Payday Loan downward spiral

redfragglebiker

Hi guys, I'm a little bit desperate at the moment and hope you can offer some help/advice.

I recently fell into the payday loan trap (you know... borrow a bit, find you're still skint borrow a bit more, pay that back, still skint borrow a bit more etc etc) and now have 3 outstanding. The problem lies with the fact that I can't actually afford to pay back any more than the interest anymore.

I'm really worried because I have no one who I can turn to who would be able to help me out financially. I'm already at my max overdraft, barely have enough to pay all my bills and no -one will help me with a consolidation loan as my credit is too poor.

I owe around £1200 all in but can't see any way of digging myself out of all this. I'm already living on the minimum I can, I have no additional credit cards and my only expenditure other than rent ctax and very basic food is my bus pass to travel to work.

I just feel so lost I have no-one I can turn to and i'm worried sick. I've spoken to my bank who can't help either. If there is anyone who could offer any help at all I would be eternally grateful.

redfragglebiker

Also I have flogged as many of my possessions as I can on ebay but it wasn't enough. I escaped a very bad relationship a few years ago so have very little to sell.

anh1904

You may want to start by posting a statement of affairs (SOA) which you can do via the link in the stickies at the top of the thread.

You have been a little naive in your borrowing choices, and I don't doubt there will be a way out, but doing a full plan is the start.

Tixy

Hi

This thread might be useful to you Dealing with Payday Loan Companies about setting up a new bank account and then trying to come to arrangements with the payday loan companies.
Plus as said above it would be a good idea to work out a statement of affairs using this calculator http://www.makesenseofcards.com/soacalc.html

redfragglebiker

thank you so much for your help so far. My SOA showed a negative figure and I had loads of trouble getting the bank account I currently have ( I still feel so stuck. I know that most don't advocate getting out another loan to cover bad debt but if I could od that just to bring my monthly payment down it would be so much easier. Can anyone recoomend a company that might consider me that's no a complete scam artist. I will definately read the posts reccommended to me in more detail this eveing by the way so thatnk you so much for responding.

Tixy

If you have a maxed overdraft and outstanding payday loans then your chance of more credit is pretty much non-existent at the moment.
Please do not going looking at bad credit brokers online and put your bank details into any websites that offer guaranteed loans - you will end up losing money to them out of your account and not get a loan.

You need to be applying for a basic bank account with another bank - these are accounts with no overdraft that are not subject to a credit search at all - all banks do them but don't advertise them so you need to specifically ask for the account - co-op cashminder and the barclays basic account are well recommended on here and even undischarged bankruptcs can get these accounts, so you should be able to get one. m

LookingUp

I'd second that ....get a basic account, and get your card cancelled on your present account. Been down this road myself so can maybe help you with the responses I got from the various payday companies

redfragglebiker

Thanks sos much for all your help guys, The ones I have are with quickquid, payday uk and lendingtree. I'm just a bit worried that if I set up a peyment plan with them then I won't even be paying enough to cover the interest and I'll never clear it. TBH I have no idea where to start ( I'm sorry to sound so useless but this has got to the point when even thinking about it leads tofloods of tears. I'm exhausted from all the worry.

dancingfairy

It's not ideal to have to set up a payment plan but at least it will put you in control. You will be able to make sure you can afford the basics such as rent, council tax and food. You will need a new bank account though as there is a high chance that one (or more) of the payday loans will rinse your bank account when they hear you are in trouble and take money that might be needed for rent, food etc. From your new bank account you can set up a payment amount to them.
The payday loan companies *should* accept your payment plan. It might take them a while but the saying you can't get blood out of a stone is relevant here.
You may want to also take advice from National Debtlinle, CCCS or your local CAB as well.
The only other alternative to paayday loans I can think of is to try a local credit union as they tend to have different criteria to mainstream banks and some have a remit to try and help people struggling with payday loans. You can then pay off the credit union loan in a more sensible manner.
Best of Luck
df

bcfc1710

Open new account as said above, get your wages into new account.

Then call your PD loan companys and try arange a monthly repayment plan

spikescot2005

Don't phone the PD loan companies but reply to the email that they will send you when they inform you that they were unable to take the owed amount from your bank account. Also make sure that once a payment plan is set up that you pay via standing order. DO NOT GIVE THEM YOUR NEW BANK ACCOUNT DETAILS.