*Major Debt help needed please

GIBMSY

Hi,

I have been looking around the website and would just like some straight advice please.

I have got myself in a PDL nightmare ive seen the signs for ages and have just got caught fully in the trap now. All i seem to be doing is paying off the interest every month, which has now accumulated so that i am going to be falling behind on my normal direct debits.

I was wondering what the best route to go is, IVA etc etc...

I would like to buy a house'flat in the next 2 years, so id rather not damaged my credit score too much, but do really need to become debt free.

Any help/advice would be greatly appreciated,

Mike

orcocan

hi,
getting a mortgage might or might not happen depending on your credit rating, which will depend on whether you can cope with the payments as they fall due, certainly not if you take the IVA route.

Start by posting your SOA here and we can have a clearer idea of what your situation looks like. Have you missed any payments already?

GIBMSY

sorry for being dumb SOA?
But no not missed any payments YET

thanks for the reply

Angry_Bear

Contact the payday loan lender and ask to agree a repayment schedule (one that you can meet). Specifically ask them how this will be reported to your credit file if this is a big consideration.

The SOA will be helpful working out what you can afford to pay them and help you manage your budget going forwards, but from posts on here several Payday lenders have been quite accomodating - my guess is that they're a) just glad to get anything back; and b) trying to move their reputations away from loan shark.

Edit: SOA = Statement of Affairs: http://www.makesenseofcards.com/soacalc.html

GIBMSY

Thanks for your info, my SOA is as follows:

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1550
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1550

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 32
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 8
Groceries etc. ......................... 40
Clothing................................ 0
Petrol/diesel........................... 40
Road tax................................ 0
Car Insurance........................... 50
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 9
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 40
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 229


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 500
Total Assets............................ 1500

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Barclays OD....................2350......30........NaN
Barclaycard....................1900......45........30
Capital one....................1100......55........30
Pounds to pocket...............1200......187.......1500
Lending Stream.................700.......270.......1500
Peachy.........................300.......60........1500
Payday Express.................700.......140.......1500
Payday UK......................770.......155.......1500
Wonga..........................1200......220.......1500
Quick Quid.....................1150......200.......1500
Natwest........................250.......5.........10
Total unsecured debts..........11620.....1367......-


Monthly Budget Summary
Total monthly income.................... 1,550
Expenses (including HP & secured debts). 229
Available for debt repayments........... 1,321
Monthly UNsecured debt repayments....... 1,367
Amount short for making debt repayments. -46

Personal Balance Sheet Summary
Total assets (things you own)........... 1,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -11,620
Net Assets.............................. -10,120

I am very lucky that my food and housing is all taken out of my wages before getting (hence why they are at zero).

With contacting the lenders for a repayment schedule, is that possible before i have defaulted? And what impact would that have on my record? thanks

**Also i have just completed a CCCS DEBT REMEDY thing, and it recommends a DMP, is that better than contacting the creditors myself?

orcocan

did you buy stuff with the money you borrowed? if so, can you sell it on ebay? Can you ask someone in your family to lend you a few thousand quid just to get rid or the payday ones? In that case you need to be sure you can avoid any relapse, otherwise you'll end up with twice as much debt as you started with... Is your overspending definitely over? Cause if not you need to look into the root cause of what put you in trouble.

On the bright side the numbers are relatively small and you have very little fixed expenses and you can easily repay everything if you stick to your plan.

best of luck!

GIBMSY

No loan is possible from a family member. But i am going to contact a local credit union and see if they could help as i could easily repay a loan within 6 months.

Naf

£46pm is far from insurmountable. Even your £500 (assuming that were savings, which i guess it might not be anyway) would cover that for more than a year. I'm not reccomending that, and I suspect you would prefer not to: just an observation.
You list 'presents' at £40 a month: really? Do you have that many presents to buy every month?

My recommendation would be first to reduce that 'presents' down. You really can't afford it I'm afraid. Then see about any additional space you have before the limits on your credit cards, and use that to pay off pieces of PDLs: massively reducing your interest rate. At the rates the PDL companies charge you, £46pm interest is what Peachy, for example, are charging over just £230. Pay them back that amount, and you break even each month.

jamesd

If you don't get anywhere with the credit union there will be other lenders who might consider you at "only" 450% or so, cheaper than the payday lenders, though still very expensive. But I was discussing here with one person with lots of payday borrowing and he did get payment plans from most of the payday lenders he was dealing with, so you should be able to get your budget back on track with that route as well. It'll be some hassle but should be doable.

pleasedelete

Why doesn't your partner work? If they get a job then problem solved.

ellesbellesxxx

You are actually -46 each month so for now - no presents I am afraid. You do not have that money right now.
Call payday loan people and make a repayment plan. Then see how that is working out on your soa as to whether you can pay more than just min payments.