Never thought this would happen to me....help!

youknowthis123

I never thought I'd be doing this, but i have nowhere else to turn so here's my story!

I'm 28 and work for one of the biggest names in global media (I'm not showing off, merely demonstrating that ANYBoDY can get themselves into a debt nightmare!)

My monthly take home is just under 1600 after tax.

Outgoings as follows:

Rent: £750 (I live in London and am under contract)

Travel: £120

Living: 350-400 (inc. all bills)

My story:

I decided once it would be a good idea to take payday loan (free money after all!) I then got myself into the !!!!. I took out a personal loan (everydayloans) in order to pay off payday loan. Now 6 months later and many payday lenders later, I'm sat in a pub in Westminster(don't have a go at me for having a pint, i had the lightbulb moment and realised a few things as a result) dreading the next three to four years of my life paying off debts. But I'm an intelligent guy (despite being financially inept!) , I know I won't get beaten up or go to jail. However I want to rid myself of debt demons ASAP.

So I finally reached a point where my income will not cover my remt, living and creditor payments.

Here is my financial situation:

Every day loan: 2000
Wonga: 1500
Swift Sterling: 775
Wage day advance: 195
Quid Market: 250
Quick quid: 312
Vivus: 246
CFO: 200
Mr Lender: 300
Lending Stream: 160
Vodafone: 500

Total: 6438

I am on payment plans with the majority but still this didn't help. Details as follows (per month):

Wonga: 150
Swift Sterling: 100
QQ: 50
LS: 50
Vivus: renew monthly for £40
WDA: 50
Mr. Lender: 50

My Everyday Loans agreement is an 18 month loan paying £200/month (don't ask me what I was thinking!) original loan was for £1500. I called today and to pay off today would cost around £1700 (despite already paying £200 per month since april

CFO and Quid Market are due to come out in full this payday (27/09)

From where I'm sitting/leaning. I have a few options ":

1: Churchwood finance - i pay them a Pre agreed fee (£230 per month). They do the leg work and I get a hugely reduced monthly payment. I've read the forums I know they have a bad rep. But these posts are from years ago, have they improved? Is it worth going with them just to get a DPA in place? By the way I know they charge a monthly fee.(I've actually already signed the documents but I'm not due to pay until the end of the month, I know I can get out of this.)

2: Payplan - will they even be able to help beyond advice?

3. CCCS- just tried calling but offices are closed will try again tomorrow lunchtime.

My aim: is obviously to be debt free ASAP but to pay off at a rate I can afford. Around £200-£250 per month.

My concerns: mainly everydayloans. They are a face to face lender, I have spoken to them , I have been to their office, they do scare me a bit. But I'm a big boy , I can stand up to them if I have the grounds upon which to do so. I'm confident of handling the payday lenders myself, but EDL worry me.

Second concern is keeping this between the creditors and I. This is my mess and I intend to sort it out but at a rate that I can afford.

My plan of action: despite the concerns I am intending on going with Churchwood Finance in order to get the ball rolling. However I have an appointment with Payplan tomorrow and will be speaking to CCCS tomorrow lunch also.

So guys there it is in black and white. I am committed to paying this off and have the occasional increase in. Income from month to month, nothing too drastic. I also earn okay money but by no means am i raking it in.

I need your help. In a year or two I want to be offering you all advice having drastically decreased what I owe. Please, any pointers at all would be more than welcome.

Thank you all for being there when I thought I was all alone.

Regards,

Youknowthis

*zippy*

Hi youknowthis

Don't go with churchwood they will charge you for their services, which will increase the time you are paying this off.

Speak to cccs tomorrow and then decide between them and payplan, good luck.

ShootForTheMoon

Hi YouKnowThis!

Congrats on your LBM!! Good on you!
Sad to see another case of a switched on chap getting caught by the payday loan companies... Evil business, profiting out of others misery... Anyway, the main thing is you've decided to address your situation and reclaim your life! Well done!

I'd definitely consider DMP companies who don't charge a fee first - that money is surely better placed paying off your debts??

People on these forums are so helpful, do consider posting an SOA which people can critique and offer some suggestions on where you may be able to make savings. There's also some really great challenges on these boards, even if you don't join in, they're worth a read!! Things like tsing your lunch to work and the weekly spend challenge really help you to see how little changes can make a huge difference!!

