Judge me- new lightbulb moment

sourcrates

Hi,

No judgement here.

Your choice on how to tackle this depends on you.

I think you could clear these debts pretty quickly if you got the lenders to stop interest, so I would say a debt management plan through stepchange or payplan would be my choice.

Any sort of debt management will effect your credit file though.

But if you can't get the debts down by normal methods of repayment then I would say a DMP is the way to go.

sourcrates

Can I just add, and I apologise to the OP for going slightly off topic, that all you people who are repaying payday loans, if the interest is proving to be too much, and you can live with the negative impact on your credit file.

Most payday lenders, will, if you have defaulted, or are about to default, accept in settlement just the original loan amount minus all interest and charges, if you ask them.

They usually allow this after around 3/4 weeks after your payment was due.

It's not 100% guaranteed, but worth asking if your struggling.

amy17brook

Thank you for that. I'm so close to the end now available though. I'd rather just pay it( early if I can).

The debts have built up. Initially we had some hard times, being unemployed and not being able to afford bills. Some are bank charges from going a couple of quid over. Ended up paying nearly 400 quid on that one! Rest is because we got on track and booked a wedding in Greece and then my (now) husband lost his job.
He now has a new job so we are trying to pay stuff off.
Im trying to avoid a dmp as I'm trying to build credit at the same time so when they are paid I can start looking at a mortgage (springboard one). My dad will put up funds for us for that. Debts are my responsibility though.

enthusiasticsaver

You need to tackle the sunny (as you seem to be doing) and 118 loans first due to the really high rate of interest. I would throw everything at the sunny loan first as it is almost gone. If your husband has private money is that in addition to the £800 or is the £800 all he gets paid?

amy17brook

Hi, the 800 is all he gets paid. Sometimes he does overtime and we get a bit more. Am struggling to get him to see the seriousness of the whole thing though. Checked my bank account this morning and we have nothing, and no food. I'm due to move to monthly pay soon though which should make life a bit easier.

Vkz

You could save a couple of quid by only offering the debt companies a token payment of a £1.00, just explain to them that you're in financial difficulty and can't afford anymore than the £1.00 offer at the moment.

enthusiasticsaver

If your husband is unconcerned about the situation then this will be harder. £800 is a very low salary. Does he work full time or part time? Any chance of him getting a second job?

The obvious place to cut is groceries, first by giving up smoking as that will give you an extra £80 a month. Have you tried stopping with help from your doctor - nicotine patches etc? You can't do anything about wheat intolerance and yes that will add a bit to it. Your problem is at that rate of interest on your debts the capital will take a long time to go down. I cannot see why your OH is not worried about that. He needs to make paying this off a priority. Is he fully aware of your situation?

amy17brook

800 is better than nothing. I'm absolutely terrified that he will quit which is why I try to deal with everything myself. He's not aware in the slightest. He takes the ignore it and hope it goes away approach. Has done for years, it pointless even trying to discuss it with him.

Fireflyaway

You have enough money to cover all your payments so that's a great start. Can you cut back on groceries? Probably could halve it I recon. Maybe switch to e cigs?
Then if this were me I would renegotiate the payments. Pay the smallest you can get away with then do as you suggest and follow the snowball method. This is definitely achievable and as long as you stick to a budget it will be done and dusted without too much pain! Good luck.

ViolaLass

amy17brook wrote: »

800 is better than nothing. I'm absolutely terrified that he will quit which is why I try to deal with everything myself. He's not aware in the slightest. He takes the ignore it and hope it goes away approach. Has done for years, it pointless even trying to discuss it with him.

You're terrified he'll quit his job if you explain how in debt you are?

He needs to pull his weight too.