Payday Loan Trap - Please help.

sourcrates

Newdirections wrote: »

Hi Jack


What is your current credit score like? As you said, you shouldn't take out more pay day loans but might you be able to get a loan to consolidate all of these pay day loans ?
A good place to try first is your bank. You could also try Avant Credit, First Stop loans, or a high street lender (if your credit is OK). The companies I've mentioned do have quite high APR's but it would be preferable to a pay day loan.

Not the best advice to be giving to be honest.

Consolodation rarely works, and the fact the OP has payday loans already will be looked on negatively by lenders.

So only high interest options will be available, it's akin to jumping into the piranha tank from the shark pool !!!

C.M.

this guy appears to have joined the forum just to go around various threads to tell people to go to avant3 - its at least the 2nd time I've read him say that in the past 10 mins

Sillygal

Hi Jack,

I too got stuck in the payday loan trap. The actions I took were :

1. Phone the bank and stop the Continuous payment authority to all these companies NOW.
2. Do Stepchange Debt remedy online. Don't hesitate, they are brilliant!!
3. If you don't feel confident negotiating with your creditors send them the standard 'i cant pay £x but will pay £x while I seek advice'.. Same letter to all creditors. Better to keep it all in writing anyway.
4. Make sure you list any and all debts you have got on your Stepchange debt remedy. They will not make you pay more than you can afford. Your creditors can't take what you haven't got.

It will take a few weeks to get everything sorted but you will feel so much better if you take control.

We have all been through this so do use our experiences.

Welcome to the beginning of your journey x

neosky

Thank you all.

Can you advise any help with a template for the payday loan companies? I'm not really sure where to start with writing to them.

I am currently completing my "StepChange Debt" profile as I type this.

Thanks all,

Jack.

sourcrates

neosky wrote: »

Thank you all.

Can you advise any help with a template for the payday loan companies? I'm not really sure where to start with writing to them.

I am currently completing my "StepChange Debt" profile as I type this.

Thanks all,

Jack.

You don't need to write to them if your going through stepchange, they will do that for you, however, if you feel compelled to do so, then use this :

https://www.nationaldebtline.org/EW/sampleletters/Pages/Hold-action-on-your-account-%28sole-name%29.aspx

The most important thing, which you should of done already, is prevent any of them taking money from your account when the debts fall due.
Cancel the CPA's, and as added security, tell your bank you have lost your card, and get a new one.

Otherwise they will empty your account without a second thought.

neosky

Hello everyone,

I managed to secure a personal loan from my bank (HSBC) and have now paid off all the payday loans in full and will be paying back HSBC £75 a month. It is safe to say I will NEVER get myself into a situation like that again and just wanted to thank you all for the sound advice and kindess.

I have bookmarked this thread to remind myself never to touch payday loans again.

Thank you all,


Jack.