Debt Consolidation Loan/Help Payday Loans!

ben1206

Hi guys im new around here although have read lots of useful info from this forum in the past. Basically looking for some advice on what to do next...
I currently have 2 payday loans £800 with Wonga due on 22nd nov and around £700-800 on a QuickQuid Flex credit with flexable repayments (absolute con). Also I have a credit card with Tesco £600 credit limit which is maxed out, also have a £1200 planned overdraft with halifax current account (which they charge me £1 a day for and £5 a day even if i accidentally go over which i often am). I have tried increasing my overdraft with Halifax but they have basically told me "we will not increase your overdraft while you are in debt" even though i tried to explain my situation to them.
I have desperately been looking into a personal unsecured loan for £3000 over a term of 36 months with payments of around £100~£140 a month (which i can comfortably manage to pay), but unfortunately Halifax nor any other of the reputable banks will ever consider me due to the amount of credit i currently have, currently i am paying every penny of my wage on payday to cover the last months payday loans and interest, i am basically burning money by giving it to these payday companys.

My income is around £850/900 a month working around 40/50 hours a week on minimum wage, have recently been looking at getting a loan through a site called best4loans.co.uk they claim to be fee free loan brokerage with reasonable apr.

My situation next payday is that im going to pay £800 of around £850 wage on the day to repay wonga, then im going to have to borrow around £250 off wonga again the same day to repay the minimum! payment for quickquid leaving me with less than nothing once again, realistically a loan or a defualt is the only way i can get out of this horrible cycle

Basically what i want to know is:
Is there anyone reputable and trustworthy who may consider me for personal loan/debt consolidation?
Am i best of defaulting on payday loans and arranging a repayment plan if i cannon get a loan?
Should I speak with best4loans on the phone give them my details etc see what they can come up with?
Any general advice of how to deal with these payday lenders if everything goes wrong

This problem has taken over my life and is making me very depressed i feel like im working my fingers to the bone just to tick over and come away with nothing. Having trouble sleeping just worrying about how much i owe, just want to sort this problem out before it gets too late(if its not already).

Thanks ~Ben

Tixy

Hi

Unlikely you will find anyone willing to lend to you based on the circumstances you describe.
I wouldn't touch that loan broker company or any other.
If you are struggling financially then it may be best to consider defaulting on your loans and arranging repayment plans. You might want to speak to one of the debt advice charities for some help on this and how best to manage it. IMPORTANT - Where to seek professional impartial advice about your debts.

You might also find the links in the post useful http://forums.moneysavingexpert.com/showpost.php?p=58505413&postcount=2

downhillfast

One of your main problems is that on your low wage, trying to get further credit is taking you beyond what lenders will see as affordable.

You sound like you're getting to the point where robbing Peter to pay Paul is about to fail... as the poster above says, speak to one of the debt charities and see what they suggest.

Good luck and keep your chin up :beer:

ben1206

I am very worried about defaulting as im only 22 and im not sure what negative effects this might have/how long it will be on my record for. If i tell them i cannot afford to repay will they freeze the interest? I think i would be able to get a "bad credit loan" with an apr for like 50%+ but i dont think this will be efficient in the long term as i will nearly double my debt, but will avoid default. I really dont know what to do but default will be my last resort and i may even have to go another month before doing it

ben1206

I think what im mainly looking for here is if someone has a website/company that specializes in debt consolidation and will look at my situation and have a human judge it from my income/outoings rather than some automated form that will just return "computer says no" just because my credit check looks bad, i CAN 100% afford to repay a loan and it makes no sense to me why no one will touch me, i have been told that bacause i applied for alot of loans/credit cards in the same few days this may have made my credit score even worse because initially i was offered a loan at 29% apr but after returning (after finding i couldnt get one cheaper) credit check failed even though i hadnt borrowed anymore money

Apples2

You cannot afford a loan

If you pass your details onto a broker they will take money from you (you will be scammed)

In my opinion you should cancel the cpa with your bank and default.

It will impact you for six years but if you carry on like this you will still be in this mess in six years time anyway.

One you are in a payment plan learn to control money, you've been spending too much for too long so a few years to re adjust will be a good thing.

19lottie82

ben1206 wrote: »

I think what im mainly looking for here is if someone has a website/company that specializes in debt consolidation and will look at my situation and have a human judge it from my income/outoings rather than some automated form that will just return "computer says no" just because my credit check looks bad, i CAN 100% afford to repay a loan and it makes no sense to me why no one will touch me, i have been told that bacause i applied for alot of loans/credit cards in the same few days this may have made my credit score even worse because initially i was offered a loan at 29% apr but after returning (after finding i couldnt get one cheaper) credit check failed even though i hadnt borrowed anymore money

I'm sorry but this type of company doesn't exist. The computer "says no" because your track record shows you are bad with money (constantly in overdraft and using payday loans) So why would someone lend you money ? The high APRs you are being offered are insurance against this risk.

Stop thinking about taking out more debt. You need to realise that this won't do you any favours in the long run.

Sorry to sound harsh here, but its the truth.

Why are you in debt in the first place?

Head over to the debt free wannabe board, they are good at helping posters sort out their finances and get out of debt. Do you have your own flat / house?

19lottie82

Also if you are working 40 hours a week at NMW then you should be clearing £979 a month, not £850?

ben1206

...............

DCFC79

What you need OP is to understand you won't get a loan, getting a 50% loan won't help as you will be paying more off than what you owed. I see default as your only option, prev posters are correct on that. How did it get to this stage ? I suggest looking at the debt free board and complete an soa and post it there.

I know its not what you wanted to hear ( it hardly is ) but its the truth.

DCFC79

ben1206 wrote: »

I am very worried about defaulting as im only 22 and im not sure what negative effects this might have/how long it will be on my record for. If i tell them i cannot afford to repay will they freeze the interest? I think i would be able to get a "bad credit loan" with an apr for like 50%+ but i dont think this will be efficient in the long term as i will nearly double my debt, but will avoid default. I really dont know what to do but default will be my last resort and i may even have to go another month before doing it

Why delay it for a month ? The sooner you default the quicker you can pay it off. Delaying it won't help you.