Help! I've been an idiot using PayDay Loan companies!

Tixy

Defaulting will mean almost certainly a default will be put on your credit file, and will impact on your ability to get a mortgage.

That said having payday loans on your credit file for month after month will also impact on your ability to get a mortgage for likely much more than a year. So even if you don't default getting a mortgage that soon is perhaps unlikely.

Edit - sorry cross posting, got distracted whilst typing

Monkeyballs

Hi,

I saw your post on another thread and I've answered there too.

First, give a debt charity a call (I'd suggest Step Change but there are others) to ask about potential damage - after reading this thread and the BBC article I'm guessing that even taking a loan could potentially cause problems though.

Then I would contact both creditors to cancel CPA and enquire about setting up a repayment plan (explain that the debt will not be repaid at the end of the month) I would imagine Wonga will work with you but I'm not sure about Quickquid whom I have no experience of... They may not discuss a repayment plan until you have failed to repay on the agreed date... Thing is, as you'll have cancelled your CPA then they won't be able to just pilfer whatever cash is in your account!

I'm not sure if agreeing to repay by installment under a plan will show on your account as a default though, I believe it is marked up as an arrangement and I'm not sure of the impact on your rating I'm afraid

MB

Experian_company_representative

Sinhanada wrote: »

Interesting to note though, a lot of mortgage companies will refuse applications if you have taken out PDLs in the past.

http://www.bbc.co.uk/news/uk-25098810

Not necessarily - see this Q&A.

James

Brian_jones

DBurns wrote: »

As I'm sure you've probably guessed from the title, I've got myself into a bit of a sticky situation with a couple of PayDay loans. I know that these types of loan are just pure evil and I completely regret ever taking the first ever one. Once this get's behind me I will never go back again, I have without a doubt learnt my lesson.

Right, it all started several months back (probably a year now) when I had a car troubles and decided to take a small loan and it's been a downward spiral from there. Month after month of increasing the loan in size to then eventually getting a second loan from another company to pay off the other and now I have two at their maximum and do not know what to do.

I'm hoping this will help so I will outline my incoming and outgoings along with how much I owe to Wonga & QuickQuid.

Incoming

£1600 P/M (last Thursday of every month)

Outgoing P/M

£540 Rent, gas, water etc.
£193 Loan
£55 Car Ins
£50 Phone
£40 Internet, xbox, experian.
£55 Loan
£40 Credit Card (currently @ £200 which is the limit)
£50 Credit Card (currently @ £500 which is the limit)
£220 Fuel for Car
£1243 TOTAL
This leaves me with £357 to go towards food and anything else that comes up.

PayDay Loans

£1418.35 Wonga (due on the 31st Jan)
£1389.37 QuickQuid (£201.87 due on the 30th Jan, 1187.50 due on the 27th Feb)


With squeezing in some overtime I think I could probably up my wage a bit and have enough so after food I have £400 PM to go to these horrendous loans. This is basically what I've been doing the last 3 months but that's just been feeding interest and not reducing the loans in the slightest.
I literally have no idea what to do, all I've heard from people is just how horrible these companies are to deal with. I've never missed a payment so it's always gone smoothly for me and I'm yet to see their other side.
Any help or advice you could give me would be very much appreciated. I'm stuck in a rut and desperate to get out.

Thank you so much for reading,

Daniel

Hi. I applied for a loan online, then got lots of calls. I spoke with a chap called David from loan.co.uk. I had been approved!!! Stupidly I agreed to pay instalments up front as I have a bad credit history, and when to a pay point, bought ukcash vouchers and handed over the codes!!! To then be told they couldn't transfer the money unless I paid them a further payment!!! What can I do????

Tixy

Brian_jones wrote: »

Hi. I applied for a loan online, then got lots of calls. I spoke with a chap called David from loan.co.uk. I had been approved!!! Stupidly I agreed to pay instalments up front as I have a bad credit history, and when to a pay point, bought ukcash vouchers and handed over the codes!!! To then be told they couldn't transfer the money unless I paid them a further payment!!! What can I do????

Hi Brian and welcome to the forum

Obviously don't give them any further money. I would report the information you have on this company (phone numbers/names etc) to your local trading standards and possibly also to action fraud.

Unfortunately you won't get the money from the vouchers back.

Stick to mainstream lenders/high street name banks when applying for loans, and don't give out details to people who ring you.

Just for future info its best to start a new thread for your query to ensure it doesn't get missed.

sourcrates

Hi OP,
Both Wonga and Quickquid do online payment arragements from your account on there websites, you need to stop the CPA with your bank as previously mentioned, you propose how much you pay and when, they usually agree to a reasonable request, online, without having to speak to anyone, if you can cut down your outgoings then that's always a good thing, but in your case I would not bother contacting any 3rd party debt solutions company as I don't think you need it ! just agree an affordable repayment plan with your two creditors, stick to it, and don't be tempted to take out any more PDL`s, good luck !!


Just to add, payment arrangements are only possible after you default, the option will appear on your account a few days after your loan is due if it is not paid on the due date, if the option doesent appear, you will have to contact them by either phone or letter, most are quite reasonable on the phone, unlike a DCA who I would not advise you to call.

kizkiz

If you're planning on buying a house soon, then surely you have a few thousand already saved?
Would it not make sense to use the house deposit money to pay off the debts in full, then start saving again and delay the house purchase?

DCFC79

kizkiz wrote: »

If you're planning on buying a house soon, then surely you have a few thousand already saved?
Would it not make sense to use the house deposit money to pay off the debts in full, then start saving again and delay the house purchase?

Makes sense to me as he would have extra money to save up,

Monkeyballs

kizkiz wrote: »

If you're planning on buying a house soon, then surely you have a few thousand already saved?
Would it not make sense to use the house deposit money to pay off the debts in full, then start saving again and delay the house purchase?

Good shout! Yeah, do that

MB

marliepanda

kizkiz wrote: »

If you're planning on buying a house soon, then surely you have a few thousand already saved?
Would it not make sense to use the house deposit money to pay off the debts in full, then start saving again and delay the house purchase?

Somehow I doubt that someone with a few thousand in savings would be
A) using pay day loans
posting this type of thread.

He says he wants to buy a house within six years, which a DMP would hinder. However with his current finances I doubt that will be on the cards regardless of defaults