In Need Of Some Advice

RossDoughty

Hello everyone,

I was hoping to be able to put something a little bit happier as my first post here, however situations mean that I have to ask for a little bit of advice.

The situation is, I am 23, working full time.

I have several outstanding bills, which some are payday loans, and some are tax bills.

Below is a breakdown of my bills, however I am not sure which to pay off first and I dont think I can pay off the payday loans, without taking out enough to cover it, but over a longer period of time. Although I would love to get out of debt, this to me, seems like the lesser evil to be honest.

Regardless, here is what I owe and my theory behind it:

I owe:

Council Tax: £850
Payday1: £587
Payday2: £117

Now, the council tax, I know can be arranged to be paid weekly, so I think thats okay, however, the payday loans, I was considering trying to get out a £1000 loan to pay over a year, so I can pay off both at once and then save up over the year to pay the £1000. I have worked it out at about £20 a week, which I can do. As it stands and you may have guessed, I don't have £1000 laying about.

Please, any advice is greatly appreciated.

Thanks.

Ross.

DCFC79

RossDoughty wrote: »

Hello everyone,

I was hoping to be able to put something a little bit happier as my first post here, however situations mean that I have to ask for a little bit of advice.

The situation is, I am 23, working full time.

I have several outstanding bills, which some are payday loans, and some are tax bills.

Below is a breakdown of my bills, however I am not sure which to pay off first and I dont think I can pay off the payday loans, without taking out enough to cover it, but over a longer period of time. Although I would love to get out of debt, this to me, seems like the lesser evil to be honest.

Regardless, here is what I owe and my theory behind it:

I owe:

Council Tax: £850
Payday1: £587
Payday2: £117

Now, the council tax, I know can be arranged to be paid weekly, so I think thats okay, however, the payday loans, I was considering trying to get out a £1000 loan to pay over a year, so I can pay off both at once and then save up over the year to pay the £1000. I have worked it out at about £20 a week, which I can do. As it stands and you may have guessed, I don't have £1000 laying about.

Please, any advice is greatly appreciated.

Thanks.

Ross.

Ok first thing is what was the PDL for ?

As anything you do to sort this out will only come back again.

I suggest completing an soa and posting it on the dfw board. The soa is a breakdown of your outgoings and any loans etc.

RossDoughty

The PDL was for a up-front rent when I was moving flats. My tenancy ended and I had to pay it on that day.

I will complete a soa and post it on the dfw board.

Thanks for the help,

Ross.

DCFC79

RossDoughty wrote: »

The PDL was for a up-front rent when I was moving flats. My tenancy ended and I had to pay it on that day.

I will complete a soa and post it on the dfw board.

Thanks for the help,

Ross.

The 1k loan idea might work but im not going to say its a good idea or not so ill let others decide.

As it was for up front rent surely you knew it was coming as your tenancy ended, maybe you put away x amount each month to cover future rent if/when you move again.

RossDoughty

Yeah thats a great idea and I know that now, I panicked and that seemed like the only option. I feel so bad for getting into this mess in the first place, but I have reading some of the Debt Free Hall Of Fame stories and they have given me hope. .

DCFC79

RossDoughty wrote: »

Yeah thats a great idea and I know that now, I panicked and that seemed like the only option. I feel so bad for getting into this mess in the first place, but I have reading some of the Debt Free Hall Of Fame stories and they have given me hope. .

Well at least you have made a start to do something about it which is good as you get to nip it in the bud early on.

lifebeginstoday

Any other debts, overdraft etc.

A 1000 pound loan will work out to be more than £20 per week as that would be almost interest free. I'm guessing your own bank wont help hence the need for the PDL's.

Cap in hand to family perhaps? But first step post up that SOA and see where you can start saving:j

OneLife_OneShot

Not going to ask which companies are the PDLS are.

If one happened to be say Wonga, they are pretty good when it comes to repayment plans. If you can afford £20 a week then they would be more than happy to do £40 a month I am sure for you. Ring them or email hello@wonga.com, I am just making an assumption as its the one most people seem to use, I could be wrong.

TakingControl

conisme wrote: »

Not going to ask which companies are the PDLS are.

If one happened to be say Wonga, they are pretty good when it comes to repayment plans. If you can afford £20 a week then they would be more than happy to do £40 a month I am sure for you. Ring them or email [EMAIL="hello@wonga.com"]hello@wonga.com[/EMAIL], I am just making an assumption as its the one most people seem to use, I could be wrong.

If you do this, bare in mind you most likely will get a default and trash your credit rating for the next 6 years.

OneLife_OneShot

TakingControl wrote: »

If you do this, bare in mind you most likely will get a default and trash your credit rating for the next 6 years.

It may already be trashed due to using PDL's he hasn't said if he has defaulted on the repayment date, I know with Wonga if you ring them on the date its due they won't place a default on it just an arrangement to pay on your credit file.

[Deleted User]

Whatever else happens, make sure the Council Tax is paid.

It is a priority debt, second only to the rent.

Not paying a loan could lead to County Court, but not paying Council Tax could lead to the Magistrates Court.