Good luck with your journey mate & keep us posted with your progress!!

bess1234_2

Do not go to a fee paying debt company. Go to stepchange(Cccs) or pay plan .

wegle

If you do decide to go through an intermediary do not pay for this service. Stepchange or payplan will do exactly the same thing as Churchwood but not charge you for it. They will also give you impartial advice as they have no monetary benefit by putting you there books, whereas Churchwood are likely to only offer you the advice that gets you parting with cash to them.

You're first step has to be to put a full SOA up here. A fresh pair of eyes over you're financials will be able to point you in the right direction. You may be able to self manage your debt. Go to http://www.stoozing.com/calculator/soa.php and get all the details filled in.

GlamGirlie

Well done you for taking the first steps.

Definitely post your full statement of assets & liabilities and incomings & outgoings on here - we may be able to suggest other things to help.

youknowthis123

Hi everyone,

Thank you all for your kind comments/advice.

It's amazing how good these forums are. I remember 7 or 8 years ago I was battling a lengthy courtship with a green plant that we all know. I shared my story on a forum and I sorted myself out as a result of all the advice and support. I'm already feeling the good vibes here, so I thank you all from the bottom of my pockets

So I had my appointment with Payplan today and all went well. Obviously early stages but I feel I'm making progress.

I am planning on filling out an SOA this evening to share with you all.

Just wanted to highlight a few concerns I still have:

1. How likely are Payplan to be able to help me?
2 How likely are my creditors to accept the Payplan?
3. If one creditor (namely everyday loans) refuse to cooperate, what do I do!?
4. What are my rights? I.e. at the end of the month do I refuse outright to pay my creditors (unless of course a Payplan is in place)?

I guess overall I feel I'm making progress but am scared to death that I'm not and all of this Payplan stuff is too good to be true. I suppose you could say I'm just seeking somebody to put my mind at ease so that I can sleep well and work to my full capacity at my job!

Again, thank you all.

YKT

Storm

Hi YKT,

A full SOA will help everyone to see if there's places you can cut back, and I say 'here here' to everyone advising to go with a free debt management organisation.

To give you hope though - have a look at my signature - I owed a similar amount 7 years ago, and got it all paid off in about 18 months (I had a bit of a false start and didn't do too well the first few months!) so believe in yourself that it can be done.

Things I found useful were joining some of the challenges, keeping an online DFW diary, the snowball calculator: http://www.whatsthecost.com/snowball.aspx lets you see how much difference a few extra pounds each month can make.

Quick wins to set you off well is to sell off as much stuff as you can, get all the debt onto as low an APR as possible (closing the other accounts) and while everyone on here is great support if you've got family & friends who will be supportive let them know you're paying debts off - if you want to start suggesting cheaper socialising or reducing present-giving for example it will be useful to have some allies!

Good luck on your debt free journey - I promise that the destination is worth it!

Lucy5781

Payplan have done a very good job for me with a DMP, they are now processing my application for a DRO too.

Good luck
Lxx

DreamerHelen

Hi There...PayPlan have probably already advised you do this but I would advise that you open a different Bank Account with a Bank that you owe no money to....and make sure your Wages get paid to it....that way when you default these PayDay Loan Companies can't take any money out....

Definitely go with PayPlan or Step Change...they are BRILLIANT....

Good Luck...I'm subscribing to keep up to date with where you are it...

You can do this....don't lose heart!!

nicp60

Hi YKT,
Welcome and well done on taking the first steps. I echo what the others have said and urge you to complete an SOA. I would also say that you absolutely must cancel the agreement with the fee paying company. Please please believe me, they are NO BETTER than pay plan or CCCS. They just want you to think they are, and that they have higher acceptance rates etc than the charities. It's simply not true.

You seem to have some worries about your DMP. yes, some creditors will be more awkward than others, but that will be the case regardless of which company you use - the creditors don't give a monkey's who administers the DMP or whose letterhead is on the top of the letters!

If one of the creditors refuses to accept the payment plan, then they don't get paid. One of the advantages of a DMP is that every creditor is treated equally and there's clear evidence that you are doing all you can to pay off the debts. Normally they'll stomp their feet for a bit but eventually they should accept the plan. I would say that it's worth pushing Payplan to ask all your creditors to freeze the interest - keep pushing this, as it's one of the biggest factors in paying everything off quicker.

Best of luck!