PayDayLoans and losing my job

KoalaBear_2

I lost my job and I'm in a bit of a pickle. I know the loan was stupid but I'm in a vicious circle and don't know how to get out of it.

I got this email today:
DEFAULT NOTICE!

Dear ********,

YOU ARE NOW IN DEFAULT.

As a result of your inaction, we deem this to be your deliberate attempt to break the Agreement between You and Us.

In order to avoid debt collection and possible LEGAL ACTION AGAINST YOU, please contact us within 5-days either via email: info@txtloan.co.uk or phone: 0871 705 0000*

Non-compliance with the Default Notice will mean that the unpaid loan will be recorded in a countrywide credit score database where it will remain for up-to six years.

The above action may result in you being refused all kinds of credit, loans, mortgages, mobile phones and even lose your debit cards until August 2017, over the total outstanding balance of £338.40. Interest will continue to accrue at 1.13% per day.

In an attempt to remedy this situation we would accept an immediate part settlement of £200.00 and as a responsible lender, we are willing to discuss a flexible payment plan for the remaining outstanding balance but time is running out!


* Calls cost 10p/minute from BT-landline plus standard network charge. Calls from mobile phones may vary, please consult with your mobile operator.

I look forward to hearing from you.

Yours Sincerely,

I can't afford the 200, and I've tried on numerous occasions to get hold of them but to no avail.

I also have3 other companies I owe money to and an umpaid phonebill...where do I start. I feel like I'm having a break down

FireWyrm

Stop. Take a deep breath.

First job, get yourself down to a bank or building society that you have never used before. You want a standard bank account with no frills and you want to put what little money you have in there. You will want to get your JSA and anything else transferred over to that account. PDL companies are notorious for taking the whole lot if they get wind of your situation and leaving you literally without money to buy food so you need to protect what you have, today. I'm not joking.

Second, when you have everything moved and you're secure that they cannot just waltz in and take everything, you need to take stock of what you owe and to whom. I suggest an SOA which can be found in the stickies on the forum so we can have a look and make any suggestions that might be relevant here.

When you've done that, come back and someone will advise you further.

Naf

what he said

KoalaBear_2

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 203.8
Other income............................ 0
Total monthly income.................... 203.8

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 37
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 20
Clothing................................ 20
Petrol/diesel........................... 30
Road tax................................ 15
Car Insurance........................... 40
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)...... 5
Haircuts................................ 9
Entertainment........................... 15
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 191


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 800
Other assets............................ 0
Total Assets............................ 800

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Vanquis........................1200......55........0
Littlewoods/Very...............1100......110.......0
TxTLoans.......................338.4.....200.......0
MobileMoney (car)..............6650......200.......0
PayDayExpress..................405.......0.........0
PayDayUK.......................387.5.....0.........0
Total unsecured debts..........10080.9...565.......-


Monthly Budget Summary
Total monthly income.................... 203.8
Expenses (including HP & secured debts). 191
Available for debt repayments........... 12.8
Monthly UNsecured debt repayments....... 565
Amount short for making debt repayments. -552.2

Personal Balance Sheet Summary
Total assets (things you own)........... 800
Total HP & Secured debt................. -0
Total Unsecured debt.................... -10,080.9
Net Assets.............................. -9,280.9


Reproduced on Moneysavingexpert with permission, using Opera browser.

Here's a statement of affairs asked for. I'm screwed.

flossieflipflop

Hi,

Someone who is much more knowledgable will be along soon but just a couple of observations; you have a £6650 loan for a car but in your assets car is only worth £800?
Do you really need a car?
Clothing is a little high for the moment with you not working - could you try charity shops or just wear what you already have for the time being?

I don't know what to suggest about your debts but someone will be along soon with advice on those.

Flossie

DorsetGirl_2

- Clothing too high, as is entertainment, haircuts and presents. You need to use the money for effectively for now (on your debts). Can you also reduce your mobile tariff?

Do you live at home? Could you parents or other family members help you out in the short term? Otherwise I would suggest a trip to the CAB because your outgoings are over double your incomings.

KoalaBear_2

I haven't bought any clothes lately nor am I planning to, I stupidly took out a Logboork loan with mobile Money for which I'm paying 200 a month, I don't need the lectures I was trying to pay off other debts. And now I'm struggling ._. I know these cannot be put into an iva so it's another thing i need to think of to raise money for. I've sold everything i can think of on ebays, all my old clothes, camera's etc. So selling the car would normally be an option but yeah

KoalaBear_2

DorsetGirl wrote: »

- Clothing too high, as is entertainment, haircuts and presents. You need to use the money for effectively for now (on your debts). Can you also reduce your mobile tariff?

Do you live at home? Could you parents or other family members help you out in the short term? Otherwise I would suggest a trip to the CAB because your outgoings are over double your incomings.

my parents are already helping with littlewoods/vanquis and i'm on a contract so i can't reduce it anymore.

I took out loans to cover my other debts and it's making me sick. It teaches me right for not knowing the value of money, i certainly do now.

I can and will cut out the entertainment, haircuts and presents and put them towards my debts .. I just don't know where to go for advice

crazyguy

Try the Charity Debt Agencies like : http://www.cccs.co.uk/?gclid=COy1gJyjtaoCFUMf4Qodbm-h6A

KoalaBear_2

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 203.8
Other income............................ 0
Total monthly income.................... 203.8

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 37
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 20
Clothing................................ 0
Petrol/diesel........................... 30
Road tax................................ 15
Car Insurance........................... 42
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................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 144


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 3000

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
TxtLoans.......................338.4.....200.......0
MemCap.........................387.5.....0.........0
PaydayUK.......................405.......0.........0
MobileMoney(logbook)...........6600......200.......0
LittleWoods/Very...............882.87....73........0
Vanquis........................1200......55........0
Total unsecured debts..........9813.77...528.......-


Monthly Budget Summary
Total monthly income.................... 203.8
Expenses (including HP & secured debts). 144
Available for debt repayments........... 59.8
Monthly UNsecured debt repayments....... 528
Amount short for making debt repayments. -468.2

Personal Balance Sheet Summary
Total assets (things you own)........... 3,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -9,813.77
Net Assets.............................. -6,813.77

Created using the SOA calculator.
Reproduced on Moneysavingexpert with permission, using Opera browser.

A new statement of affairs with the changes, I just looked at very and littlewoods... I owe less then I thought.

System

KoalaBear wrote: »

my parents are already helping with littlewoods/vanquis and i'm on a contract so i can't reduce it anymore.

I took out loans to cover my other debts and it's making me sick. It teaches me right for not knowing the value of money, i certainly do now.

I can and will cut out the entertainment, haircuts and presents and put them towards my debts .. I just don't know where to go for advice

Hi Koalabear.

It sounds like you would benefit from some free and impartial advice.

You can call our free Helpline on 0800 138 1111 we should be able to help. We’re open Monday to Friday 8am - 8pm.

If you phone us it may be possible to refer you directly to a counsellor for immediate advice. Alternatively, we will arrange for an appointment to be booked at a time convenient for you.

I hope this helps.

Kind regards,
Mat