Need advice payday loan and benefits

gemmyj1986

Hey guys new here need some advice. Taken out a payday loan ages ago, a few months ago my debts got too much so went on a debt plan management as last resort I pay 100 a month to cover debts but wanted to try to pay the payday loan off myself, i managed for a few months but was too much so added the debt to my debt management plan last month. Im a single mother of 2, one aged 3 & the other aged 1 struggling with bills. 2 weeks ago my washing machine broke. I'm on income support and applied for a budget loan of £500 to cover a new washing machine and have money for this months bills and enough to live on. 5 hours after the £500 budget loan went into my bank, the payday loan company took nearly £400 out. I phoned the bank to try and stop it but was told to phone the payday company. I explained and told them I was on a debt management plan and that i was adding the debt to it and had already told my debt management plan 2 weeks ago and was told they would arrange it all and explained that that money for a budget loan and my whole situation etc. They said i had to prove it was benefit money so i had to email them a statement. I did that but because I still had about £100 in my bank which was from my benefits for that fortnight they refused to refund it saying i still had money to live on. So basically I'm over £400 Worse off with no washing machine and short of bill money because of this. Is there anything I can do to get the money back or some of it? Any advice is much appreciated

Thanks in advance

Blackpool_Saver

I presume you kept the pay day loan so you could use them again.

I very much doubt there is anything you can do.

Dunroamin

I can see how you can't buy a washine machine but I don't understand why you're short for your bills when you actually have money left over. You can't get a budgeting loan to pay for bills anyway.

Jobseeeker

Payday loans charge an extortionate amount of interest. Getting rid of it ASAP is for the best. Use the launderette until you are in a better position financially. Does the £400 clear the payday loan?

Also, are you getting all benefits you are eligible for or just income support?

BigAunty

Go the Debt free wanabee board and have them look over your income and expenses so they can come up with a better debt management strategy and suggest how you can slash costs. They may be able to help you get it down to a token sum, much less than £100 a month or get it written off completely through a DRO, for example. They may be able to advise you on how to deal with that pay day loan swallowing the budgeting loan.

Download the MSE budget planner to identify your full income and outgoings. Go through the site and find out how you can slash expenses - cheapest energy, telecom, insurance, tv tariffs,etc, cheapest groceries, frugal recipes and so forth.

Unless you are a widow, your children have two parents so if there is a non-resident parent(s) and they do not contribute to child maintenance costs, take them to the CSA as you would be entitled to up to 20% of their net income and it will not affect your benefits. Even if he/they earned the national minimum wage, you would get around an extra £40-50 a week this way.

To get a free washing machine, look at websites like Gumtree freebies, freecycle, freegle, freeshare or see if you have a local charity shop nearby that sells cheap electricals, like Emmaus who sell their goods cheaply to those on benefits.