About to lose control

Younganddumb

Hi,

I hope someone can give me so advice I have no idea what to do.

Basically I am 21 years old and I have debts of just under £8,000.. I began struggling to have enough money back in September and then over Christmas I made the incredibly stupid idea of getting a "one off" payday loan.. Which has now resulted in me going month-month with payday loan-payday loan. I bring home £850-£1050 a month (usually 950) and just on debts alone £844 is going out of my account.. That's not including rent, food etc etc. I've just gone through my accounts for this month and realised that I have got £60 supposed to be going out of my account for my credit card in 5 days but I have got literally no money and nothing to sell and now I know this is where it's all going to start snowballing down with charges and fees etc
I don't know what to do. Should I cancel the direct debit? Should I call them? I'm struggling to live at the minute so I really can't have it getting any more than it already is!

I've read stuff about debt repayment plans and stuff but my living situation is a bit awkward.. All my debts are tied to my mums address which I live in during the holidays (200 miles away) but I live with my dad during term (as I work in a school) and basically my dad has said if I ever got into financial difficulties he would kick me out.. Which would then mean I'd have to move back in with my mum losing my job and my income.. I assume if I joined a debt plan thing then they would contact me via post?

I'm sorry for all the questions I'm just so stressed about this whole situation and angry at myself for getting myself in this mess. Thank you to anyone who reads this and any advice is much appreciated.

On_my_way

Hi,

You are in the right place to get help. There are loads of tips on here about how to cut down your spending and take control again.

You don't need to tell your Dad but you probably should tell your mum. You should call Stepchange or at least check out their website. Any defaults would be on your credit record for 6 years but after that there will be no evidence of them and you never need to tell your Dad.

Why does your Dad say that? Do you know why you are in debt?

Good luck, you can get through this.

National_Debtline

Hello and welcome to the forum.

Younganddumb wrote: »

Hi,

I hope someone can give me so advice I have no idea what to do.

Basically I am 21 years old and I have debts of just under £8,000.. I began struggling to have enough money back in September and then over Christmas I made the incredibly stupid idea of getting a "one off" payday loan.. Which has now resulted in me going month-month with payday loan-payday loan. I bring home £850-£1050 a month (usually 950) and just on debts alone £844 is going out of my account.. That's not including rent, food etc etc. I've just gone through my accounts for this month and realised that I have got £60 supposed to be going out of my account for my credit card in 5 days but I have got literally no money and nothing to sell and now I know this is where it's all going to start snowballing down with charges and fees etc
I don't know what to do. Should I cancel the direct debit? Should I call them? I'm struggling to live at the minute so I really can't have it getting any more than it already is!

Yes, you should absolutely cancel any forthcoming DDs for non-essentials if you're going to be left without money to live on otherwise. Do this first, then you give yourself time to take advice on how to negotiate with the credit card company and anyone else you owe.


You also need to stop the payday loan cycle. That means contacting your bank to formally cancel any authority those loan companies have to grab money from your account - do that ASAP. More info here:


https://www.nationaldebtline.org/EW/factsheets/Pages/41%20EW%20Payday%20loans/Default.aspx


You may need to open a new bank account altogether if charges etc. are piling up on your current one.

Younganddumb wrote: »

I've read stuff about debt repayment plans and stuff but my living situation is a bit awkward.. All my debts are tied to my mums address which I live in during the holidays (200 miles away) but I live with my dad during term (as I work in a school) and basically my dad has said if I ever got into financial difficulties he would kick me out.. Which would then mean I'd have to move back in with my mum losing my job and my income.. I assume if I joined a debt plan thing then they would contact me via post?

I'm concerned that your dad may have some incorrect assumptions about how liability works. These debts are yours, and yours alone. It doesn't matter who you live with or whether you're related to them. Your dad can no more be chased for a payday loan in your name than I can. Moreover, his credit file is not affected by debts you've taken out. Debts are not "tied" to anyone's address - that's just where correspondence is sent.

Younganddumb wrote: »

I'm sorry for all the questions I'm just so stressed about this whole situation and angry at myself for getting myself in this mess. Thank you to anyone who reads this and any advice is much appreciated.

This isn't meant to be a comprehensive response, just a couple of immediate pointers - this forum can offer you loads of help, but is often better suited to answering one-off questions. I strongly recommend that you contact one of the free advice services (see links on forum homepage) for a full overview of what to do.


Regards


Dennis
@natdebtline

sourcrates

Excellent and concise advice above fron @Dennis.

To stop the payday loan cycle, you need to stop all non essential payments, cancel all CPA's with your bank straight away.

You should never put credit payments above essential living expenses.

