Help Required

Josparoonie

Hello all

I was wondering if anyone could help me.

I have got myself into a complete utter mess with Pay Day Loans. I cannot continue the way that I am going with them. I know that it is my own stupid stupid fault and have now got to face up to the fact that I need to get them all sorted out.

I have been reading through posts on here and am going to complete a SOA to start with and then write to them all to say that I can't pay and ask if I can pay a lot smaller sum each month to clear them. I know that this will completely ruin my credit score even more than it is already, but just wanted to know that if I do that, is there anyway that it will affect my husbands credit score? We have no "joint" debts or loans, it is all in my name and we do not own our home, it is rented from the council. The rent agreement is in his name only and I am only listed as living there with him as his wife.

Thanks for reading.:(

cash2000

Hi,

How did you get on with this?

I too have problems with payday loans. I have earn about 33k a year but needed some quick finance to relocate a few times with work. I'm not caught in a spiral where I am paying about £700 per month in pay day loan interest repayments. I feel like I am being robbed of a massive chunk of my salary every month. The spiral is never ending!

cash2000

Can someone give me some sensible advice?

I resorted to pay day loans as a source of finance a while ago as I needed to raise some finance for relocating with work more than once. Biggest mistake of my life to date!

Currently net monthly income is £1800 and paying about £852 each month in pay day loan interest/repayments broken down as follows:

Currently paying the following in pay day loans:
- £330 per month on a fixed term loan (£1400, repaying £3960 in total and in my final month)
- £70 high interest loan (borrowed £500, repaying £880 and in my final three months)
- £120 per month to roll over pay day loan
- £250 coming out my account each month for a pay day loan that I cant roll over and have to keep taking back out
- £72 to roll over a pay day loan from another company

Even when just rolling some over, my account is taking a hit of £852 each month on average.

I can see light at the end of the tunnel as the £330 one finishes soon but I feel like I am being robbed of my salary every month. I KNOW THIS IS MY OWN FAULT BUT I WOULD APPRECIATE ANY ADVICE THAT COULD HELP ME RESOLVE THE SITUATION. I feel like I can't see the wood for the trees at the moment.

It is not an option for me to default on any as I don't want to m adversely effect my credit rating as a result.

It is becoming really frustrating losing so much money every month and having nothing to show for having a relatively good job!

It's not only affecting my financial situation (struggle to have anything left once I pay my other bills) but it is now having an impact on my mental well being as the stress is phenomenal at the moment.

I'd appreciate any advice or testimonials...

mildredalien

cash2000 - Is there an option to repay early on any of your debts? It is a horrible situation but unfortunately now you have the loans you don't have much choice! Once the £330 is freed up you should be able to pay off the £250 and £72 loans you keep taking out, and not take them out again! Then you can pay off the £120 loan and perhaps start saving some extra cash to pay the £880 loan back a bit early? You should be done in 3 months if you don't take out any more loans so at least there is a light at the end of the tunnel

Is there a reason you took out expensive payday loans rather than using a lower interest loan or credit card?

Josparoonie - if you are not financially linked to your husband your credit will not affect his. Marriage doesn't automatically link you, only obtaining joint credit does. Sounds like a good plan to post an SOA and get some more detailed advice!

Josparoonie

Thanks for that Mildredalien, at least that is another worry off my mind. I just couldn't have risked ruining his credit rating etc as well as mine!

Cash2000 - I am in that place as well with the payday loans.

Brief SOA below.........

Monthly income £1300 wage, £280 Childtax credit & Child benefit Rent & Council Tax - Husband Pays (I pay childcare so it evens it out) Life Insurance £18, Gas £45, Electric £50, TVL £12, Nursery £650, House phone £35, 3 x Mobiles £100, Travel £80, £200 Provi Loan, £88 Speed loan, £250 UK Credit loan

Then the dreaded payday loans....

Quickquid £906.50 - To roll over £200 each month, Swift financial £584 - Cant roll over, WDA £450 - £120 to roll over, Mr Lender £325 - £75 to roll over, Lending stream £253.50 - Cant roll over, PD UK £420.65 - Roll over £107, 1month loan £590 - £120 to roll over.

I can't believe I have just typed all that out, I am sat here crying at my desk at work reading this all through. What an ^$%$&^^ I am for taking all these out.

I know that there are a lot of people on here that are just going to say that it is my own fault and I know it is and I aren't half paying for it now. I can't even remember why I took out the first one, but just kept rolling it over and over and then took another one to pay the previous one of in full and it just spiralled

I can do this anymore

cats2012

Hey Josparnoonie -post an SOA in the usual MSE format (see sticky at top of the board) and we'll all help you find ways to cut down and manage better.

You can do this there is a light at the end of the tunnel and this forum will help you get there!

ellesbellesxxx

Please don't feel so bad - you are not the first person in this predicament and you won't be the last. Reading through this forum, you will see that people come out the other side with a smile!
If you fill in the SOA on the make sense of cards sticky you will see where you are falling short and where you can squeeze some extra.
you CAN do this - and soon enough, it will be you coming through the other end and helping out others.

Josparoonie

Thanks cats2012 & ellesbellesxxx - sorry, I haven't used this forum in that long, hence the crappy mess I'm in eh! How do I get to the SOA bit?

Thanks

Jo x

dancingfairy

Josparoonie - the first thing I suggest you do is to get a new basic bank account such as co-op or barclays. You will not be credit checked for this but you won't have any overdraft etc -make sure you ask for a basic account though.
Secondly you will need to try and transfer all wages/benefits over ot this new account.
Thirdly you need to do a thorough SOA to make sure you haven't forgotten any of your regular bills and to make sure you have allowed yourself enough to live on because you arn't going to be getting any more credit for a while so if in doubt, overestimate slightly (and make sure you remember to put a small amount away for birthdays/christmas). The SOA will allow you to see how much money you realistically have to share between your debts. You should first plan to tackle and priority debts -rent. electric, council tax, that sort of thing before tackling the payday loans.
Best of Luck
df

rdchick

Hi Hun,

I am in a bit of poo with PDL's however this month I have thought enough is enough, I have cut up my credit cards and gone onto a DMP. It means I have a bit of breathing space and everyone gets a fair share of my surplus money, I will have more of my wage then I have ever had by doing it this way and it's a good learning curve to learn to save and not just borrow (this month I haven't borrowed or used credit at all ) xxx

Josparoonie

Thanks rdchick.

I currently bank with RBS, and as I have no debt with them and don't owe them anything, am just going to stay with them as its only the basic account I have with them.

My main concern just now is that I get paid on Thursday, and everyone is going to try and take their money back and I'm just not going to be able to pay all of it and then pay my household bills, leaving me even more in the red - is there anyway I can stop them taking it all back from my card??

Thanks

Joanne