Pay day loan help - letters

Mangokitty

Hi all, I'm looking for some letters to send. I have a few pay day loans which have gotten out of control. I've managed to get a new bank account and am planning to close my old one so that my wages are safe, but once I've done this, I need to write to the creditors to explain what payments I can make. Is there anything I should or should not say in the letters? Also, can I email them rather than post them?

I'd appreciate any help or links you can offer. I've searched the site but struggled to find what I'm looking for.

thanks in advance

gingeralan

I would say send letters by recorded or special delivery, purely as they could deny receipt of an email or phone call.

I don't really know what needs to be avoided as such, if anything. I would imagine stating what you can afford to pay them without causing yourself undue suffering would suffice. Leave it at that and wait for them to contact you.

Good luck and I hope you get yourself sorted, then never use any of these rogue scum bags again, and make sure none of your friends, relatives or colleagues go down this path. I hope pay day lending goes the way of the dodo. A totally inappropriate product for pretty much anyone.

Mangokitty

I have advised anyone who will listen not to use Pay Day companies. Definitely learned from my mistakes and I'll send the letters by recorded delivery as well. thanks again!

gingeralan

No problem. If u need any more assistance, get in touch with cccs, or if it is nothing too serious, maybe post a statement of affairs and see what comes back.

Sure you'll get this sorted.

geoffky

I also think you need cccs or payplan to help you out of your mess..
A problem shared..

DCFC79

Mangokitty wrote: »

I have advised anyone who will listen not to use Pay Day companies. Definitely learned from my mistakes and I'll send the letters by recorded delivery as well. thanks again!

Nothing wrong with using PDL's as long as they are only used as a last resort and your able to stick to the date to repay the loan back by.

Good luck sorting it.

gingeralan

DCFC79 wrote: »

Nothing wrong with using PDL's as long as they are only used as a last resort and your able to stick to the date to repay the loan back by.

Good luck sorting it.

I think the problem with pay day loans is that if you cannot afford something this month as you don't have the money, there is no logical reason why, on your fixed income that you will be able to afford it next month plus the interest, meaning you then have to borrow again. But more this time!

PDL's are not appropriate for most circumstances. Sort term funding issues should be dealt with by overdraft our other similar facility with your own bank, not these shysters who trap people into this cycle of debt.

jason1231972

gingeralan wrote: »

I would say send letters by recorded or special delivery, purely as they could deny receipt of an email or phone call.

Just an aside really, but I usually opt for email wherever possible. Thankfully I've never had to renegotiate a PDL, but the thing with emails is that you can prove that they were sent, as well as the actual content of the message(s).

With letters - recorded or otherwise - you can prove they were sent, but can't prove what was actually written.

DCFC79

gingeralan wrote: »

1

I think the problem with pay day loans is that if you cannot afford something this month as you don't have the money, there is no logical reason why, on your fixed income that you will be able to afford it next month plus the interest, meaning you then have to borrow again. But more this time!

2
PDL's are not appropriate for most circumstances. Sort term funding issues should be dealt with by overdraft our other similar facility with your own bank, not these shysters who trap people into this cycle of debt.

1 PDL's aren't ideal if you dont have much or any wriggle room with paying bills etc as you end up extending the loan or going for another pdl to pay off the 1 thats due so i agree there with you.

2 Which is why i said as a last resort eg bank wont offer an OD etc

Moneymash

From the posts on PDLs I've read on this site it always starts with 'I've fallen into the payday loan trap'. I think part of the problem is people use them when they are desperate and as a last resort. When you are desperate you are less discerning and critical and will agree to almost anything.

The PDL should benefit the borrower not the loan company, if it works out the interest on the loan is cheaper than interest and charges on missed payments on CCs and DDs then go for the PDL.

Although you shouldn't take a PDL on a fixed income as that is when you fall into the PDL trap constantly borrowing larger sums every month.

If you have a variable income based on extra shifts/overtime/commission/bonus and you can earn enough money to pay back the loan+ interest and cover your monthly outgoings so you don't have to borrow again then consider it.

But be aware it will harm your credit report.

I would give a break down of your budget and the surplus you have to pay back the loans. Obviously get rid of anything unecessary from your budget like Sky, the more stripped back your budget is the less they can argue you can pay more.

I would send the letters by recorded delivery and keep the receipt you get at the post office. You then have proof you have attempted a dialogue with the PDL company and can track delivery of the letter on-line.

Good luck.

gingeralan

DCFC79 wrote: »

1 PDL's aren't ideal if you dont have much or any wriggle room with paying bills etc as you end up extending the loan or going for another pdl to pay off the 1 thats due so i agree there with you.

2 Which is why i said as a last resort eg bank wont offer an OD etc

If your bank won't assist you there is probably a reason. Therefore out it's probably time to have a long hard think about your situation, change things and save. PDL's do not solve problems, they just delay them and make them bigger.

I think if you are unable to manage your money to the point you need a PDL then you probably are exactly the sort of person who is unable to manage a PDL properly.

One should build a small emergency fund for such emergencies. Borrowing is never a solution for expenses, borrowing should only be for something that is expected to last longer than it takes to pay back the loan, for example house or maybe a car. Borrowing for a bill or repair is not a good idea under any circumstances.