Problems with PD Loans

skp10

Hello all

I am new here but have been a reader for some time now.

I am really just looking for some advice for my partner, she has currently got out around £2k worth of payday loans out and things seem to have got out of control. She has tried to get a loan to cover the amount as she would have £400 free every month to cover payments but her rating is ok just not good enough for the loan.

I unfortunately have a terrible credit score otherwise I would help her out of this mess. I have suggested that even though its not ideal maybe a debt management plan but we are looking for the way that will least harm her rating.

Sorry for going on but does anyone have any ideas.

Thanks

Emmzi

can either of you throw yourself on the mercy of bank of mum and dad?

skp10

Unfortunately not

Emmzi

well, unless you can work out a way to balance rolling over and paying off, the credit rating is going to be shredded anyway. If she can't get further credit from more mainstream lenders, she's stuffed. I assume she has sold/ pawned everything of value already. If not, do this first.

the most important thing is to open an account with another bank, because they have the debit card details. Otherwise any wages she gets will go out the second it goes in and there'll be no food.

Start there. Then default if you have to. There are dozens of threads on this topic on this board.

Apples2

skp10 wrote: »

as she would have £400 free every month to cover payments

Thinking that way will prevent you ever getting out of this mess.

By your reckoning, she had £400 spare every month before taking the first loan... so should never have needed one.

You have to stop spending money, you can't buy your way out with more credit.

ihateyes

skp10 wrote: »

Hello all

I am new here but have been a reader for some time now.

I am really just looking for some advice for my partner, she has currently got out around £2k worth of payday loans out and things seem to have got out of control. She has tried to get a loan to cover the amount as she would have £400 free every month to cover payments but her rating is ok just not good enough for the loan.

I unfortunately have a terrible credit score otherwise I would help her out of this mess. I have suggested that even though its not ideal maybe a debt management plan but we are looking for the way that will least harm her rating.

Sorry for going on but does anyone have any ideas.

Thanks

time to get out of the trap.....

cancel the bank card cloe the bank account. open a new account with a differ bank ie halifax easycash. move wages, and now strt to tlk to companies to arrange a payment plan.....

do not give new card details, make all payments by bank transfer....

give them the new bank card, kis the money good bye!

Tixy

Hi - this page might be useful reading Dealing with Payday Loan Companies about switching accounts and what the PD companies can and might do. But if she goes down that route she needs to come up with a really detailed and manageable budget to work out how much she can really afford for all repayments without needing to borrow anything again.
She might also want to contact one of the debt charities for some help and advice.

skp10

Thanks for all the advice guys I think the best option is to close her account and start again. I have also got her to go to cccs for some advice and also to work out a nominal amount to pay.

opinions4u

skp10 wrote: »

Thanks for all the advice guys I think the best option is to close her account and start again. I have also got her to go to cccs for some advice and also to work out a nominal amount to pay.

Does it need to be a nominal amount?

If she can get them to stop charging interest she could be out of this mess within a few months if she has £400 a month spare.

Take a look at www.makesenseofcards.co.uk. Complete a statement of affairs and work out where you can both stop spending.

immoral_angeluk

You seem to be taking over control of her finances which is understandable, BUT is she totally on board with all of this? Have discussions been had about why she felt the need to get out 2k worth of payday loans with £400pm disposable? It sounds like there's some underlying issues which aren't going to be dealt with by you taking control of everything for her, and will be likely to carry on causing problems in the future.

skp10

Hi guys

We have now opened a new account and have been in touch with payplan.

We have had a crap 18months really, our baby decided to be born 3 months early whilst we were trying to move at a very small 1 llb and 1 ounce. This is were most of it started as we had to go to a specialist hospital, she was only given a 50/50 chance of survival so naturally I took time off work and had to pay out for accomodation etc. When she started to get better we managed to get her moved to a hospital near where we had moved (about an hours drive) which was when the car started to pack up so we had to fix this then it failed its MOT meaning more cost. In hindsight it would of probably been better to buy a banger to run around in but under the stress you do what you can.

We can obviously look back upon this now thinking that it was a silly thing to do but at the time it just seems like a way out. I have to admit we both thought like that for a while but I managed to see the light and realise we had to stop this all together. I think that she is just nervous about ruining her credit file etc but she will get over it.

Does anyone think that it would be a good idea to do this ourselves or will it be better to wait for payplan.