Advice on payday loans and overdraft

Matt81

Hi all,

I will try to keep it brief. Around 7 months ago my partner and I separated which left me in a situation with money.

I borrowed through and overdraft I already had and payday loans. Most of which I used to pay back instantly until my job changed.

I am now in a position where my over draft is around £5000 and I must owe around £3000 in payday loans to about 12 lenders.

I would like to be able to sort all of this out but am not sure of the best way. Some of the loans have gone from £180 to around £500 now and it's killing me.

Any advice would be greatly welcome

Bella_M_2

I have recently got myself into a credit nightmare with 5 different pay day lenders. Unfortunately they won't let you set up payment plans unless you actually default numerous times and endure threatening email's & telephone calls. They don't care at all. I ended up getting my salary paid into an old savings account and cancelling my debit card for a new one. After speaking to Santander fraud dept they advised me each company was trying my card up to 40 times a day each for all different amounts.
If you can manage it try and pay off the small loans first without reborrowing or rolling them over. It'll be tough on your monthly spending but really worth it if you do it. If not then sadly your credit file is going to take a hit, to start paying them off via a payment plan will involve defaulting.
Regarding your overdraft, I too had a large amount a few years ago and I spoke with my bank who froze the interest and allowed me to pay it off over a year. I would go to your bank and tell them that you want to reduce it or pay it off - they'll be much more likely to help you if you approach them first.

Good luck to you, I hope it all works out.

bexiboo92

Hi,

I'm in exactly the same situation. I've found that the various lenders will all deal with you differently. First of all, you need to get to cancel your debit card, then open a new bank account and get your salary paid into this. It makes it harder for the lenders to get access to your money.

You can either go down the route of a debt management plan or you can contact the lenders separately and arrange payment plans with them.

Hope this helps.

bex.