Struggling... Need Help

Matt-_2

Hi,

I have had some personal issues which means that I have stupidly got into unnessecary debts with Pay Day Loan companies and credit cards. (I know Pay Day companies are the worst people to borrow from, but it was easy cash at a time of need).

I owe alot of Money and am struggling to get out of this cycle of paying off the loan and then getting another as I have no cash to pay direct debits.
My income is £1100 from full time job and then anything from £200-400 from second job per month.

I currently owe

Wonga - £800 :eek:
Payday UK - £250
1monthloan - £130
Lending Stream - Approx £400
Credit Card 1 - £400
Credit Card 2 - £200

I know I have been really stupid and am not going to struggle to pay back, I will just have to get another payday loan to cover.

Can anyone offer advice and how to break this pattern and any tips.
Thanks for your help

* Sorry just re-read and wanted to say that I will financially struggle to pay back but I can meet the payments *

Tixy

Hi Matt

A few options
- struggle on and gradually reduce the amount you borrow each month from the payday companies (or repay 1 loan per month) - and try to pay them off quicker by selling any things you have you can manage without.
- see if a local credit union will loan you enough to pay off the payday loan (usually you have to save with them first for 6months before borrowing but some of the larger ones will allow loans for things like paying off payday loans as soon as you join.
- contact a debt charity and default on your agreements and try to set up a DMP (you'll need a completely new bank account with an unconnected bank to your current one if you take this option and to clear out your existing bank account).
- get a new bank account (as above) and see if you can come to agreements yourself with the payday loan companies.

Either of the bottom 2 will trash your credit rating, but if you can't manage the top 2 then they might be things to consider - if you do then have a read of the first few posts at least of this thread - Dealing with Payday Loan Companies

Before you choose an option - have you worked out a detailed income & expenditure to see how much you have left after paying essentials to put towards your unsecured debts in total? If not do that first to work out what you can really afford to pay back.

dark^knight

Hi Matt,

Can you post a SOA. There may be areas where you can save money which will help towards paying off the debts.

Matt-_2

Hi All,

Sorry for the delay in replying, was at work from 8am - midnight yesterday and back at 7am this morning (the perks of working two jobs :rotfl:)

Thanks alot for the info I am going to see if there are any local credit unions near me. RE: the SOA, would it be benificial as I live at home so dont have any bills to pay except car and board?

Thanks

Brenster

Your overall Debt is less than £2k, why not see if can consolodate to one 0% credit card, this will not affect your credit rating and will allow you flexibility of repaying. It is important to stick to a budget and pay as much as you can afford every month, with careful living and budgeting, you should be debt free within 5 months (assuming you can pay £400 / month)
I have recently done this, unfortunately my debt is nearer the £5k limit.
Good Luck.

Tixy

Maybe not the regular SoA format but definitely work working out how much you can afford to repayin total each month, hopefully with low outgoings you could get these cleared pretyy quick.

So if your income is £1300 how much is your board and car costs (including finance, insurance, petrol etc)? what else do you have to spend money on? a phone? is your food included in your board money?
Once you've worked out all that how much does that leave you with for your debt repayments a month? what are the minimums on the credit cards? and then what does that leave you for the pdls?

Are parents aware of the debts? would they be in a position to let you off board payments or halve them of something for a couple of months to help you get back on track?

Matt-_2

Tixy wrote: »

Maybe not the regular SoA format but definitely work working out how much you can afford to repayin total each month, hopefully with low outgoings you could get these cleared pretyy quick.

So if your income is £1300 how much is your board and car costs (including finance, insurance, petrol etc)? what else do you have to spend money on? a phone? is your food included in your board money?
Once you've worked out all that how much does that leave you with for your debt repayments a month? what are the minimums on the credit cards? and then what does that leave you for the pdls?

Are parents aware of the debts? would they be in a position to let you off board payments or halve them of something for a couple of months to help you get back on track?

My outgoings are;
Car - £360 per month (inc. finance,insurance & petrol)
Board - £150 per month (inc. food except luxurys which is about £20 per month)
Phone - £36 per month
Phone Insurance - £11.99 per month
MOT & Service Plan - £14.95 per month

Parents not aware and wouldn't like to burden to due the nature of why I had to get the loans.