Payday loans are out of control

Chicagoranger

Hi,

I am new to the site. My payday loans have spiralled out of control and I have found myself with 5 payday loans. I am continuously extending them, spending more on interest each month and having to re-borrow!

I initially took out a loan to help a family member and was on a decent salary and living with my partner, we then split up, I decided to work part time and study to become a teacher and I stupidly relied on payday loans for many months without even realising what I was doing! I have buried my head in the sand for the whole of 2013!

I am now in a position where I am paying the minimum on 4 of the loans each month, one off in full and I then need to reloan to pay my rent and I am left with no money for the rest of the month.

I need to take action but I don't know where to start. I am a private tenant and I pay £650 per month for rent/gas/council tax/ electricity/water etc I am not sure if an IVA is my only option. My monthly income is £1200. I accept full responsibility for getting myself into this situation but I just don't know where to start to get myself out of it.

Any advice would be greatly appreciated!

Thank you!

matttye

Write to your bank, recorded delivery, telling them that you withdraw consent for any of those payday loan companies (name them all in your letter) to take money from your account using continuous payment authorities. If the bank ignores your instructions you have a right, by law, to an immediate refund.

Then you need to contact each of these companies and set up repayment plans with them. A debt charity such as Stepchange can offer support and assistance in setting up a debt management plan and they won't charge you for this. Avoid any fee-paying DMP companies.

You will need to default on your agreements, but should be able to pay them off relatively quickly if you have a few £100 to throw at the debts.

vics1928

Where are you studying? College or uni

Chicagoranger

I am studying at college.

Chicagoranger

Will the payday loan companies accept the repayment plan?

matttye

Chicagoranger wrote: »

Will the payday loan companies accept the repayment plan?

They're not forced to but they don't really have a choice. They can't have money you haven't got. If you don't have the money to pay them then you don't have the money to pay them. They could take you to court and apply for a CCJ, but a judge will only order you to pay what you can afford anyway, so there seems little benefit of them doing this when you're already willing to offer affordable repayments.