Taking control back over PDLs

Dolores_H

Finally posting on this forum after reading through everyones experiences with payday loans.

I've fallen into the PDL trap like many others but am finally pulling my head out of the sand and trying to face up to what I need to do.!

I've been taking out Wonga loans since last summer, gradually taking more and more each month and am now in a pickle. I earn £1400 a month and the last three months have managed to keep my Wonga loans to around £1200. I'm determined to not default on a loan because I can see a strategy to eventually get out of the cycle, but I just wanted some advice from others who have done this.

My plan is to take £100 a month decrease in each loan I take every month, until I'm all paid off. So, at the end of this month, I plan to decrease the amount I borrow by £100, then next month, another £100, until I've paid it off.!

I'm also selling a lot of things on ebay, cycling to work instead of public transport, and eating frugally to save as much as possible so that I can maybe hurry up the process of paying it all back.

I was just wondering if someone else had done it this way too? I really don't want to just stop paying and change bank accounts, I borrowed the money, so I want to pay it back.

Any tips for the transition would really be appreciated!

Dolores_H

How exactly could I do that realistically without defaulting though? If I continued to borrow, but at lesser and lesser amounts each month, surely that's more constructive than just stopping altogether?

DCFC79

Yes that plan wont work, you want to get away from PDL yet you want to take out another 1 to pay off the current ones. The way to do it is open a new account with another bank and move your wages and get all DD's transferred over. Living frugally is a good idea.

lantanna

Hi, I think your method would work as long as you are committed enough to stick to it and you don't see any unforeseen things that could come up which would mean that you are not able to cut your expenses by 100 per month. You are as well taking a risk that they will still lend you the money on a ongoing basis. i have heard stories that they will just decide to stop lending to some people after a lengthy period of time.

If you are with Wonga you can try and make the 200 that you have left last you a bit longer and then you are reducing the interest that you are paying them as well. Although as that is a lot of money I would imagine you are reloaning to pay rent, mortgage etc as well?

I'm interested in hearing about what you are selling on Ebay? I've just started selling, mostly small items like makeup and perfume - but could do with raising some cash this month and was wondering if you had any tips?

Back to your problem - if you went down the DMP route Wonga would not doubt obviously wait until you default and ad on one fees so there is a catch here no matter what you do but at least you are making a good effort to solve your problems !

Dolores_H

I do really appreciate the advice, but I feel that as soon as people see the phrase 'pay day loan' sometimes, they're quick to say it should immediately be stopped.

I definitely regret getting into this position, but it's not out of fear of damaging my credit rating that I don't want to default, I just want to repay in the right way and not run away from the debt. What is the argument against slowly borrowing smaller and smaller amounts?

Dolores_H

Lantanna, well I really hope that doesn't happen, or I'd be screwed!

my money's working out so far as:

get paid £1400
pay back to Wonga £1200
leaves me with £200
Borrow £800 from Wonga
Pay my rent (£600, leaves £400)
Pay my phone bill and other bills £120

Leaves me with around £280 a month to live off which I can definitely do if I'm careful.

I'm mostly selling clothes and shoes on ebay, usually get about £5 for each item, every little helps!

CLAPTON

Dolores_H wrote: »

Finally posting on this forum after reading through everyones experiences with payday loans.

I've fallen into the PDL trap like many others but am finally pulling my head out of the sand and trying to face up to what I need to do.!

I've been taking out Wonga loans since last summer, gradually taking more and more each month and am now in a pickle. I earn £1400 a month and the last three months have managed to keep my Wonga loans to around £1200. I'm determined to not default on a loan because I can see a strategy to eventually get out of the cycle, but I just wanted some advice from others who have done this.

My plan is to take £100 a month decrease in each loan I take every month, until I'm all paid off. So, at the end of this month, I plan to decrease the amount I borrow by £100, then next month, another £100, until I've paid it off.!

I'm also selling a lot of things on ebay, cycling to work instead of public transport, and eating frugally to save as much as possible so that I can maybe hurry up the process of paying it all back.

I was just wondering if someone else had done it this way too? I really don't want to just stop paying and change bank accounts, I borrowed the money, so I want to pay it back.

Any tips for the transition would really be appreciated!

well it seems like a plan to me.

if you can reduce the debts by 100 each month then you will eventually pay the debt off

do you have any other access to credit; a credit card or overdraft which would be a lot cheaper than paydayloans

however, if your income is 1400 and you are paying 1200 in loan repayments then what are you living on?

Bravehearted_2

The argument - which you are failing to see is -

A) Taking out debt to pay off debt never works.
Wonga declines to give you a loan - happens more often than not
C) Unforseen spend occurs breaking your £100 genius idea
D) Your method requires you to take out a PDL
E) See D above

Dolores_H

CLAPTON wrote: »

well it seems like a plan to me.

if you can reduce the debts by 100 each month then you will eventually pay the debt off

do you have any other access to credit; a credit card or overdraft which would be a lot cheaper than paydayloans

however, if your income is 1400 and you are paying 1200 in loan repayments then what are you living on?

I have had a student overdraft since I left university but I've been paying it off at £65 a month for the last year and a half, and the bank won't do anything until I've paid it all off as the overdraft expired after I left uni.

I'm living on the money from Wonga unfortunately, because I have to pay them back, then take a loan out again on the same day which is incredibly stressful, hence, the trying to break the cycle.

Dolores_H

Bravehearted wrote: »

The argument - which you are failing to see is -

A) Taking out debt to pay off debt never works.
Wonga declines to give you a loan - happens more often than not
C) Unforseen spend occurs breaking your £100 genius idea
D) Your method requires you to take out a PDL
E) See D above

so. Let's say for the sake of argument, that I default on this months payment, what would I have to do? Would I have to change bank accounts for good? What is the process?

rdchick

Hi Dolores

You say you don't want to enter a DMP because you want to pay back what you borrowed. That's what a DMP does, it allows you to say hold on a second I need to take a step back and tackle this head on as right now you're just treading water.

1200 is a lot of money to borrow from a PDL company and one slight slip up and you're screwed. I think it would be best to post your problem on the Debt Free Wannabe board and they can help you out a bit more xxx