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I was not sure where to post this so thought I would post it here.
I have been reading a few topics around sorting out payday messes and have kind of formulated a plan of what I am going to do to sort mine which doesn't involve not paying them.
Firstly my sitaution is I have 4 paydays(don't ask) and have got to the point where I am just paying them off and then having to get them out again to survive. On top of this the Interest is killing me and its just a vicious circle I need to get out of.
So in total I am paying 589.11 in interst each month to them which ultimately is down to my fault but I cant go on paying this.
So my plan is to
Step 1 - Transfer my wages to go into another bank account they cannot touch
Step 2 - Cancel all my DD on original bank account so Loans cannot be taken and re-setup bills on another account
Step 3 - Ring and advise bank not to authorise any setup of any direct debits on account for paydays.
Step 4 - Ring Paydays and advise I cannot afford to pay them and need to arrange a monthly payment instead.
So after doing this I will have saved 589.11 in interest.
From here my 2 options are to either split the 589.1 into 4 parts and pay what I can to paydays and then do a similar thing each month till all paid off. Or what i could do is pay off the OML of 390 to get rid of that payday and that leaves me with 199.11 which I can split 3 ways to the other paydays as the 1st payment in monthly installments.
Now there are a few questions I have which I am unsure of which are:
1. What rights do the paydays have in terms of what action to take. I mean is there next step to pass to a debt management team which I am not too fussed about as can setup monthly payments with the fine.
2. What sort of effect will it hav on my credit rating which is bad anyway but just wanted to know?
3. If I ask my bank not to set any direct debits on my account from requests by these companies am I covered from any unauthorised charges if the companies do this and try and take the money and the bank dont stop it?
4. Also is there anything else I should be worried about apart from harrasment form these companies which I can handle
5. Most imporatantly what happens with interest in terms of will they still charge me the same interest every month i dont pay or should it freeze?