Help needed, first time debt

lostfeeling25

Hello all, great to be a member of this forum.

To give a bit of background info. Im 25, male, live at home with my mum (she owns the house).

My job is secure (8 years), however the hours are not. All staff had their hours cut down to 8 hours contract with overtime now and again. You never know what wage you are due because of this.

Since the hours were cut about 2 years ago I have been borrowing off my mum now and again (bills have had to be paid and whatnot). Around xmas time my mum revealed to me that the sum I owe her is over £3000.

I made a new years resolution that this year im going to slowly pay her back the entire amount. She mentioned she will not lend me money again until I have paid her the majority back.

It started off well. January was a good wage (well £500). I was too eager to pay her though and completely overpaid her (gave her £350). I was a bit short but got by just about. The hours were still steady in February so at the end of Feb I got £450 and paid my mum £200. However I had completely forgot about everything that I need cash for this month (girlfriends birthday, mothers day, 2 other family members birthdays). My bank also decided to change the terms on my overdraft so im paying £1 a day for a max of £20 per month. I bought presents, paid rent here too, realised I had nothing left so I thought the wise thing would be to take out a loan.

I had 1 previously for a year. A very good rate indeed, borrowed £1500, paid back £1580 in total. Never missed a payment.

My credit was checked by the lender and they declined my application.

I signed up for equifax credit report and saw why...... Its another long story but my phone provider (orange) had screwed me over. For the past 3 years I was paying for my phone bill via non DD. I got a non DD charge every month. I spoke to 1 of their reps on the phone to explain that my wages are different each month and since im paying by card, could I pay half the bill 1 month if my wages are low and pay the full amount + extra to cover the next month if my wages were higher. They said its no problem.

I did that and the other day saw that every single time I didnt pay my phone bill on the date they issued it, they gave me a "missed payment" score on my credit file (there were more than 20).

Now since I needed the money bigtime I had to go to a payday loan website. I was a bit silly and took out a bit more than I wanted (£220), which has since been spent on the rest of the presents, my overdraft charge, and I have barely anything left of it.

Now im stuck with a payday loan to pay at the end of the month (which will be £315 inc interest by then) as well as having to pay my phone, internet, bank charge, rent to my mum. However I know my wages are going to be low this month.

1 way I would think of getting out of the problem is to take a yearly loan, I could pay it back with ease, but as I mention above, thanks to orange I wont be accepted for a loan (or if I was it would be a high interest loan, so for £1000 borrowed I would have to pay over £2000 back, which is pointless).

I'll list the figures:

End of month total owed:

100% Must be paid:
Payday loan: £315
Authorised overdraft charge: £20
Phone bill: £31
Internet: £9
Total: £375

Others I may be able to get away with for the month:
Rent (To my mum): £100
Repayment of the money I owe her (At least £150)

Expected wage: £310


Seems a difficult 1. Debt consolidation places wont help (have tried) because my debt isnt in the £1000's and im living at home with a parent. Nobody I know will lend me money, I have nothing to sell (literally), theres no other jobs local I could apply for (been to jobcenter, looked online, papers and even handed CV's into place over the past 6 months) and my work wont just give me more hours. They get hours allocated from head office and they cant increase what is given.

Thanks

taffy056

Can you skip paying your mum the full £150 for a couple of months to pay off the payday loan? I would tell your payday provider to withdraw the continuous debit authority you gave them, if they say no demand it you have a right to do this, see this link below to help with that from CAG. Then inform the payday lender that you are paying what you can afford , maybe £50 a month for 6 months to clear it, ask them to stop the interest on it.

http://www.consumeractiongroup.co.uk/forum/content.php?850-Continuous-Payment-Authorities-How-to-stop-them

mercbends

Go to a bank. any bank. take 2 or 3 months payslips. agree with mum a figure you will direct to her bank (D/D). Ask for loan over 2 years to keep payments down. Dont borrow more than you need to and cut down on extravagances. Regards mercbends

taffy056

mercbends wrote: »

Go to a bank. any bank. take 2 or 3 months payslips. agree with mum a figure you will direct to her bank (D/D). Ask for loan over 2 years to keep payments down. Dont borrow more than you need to and cut down on extravagances. Regards mercbends

Nope I disagree! Sorry taking out extra credit to pay existing credit rarely works, the OP has a small amount of debt in reality , though going on what he earns he is going to struggle to pay the full amount, he must have money to live, if the payday lender took him to court they would say to pay even less probably than what I mentioned above. The idea OP is to work yourself out of this situation over a number of months.

mrsb83_2

You have to bring in more money. You say there are no other jobs but it's not sustainable for you to live on only £500 a month. You have to find more work, even if it's something under the table or cleaning.

Don't get any more credit because you have no prospect of paying it back. You'll be much worse off in the long run.

I know finding work is hard, but I really can't see any other solution to your problem.

Bravehearted_2

Birthdays and mothers days are not ever reasons to stretch oneself in my book.

I hate that some people (not saying you OP) think it's obligatory to spend spend spend on some made up idea.

If anyone's partner or parent got mad because they werent showered with present, then that relationship needs reviewing.

OP, pay off the PDL asap - paying your mum can wait. And look into other job opportunities.

Tixy

This is an older thread that has been brought back to life by a spammer.

OP hasn't been back on since the start of the month. Hope they've managed to find a solution though. Agree with not borrowing any more and trying to find some way to bring in more money a month.

If not then you'll have to seriously consider defaulting on the payday loan, mobile & overdraft and arranging repayment plans with them all.