please help

slimzoe

im an idiot, i want to make that quite clear before we start. up until august 2011 i was managing my monthly debt payments no problem at all, then (and this is the stupid bit) i took out a pay day loan. roll on to 2 weeks before xmas i now have several pay day loans (robbing peter to pay paul) i am behind with my mortgage, credit card and catalogue payments and no clue what to do next. i know that, once the pay day loans are paid i will be able to make payments BUT i am now behind on everything. i have spoken to virgin and they have set up a basic payment for me. i thought i could manage the mortgage this month but it seems not so i will ring them and speak to them again today. capital one im avoiding as i know they are nightmares and shop direct werent very helpful in lowering my payments. im an educated woman who holds a great job so why have i let this happen.

im also going quietly nuts as ive told NO ONE in my life about this, my partner moved in in october and im ashamed to admit this has happened (none of the debts are his, the mortgage is in joint names with my ex hubby but he doesnt pay toward it as i didnt want to have to sell) im not sleeping and i know it can be sorted but im scared. every avenue ive tried so far makes it worse, ive stupidly paid to sign up to loan brokers and got nothing.

i dont want an IVA really as i can pay the debts once the pay day loans have all gone.

as you can see from my ranty post my head is a mess and i have no idea what i do now.

wannabee_in_credit

I don't have the expertise yet to offer you advice but I wanted to say welcome to you. I've just joined today and have already had fantastic replies from so many people who are really helping me to get things into perspective.
My gut instinct is that if you can't manage now then you can't manage. It's not going to be a case of 'it'll be better once I get this one thing sorted'. I used to think that but I now think it's a downward spiral. I would get onto the CCCS website where you can get some advice as to the best way forward for you...

slimzoe

thanks, its taken me ages to admit i nee help with this, ive tried the taking a loan out option but nobody will touch me as i havent got a guarantor.

BlushingRose

Hiya Slimezoe,

My advice would be to go here http://www.cccs.co.uk/ and have a read.
It might be that they can help you in the short term. Pop all your details into their 'Debt Remedy' section and they will come up with a suggestion of your options.
Hope this helps x
Also, why not sit down with your man and discuss it together with honesty. If he loves you, he'll help you x

Tixy

Hi and welcome

Who is your main bank account with (that the payday loans are coming out of)?
You might want to consider opening a new bank account with an unconnected bank and having your salary paid into that so that you can ensure you can always afford your mortgage - which is by far more important that credit cards and payday loans.

There is no reason why you should need an IVA from what you have posted - but you might need to default on your payday loan payments and then try to set up repayments arrangements with them (yes it will affect your credit file, but then so will missing payments on your other debts and especially your mortgage).

You need to work out if you can realistically get yourself out of the payday loans and not have to take more out. It would probably help you if you prepared and posted a statement of affairs so you (and we) can see your full financial situation and whether you are likely to be able to sort this yourself, or whether you need help from one of the debt charities - this is the statemnent of affairs calculator - http://www.makesenseofcards.com/soacalc.html

Also have a read of the first few posts of this thread - Dealing with Payday Loan Companies

And definitely don't try taking out more credit or guarantor loans etc.

cottonhead

You sound exactly like me ! I took out a payday loan the a second and an overdraft and I am also behind with the mortgage, service charge and electric and gas..... my husband doenst know and I have been keeping it to myself. It wasnt to spend on treats - it was for bills but because my husband is ill I didnt want to tell him and make it worse. I decided to try and handle it alone. I like you, dont consider myself to be stupid, but I am embarassed that I did these things and really wish I hadnt. So with money yes I am very stupid ! My intention is to pay all this stuff off if I can withut anyone finding out because I dont want to cause worry to my loved ones.

My plan is to

1 pay the arrears on the mortgage by spreading it over 3 months. I called the mortgage company and they were happy to let me do this.

2 I have my pay paid into a seperate account so it cant be swallowed by any bills.


3 I sat down and worked out that the best way ( its isnt great but probably the only way ) is to repay the payday loan as soon as I am paid and then retake it out for a lower amount . Repeat this lowering it each month until its gone. Mien should be gone by May next year.

4 - the other companies I have phoned about and they are happy to accept lower montly payments.

5- then cut down on all the other outgoings. I no longer buy new clothes. I dont buy lunch at work. I onloy use the heating if I really have to. I set a budget for petrol and if I dont have enough I dont got out ( I catch the bus to work or walk ) I eat really cheaply - buy the reduced produce and make cheap meals.

Just make the mortgage the priority. So long as thats paid ( its the hardest one to catch up on ) the everything else will have to come second.

Good luck

camuk81

Hi slimzoe,

know how you feel, I have been massively struggling after several months of unemployment.

Can you maybe take a payment holiday with the mortgage company. We did this with our mortgage.

I have had to bite the bullet and work out exactly what I spend and have borrowed far too much and know exactly how much I owe.

I had to work everything out to the penny and thought I had it then this week my bank took my bank card from me which crushed me.

My OH knows a bit not all however he is worried about his job at the moment, I know not ideal but its the last thing he needs.

The best policy be honest and tell them what you can afford. Start budgeting and take it one step a time.