Follow National Debtlines advice above, it's the only sensible way out of this.

midsguy75

copy or edit the below Email and send it to all the companies you have lent from, so far debts have been discharged from 3 companies and compensation back from 5 companies totalling over £5000.
Just the big one beginning with W i am waiting for and thats been in the process for 23 weeks and they are sorting out a final settlement.

Over the past couple of years i have been taking out XXXXXXXX loans on a monthly basis, once paid i have paid it off in full and have had to take out another just to get through the month, i believe the correct lending decisions have not been made and these loans have not been affordable.

I therefore request that the interest paid for all of the loans is paid back in full, as full and final settlement.

This amount would enable me to clear my existing balance and enable to to get my finances back on track.

XXXXXXX has caused severe financial difficulty to myself and family due to irresponsible lending decisions and due to my credit ratings i know that i would not be able to receive a loan now due to your changes.

Younganddumb

Thank you for all your helpful advice, I really appreciate it

The reason my Dad is like that because he very much thinks that if I get myself into a mess it is my responsibility and I should control it and that if I've got myself into such a mess I am irresponsible.. I wish it was just because he had a misguided conception on the liability but nope.. just stubbornness!

I have cancelled the Direct Debit for my credit card which is supposed to be coming out soon and I have just opened up a new bank account which has nothing tied to it.. I'm not really sure what I am supposed to use it for though?

Once again thank you for all your kind advice I really appreciate the support.

Also I have managed to summarise the main debts -
Overdraft from main bank : £1500
Credit card from main bank: £2000
Barclaycard: £800
118 Money: £1400
Barclays partner finance: £600
Student Finance: £700

student finance annoyed me very much.. I dropped out in Jan 2014 and received a letter saying I had been overpaid so I paid back £184per/month for 6 months and got told that was it.. cue another letter in Oct 2014 saying I owe them another £1400 which I have to pay back over the next year :mad:

Mrs_Hutchins

djrich1975 wrote: »

copy or edit the below Email and send it to all the companies you have lent from, so far debts have been discharged from 3 companies and compensation back from 5 companies totalling over £5000.
Just the big one beginning with W i am waiting for and thats been in the process for 23 weeks and they are sorting out a final settlement.

Over the past couple of years i have been taking out XXXXXXXX loans on a monthly basis, once paid i have paid it off in full and have had to take out another just to get through the month, i believe the correct lending decisions have not been made and these loans have not been affordable.

I therefore request that the interest paid for all of the loans is paid back in full, as full and final settlement.

This amount would enable me to clear my existing balance and enable to to get my finances back on track.

XXXXXXX has caused severe financial difficulty to myself and family due to irresponsible lending decisions and due to my credit ratings i know that i would not be able to receive a loan now due to your changes.

You have received compensation in relation to incidents like this?

I am disputing a balance with Quick Quid that has since been passed to a DCA.
They allowed to to re-loan, roll etc for 23 months!
Did not offer me assistance etc.
Can I seek compensation? or is the balance being written off fair?

sourcrates

Mrs_Hutchins wrote: »

You have received compensation in relation to incidents like this?

I am disputing a balance with Quick Quid that has since been passed to a DCA.
They allowed to to re-loan, roll etc for 23 months!
Did not offer me assistance etc.
Can I seek compensation? or is the balance being written off fair?

If you believe interest and/or charges were unfairly applied, complain in writing to the company concerned, many people have had all interest and charges wiped in return for just repaying the original capital balance.

Red-Squirrel_2

Younganddumb wrote: »

The reason my Dad is like that because he very much thinks that if I get myself into a mess it is my responsibility and I should control it and that if I've got myself into such a mess I am irresponsible.. I wish it was just because he had a misguided conception on the liability but nope.. just stubbornness!

You are 21, you don't have to tell your dad anything about your finances if you don't want to, as long as you're able to pay any keep/bills that you need to.

I certainly hope he wouldn't open your post, are you worried that he might?

Have you had a look at stepchange?

Younganddumb

Red-Squirrel wrote: »

You are 21, you don't have to tell your dad anything about your finances if you don't want to, as long as you're able to pay any keep/bills that you need to.

I certainly hope he wouldn't open your post, are you worried that he might?

Have you had a look at stepchange?

If he gets suspicious about what is coming, he certainly would. I have done the debt remedy tool thought step change and I have requested a pack to be sent to me.

So, last week I applied for a loan through Avant Credit for £2,400 thinking I could pay off my overdraft and something else with it, I signed the things and then after it said I needed to send in my income etc and bank statements to take my application further - upon consideration at the point I decided that it was the wrong way to go about it so didn't continue with the application. I've come home from work everyday to have voicemails from them saying I need to send bank statements to carry on with my application but then I checked my bank this morning and low and behold there's £2400 sat in my account.. Now what?!

Out,_Vile_Jelly

You should have a cooling off period during which you can cancel (in writing) the loan. You urgently need to get advice from a debt charity.