I am an idiot.. I need a good talking to!

Perspective52

Hi All,

I am an idiot. I got myself into payday loan hell a few years ago. I am on a DMP with stepchange who are really fab.
I was offer a credit card from vanquis, and had a limit of 300. I have since maxed this out. Due to money struggles and a really bad credit score, I have taken out 3 payday loans of 80, 100, and 120. Due to be repaid on 28.10
I am so fed up of my money worries. Very month I do the same, and what with Christmas coming up; but that's a lame excuse.
please could someone kick me up the a**e. I need a reality check.
I am on 1250 per month with outgoings excluding food is 700.
I want to get off this vicious endless cycle.


Thanks
Zoe

nearlyrich

Hi Zoe first off you are not an idiot you just need a little bit of help with your budgeting etc, can you fill in the Statement of affairs ?
http://www.stoozing.com/calculator/soa.php
you can format it for MSE and post it up so people can have a look and make suggestions.

Pixie5740

Putting together a statement of affairs is a good start. See if there's anything you can cut back on and if after doing all that you still can't make ends meet contact one of the debt charities like Step Change or CAP UK for help.

Have you thought about cancelling Christmas this year? I'm sure your nearest and dearest would be happy to forgo presents if it means you get out of the PDL cycle.

National_Debtline

Hi Zoe

We speak to many people with pay day loan debts and it’s a difficult cycle to break. You don’t need a talking to, just some advice.

I agree with the suggestion from the others of completing a statement of affairs as a starting point. You may be able to reduce your outgoings with help from people on this forum, or it may be that you simply can’t afford to pay the loans when they’re due no matter how much you budget.

If you just can’t afford to pay the loans you may need to default on them and then look at other options to deal with your debts, which will depend on your circumstances and any other debts you owe. In that case it’s best to contact a free advice charity like those Pixie mentions or you’re welcome to give National Debtline a call.

James
@natdebtline

Own_Worst_Enermy

You've done something about it before and come through, you can again, how about asking SC to add, whilst I can't understand how come you are not covered by prevention of dependency off of new regulations to be getting 3 separate out at same time? xx


Last year's Christmas pressies I brought well early and by the time it came round, it was like a load of old toot whether I'd saved by buying early or not
You have plenty of time to turn this around, as for reality you could be in a far worse position of homelessness? have no pay date?


Should say I also have one of these payday loans so you aren't alone xx

redpete

Perspective52 wrote: »

...I have taken out 3 payday loans of 80, 100, and 120. Due to be repaid on 28.10...
I am on 1250 per month with outgoings excluding food is 700.

Maybe the reality check you need is on how much you actually spend each month. You should have £550 each month for food and other spending. This would leave plenty to pay off the PDLs and still afford food. So the money must be going somewhere else. Do an honest SOA to see where it is really going.

and what with Christmas coming up; but that's a lame excuse.

True (about it being a lame excuse).

HappyMJ

Perspective52 wrote: »

Hi All,

I am an idiot. I got myself into payday loan hell a few years ago. I am on a DMP with stepchange who are really fab.
I was offer a credit card from vanquis, and had a limit of 300. I have since maxed this out. Due to money struggles and a really bad credit score, I have taken out 3 payday loans of 80, 100, and 120. Due to be repaid on 28.10
I am so fed up of my money worries. Very month I do the same, and what with Christmas coming up; but that's a lame excuse.
please could someone kick me up the a**e. I need a reality check.
I am on 1250 per month with outgoings excluding food is 700.
I want to get off this vicious endless cycle.


Thanks
Zoe

Vanquis doesn't need repaying this month. You only need to pay the payday loans of £300. You then need to stay home and stop spending much (if anything) for the next month. Next month you pay the Vanquis card off and do the same. In December it will be Christmas and you'll be free of the payday loan cycle and able to enjoy it.

If your DMP payment is too high you need to get that down. It can be reduced without the need for you to take on further debt. I would get that down to an affordable figure.

£1,250 isn't a huge wage. I earn a little more than that (£1,300) and my cashflow shows I couldn't afford to make any payments towards my debts at all even though I technically do by using the credit cards to buy the groceries freeing up cash to make the minimum repayments. How much outstanding debt do you have in total? How many people does £1,250 support? Could you improve your situation in the next 12 months? Do you own anything of value such as a house or a car that would prevent you from taking out a DRO or going bankrupt?

SimonSaid

Hi Zoe!

First thing i would say is your not a idiot, everyone here at some point has been there at some point and hey im there right now.

whats helping me is really getting a grasp of things is ynab, i got everything setup last night and got paid today, usually i would see money in and think right no need to worry now spend away but with ynab i could see what i actually had to spend not the big number in my bank and its already got me thinking differently.

there is a free 39 day trial for this, take some time set it up and have a look.