Debt Spiral

Broon

Hi Guys, first post here,

I've managed to get myself into a bit of a jam with the usual suspects, i this case quickquid. Long and short I'm due them £625 at the end of the month and £200 to wageday advance. the quickquid debt started when one of my flat mates moved out and left me short on rent. It started as a principal sum of £300 which I'd planned to pay back from monies owed to me but I never received said money. Instead of defaulting on the payment I asked for an extension but didn't read the fine print. Then extra money I borrowed wasn’t paid into my account until two weeks after I applied. This left me with a rake of bank charges and things spiralled from there. Fast forward 4 months and my total payadvance dabt is roughly £900. I've never defaulted on anything in my life but apparently even using and paying back companies like Wonga batters your credit rating to the point where my bank won't give me a loan.

I work full time and can comfortably afford to repay at even up to £250 a month. I was looking for a loan of roughly £1000 to get all said debt cleared and just pay back the loan but I can't get finance anywhere. Once rent and bills are paid I don't have enough to pay back quickquid so my only option is to defer for another month, at a cost of £125 for the privilege still leaving me £625 to pay next month. Has anybody here been in a similar situation? I know what I owe isn't much in the scheme of things and if i could pay of quickquid monthly I'd happily do so but they don’t allow such repayment. I feel like I'm trapped in their skewed system where they can just keep sucking me dry until I default at which point they will no doubt pass on the debt which will no doubt start climbing exponentially as soon as i miss a payment.

thanks for reading and sorry for the wall of text, getting quite stressed out by the whole situation.

simon2010

Sorry to read about this. PDL's are lethal.

Firstly, can I aks why u cannot get credit elsewhere?

Apples2

Yours is a perfect example why this board always tries to persuade people not to get involved with PDL's. It always starts off so simple but as you have described, spirals downwards so quickly.

If Lenders do not want to know, you have to raise your income. Get selling anything and everything.

The alternative is to completely destroy your credit file by opening a new bank account (with an unrelated bank) and shift everything across. When they are totally unable to take money from you themselves, they will negotiate a payment plan (of sorts). Your credit file will be pummeled so only do this as an absolute last resort.

For £625 though, there must be something to sell off.

Broon

simon2010 wrote: »

Sorry to read about this. PDL's are lethal.

Firstly, can I aks why u cannot get credit elsewhere?

I tried at my bank, the Clydesdale and was declined. I have an overdraft with them, only £200 but the past few months I've gone over it a couple of times. When I was declined from the bank they just gave me the usual, "failed a credit check". The lady handeling my application told me that PDL's smash your credit rating. I've never seen my credit report and as it stands I can't even afford the £15 to see exactly where the problem lies.

Broon

Apples2 wrote: »

Yours is a perfect example why this board always tries to persuade people not to get involved with PDL's. It always starts off so simple but as you have described, spirals downwards so quickly.

If Lenders do not want to know, you have to raise your income. Get selling anything and everything.

The alternative is to completely destroy your credit file by opening a new bank account (with an unrelated bank) and shift everything across. When they are totally unable to take money from you themselves, they will negotiate a payment plan (of sorts). Your credit file will be pummeled so only do this as an absolute last resort.

For £625 though, there must be something to sell off.

Is there any chance anybody at quickquid will override thier systems and set me up for monthly payment? How about if I phone and tell them I'm going to close my account if they don't agree to it? In total on this loan that started a few months ago I've already payed over 100% the principal sum in interest and fees.

Apples2

//Broon wrote: »

Is there any chance anybody at quickquid will override thier systems and set me up for monthly payment? How about if I phone and tell them I'm going to close my account if they don't agree to it? In total on this loan that started a few months ago I've already payed over 100% the principal sum in interest and fees.

If you try that they will probably take it as a threat and completely clean your account out.
Far too risky.

Your credit file costs £2, not £15. You can get it for free if you sign up with a "free for 30 days" deal, but you must remember to cancel before the end of 30 days.

http://www.experian.co.uk/consumer/statutory-report.html

Broon

I suppose in this case it is a threat. As I say my account is over the OD thanks to a payment to quickquid meant to come out on the end of April not coming out until a week into may. If I'm over my overdraft surely my bank will decline the transaction won't they?

Broon

Ok, some good news for anybody in a similar situation. I phoned up and spoke to a rep who put me on a payment plan split over three months, £204 per month. It is a lot for what i borrowed but far more manageable than on bulk sum. There are no additional fees for doing thus, she actually knocked a few bucks of for being a return customer. She also explained if the £204 was unaffordable I could have phone on the due date, 29th this month and tried to set it up for repayment over a longer period. Hope this helps anybody else in a similar situ and thanks for the your prompt replies.

DCFC79

You should open a new account and transfer all DD's/standing orders etc over and inform anyone who owes you money of the new details.