payday loans... help!

thomasb4

Hi,
Im hoping someone can give me some advice. Unfortunately iv been stupid enough to get caught in with payday loans (from 3 different companies) there is no way I can pay all 3 off they total to over £1200 inc interest. I have spoke to the companies but been told all they can do is charge me the interest and I pay the full amount on my next pay day, which obviously isnt solving the problem. Iv cancelled there direct debits and got a new bank card, waiting for there collections agents to contact me and just looking for advice on how to best deal with them?

CandyCupcake

Hi,

I am sorry to say this but stopping your card does not stop the companies taking money from it. Sometimes the details bridge over so that they can take the payments off the new card as they are what's known as a recurrent/subscription transaction.

From others in a similar situation to yourself the best advice I have seen given is to open up a new account & have your wage/salary paid into there for the time being. These loan companies will try for various amounts each day until they have a successful transaction, meaning that when you get paid they will try and take as much as they can.

Hope you can get this sorted ASAP!

xx

thomasb4

Hi,
Thanks I have my salary being paid into my savings account and have opened a new account, just waiting on my card coming through. Do you know if they will accept smaller monthly payments until the balance is paid off as I want to pay it back just can't afford what they are asking.
Thanks

CandyCupcake

Sorry im not sure how kind they are with negotiating! Im sure someone will be along shortly too advice, as I know alot of people get in a similar situation with payday loans.

Maybe have a little look around the forum, see if you can see anything that might help you out.

xx

cottonhead

As you know you can't pay the all off I would speak to them as soon as you can. The sooner the better and hopefully they will except reduced amounts. However that might cause a defualt to be stuck on your file so make sure you check with them. Sometimes if you agree it before the payment is late it wont actually default and stay on file for 6 years it will just show you have a plan and will mark as settled once its paid. I have 2 myself. One allows me to defer each month but decrease the balance slightly and the other has to be paid in full. Im stuck right now so 1 I keep rolling one over and the other I am decreasing. I will be rid of the smaller one in 2 months and then pay back the larger one by paying it back and taking out a smaller loan, paying it back and taking out a smaller loan and on and on and on until its gone. I am like you - so cross with myself that I was stupid enough to do this. It looks rubbish on my credit file as it shows as seperate loans each time. However I figured it better to have multiple loans that have been settled than 1 that has defaulted.

MusicalLawyer

I had a PDL with Wonga and QuickQuid. I cancelled my card and they were unable to take money from my card.

Some of the companies aren't very good at negotiating payment plans etc, as the whole point is to pay them back on your next pay day. It took Wonga about 16 months to send the debt of £450 to a debt collection agency, so I could make monthly payments I could afford.

[Deleted User]

It really does largely depend on who your lenders are I've come to the conclusion, you do need to default rather then roll on if you want out.

In particular I had QuickQuid as one - to default it cost £12 over the extension fee of £40....
I'm just coming out and finishing paying mine of and while I've avoided DCA's I had to manage to get most paid up over 2-3 months max otherwise I was potencially looking at paying out even more money if they 'allowed' a long term repayment plan - hey I don't mind being proved wrong but it is when you have long term plans that your credit report could take a thrashing

Try keep any discussions in writing so you have a firm papertrail - phone conversations can be denied
Change bank account if you can and don't consider applying for any more loans as a repayment solution as I wouldn't put it past some to share and pass over your details

Good luck - if I can do this you can to!