payday loan write off?

Dizzy651

Hi

A friend took out a few payday loans and spent extra money on credit cards. He got in too deep and ended up hiring a debt advice company to sort out his balances and arrange repayments. He is waiting for a statement from them now to show his current balances.

I have seen on here about some payday loans getting written off. What are the criteria? Are there any downsides to this, for example bad credit?

Thanks

DCFC79

I hope he is getting help from 1 of the free debt charities rather than paying for the help which is money wasted which could go towards the debts.

Maybe what your referring too are loans from wonga and were written off.

Apples2

His credit is already bad, far too late to consider His credit file now.

Clive_Woody

Missed payments on payday loans means his credit profile is already v.bad so not sure it can get much worse.

If he is paying a company for 'debt management' he needs to stop and use one of the free debt charities such as Stepchange who provide exactly the same service for free. The other company will be taking his money every month, pocketing a big chunk themselves then paying a tiny bit towards his debt.....after all it's not their credit file they are destroying.

Dizzy651

Thanks all. That was my opinion too; his credit can't get much worse.

He is paying for assistance and I've been telling him for ages not to. I think he has finally listened though and will stop wasting his money when that could be paying off his debts.

Apples2

That company he is paying would have taken the entire first two Months payments for themselves, the people he owes money to would not have received a penny (it will not make them happy!).

After that they will be taking about 20% of everything he is paying for themselves.
They are a bunch of vultures.

Tell him to call Stepchange who will do it all for nothing, they will pass all his money to the right people.

DCFC79

Dizzy651 wrote: »

Thanks all. That was my opinion too; his credit can't get much worse.

He is paying for assistance and I've been telling him for ages not to. I think he has finally listened though and will stop wasting his money when that could be paying off his debts.

That's a start, the free ones are better as there's nothing in them to gain from your friend unlike the one he's been using costing him so much a month.