Unsecured/payday loans

Kadoo987

Hi guys,
So this is my first post and I'm looking for some advice.
I have an array of payday and unsecured loans, which as you can probably imagine, involve hefty repayment fees.
From mid January-February I'm coming into a substantial amount of money (enough to pay off all that I owe).
Im considering calling all companies concerned to ask if I can stop the repayments until this point and arrange to pay them all off in one go on an agreed date, say 25th February for good measure.
Do you think this is something they would adhere to and how will it affect me personally?
Many thanks

sourcrates

Hi,

They won't hold off action indefinitely, chances are they will sell your accounts on before that, you can write and tell them your plans, but don't expect any compliance from payday loans companies.

When you get your windfall, simply negoatiate with whoever owns the debts at that point in time.

Breaking the terms of your agreements will give you late payments, possibly defaults on your credit file, just so you are aware of this.

Kadoo987

Hi sourcrates, thanks for your response,
I thought this at the time, but then realised that none of the loans are actually due to finish before this date, so surely if I'm paying off the whole debts on the 'last repayment' date, what's the difference?
Although I guess we are dealing with loan sharks, notoriously ruthless.

Kadoo987

I have had one before, where a company tried to take money from my card, but i had got a new card without updating my details to the company. I called them once I realised and they were fine with me rescheduling the payment so I'm hoping this might be the case again (for different reasons)

sourcrates

Kadoo987 wrote: »

Hi sourcrates, thanks for your response,
I thought this at the time, but then realised that none of the loans are actually due to finish before this date, so surely if I'm paying off the whole debts on the 'last repayment' date, what's the difference? .

The difference is you won't be adhering to your contracted monthly payments, so you will be in default of your agreements.

As I said, if your not bothered about your credit file, it makes little difference.

Kadoo987

Well im in the process of starting a new job where my wages will increase significantly, so I'm finally seeing light at the end of the tunnel. Me and my other half are planning to get to get the money together for a mortgage by mid 2018. Do you think after February, assuming that I take out no other pathetic loans and always repay everything on time, along with leaving money in my account that my credit rating will improve enough? For the record, I haven't checked, but I think I'd need a shovel to find my credit score.
Thanks

jamesd

You've very severely reduced your chance of getting a mortgage because payday loans are something of a kiss of death if taken out recently and some lenders won't touch you until they are no longer visible on your credit record at all because it's taken as a sign of financial mismanagement.

Don't do anything that will make it worse than it already is by making payment arrangements instead of paying on time, unless you really have no choice.

Do get your credit scores and reports from the various places that provide them so that you know the damage and can potentially track improvements over time.

On_my_way

As you are planning to get a mortgage in 2018 you have got to do absolutely everything you can do to pay what you have previously agreed to pay on time to avoid any defaults (which will make it harder for you to get a mortgage).

If I were you I would severely cut down spending to make sure you can meet the payments until your payout.

sourcrates

Kadoo987 wrote: »

Well im in the process of starting a new job where my wages will increase significantly, so I'm finally seeing light at the end of the tunnel. Me and my other half are planning to get to get the money together for a mortgage by mid 2018. Do you think after February, assuming that I take out no other pathetic loans and always repay everything on time, along with leaving money in my account that my credit rating will improve enough? For the record, I haven't checked, but I think I'd need a shovel to find my credit score.
Thanks

If you fail to make your payday loan repayments on time, your credit file will be marked as late payment, if you consistently miss payments, you risk a default.

As others have said, just having payday loans on your credit file suggests you cannot manage your money correctly, lenders do not look on this favourably.

Your chances of a new mortgage in the next six years would be slim as things stand.

On_my_way

Sourcrates- I have read many times that lots of mortgage lenders will consider applications even if a person has had payday loans as long as they haven't had any within 12 months.

jamesd

On_my_way wrote: »

Sourcrates- I have read many times that lots of mortgage lenders will consider applications even if a person has had payday loans as long as they haven't had any within 12 months.

Some will. Others won't be interested if there's even a hint of one on the credit record as a couple of people have observed here.