Getting out of payday loan cycle

combie

I have been using wonga for nearly 2 years.

It started out ok, just 50 or 100 as and when i needed it.

Then it started to creep up, before you know it im having to lend virtually all my wages back each month.

This month its come to a head. Wonga tried to take 900 back this morning, and it was declined because other people got in first with their DD's (I have a secured loan at 213 a month, and a poundtopocket 56 a month.)

So i am in a position whereby i cannot repay the loan in full, therefore wont be able to get another loan to pay bills mortgage food etc.

I have moved £750 out of my account that is linked to wonga to another a/c with same bank, as i fear they will take this, loan me no more and leave me destitute.

Whats my best course of action here? Im thinking of trying to negotiate a repayment plan with wonga, perhaps over 12 months, whats the likelihood of them agreeing?

These payday loans should be outlawed. I know im responsible for my own actions, but these things are designed to increase and increase and before you know it you are dependent.

ChopperST

Sorry to hear your predicament.

Your priority must be the secured loan (I assume this is on your home). Payday lenders are a good option v the mainstream banks for SHORT TERM borrowing but not how you have used them sadly. I'd get a statement of affairs put up on the debt free wannabe forum to see how you can cut back your outgoings (Any luxury items you can cancel straight away - sky, mobile phone contract etc?)

Also it sounds like you are in a real pickle if you a worrying about being made homeless. Get to see your local CAB for advice as soon as possible for great impartial advice.

Good luck and all the best.

DCFC79

combie wrote: »

I have been using wonga for nearly 2 years.

It started out ok, just 50 or 100 as and when i needed it.

Then it started to creep up, before you know it im having to lend virtually all my wages back each month.

This month its come to a head. Wonga tried to take 900 back this morning, and it was declined because other people got in first with their DD's (I have a secured loan at 213 a month, and a poundtopocket 56 a month.)

So i am in a position whereby i cannot repay the loan in full, therefore wont be able to get another loan to pay bills mortgage food etc.

I have moved £750 out of my account that is linked to wonga to another a/c with same bank, as i fear they will take this, loan me no more and leave me destitute.

Whats my best course of action here? Im thinking of trying to negotiate a repayment plan with wonga, perhaps over 12 months, whats the likelihood of them agreeing?

These payday loans should be outlawed. I know im responsible for my own actions, but these things are designed to increase and increase and before you know it you are dependent.

Look you need to open up another account with the same bank, its reccommended you open up another account with an unrelated bank eg not 1 thats part of the same group as the bank who your wonga account is with.

Second thing you need to do is write to them saying you cant pay the agreed amount but you can pay xx a month.

Third thing you need to do is do an soa and post it on the debt free board.

Fourth is you were clearly close to or spending more than what you earn which meant you resorted to wonga.

Laslty lets not turn the thread into a wonga should be banned thread, they are fine if you have the intention to pay them back when agreed and dont take anymore loans out then whats the harm. What causes problems is when the money isnt paid on time or you take out more loans from them.

combie

Thanks for replies. I withdraw all my cash from the bank to ensure it doesnt disappear. Thinking of offering wonga £100 a month. Current total stands at £923. At their interest rates though that wont even cover the interest each month. Has anybody managed to reach an agreement with wonga whereby the interest was frozen and they could just chip away at the debt without going one step forward and two steps back? I want to pay it off, but really cant see anyway apart from that.

DCFC79

combie wrote: »

Thanks for replies. I withdraw all my cash from the bank to ensure it doesnt disappear. Thinking of offering wonga £100 a month. Current total stands at £923. At their interest rates though that wont even cover the interest each month. Has anybody managed to reach an agreement with wonga whereby the interest was frozen and they could just chip away at the debt without going one step forward and two steps back? I want to pay it off, but really cant see anyway apart from that.

You default which it looks like has already happened then you write to them asking for interest to be frozen.

combie

And they will do that will they?

DCFC79

combie wrote: »

And they will do that will they?

you can ask, try phoning either the CAB or searching for 1 of the threads on here, heres 1 thread where the OP. Just needed a search of the forums.

onyablue

how did u get on with wonga im in same boat

[Deleted User]

onyablue wrote: »

how did u get on with wonga im in same boat

The OP hasn't been on for almost 5 month. I doubt he's still checking for replies.

You'd be better off starting your own thread than dragging up all these dead ones.