22 year old, suffering with debt (payday loans and more)

recluse

Hello and thanks for reading my post.

I am a 22 year old male with excellent prospects ahead of me, but I have been crippled by debt.

I currently have 17 creditors, 10 of them being payday loan lenders.

My total debt is around £12,500 (£3800 of payday loan debt, which I constantly have to extend/re-shuffle the debt each month.

I am currently starting to fall behind with priority payments like car finance.

I have been in this mess for a long time, and can't find a way to escape. I don't want to enter a debt management plan as I don't want to risk any defaulted accounts on my credit file.

The best option I feel is to consolidate my debt over 5 years, which would drastically improve my way of life and get me right back on track - the problem being I don't have a good credit rating.

I am in a stable job and have been for a while - I have real potential to progress here.

I would really like the opportunity to sit down with a potential lender to show my case and to prove that I am not a risk to lend to, just I know that lenders are extremeley hard to come by due to the fact they only deal with people with no less than perfect credit usually.

Any advice is welcome.

Thank you

RichGold

recluse wrote: »

I currently have 17 creditors, 10 of them being payday loan lenders. My total debt is around £12,500 (£3800 of payday loan debt, which I constantly have to extend/re-shuffle the debt each month. I am currently starting to fall behind with priority payments like car finance.

I have been in this mess for a long time

recluse wrote:

I would really like the opportunity to sit down with a potential lender to show my case and to prove that I am not a risk to lend to

You are a risk to lend to, you know that yourself. It seems you're living beyond your means and more credit isn't going to help that. You say you have a bad credit history, that will certainly prevent you from attaining more credit at any kind of a decent rate to enable you to consolidate as no decent lender will lend to you if you have a poor history repaying past credit. That's aside from the fact that the amount of credit you already have will also be a stumbling block when it comes to lenders apportioning risk.

Tixy

If you have a lot of payday loans then I assuming thats because you couldn't get high street credit? In which case I think you will probably find it even harder to get a consolidation loan.

How much are you earning in your current job? to get a loan of £12.5k to consolidate existing debts of £12.5k you'd be looking at a total debt exposure of £25k. You are going to need to be earning near on £50k + to get that kind of credit.

If you couple that with the fact that you have been missing payments it really doesn't sounds like its an option for you.

I doubt you'll get anymore credit so unless you can work out a way to get clear of the payday loans one by one, so you are clearing one each month and only extending the others then I think you probably need to seriously consider a debt management plan. I'd suggest you speak to one of the debt advice charities.

recluse wrote: »

I would really like the opportunity to sit down with a potential lender to show my case and to prove that I am not a risk to lend to, just I know that lenders are extremeley hard to come by due to the fact they only deal with people with no less than perfect credit usually.

The problem is you are a risk to lend to, and a high risk as well, you already have more debt than you can afford to service.

vax2002

Bankruptcy looks like an option here on the horizon and a money management plan.
Clean slate, no more credit.

talana

recluse wrote: »

The best option I feel is to consolidate my debt over 5 years, which would drastically improve my way of life and get me right back on track - the problem being I don't have a good credit rating.

Payday loans really are loans of last resort. The fact that you already have a multiple of them should tell you that you don't have the option of alternative lenders here.

I have been in this mess for a long time, and can't find a way to escape. I don't want to enter a debt management plan as I don't want to risk any defaulted accounts on my credit file.

I can understand your reluctance, but you're basically out of options. That's the bottom line.

GAH

You might be better posting this on the Debt Free Wannabe board.

If you re-post there, and also when you re-post have a look at the thread near the top, Statement of Affairs, fill this out and people will give you some ideas when you can save.

With the basic information you have given its difficult to assertain your situation, with out your salary etc.

Bet if you are maxed out and have a poor credit history, its unlikely you will get a loan, as its all based on risk, and to a lender you will look high risk.

Loan consolidation is rarely a good idea either im afraid.

loopy.magic

recluse wrote: »

I have been in this mess for a long time, and can't find a way to escape. I don't want to enter a debt management plan as I don't want to risk any defaulted accounts on my credit file.

You say you don't want to enter a DMP but from the sound of it you may not have a choice, unless you can find a way to boost your income or live without the car. It's better to tackle this debt NOW instead of letting it get out of control. Whatever action you take will more then likely impact your credit file anyway, so worry less about this and more about tackling the actual debt.

opinions4u

I have been in this mess for a long time, and can't find a way to escape. I don't want to enter a debt management plan as I don't want to risk any defaulted accounts on my credit file.

You're already falling behind on payments. A default is just around the corner anyway.

The best option I feel is to consolidate my debt over 5 years, which would drastically improve my way of life and get me right back on track - the problem being I don't have a good credit rating.

Poor credit rating = stop borrowing. Find other ways to deal with your situation.

I am in a stable job and have been for a while - I have real potential to progress here.

Hopefully they aren't an employer who requires your finances to be in good order.

I would really like the opportunity to sit down with a potential lender to show my case and to prove that I am not a risk to lend to, just I know that lenders are extremeley hard to come by due to the fact they only deal with people with no less than perfect credit usually.

Sell your car. Sell your playstation. Sell your DVD collection. Get on eBay. Stop spending money on anything that doesn't involve travel to and from work and basic food requirements. Drink water. Cut your mobile phone contract back to a minnimum or a PAYG deal. Stop spending on calls, texts and internet. Pay off the PDL companies asap.

Bankruptcy is a real possibility. You've trashed your credit rating. Any reputable loan company charging a reasonable rate is in a "computer says no" position. No amount of talking is going to get you a loan. You don't need a new loan - you need to repay the old ones.

I'd strongly suggest posting a statement of affairs on the Debt Free Wannabe forum and acting on every suggestion.

Talk to your parents too. But if they are in a position to help financially be responsible enough to pay them back as quicly as possible.

This is a once in a lifetime mistake. It may yet haunt you for years to come. You may just get lucky if you are disciplined enough and start using your brain where money is concerned.

Good luck.

Enfieldian

recluse wrote: »

I would really like the opportunity to sit down with a potential lender to show my case and to prove that I am not a risk to lend to, just I know that lenders are extremeley hard to come by due to the fact they only deal with people with no less than perfect credit usually.

Any advice is welcome.

Thank you

You have absolutely NO CHANCE of that what so ever.

Emmzi

throw yourself on the mercy of your family and sell everything that is non essential.

dresdendave

Sell your car. Sell your playstation. Sell your DVD collection. Get on eBay. Stop spending money on anything that doesn't involve travel to and from work and basic food requirements. Drink water. Cut your mobile phone contract back to a minnimum or a PAYG deal. Stop spending on calls, texts and internet. Pay off the PDL companies asap.

[/QUOTE]

The above may not be what you were hoping to hear but it's the best advice you will get.

Forget more loans, your spending is the problem.