Need some advice please with debt consolidation and the right way to go about it

Howtomard

I've got my self caught up in the viscous circle of wonga, and all my wages have been going straight away at the the beginning of the month, this month I've used wonga a little bit but I could only get £300, so I'm looking at getting a loan to get me out of all my debt and back on the straight and narrow again, just would like some advice from maybe someone who's been there and done it. I looked at a few loans but the apr is huge! Any advice would be gratefully received

Tom

Fuzzy14

Debt consolidation is a marketing trick used by lenders to try and lend you more on the premise that you'll be saving money. If you manage your affairs you could pay off your debts by yourself and saving in the long run. First thing to do is post a statement of affairs on here and folk will chip in with your options and how you can do it. We've all been there, we'll help you out.

First read this:
http://www.moneysavingexpert.com/banking/Budget-planning
then fill out the form

Tixy

Hi and welcome

If you are using payday loans then you will likely struggle to get any mainstream funding to be able to consolidate your debts.

Depending on your circumstances and level of debt perhaps it may be worth contacting one of the debt advice charities IMPORTANT - Where to seek professional impartial advice about your debts.
or defaulting on the payday loans and arranging a repayment plan with Wonga.

How much do you owe to all creditors? And have you worked out how much you can afford a month towards your debts?

Moneymash

Please don't do it. I am still paying off a consolidation loan I took out in 2008 (The bank offered me £13,800 which wasn't enough to cover all my debt, they then upped it to £15,000 which I declined and settled for £13,800, the biggest financial mistake I have made). I took it to clear another loan and some CCs, but guess what, I ran up the cards and overdraft again, so ended up owing more. I am overpaying the loan this year and finally it should be clear by December a whole year early, but it has been hard work and debilitating. If I had just been a bit stronger and paid off my debts individually, budgeted better and spent within my means. I wouldn't be putting my life on hold until I clear this loan.

Either revoke the authority for them to take money from your account(by contacting your bank), or change bank accounts. I would contact your lenders and tell them about your financial hardship. Either offer what you can afford to pay the debt down until it is cleared, also ask them to freeze interest and any charges.

Or pick the lender with the highest interest pay them off first, and pay all the other lenders a £1 each, (again tell them about your financial hardship/freeze interest charges) when the highest apr is cleared, move on to the next one.

Good luck, you can sort this.

Howtomard

Hi, I owe £2150 on my credit card, I have £1000 overdraft with I'm to the max on. Every month wonga get all my wages but once they take it I'm debt free with them but because they take everything I have to borrow from then again, hence the circle I'm in. At the minute I have about £10 I've used £300 from wonga this month already but I don't wanna use them anymore if I can help it, I'm just in a situation where I don't know what to do about it, I hate being over drawn and having a maxed out credit card

Howtomard

My debt is hardly nothing compared with most people's but it still doesn't stop me worrying about it I just want to get out of this whole situation

Fuzzy14

Howtomard wrote: »

My debt is hardly nothing compared with most people's but it still doesn't stop me worrying about it I just want to get out of this whole situation

The size of your debt compared to other people is irrelevant, it's a significant proportion of your income and it's causing you stress.

Try the links posted by me and Tixy and take it from there.

Howtomard

Thank you, my biggest problem is I have 2 more payments to make this month and no money to do it, I have used a little bit of money from wonga but I don't think I can extend my loan from there so I'm in a situation where I don't no wha to do, I can't extend my over draft because I've used wonga and I can't get a loan because I've used wonga........

Moneymash

All debt is relative to an individual's situation, depending on your income and expenditure and your ability to pay.

In order to stop worrying, start taking action, please follow the advice others have given you, as Martin says every debt problem has a solution.