loose your job?

Oh, just noticed you said you were going to go for a whole different bank? If you are going down the DRO route you will only be able to get acc with barclays or co-op as none of the others allow undischarged bankrupts (I looked into DRO and got all this useful advice!)

so try barclays, their charges are only £8 and half the time they don;t apply them anyway! :-)

good luck and well done again for making the decision!

Robert_Roberston

Sim - I've read a couple of your posts and you strike a chord with me as a bloke who needs help for the addiction that you are battling, without going into specifics - is that something that you are looking at / are getting help with? I can only imagine what it would must be like to have the demons and the like and for that you have my fullest sympathy.

I just dont want you to battle, sort out a DRO, get on your feet then fall off the wagon every 3-6 months or whatever it may be and go back to square one.

Logie143

I certainly think groceries are the first thing that will save you a good bit of cash.

One of the first things suggested to me on here was look at that- I probably spend in the region of £25 a week on groceries. Just be honest with yourself. Are you going to be dead tomorrow if you don't but an expensive jar of sauce? Not really.

And, once again as suggested by many other people to me- check out the OS board on how to eat cheap- pasta with a few tomatoes chucked in isn't a bad meal and costs naff all (roast the tomatoes if you want to change it up a bit)

I know cutting down on food sucks (being a bit of a food lover) but, it has to be done.

Good luck bud

complimentschemistry

Are the payments going to be coming out of your card or your actual account? If it's your card, you could cancel your card and they won't be able to take money. It is a bit sneaky, but if you really don't have the money then it's like the last resort.

Hope that helps a little.

dantheman2010

Myself and my partner only spend £150 per month on groceries and there is two of us, £200 per month for one person is loads.

Also how come you get a monthly wage and benefits? Sorry to be nosey, just didnt quite understand.

northerngirl30_2

complimentschemistry wrote: »

Are the payments going to be coming out of your card or your actual account? If it's your card, you could cancel your card and they won't be able to take money. It is a bit sneaky, but if you really don't have the money then it's like the last resort.

Hope that helps a little.

It depends on your bank, barclays allowed switch payments to come off for 31 days after I'd reported my card as stolen (to avoid eaxctly this situation being taken out of my control), including those payments processed three days after I'd reported it, they said well if its unauthorised use we will refund you, but in the end nothing was classed as unauthorised as I had given them my card details in the first place, another PDL company also tried to take money via direct debit once my card was cancelled, the only safe option is to keep your money out of the bank its due to be taken from, just in case!

Gothicfairy

SimIsOnTheUp wrote: »

SOA here (you know when you're in it, when it keeps you up all night..) -

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 480
Partners monthly income after tax....... 0
Benefits................................ 372
Other income............................ 0
Total monthly income.................... 852

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 295.48
Management charge (leasehold property).. 0
Council tax............................. 85 is this with the single person reduction ? can you apply for that ?
Electricity............................. 44
Gas..................................... 0
Oil..................................... 0
Water rates............................. 30.28 is this RV if so apply for a meter
Telephone (land line)................... 0
Mobile phone............................ 10
TV Licence.............................. 23.75
Satellite/Cable TV...................... 0
Internet Services....................... 22
Groceries etc. ......................... 200 reduce this: use the forums here to help
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 5
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 715.51


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Rent Arrears / Costs...........110.......21.52.....0
Council Tax Arrears............459.31....0.........0
Water Arrears..................64........30.28.....0
Ex - Girlfriend................2000......0.........0
Student Loans Company..........14000.....0.........0
BT Final Bill .................27.32.....0.........0
TV License ....................145.5.....0.........0
PayDay Loan-MoneyShop..........500.......85........0
Next (DCA).....................109.......0.........0
Vodafone (DCA).................950.......0.........0
O2 Mobile 3 (DCA)..............1055......0.........0
O2 Mobile 2 (DCA)..............588.......0.........0
O2 Mobile 1 (DCA)..............488.......0.........0
Shop Direct (DCA)..............1069......0.........0
Vanquis Visa (DCA).............358.......0.........0
Capital 1 Visa (DCA)...........688.......0.........0
Housing Benefit O/Pay..........2500......20........0
DWP Social Fund................649.......18........0
Electric Arrears ..............750.......44........0
Total unsecured debts..........26510.13..218.8.....-


Monthly Budget Summary
Total monthly income.................... 852
Expenses (including HP & secured debts). 715.51
Available for debt repayments........... 136.49
Monthly UNsecured debt repayments....... 218.8
Amount short for making debt repayments. -82.31

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -26,510.13
Net Assets.............................. -26,510.13

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using other browser.

Where on earth do I start?

I've decided to bite the bullet and 1 / ask my Team Leader first thing this morning (by email), to contact Payroll and arrange for them to pay my wages into my other HBOS basic account a week next Friday (praying I'm not too late with Christmas). Might be close with the bank hoilday being so long

Hopefully this can be done by email, as time is getting on (I have the form on computer) but I'm expecting they'll want a signature so that'll mean £5.50 Special Delivery at the PO later today. A worthwhile investment for sure though. I don't think the PO is doing Special delivery at the moment but I could be wrong ( I am sure that is what the news said yesterday)

Then, 2 / Call Bank of Scotland this morning and find out where PIN is (ordered a week last Saturday); probably stuck in the xmas post and nothing anyone can do about that.

3 / Let MoneyShop put the cheques through from Wednesday onwards, and hopefully Santander will not bounce them (as they were guaranteed by card back in July); How much will it cost to bounce them ? Have you spoken to Money shop ? not sure they will do anything but they might have something they can offer ?

4 / MoneyShop are then paid, and off my back;

5 / Treat Santander bank account as a seperate debt for the Debt Relief Order in January. Possible

Does this sound viable?

Many Thanks,

Sim.

It might be worth giving the CCCS or another FREE debt charity a call. They will be able to advise the best cause of action and might even have a solution or idea no one else has thought up with

dancingfairy

Sim - a couple of points - do you know what led to you giving in and drinking? were there any warning signs at all? is there anything you could do to change things - ie can you phone a helpline, log on here, walk the dog when you get the urge to drink?
Secondly I believe that the amount you owe is too large for a DRO - I believe the limit is 15k in which case bankruptcy may be more suitable.
Thirdly I believe you need to get the new bank account up and running - forget the payday loan for the minute - you need to be focussing on your priority bills - ie council tax etc.
Good Luck
df
P.S I believe payday loans will take the money from your account even if you report the card as lost or stolen -sorry. You need to get all your money out of the account asap so you are in control of what gets paid and when.