urgent help needed my life in turmoil

icantcope

Dear all,

any advice will be hugely appreciated.

I am a male in my 20's and have got myself into a Payday Loan mess. It started with a 100 loan with one company and now it has spiralled into nearly 4000 with 5 different companies. I can no longer roll over my loans as i have reached maximum times i can and now i will have to pay all back at the end of the month. my salary is 1300 per month and i have out goings of around 1000 so disposable income is around 300 this is not including pdl so i have to keep getting more every month to just get through the month. i only got paid last week and now only have 35 left in my account to get me through till next payday. I feel so ill and cannot cope any more with this. Today i contacted payplan and they are calling me tomorrow for a 45 minute assesment. i have read on here that i should change my account is tis right?

I have 2 accounts with the same bank but i have never used one of them i just opened it to get breakdown cover , phone ins ect. my wage goes in one account and all the pdl's come out of that same account will it be a good idea to swap my wages into the account i have never used or will that be a problem with it being the same bank -will the pdl's still be able to access my money.

I am looking at starting a DMP with pay plan is this a good idea? I am so so desperate just founds out my partner is pregnant and she has no idea about my mess i feel as though i am living a seperate life.


PLEASE HELP

paulmapp8306

Yes - switch you wages into the other account - at least short term - or the PDCs may take it all without asking.

A DMP will ruin your credit record though - and personally I dont feel its worth it for £400. A SOA will show you have £300/month spare anyway, so its really not worth it IMO.

Its the interest on PDLs that kill - and Im sure something is changing legally with what they offer, but it may be worth speaking to all the companies saying you cant afford the interest. Youll need a SOA though showing that your outgoings only allow £300/month and your PDLs totall £500/month. Offer to pay the outstanding in full, over 3 months if interest frozen.

If they agree Your loan will show defaulted on you credit file which will cause issues over the next 2-3 years, then slowlty get better until they dissapear after 6 years - BUT you will be out of the mess.

You must be prepared to give all your disposable income to the companies until their paid off though - which may take 3 months.

Failing that - try for a Credit Card with 0% interest on ballances - assuming your current credit file is good, or even a high % one that is intended to re-build credit history. They may be 35% or so - but thats annual and is very favourable against the 1000%+ PDCs charge. £400 on one of those cards (normally start with a £500 limit) will have a minimum monthly p[ayment of around £30. Just remember NOT to spend anything else on them unless you can pay it all off in one month, and pay as much off as you can until the ballance is cleared.

tenbob84

he said 4000

sickasachip13

Hi,
Try not to stress too much. You've acknowledged the problem and now you just need to find the best way of dealing with it.

You've booked to talk to Payplan, this is a fantastic start. Also, you could have a look at CCCS online, they have an online debt remedy tool that you can fill in and it will make suggestions.

Don't panic, but do get your money out of your account and, I would say, into another bank entirely to be on the safe side.

There are ways forward to dealing with this. A DMP might be one of them, see what Payplan and CCCS suggest.

Best of luck and hang in there

SAAC

ETA: Do you have other debts too?

RAS

icantcope wrote: »

I have 2 accounts with the same bank but i have never used one of them i just opened it to get breakdown cover , phone ins ect. my wage goes in one account and all the pdl's come out of that same account will it be a good idea to swap my wages into the account i have never used or will that be a problem with it being the same bank -will the pdl's still be able to access my money.

You must get a new basic bank account with a company that has no links with your current bank and to whom you owe nothing.

If youy move it to the other account with the same bank or bank group, they will clear it out.

paulmapp8306

wow - I missread you post - is £4000 correct? i read £400.

If its £4000 and with PDCs - you need to stop paying them NOW, get onboard with CCCS or Payplan NOW - and inform the PDCs as soon as you get an account number with the relevant company.

Dont panic - theres no reason too - BUT the interest on £4k will be huge and you need that stopped. An IVA/DMP will do that (eventually).

Do it today - with either company, and inform all the PDCs today as well if you can - that you in talkes with XXX and are entering a DMP/IVA.

icantcope

yeah that is correct well it is actually 3697.40 i really do feel bad about this but now i know that i need to sort this and this forum has made me feel a bit better.

do you know or have any ideas how much roughly repayments would be with payplan and how long i wouyld need to repay. I understand my credit will go to bits but i dont care i would rather have a bad credit record and be able to sleep.

can they still access my other account if they do not have the details for it?

thank you for all your help so far i really feel better for just telling someone.

cleggie

Hello icantcope,
i dont have any words of wisdom, other than to echo what the above posters have already said.
Well done for facing it, and i just wanted to say good luck

RAS

Read this https://forums.moneysavingexpert.com/discussion/2735257

And open a new bank account.

If you leave it you will lose your money and our sympathy.

sickasachip13

icantcope wrote: »

yeah that is correct well it is actually 3697.40 i really do feel bad about this but now i know that i need to sort this and this forum has made me feel a bit better.

do you know or have any ideas how much roughly repayments would be with payplan and how long i wouyld need to repay. I understand my credit will go to bits but i dont care i would rather have a bad credit record and be able to sleep.

thank you for all your help so far i really feel better for just telling someone.

It is sortable. That's the thing. There's no magic and quick solutions, but there are ways forward and you need to focus on that rather than feeling overwhelmed. It is good to share here because most of us have been, or are, in debt and can empathise with where you are at.

As for the payments, it depends so much on your income and outgoings. you will need details of all of these for Payplan to go through. You could also do the CCCS online financial diagnostic thing - there's no commitment and you can do it anonymously if you wish. To be found here: https://debtremedy.cccs.co.uk/start.aspx

SAAC

icantcope

i have already started the process will i be ok this month to get my wage paid into my second account with the same bank or will they be able to acces this money when they do not have the details for it all the numbers on the cards are different and they are two different types of accounts

i know that i will be best to open a new account with a new bank eventually but for just this month

thanks all