About to lose control

poppasmurf_bewdley

I hope the new bank account you have opened is with a bank that has no connection with your current bank.

Have your salary paid into the new account, and then you can control what goes out. Have you stopped any Continuous Payments on your debit and credit cards?

I was in a similar situation to you, many years ago when I lived with Mum and Dad. My Dad would never have a loan or HP, and if he didn't have the cash to buy something, he did without. He just didn't believe in borrowing. And I never told him about the financial messes I got into, but I think he suspected.

Have you thought about getting your own place, then getting a Debt Relief Order to wipe out everything you owe and starting afresh? Everything you owe seems to be to the large financial institutions and banks, and I wouldn't have any regrets on not paying them. Just a thought.

FatVonD

Do your parents have the means to help out if you asked? If they do i think you should tell them, put up with the telling off and ask for their help, at least with the payday loan. If my son at your young age got into trouble with PDLs I'd be peeved but I'd still help him if I could.

Have you looked at why it is you're so badly in debt? Do you have anything you have spent the money on that you could sell?

thegreenone

Hi Younganddumb
I'm a relative newbie on here too so my immediate thoughts to your predicament need thinking about. Anyone welcome to step in with other ideas.


Whilst I agree with the others that getting a loan to cover others is not the best idea, I think this may give you some breathing space from the payday loan. The avant loan is 40% whilst 118 is 99.9%. I would suggest you keep the loan money, pay off 118 in full and the partner finance. This would leave you with a £400 buffer in your new current account. I trust you not to go out and spend it.


I have debt on a barclaycard and I pay a set amount, over the minimum, each week before the due date. If the minimum is covered. Barclaycard don't request the DD, which puts you in control. ie if your minimum payment is £60pm, set up an SO for £20pw. I realise you are monthly paid but sometimes it's easier to break it down.


If you think you are credit worthy, try and move your bank cc to a 0%. I know it's not easy (trust me, I'd love to but don't earn at the mo.). Again set up a weekly payment to that. With the overdraft at your original bank - I would make an effort to pay in at least £10 per week, over the counter or Standing Order to make sure it goes.


When you are settled, tackle the Avant loan and pay it off asap. There are many, fantastic threads on here with people chipping away at their debts (me included) for inspiration.


Does this make any sense?


In the meantime, are you up for some bar work a couple of nights a week? Or as you work in a school, playground duty usually pays a bit extra every month.


Good luck. As I have found out, there is an amazing amount of knowledge and encouragement on MSE. Maybe look at the £1 a day savings challenge, once you have got sorted.

KirstyO

I can't add any further wisdom to what has already been said but didn't want to read and run. Well done for tackling this head on, and I look forward to hearing what decisions you make and seeing you get straight again. Paying that final payment is the best feeling ever, and I'd love to celebrate with you when you make it

thehistorygirl

Well done OP for aknowledging that there is a problem. I do hope that you manage to sort something out soon. I'm currently on a DMP and it was the best thing I have done, although getting my head in the right place to do something about it took some time.

With regards to the overpayment from Student Finance, if you do get yourself into a debt management plan then they should accept a much lower monthly payment. I was overpaid nearly £2K and I only pay them £10 a month at the moment. Once my DMP was up and running, I rang them with my income and expenditure details and they could see that £10 was all I could afford. OK, it'll take ages to pay off, but at some point I might be in a position to up the monthly amount.

Whatever you do, I really hope you get your situation sorted. There is nothing worse than living under a cloud of debt, worrying if the phone is going to ring for the umpteenth time that day and receiving nasty threatening letters all the time. I've been there and it wasn't nice. Good luck

Younganddumb

Thanks again for all your really helpful comments, I really appreciate the help. It's taking me a while to get my head around everything so it's great that you're all so helpful, couldn't do this on my own.

poppasmurf_bewdley wrote: »

I hope the new bank account you have opened is with a bank that has no connection with your current bank.

Have your salary paid into the new account, and then you can control what goes out. Have you stopped any Continuous Payments on your debit and credit cards?


