Completely out of my depth - payday loans

Notsosuperdad

Hi all,

I am new to the site, and hoping for some advice to turn my life around.

Situation is this... I got myself into a bit of a mess with payday loans - then last year I got to the point where I'd borrowed more than I could afford to repay. I brought the subject up with my parents, and they helped me out by getting a loan in their name to put me straight. I'm repaying this loan and haven't missed a payment back to my parents.

The problem is, however, I have got back into the the same situation using payday loans, and I sit here typing this today with £2.35 left in my account until the end of the month, as I've had to repay what I owe. That's after taking more out this month to repay other ones etc etc. The whole thing has spiralled out of control.

I'm on a good salary, but I (or my family) don't see any of this because it's all being paid to payday loan companies in interest.

My OH doesn't know. We're not married but have been living together for a couple of years. She is low paid, and I'm the biggest earner, household bills are all paid and not in arrears.

I think she may need to be made aware at some point in the very near future!

My question, however, is this... I'm tempted to block all direct debits and CPA's to the companies this month, and contact each one (all 15 companies!) and set up a repayment of say £6-8 per month. Providing the interest is stopped, this will slowly bring down the amount owed. Has anyone done this in the past? Is there anything the payday loan companies can do to stop this? Or providing something is being paid do they tend to accept it?

Thanks in advance

wiltsguy_2

15 companies wow! you already seem to know the best course of action, contact these companies right away and work out a payment plan to get them cleared off without just defaulting and not contacting them, without not paying household bills.

Also it would be a great benefit to tell your OH, it will be hard but a problem shared....you could then sit down together and work it out, maybe let your OH take control of the finances for a bit, gives you a break as it is stressful.

wiltsguy_2

have a look in the debt free wannabe section and maybe post a SOA in there and you will get loads of help and advice.

The advice i got from this site helped me to become debt free

stator

There are some good debt help charities. The main thing is to stay away from debt consolidation companies or people who phone you up offering to write off all your debt. They often just exploit you. So you need friendly advice from people like:
StepChange
Citizens Advice
Christians Against Poverty

Also you can get some help in the Debt Free Wannabee forums on this site.

It does seem like you will have to enter into some kind of repayment plan, but most of us aren't qualified to advise on the many different types that now exist and which would be best suited to your circumstances.

Stevie_Palimo

Notsosuperdad wrote: »

Hi all,

I am new to the site, and hoping for some advice to turn my life around.

Situation is this... I got myself into a bit of a mess with payday loans - then last year I got to the point where I'd borrowed more than I could afford to repay. I brought the subject up with my parents, and they helped me out by getting a loan in their name to put me straight. I'm repaying this loan and haven't missed a payment back to my parents.

The problem is, however, I have got back into the the same situation using payday loans, and I sit here typing this today with £2.35 left in my account until the end of the month, as I've had to repay what I owe. That's after taking more out this month to repay other ones etc etc. The whole thing has spiralled out of control.

I'm on a good salary, but I (or my family) don't see any of this because it's all being paid to payday loan companies in interest.

My OH doesn't know. We're not married but have been living together for a couple of years. She is low paid, and I'm the biggest earner, household bills are all paid and not in arrears.

I think she may need to be made aware at some point in the very near future!

My question, however, is this... I'm tempted to block all direct debits and CPA's to the companies this month, and contact each one (all 15 companies!) and set up a repayment of say £6-8 per month. Providing the interest is stopped, this will slowly bring down the amount owed. Has anyone done this in the past? Is there anything the payday loan companies can do to stop this? Or providing something is being paid do they tend to accept it?

Thanks in advance

Blimey 15 is maxed out here that's for sure, I mirror the other post and suggest telling your oh and also notifying the actual payday lenders asap.


Once you pay all the debts off write to the lenders again and ask to be put on a in-house black list so that you cannot borrow again from them, Some will do this without any issues and just be clear and to the point with them.

DCFC79

Tell your OH asap and contact the lenders concerned.

[Deleted User]

How are you doing OP?

NICHOLAS_2

What are you defining as good salary, how much disposable income do you have? It would be better if you budgeted the money and paid them back rather than damage your credit history, although i presume that you may already have had bad credit history if you turned to payday loans?

They are, if used correctly, a decent way for people to get hold of short term cash but if used stupidly they can be the end of your credit history.

If your credit history is already knackered then my advice would be to ignore them and pay nothing back and wait for the debt to drop off your file in 6 years, if your credit rating is good then i would try to get your parents to clear the debt. Although they may want to let your crash and burn as some sort of life lesson.