Don't know where to start

Wannabe_Phoenix

I have finally faced up to the debt that has been building up for ages, finally opened up the pile of letters that I have hidden away because I didn't want to see the truth. I am very shocked, and scared, and have no idea how I am going to start to get out of this, or if it is even possible.

I have payday loans out of my ears, I know I'm stupid and don't need telling over and over again that it's my fault and I'm an idiot, cos I know! I have 3 default threats, I tried to make a payment today on one of them and I phoned my bank who assured me the funds were there, but then the payment was declined and I'm back to square one!

It makes me sick that not so long ago I had enough money to make a complete life for myself with no worries, but thanks to teenage naivety and an abusive/thieving boyfriend I lost a lot of it. When we split he agreed to pay me back everything he had taken from me then at the last minute refused to sign a plan and then began stalking and threatening me, so the Police advised me to leave it. So I lost a substantial sum of money that would completely turn my life around now.

I owe my parents money, but I also owe some nasty companies. I have tried talking to them but they don't seem to want to help come to an arrangement of any kind.

Would it be worth me making an appointment with my own bank and seeing if they can help me at all? I think I'm beyond help but I remain hopeful.

Wannabe_Phoenix

Monthly income after tax................ 1050
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1050
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 150
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 56
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 120
Clothing................................ 20
Petrol/diesel........................... 120
Road tax................................ 14.1
Car Insurance........................... 50
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 5.5
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 42
Haircuts................................ 70
Entertainment........................... 0
Holiday................................. 16.6
Emergency fund.......................... 0
Total monthly expenses.................. 689.2

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 3000

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Payday Loans...................4000......4000......0
Loan...........................2000......200.59.....47
CC1............................2500......35........16.9
M&D............................11000.....100.......0
CC£............................220.......25........34.9
CC2............................500.......30........34.9
Total unsecured debts..........20220.....4390.5....-

Monthly Budget Summary
Total monthly income.................... 1,050
Expenses (including HP & secured debts). 689.2
Available for debt repayments........... 360.8
Monthly UNsecured debt repayments....... 4,390.5
Amount short for making debt repayments. -4,029.7
Personal Balance Sheet Summary
Total assets (things you own)........... 3,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -20,220
Net Assets.............................. -17,220

princess*daisy

Hi :wave:

Welcome to DFW! First off, well done on taking the first steps in facing up to things. Sorry to hear you've had a rough time.

Am I right in reading that your payday loans are £4000 PER MONTH? :eek: If so, this is the first thing you need to sort urgently. Ring CCCS debt management charity straight away and get some professional advice on this. Also, open up a basic account with a new bank that your income can be transferred to so it's not gobbled up straight away by the payday loan.

Good luck

princess*daisy

Also £70 per month on haircuts? :eek: You really cannot afford this now. To put it into perspective, that's £840 per year, which is CC2 & 3 paid off plus money left over! Invest in some hairdressing scissors and DIY or find a college/mobile hairdresser who will do it for cheaper. Holidays need to go for now too unfortunately Can you have some free days out instead when you need a break? Museums, galleries etc? You could shave the grocery bill too - I spend £120 for two. Have a look on Old Style boards for recipe ideas, batch cook and FREEZE EVERYTHING!

UglyDebty

Hi Pheonix
I'm in a mess too, but I know you'll get some great advice on here.
I too have PD loans all over the place. Just remember these are not prority debts.
Email write to each PDL company and tell them of your situation, ask them to freeze interest and request a repayment plan. Don't phone them, you need a written record of what you agree to.

As princess says you do need a new bank account so you can regain control of your income.

Cancel in writing all continuous payment authorities with each PDL and with your bank.

Don't panic

Wannabe_Phoenix

Thank you Princess*Daisy and UglyDebty, you have been so nice and honest, I was afraid of being told I'm stupid for getting into this and its so nice to know that there are such nice people who won't judge.

Thank you for the tips princess, I'll have a go at freezing batches of food (although my cooking isn't fabulous lol!). I need to drastically cut down on things and I have just recieved a set up for internet banking so I can cancel things and keep a close eye on things.

UglyDebty, I will get onto the emails tomorrow, how do you word them if you don't mind me asking, is it like 'i am currently experiencing financial difficulties and i would appreciate you freezing the interest and coming to an acceptable repayment plan with me'?

Boris_Allen

Why on Earth do people listen to the police as if they are a respectable organisation who are actually interested in helping/protecting people rather than meeting targets/satisfying their own promotional/self-gratifying agendas.

You need to get what you're owed from your ex-bf.

princess*daisy

No problems As Martin says, no debt problem is unsolvable. You just need the right tools and support. The money-saving element gets quite addictive after a while - especially when you use surveys, cashback, freebies and vouchers to up your "income"

I know exactly where you are coming from regarding the ex-boyfriend thing As awful as it is though, you are probably best cutting your losses as far as the money is concerned. It's that toss up between walking away from him and cutting your ties for good, hence regaining your freedom... or keeping in contact for the money and thus allowing him to still have that element of control over you. I can also see where the police are coming from - it would be very hard to implement and enforce a non-molestation order when you would still be getting in contact with him (albeit to get back what is rightfully yours). It's a horrible situation and only you can decide what is right for you, but don't forget there are places you can always go for advice. CAB and CCCS are good regarding the debt issues, but also maybe Womens Aid for support relating to your abusive relationship. Good luck with whatever you choose to do.

camuk81

Wanabee, well done on the first steps. Ok great news your rent is super low. however can you look at some tweaks. The mobile phone is touch high and sorry the haircuts have to go. I pay £36 for a cut and highlights and can push to 3 months. Its my one indulgence.

Have you tried telling your folks you need them hold back on payments for a while. Explain you are old enough to sort this out but all you need is time from them.

cottonhead

Well you have taken some great steps already in facing up to the debt, dealing with a bad relationship and seeking support so thats the main part done.
Have a look at where you can cut down your spending ( presents and haircuts stands out) then I would suggest speaking to someone like payplan. They can negotiate with your creditors so you can pay back a fixed sum each month dependant on what you can afford. You could also do this yourself if you fancy. I telephoned all my creditors and offered a reduced fixed sum and they accepted. So I am paying wonga for example back over a year and same with Eon. Then you can get on with your life knowing the debt it taken care of and will eventaully go. Good luck.

UglyDebty

Hi Wannabe
Apologies for delay in replying. Did you get the emails sent off ?

My wording went something like this :


With reference to loan number *******

I am an existing customer with a loan that is due to be repaid on the ****** at a total amount of £****.

Recent changes in my personal life have dictated that my financial situation is something I have to change, as a matter of utmost urgency. Within this there are a several realities;

I cannot afford to repay the loan as it stands in full.
I refuse to continue to defer my loan under present agreement as I am wasting money on a monthly basis.

I withdraw my permission for you to debit my bank account with any amount via any form of payment request. I have advised my bank of this instruction.

I am under no illusion that I do owe this money to you, and I do not contest having to repay it. However it must be done in a different way to previously. Therefore I must insist that the current total amount is frozen at ***, with no additional charges or interest adding on.

I will make repayments on a monthly basis through agreement with yourselves, in order for the loan amount to finally be paid off by an agreed date.

Upon receipt of this email I require ALL communication from either yourselves or your representatives to be in the form of email or letter. It is my legal right to have all correspondence in written format should I be required to form a defence in a court of law.



Hope that helps