Another payday loan hell - please help

what_an_idiot

Hi all,

Firstly thank you for viewing. I would like to start by explaining that I have been a really silly girl, and have been gambling on line. This is not what I need advise on, so I thank you kindly to advise on the money element, and not the ridiculous addition I am dealing with. But let me assure you, this is the last. The guilt has over-ridden any feeling of pleasure or pain I have gained, and I just want to get on track. This is where I am hoping you can help.

QQ - have been great. Have agreed to 1 months interest meaning 4 monthly payments of £375 and this will be cleared. I have made 1 payment, so 3 to go.
Wonga - agreed to £38 Monthly - 1 down 9 to go
Wage Day advance have agreed to 3 payments of £86 starting end of Dec

This is where the good news ends;

I am awaiting responses from
PayDay Express I owe £967 ( including interest )

I have not yet contacted;
Pounds Access who I owe £160 ( inlcluding interest )
Swift Sterling who I owe £258 ( including interest )
Mr Lender £520 ( including interest )
Lending Stream £680 excluding interest - this is a 6 month loan

I also am behing with my council tax by about £300
I have missed a payment on my Credit Card with Vanquis £138 and I am sure this will now take me over my limit
I also owe Npower around £500 and have moved supplier

Now I have written it all down, whilst it is a relief, I have realised just what a mess I am in.

Without Payday loans, I should have around £800 in my account each month as money for me, and am fortunate to have a good job, so it makes it even worse that I am in this situation.

Please advise anyway you can. I am determined to sort this out myself by the end of May ( 6 months ) and would really like you help, advise, experiences and support to help me do this.

As they say in addiction classes, admission is the 1st step to recovery.

I do not want a DMP, unless you think I should, I would like to play fair with these people but worry they will not play fair with me.

Thanks in advance

( I am in Wales if there are specific rules that apply )

L xx

DS4215

You Council Tax is a priority debt. No matter what arrangements you make with the others, make sure you have enough money to pay back the outstanding amount for this year as soon as possible and contact the council to make the arrangements to pay it back.

They will not hesitate to start proceedings against you and you can quickly have fees added and bailiffs on your back.

Tixy

Hi and welcome.

Before you negotiate with lenders you really need to work out how much you can afford to pay to them in total a month, and then make offers that are based on that amount.

Any particular reason you have contacted some lenders and not others? have you cancelled the payment authority to all the loan companies with your bank?

The council tax should take priority over any of the payday loans. Have you come to an arrangement to repay your arrears and keep on top of your future council tax with the council?

Its hard to tell from your post but it it looks like you owe over £5200 to your creditors, if you can only afford £800 a month then its going to be a struggle to clear these in 6months.

You say you don't want a DMP but in effect by arranging repayment plans with creditors that is effectively what you are doing - although you are not making payments on a pro-rata basis. Usually the best way to get all creditors to agree to a reduced payments is if you pay them all a fair share a month.

what_an_idiot

Thanks both for your advise. You're right, if you do the maths, 6 months was maybe hopeful. I have contacted some as have only started this morning, will contact the others in the coming days.

I have worked out after reasonable living expenses and my other bills I have around £850.

I will conact the council tax people via email today, and explain I have been very silly.

Do you think if I am really honest with the lenders, and tell them about all of the other lenders they will understand?

what_an_idiot

Do you have any experience or advise in dealing with these companies specifically please?

I am not going to call them sharks, or blame them. I knew the terms and conditions when I entered, I was blinded by addiction.

Tixy

Have you cancelled the payment authoritys with your bank? or moved to a new bank?

Its usually advisable to put any repayment proposals to your creditors in writing. You'll find some useful template letters on national debtline website about offering reduced payments to creditors. If you've spoken to some on the phone this morning I would follow that up in writing.

what_an_idiot

No - my bank are refusing to cancel! Ihave put everything in email

Tixy

You need to go back to your bank and get them to do this - this factsheet (page 2) http://www.bdl.org.uk/images/41_EW_NDL_Payday%20Loans.pdf
gives details of what to say to your bank to get them to cancel them (quotes the payment regulations clauses etc) You may need to say to the bank you withdraw the right for money to be paid rather than cancel them.

There is a template letter on this website you could try using
http://www.cas.org.uk/about-us/social-policy/payday-loans-your-rights-their-responsibilities

what_an_idiot

Thank you. I will try again with what you have suggested.

Does any of the other readers have any experience/hints how best to deal with these companies please? I am reluctant to use a DMP, but feel it may have the best success.

what_an_idiot

so, having had a good hard think, here is my plan. would appreciate your thoughts;

Wonga - continue with £38 payment plan
LS - Continue with Monthly payments £231 for december
Pounds Access - pay £160 in full this month to clear
WDA - I have gone back to them and offered £48 monthly - will pay december at £86 if unable to reduce ( interest frozen )
Swift Sterling - Pay in full at £258 this month

This is £773 and 2 paid off in full with 3 sticking to arrangements.
i am also expectiing a bonus of around £300 which will give me some play with QQ, PDE and Mr Lender.

In addition to this, I have sent the above template to both of my bank accounts ( i switched a month or so ago and PDE have cleverly taken money from the old card which I was expecting ) and added a line in to say I also do not authorise the setting up of direct debits to these companies.

No response from the other guys yet.

What do you lovely people out there think?

amcg100

Seems to me these are all high interest loan sharks that will just keep ripping you off the more you engage with them. I don't know how your credit rating is, but at under 5K of debt, a simple bank loan should sort everything out for you and would be easily within your budget. I guess you could even approach one of your existing lenders to consolidate all of your debt for you.
Altogether , its not a huge amount, it just needs tidying up a bit,
Good luck