Debt out of hand

Jasonlucas93

Right to put it simple I'm an absolute t****r.

Basically i've been signed off work for the last 2 months due to depression and since then i've got myself into a right state financially

Before i was signed off i was doing 'fine' with my debt being not too much:

Guarantor Loan:2500 (161 p/m)
very: 650 (15 p/m)
Little woods: 300 (65 p/m)

which to me that was fine but now I'm in a whole lot of trouble and haven't got a clue what to do.

debt now:

Guarantor Loan:2500 (161 p/m)
very: 1250 (75 p/m)
Little woods: 235 (65 p/m)
Overdraft 2350 (Used all of it )
Payday loan 513 to pay back

I've missed the last payment of my amigo loan, and they aren't able to take it out of my parents account as they changed bank accounts and are away at the moment.

I get paid next friday but seeing as it will be SSP i cant see myself getting even a couple hundred quid and next month i have over 1000 in bills to pay the above are just the main ones (not including phone contracts nor rent)

Is there anyway i can get involved in some DMP or anything, at the moment all I'm doing in stressing and panicking even more and i'm really stuck on what choices i have to stop all of this.

Thanks for any help that 'may' be helpful

matttye

Yes you will be able to arrange a DMP - contact Stepchange or one of the other debt charities.

Don't go with a fee paying company, as charities will do the same thing for free.

Jasonlucas93

Thank you for the advice.

I've actually just got off the phone with stepchange and they're going to sort everything out for me even though they want me to pay them £455 a month which im sure that is more than what i'm paying at the moment (minus the payday loan) so i might have to ask them if i could possibly pay a bit less a month!

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Jasonlucas93 wrote: »

Thank you for the advice.

I've actually just got off the phone with stepchange and they're going to sort everything out for me even though they want me to pay them £455 a month which im sure that is more than what i'm paying at the moment (minus the payday loan) so i might have to ask them if i could possibly pay a bit less a month!

Did they do a full statement of affairs with you, taking into account all debts and outgoings? If they've suggested a monthly repayment that you don't think you can afford, you need to tell them and ask if they can re-work it for you. There's no point them setting up a plan that sees you struggle to pay, otherwise you'll be back at square one within about 2-3 months.

Jasonlucas93

Well I've now got a second job which is going to pay 650 a month before tax so I'd come out with around 400ish? Which means I'll have 1300 a month coming in now, I just want this all sorted, my dads told me not to go through dmp but I don't want him finding out about the payday loan

Monkeyballs

Hi Jason,

Honestly, if you only have the one PDL then I would just open up to it as it sounds like they are willing to help and see you through!

One problem with debt is that it's easy to want to hide it away and it sounds like you may have an underlying issue (I.e the depression and/or the cause of it) which needs to be addressed.

Open up to your folks, grin and bear it and accept any help they are willing to offer and then vow to do whatever you can to sort out your finances

A DMP can seem like a very attractive way out but at the end of it if you still haven't learned from your mistakes then you'll be back to square one in a couple of years time

MB

Jasonlucas93

I do want too, but I know the consequences that would occur, as last year I got in trouble with payday loans I was kicked out my house and almost split my parents up, they absolutely hate pdl's

What's on my mind, what are the chances that the creditors won't freeze the interest? And will I constantly receive letters through the post from them, I just know I can't deal with it myself, or I wouldn't be in this situation, I am ready to learn from my mistakes but I do think a dmp would be the right thing to do, although my dad doesn't seem to agree

longtermplanner

Is the Amigo loan included in the DMP?

Jasonlucas93

Yes it is, stepchange said they work closely with amigo

Jasonlucas93

So I've told my dad about the wonga loan, he doesn't seem too bothered but he wants me to deal with it myself instead of a dmp, is that the best idea?

sourcrates

Hi,
If its Wonga you are dealing with then you are lucky, sort of, if you default on a Wonga payday loan, they don't start adding stupid amounts of interest or charges, are they still able to take payment for it via your debt card ? if you cant afford to pay, ring your bank and cancel the constant payment authority with Wonga, once you've done that they cant take any money, you will find in a few days after non payment, a "payment arrangement" option will appear in your online account, click on that and there are various repayment options there for you, or you can propose your own, there and then, from your account, usually they accept with no problems, so don't worry too much about Wonga, they are one of the better payday loan companies to deal with.