Advice needed! Payday loan debt

joea_2

Hi,

I've got myself in to a bit of a mess regarding pay day loans and I seem to be borrowing and borrowing and see no end to the cycle.

I't started just under a year ago, when after booking a holiday to Ibiza I found myself a fornight before we left looking for a pay day loan to cover my spending money as I had an expensive month and needed to dip in to my holiday savings to bail me out of a few outgoings.

A week after I got back from Ibiza I lost my job, this left me in a terible situation financially and was without work for nearly 9 months going to a from pay day loans and credit cards to help me balance the books.
On January 4th of this year I started a new job but am still in the cycle of paying these debts off and taking out new ones to help me through the month, my credit card is maxxed (£700) and within a day of both pay days my account has been left with no funds due to these lenders taking there fees, which then sees me take out another pay day to cover my getting to work expenses, rent etc.

My parents have already lent me £500 and I am unwilling to go back to them.

My bank (Lloyds) won't give me an overdraft and I am unlikely to get a a loan to consoladate these debts.

I've taken to selling prized possesions purely to pay the rent.

Has anyone any advice on how I get can get out of this mess? I'm at my wits end.

Thanks

Joe

hettiecarro

Hi
Welcome to the board. Before any advice can be given it would be good for you to post an SoA (Statement of affairs), so forum members can look at your full situation.
Put absolutely everything on it.
Just one thing. You say your parents have already loaned you £500. And that you are selling prize possessions to pay your rent. Is there any possibility of you moving back home until you get yourself sorted? Don't know what you domestic situation is
http://www.stoozing.com/calculator/soa.php
Use this link to do your SoA.

lea_t88

Can you open a different bank account to get your wages paid into, so that the payday lenders don't have instant access to your money?

Monkeyballs

joea wrote: »

Hi,

I've got myself in to a bit of a mess regarding pay day loans and I seem to be borrowing and borrowing and see no end to the cycle.

I't started just under a year ago, when after booking a holiday to Ibiza I found myself a fornight before we left looking for a pay day loan to cover my spending money as I had an expensive month and needed to dip in to my holiday savings to bail me out of a few outgoings.

A week after I got back from Ibiza I lost my job, this left me in a terible situation financially and was without work for nearly 9 months going to a from pay day loans and credit cards to help me balance the books.
On January 4th of this year I started a new job but am still in the cycle of paying these debts off and taking out new ones to help me through the month, my credit card is maxxed (£700) and within a day of both pay days my account has been left with no funds due to these lenders taking there fees, which then sees me take out another pay day to cover my getting to work expenses, rent etc.

My parents have already lent me £500 and I am unwilling to go back to them.

My bank (Lloyds) won't give me an overdraft and I am unlikely to get a a loan to consoladate these debts.

I've taken to selling prized possesions purely to pay the rent.

Has anyone any advice on how I get can get out of this mess? I'm at my wits end.

Thanks

Joe

Hi Joe,

It's easy to fall into the trap, now you just need to dig yourself out

As previously suggested, post an SOA so we can take a look and try to help you find some savings...

Most importantly tell us who your creditors are and how much you owe in comparison to how much you earn.

If it's just one or two PDL's then you might be able to just cancel CPA and agree a repayment plan but it'd be handy to know the details first

MB

National_Debtline

Hello there,

As the others have already mentioned please do consider completing a financial statement. This will help you work out how much you need each month to meet your essential bills, outgoings and food etc. If you have any mony left over, this would be the figure you can use for debt payments. You generally would deal with any 'priority' debts first - such as rent. If you have rent arrears you may be able to negotiate with the landlord to pay a little extra each month tp bring the rent back up-to-date over a reasonable period of time. We've a useful guide to rent arrears here: http://www.nationaldebtline.co.uk/england_wales/guide.php?page=guide-rent-arrears

The idea of switching banks is an excellent one as it will safeguard your money going forward, you can then look to negotiate affordable payments with the payday loan firms. This is typically arranged by making 'pro-rata' payments. It could be worth going through our My Money Steps system as it'll help you calculate affordable offers: mymoneysteps.org

We've also a useful fact sheet covering payday loans, which you can find here: http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=41_payday_loans

Best wishes,

David @ NDL.