Seeking advice on behalf of my girlfriend

kwyjibo

Hi,

My girlfriend has landed herself in a bit of money trouble -- I'll try and summarise here, but I can't give exact details as I don't know them all. I'm just seeking advice on her behalf really since she's obviously in a fix and neither of us know of a proper solution.

Altogether she owes around £2360, the majority of which are Payday loans:

£450 - Lending Stream (£100 to defer)
£780 - QuickQuid (£130 to defer)
£630 - Wonga (£25 to defer)
£500 - Capital One credit card

She's also in-between jobs at the moment with no steady income to speak of and has a bad credit history so can't get a lower APR consolidation loan.

At the moment she can't afford the deferral charges or any repayments. Is there *anything* she can do? She's tried calling them today to explain her situation but didn't get anywhere.

If I can provide any more details then please let me know and I'll ask her.

Thanks.

byjimini

Speaking from experience, I got a 0% card in my name and transferred her balance to it. A solicitor friend got it all in writing for us, as we were adult enough to know the risks. Once she was back on her feet, she applied for a 0%'er and transferred it back over.

Obviously only do this with the appropriate legal cover, because things can quickly change and then suddenly you're left with someone else's debt. That's no slight on your lady friend btw, it's just the sensible thing to do.

Good luck

EDIT - Do her parents know? They may be able to bail her out. No point in trying to hide it.

HappyMJ

Stop paying any of them. Spend as much time as necessary (about a month) making an SOA and send it to the creditors with an offer of £1 per month until repaid. As she is on JSA they shouldn't take any further action. The interest and charges should then be frozen and when she gets a job again she can make an improved offer.

Do not call them again and only deal with them in writing by recorded delivery if they do not acknowledge receipt of mail.

kwyjibo

byjimini wrote: »

EDIT - Do her parents know? They may be able to bail her out. No point in trying to hide it.

She's speaking to her Dad today but doesn't hold much hope that he can help because he's got his own money problems at the moment.

Thanks for your advice.

kwyjibo

HappyMJ wrote: »

Stop paying any of them. Spend as much time as necessary (about a month) making an SOA and send it to the creditors with an offer of £1 per month until repaid. As she is on JSA they shouldn't take any further action. The interest and charges should then be frozen and when she gets a job again she can make an improved offer.

Do not call them again and only deal with them in writing by recorded delivery if they do not acknowledge receipt of mail.

OK, that's something to bear in mind - thank you.

byjimini

Whatever you do, don't get depressed about it. It's certainly not the end of the world and there are always options available; they'll all end up at the same place, in that you have to pay back the debt, but you have to carry on living too.

kwyjibo

I forgot to mention - I had read many suggestions that with PD loans you should just empty your account and transfer all your inbound payments etc. to a new account with a new bank. She's got a large overdraft with her current bank so I'm not sure how feasible closing that account is. What are her options here?

Thanks for all the advice so far, much appreciated.

HappyMJ

kwyjibo wrote: »

I forgot to mention - I had read many suggestions that with PD loans you should just empty your account and transfer all your inbound payments etc. to a new account with a new bank. She's got a large overdraft with her current bank so I'm not sure how feasible closing that account is. What are her options here?

Thanks for all the advice so far, much appreciated.

You heard right...that's a vey good idea. Empty the account, cancel all direct debits and standing orders and move all inbound payments to a new account.

blondiedc

Are the debts still being handled by the payday loan companies or has it been passed to a DMA yet? eg Mackenzie Hall, MRS, Motormilefinance etc?