Have you thought about getting your own place, then getting a Debt Relief Order to wipe out everything you owe and starting afresh? Everything you owe seems to be to the large financial institutions and banks, and I wouldn't have any regrets on not paying them. Just a thought.

Yes I opened a basic current account with Lloyds - my other two accounts are with Santander and Nationwide so this one should be safe. I've not yet cancelled the majority of things, only the stuff which is meant to be coming out before my next payday. Should I cancel the rest despite the fact I'll have the money by then for my next payments?
I would love to be able to get my own place but it's just not possible with the financial situation.. I've never heard of a DRO and I've just done a little bit of research into it and think I am eligible to get one.. Am I right in thinking that means I pay nothing on them for a year (so I could actually use that money to save up to get my own place/learn to drive so I can get a better paid job) and then if my financial situation doesn't improve they get wiped? Sounds too good to be true!

FatVonD wrote: »

Do your parents have the means to help out if you asked? If they do i think you should tell them, put up with the telling off and ask for their help, at least with the payday loan. If my son at your young age got into trouble with PDLs I'd be peeved but I'd still help him if I could.

Have you looked at why it is you're so badly in debt? Do you have anything you have spent the money on that you could sell?

I know for a fact my Dad would down right refuse to help me out (not on his watch though, evil step-mother alert) but my mum is in no shape to help out either unfortunately as she is disabled and lives off benefits. And it was a combination of me living beyond my means and then unexpected costs (student finance) so I over-allocated what I could spend etc. nothing else left to sell, already done all that!

thegreenone wrote: »

Whilst I agree with the others that getting a loan to cover others is not the best idea, I think this may give you some breathing space from the payday loan. The avant loan is 40% whilst 118 is 99.9%. I would suggest you keep the loan money, pay off 118 in full and the partner finance. This would leave you with a £400 buffer in your new current account. I trust you not to go out and spend it.
In the meantime, are you up for some bar work a couple of nights a week? Or as you work in a school, playground duty usually pays a bit extra every month.

Unfortunately this isn't the case for me I can't remember specific interest rates but I know for 118 I originally borrowed £1800 and pay back £2400 and with regards to avant loan for the £2100 it was near £5500 they want back.. Which is why I want clear of that!
Working wise I think if I need to improve my income I just need to get a new job totally.. I already work playground duties and I do the after school club too so I do everyday 8am-6pm and then on the weekends I have one of the children for respite care one day for 6 hours. There are jobs around here I'd love to do which pay more but then I need a car.. Which I can't afford.. Vicious cycle :rotfl:
Thank you very much for all your advice in your post though it's very helpful!

Yeah with the student finance one I did get pushed into paying as much as possible to get it out of the way.. But clearly it's not feasible for me to live off at the moment.

Thank you all once again I really appreciate your help, I'm still waiting for my pack from step change about a DMP but I think I may look more into a DRO

poppasmurf_bewdley

I wish they'd had Debt Relief Orders when I was in my 20's. It would have saved a lot of hassle and ended those sleepless nights when I worried about money.

My suggestion was that you should get your own place whilst you have a fairly decent credit file (assuming you do have that) and then seek a DRO. Once you are in a place of your own, with a 12 month tenancy in place, you could seek a DRO and lose all those debts.

I'm sure some will think it is wrong to follow such a plan, but with the debtors you have, I would have no problems at all with letting them lose a fistful of cash.

Download the guide to DRO's:
http://www.stepchange.org/Portals/0/documents/info/stepchange-DRO-guide.pdf

asparagus1968

Sorry, no help to offer, but what have you done about the £2400 sat in your bank from avant?

Younganddumb

asparagus1968 wrote: »

Sorry, no help to offer, but what have you done about the £2400 sat in your bank from avant?

I emailed them yesterday asking them to take it back as I don't want to end up paying £5k+ back for it.. Still sitting in account though

jimmy*c

I think you should phone them up and further write to them about your decision to cancel (fully within your rights to under the 14 day cooling off period). You need to make a payment to them now that it's in your account. Get it in writing from them that your loan has been cancelled after that. Don't let it sit there any longer, just get rid of it. You don't want to be paying that ridiculous amount of money back, especially in your situation.