Debt - Advice please

Badger3

I currently have 6 outstanding payday loans (been rolling over month to month by just paying off the interest each month) (about £2000 in total)

I have an overdraft of £750 and my balance is currently -750.

I have a credit card limit of £400 which is currently maxed and probably over limit due to late/missed payments.

I've been trying to find a loan of £3000 to clear all of this as I bring home £1200 a month and could easily make payments of £750/£800 a month. At the moment I'm probably paying about £900 interest on payday loans which isnt reducing my overall balance of debt so im just chucking money away basically which is why im trying to pay them all off at once and just have one affordable repayment.

Obviously I have a pretty poor credit rating though so i'm finding this hard. I realise I have made mistakes in the past but it's just frustrating because i know if I could get a loan and pay off all my debts I could get myself out of this situation so much faster.

any advice/suggestions please?

Badger3

From reading a few other topics, I saw a thread in 2011 about setting up repayment plans, obviously this looks much more appealing than taking out another loan. Is this something that is still succesful? any advice on how to go about this would be much appreciated

antonic

I fear that you wont get a loan from a reputable lender once they see you have PDL`s.

Your only salvation *maybe* to consider a Debt Management Plan.

If you do go down the DMP route the use a FREE one, like Stepchange, Payplan or Christians against Poverty - dont worry CaP arent a religious organisation !.

Good luck !

katejo

Badger3 wrote: »

I currently have 6 outstanding payday loans (been rolling over month to month by just paying off the interest each month) (about £2000 in total)

I have an overdraft of £750 and my balance is currently -750.

I have a credit card limit of £400 which is currently maxed and probably over limit due to late/missed payments.

I've been trying to find a loan of £3000 to clear all of this as I bring home £1200 a month and could easily make payments of £750/£800 a month. At the moment I'm probably paying about £900 interest on payday loans which isnt reducing my overall balance of debt so im just chucking money away basically which is why im trying to pay them all off at once and just have one affordable repayment.

Obviously I have a pretty poor credit rating though so i'm finding this hard. I realise I have made mistakes in the past but it's just frustrating because i know if I could get a loan and pay off all my debts I could get myself out of this situation so much faster.

any advice/suggestions please?

I find it difficult to believe that you could pay off around 700-800 per month . I take home a little more per month and nearly half goes on unavoidable DD's like mortgage , gas , council tax . If you had this to pay off , why would you still have as many debts to pay off .

Badger3

I'm only 20 and living at home so I dont have any outgoings (that are necessary) other than travel to/from work.

Its because of the quantity of the loans that I have so I've only been able to pay of the interest each month instead of being able to pay one off. Also I have only recently realised what sort of mess I'm in and trying to get myself out of it.

I have just emailed all 6 payday loan companies to try and set up a payment plan over 4 months. This will allow me to clear my credit card and overdraft and hopefully still have some left over to start saving etc.

The companies I have loans with are Payday Express, Payday UK (memcapital), UncleBuck, Txtloan, WageDayAdvance and CashGenie.

Does anyone have experience with setting up repayment plans with these companies and have any tips/advice?

[Deleted User]

seems a confusing situation; you have a large surplus each month but you struggle with the payday loans

matttye

By entering a DMP you're likely to end up with six defaults on your credit files and pretty much obliterate your chances of obtaining any further credit for the next six years.

It seems like it might be your only option, but just making sure you realise that before you rush into anything.

Could you post which loans you have, what the interest % is and how much you owe each company?

Badger3

Payday UK £623.44 (£150 interest roughly)
Cashgenie £325 (£75 interest)
Payday Express £501.32 (£120 interest)
UncleBuck £401.48 (£103 interest)
WagedayAdvance £278.43 (£62 interest) - this is due on the 31st but I wont be able to pay it.
Txtloan £115 due on 7th June - again wont be able to afford so will defer until 21st June where it will cost me about £185.


The other loans I paid off all the interest on the 23rd this month and also had 2 other expenses (£165 on a driving course - instead of getting points and £100 to a friend)

I have about £60 left over and need that to get to/from work until next pay day (21.06.13)

This months going to be a struggle and I dont really know if im going to get through it or what to do next month.

Although entering a DMP seems like a much more affordable option (and i have already had contact back from PaydayUK to fill in an income/expenses sheet) I'm a bit worried about obliterating my chances of further credit for 6 years.

matttye

I think a DMP is your only option. I was thinking that if you got paid at the end of the month, you might have been able to pay off 2-3 of those loans to mitigate some of the damage, but if you've only got £60 to last you the month and some of the loans are due to be paid before next payday, you really need to come to an arrangement with them.

You can at least start saving for the next 6 years for a mortgage deposit or whatever!

R_P_W

So you take home 1200' you live at home for free and your 3000 in debt?! Why?

Badger3

Made mistakes in the past, spent more than i could afford to impress girls etc. Had a bit of a gambling problem as well. All things I'd do differently If i could go back.