banking knowledge - payday loans and debit card

olivia84

hi there,

sorry for asking something that has probably came up a hundred times on here! i've got into a bit of a mess with payday loans. at the end of the month i have to pay £1720 or pay the interest to roll them over. i earn £920 per month! i feel so so stupid. i told my partner this morning and he was not happy. not that i had taken the loans but that i had kept it from him (well that i had taken out the loans as well) he's very very sensible and had i told him i/we was strapped for cash he would have been very supportive and basically been very MSE and not spent a penny during the month etc.

this, of course is the right way to go but i like him to have his nights out and his treats as he works very hard and i feel a bit of a failure if he doesn't even though i know he would never hold it against me.

anyway, crap happens and the loans are here. what my plan is, is to default on the loans and arrange payment plans with the 4 companies. i know this will be a long hard slog with them and will take ages.

however, we have a joint account which both our salaries are paid into. we also have a £4500 overdraft on this hbos current account. it wouldn't be hassle for me to change my bank details with work but i don't really want to hassle my partner to do it when it isn't his mess to sort out. plus i'm worried that if we change our bank account it will obviously affect our overdraft with hbos if our salaries aren't being paid into it.

bottom line is i really really don't want to have to change bank accounts because of this. i've reported my card as lost but i am freaking out about the fact that the payday companies may have the old card details on a recurring authorisation?? even though the card is cancelled they might force the payment through?? i would transfer everything over to the hbos savings account the minute i could but i've also read these companies start the authorisation the minute they give you the loan?

i'm just wondering if anyone has any banking knowledge regarding this? i read somewhere else there might be a form the bank can send me to cancel any recurring authorisation transactions? i do think it's wrong that you can buy something with your switch card and that company can effectively keep your details and trigger a recurring authorisation and there's nothing you can do about it.

i will phone the bank in due time and ask them but i know they will be very non-committal and say that there will be nothing they can do. plus i just reported the card lost and whoever i speak to will know that i really haven't lost it!

sorry for rambling and i really don't want to sound all woe is me but i would be so so grateful for any advice.

many thanks

CH27

Is the £4500 your overdraft limit & are you up to it?

olivia84

hi CH27 - yea it is the limit and we are up to it. i know i could switch bank accounts and default on the overdraft as well and start to repay that monthly but i just think that would open up a whole new set of problems with letters and offers etc. plus i think hbos may go all the way to court with it as it is so much. rbs took us to court a couple of years ago and we have a ccj with them. this finishes next july when we will have an extra £600 per month to put towards debt repayments so my plan was to start reducing the overdraft when this finishes.

Tixy

If you don't switch your bank account then it is likely that the payday loan companies will get some payments through your account as and when you next put any money into it. As well as trying to use your debit card details in some of these companies T&Cs are that if that fails they can try to deduct direct from the bank account that the funds were paid into.

Have a read of this thread - Dealing with Payday Loan Companies for some advice.

You really need to move your day to day banking to another bank unconnected to anywhere you currently have debts. Then you can make arrangements to repay the payday loan companies and the overdraft at a rate you can afford.
If you have anything in your savings account you'd also need to move that otherwise the bank can offset those funds towards your overdraft.

olivia84

thanks for the replies. i'm now thinking i might just pay them and not pay alot of bills this month and pay double next month. it'll mean the phone being cut off etc and living on beans and toast until i catch up but needs must. i am not in arrears with my mortgage but i have skipped a payment before and northern rock have let me pay off the arrears a little each month with the mortgage payment.

so it's one month of no money due to paying payday loans and another month of playing catch up paying double payments to everyone.

my car tax is due this month but i can actually walk to work so i will sorn the car until this mess is a little more sorted. (i know i should be doing that anyway but lunchtimes are taken up visiting an 80 year old granny every day who lives 10 miles away!)

what a mess - you'd think i'd have learnt my lesson being taken to court etc but noooooooo, i have to go and rack up another load of debt. my problem is that when you're in debt it's so easy to have the attitude: "well i'm in shed loads of debt anyway, might as well be hung for a sheep as a lamb" and then have another take away or another night out you really can't afford but pretend you can.

never mind - onwards and upwards

x