Bloody Payday Loans!

dharma01

Firstly, let me say I know what an IDIOT I am for even bothering to look at these Payday Loans. I would go to the ends of the Earth to dissuade anyone now from having one, however needless to say I have had quite alot..........

I am currently have a debt management plan, that is going quite well, however, there are about 5 other payday loan companies I have used that are not included in this plan. If I were to include them, the payment for the DMP would be far greater than I can afford.

I therefore am thinking to approach these Payday Loan companies and explain to them how I am in a DMP but would like to set up a payment plan direct with them. I can only afford about £5 a month, but my question is, can these payday loan companies make me pay more than I can afford?
I rang one and they said the minimum payment they would be looking for me to make is £60. Obviously I want to clear these as much as quickly as possibly but I can't pay this much.

I guess I'm just a little unclear on what they can and can't ask for......

Any help would be gratefully appreciated, god knows we all need to look out for one another in this time of financial turmoil........thanks.

foxwales

You are not in a DMP if ALL of your creditors are not taken into account.

You must provide your creditors with a true and accurate account of your finances so that a manageable repayment plan can be put in place.

The fact that you have excluded these creditors from your DMP could provide enough reason for them to force you into bankruptcy should they feel you have sufficient assets.

You need to rewrite your SOA including ALL creditors and appropriate your available income equally between non priority creditors. Priority creditors should take prescedence.

If you are not able to do this seek out help from Citizens Advice.

debtcutter

dharma01 wrote: »

I can only afford about £5 a month, but my question is, can these payday loan companies make me pay more than I can afford?

Nobody can make you pay more than you can afford, it's impossible, but if you don't pay what you agreed they can take various types of action.

Some payday companies use that continuous payment authorisation to take money out of your account whenever you're in arrears, some might apply for a CCJ and like foxwales rightly explained, if they think you're taking the biscuit (and have assets) they could even apply for bankruptcy.

By law, they're not allowed to reject any payment towards your debt. If you phone up and ask to pay £5, or send a cheque, they have to take that off your account, but if it's less than your minimum, they can take you to court/apply a default etc.

CLAPTON

who are you doing a DMP with?
what are your total debts?
how much are your payday loans?

dharma01

DMP is with Baines And Ernst.
Total debts are roughly £2,000.
I'd say the amount on my payday loans not included in the DMP amount to about £1000. All my priority debts are within the DMP, perhaps it would be wise to ring up and add these on?

DCFC79

dharma01 wrote: »

DMP is with Baines And Ernst.
Total debts are roughly £2,000.
I'd say the amount on my payday loans not included in the DMP amount to about £1000. All my priority debts are within the DMP, perhaps it would be wise to ring up and add these on?

Yes i think that would be a good idea, if you want to get rid of the loans then do the DMP correctly,

Emmzi

did you use pdls before or after the dmp?

fatbelly

dharma01 wrote: »

I am currently have a debt management plan, that is going quite well, however, there are about 5 other payday loan companies I have used that are not included in this plan. If I were to include them, the payment for the DMP would be far greater than I can afford.

The whole point of a dmp is that you pay what you can afford, and it gets distributed on a pro-rata basis to your creditors.

happyhaddock_2

I presume you are paying baines & earnst for their services? Go to https://www.cccs.co.uk and do their debt remedy, include ALL your debts and it will provide the best way of tackling your debts. They are a free, debt charity, and all your payment will go to repaying your debts. I've been with them for two years now, they are really good.