Time to start dealing with my problems.. help needed guys... Baines & Ernst?

Kevboman

Hi everyone decided to join this forum to start the journey with advice from what seems to be a forum of genuine nice people.

I am going to be honest in order to gain your best possible advice.

I am currently £11,000 in debt, owing such things as overdraft, bank loan, credit cards and 3 pay day loan companies.

It all started over three years ago when I got a £7,500 loan from my bank which thankfully has only 10 months left (£2,500) to pay.

However, since then I have admittedly been stupid with money. I always get the 'red mist' getting money from the likes of Wonga, a credit card a couple of years etc and for a long time thinking 'I'll pay it eventually', however stupidly I have now been caught up on.

I currently owe three pay day loans which amount to £2,000 in total I think I can probably hold these off a further 2 months with extension payments but of course, not the best option.

I am also currently out of work (one of those things that happens in life, told I had no hours for me anymore a month ago).

A couple of days ago I decided I have to do something, I felt and still do feel really low as there no corners left to turn to avoid my situation, I contacted a company called Baines and Ernst and they seemed really helpful, went thru the hour long phone call etc and as it stands have an 'advisor' coming out to my address tomorrow to collect the paperwork.

I, maybe with a stroke of luck, decided to search these forums and seem to see very negative things about this company.

I HAVE to sort myself out and after being in a depressed mood about such things now for particurarly the last few days know 100% its time to stop being care free with money and tackle my problems.

Can anyone from this initial information advise me from scratch how I should deal with this from square one. Also looking for advice on this Baines and Ernst company, and how I should deal with it alone, especially the pay day companies, if going it alone is indeed, the best option.

Thank you.
Kev

Tixy

Hi and welcome to the forum

Dealing with your debts alone is not easy and not for everyone. But if you do need help and advice then contact one of the debt advice charities who do not charge you a fee for advice. See here
IMPORTANT - Where to seek professional impartial advice about your debts.

The debt charities will be able to suggest options for you, which could be a free DMP managed by themselves, or it could be advice and template letters to help you write to your creditors yourself to offer reduced payments or even token payments whilst you are out of work.

Fuzzy14

As above, I would recommend you read the link and also stay clear of any company who will charge you a fee for their services such as Baines & Earnst or Ashley Park. Typically they will keep your first two payments for themselves followed by a percentage of your monthly payments. In my opinion they are preying on an easy target and making money out of the vulnerable.

The charities such as Stepchange do not charge for their services. Every penny you pay them is passed onto the creditors.

Rosalee_2

As above I also recommend you contact a company that do not charge you a fee. I would also contact the companies to whom you owe money to I'm 100% sure they will set up a payplan for you. From experience I had the same problem and I contact them, if you are willing to pay a reasonable amount per month they will be willing to set up a payplan for you.

Kevboman

Thanks for the advice so far guys with regards the pay day loan companies, specifically Wonga, do I have to wait til my attempted payment bounces back to them on the agreed date I said I would pay my balance first before I can set up a payment plan with them? Or can I do it straight away?

Tixy

You need to cancel the CPA continuous payment authority with your bank so that Wonga are no longer able to take any money from your account (not even after you have money in there). Your bank have to let you do this, don't let them tell you otherwise. This thread contains a guide to tell you how https://forums.moneysavingexpert.com/discussion/4713607

Once you have done that and know that your money is safe then you could contact them before they try to take the payment.