Payday loans.

esj13

Hi,

Very stupidly of me one month last year I had a bad month in which I was left short until the following payday. Following this I made the error of applying for a small amout of £50 from a payday loan company.
From there it led to a little more and a little more month after month and company after company.
As it currently stands I am not in a massive mess yet but I can feel it will easily get that way as with each month when paid off they leave with less and less money to live on and thus encouraging you to feel you must borrow more.

Are there any ways of contacting them and explaining the situation to maybe put a freeze on the loans and pay what you can back a month and get rid of these hideous companies on your case?

CherlokHomes

You needed the money at the time no one would help you but this payday loan company did lend you money when you needed it yet you call them hideous but you decided you are not paying them back.

esj13

I didn't say I didn't want to pay them back.
I do want to pay them back. And I would like a way to do it so that I can stop relying on them from now on.

happycamel_2

Yes, you can contact them to make an arrangement to pay by installments. Most are co-operative. Try talking to Stepchange if you have any problems, they are free debt counsellors. If you do fail to repay the loans as you have contracted to, however, it will negatively impact your credit rating for six years.

If possible live on value bread and baked beans for the month, or borrow from family, get the high interest debt paid back and then sort yourself out from there.

opinions4u

Are there any ways of contacting them and explaining the situation to maybe put a freeze on the loans and pay what you can back a month and get rid of these hideous companies on your case?

Yes. But it will trash your credit file.

How much do you now owe?

esj13

Right now I owe around about 1700.
Ive been putting masses of overtime in at work and living on bare essentials.
On my wage as it is now I should be living very comfortably but with these loans I was stupid enough to ask for its ridiculous.
I always make sure I have enough for council tax and rent and then food. Whats left over ends up going to these loans.

esj13

I spoke to stepchange who have advised on a DMP given what I currently owe and the style of loan after filling out a long form.

Are most creditors usually accepting of a DMP as I understand they have no obligation to do so?

John1993_2

esj13 wrote: »

Are most creditors usually accepting of a DMP as I understand they have no obligation to do so?

Many will not accept it until you have already defaulted, but there's no reason not to put one together and try beforehand.

Your credit file will be badly messed up, but that's not terrible, if it helpps you to avoid the temptation to add debt in the next few years.

*Foolish*

I've read that you're going onto a DMP, good idea and I've replied to your other post. If you haven't already, you need to cancel all continuous payment authorities, so no funds can be taken from your bank account, you need to do this ASAP, in writing with your bank and the creditor (send recorded delivery) better still, get yourself a new bank account and have your wages paid into there, then there is definitely no way they can take any.