payday loan help

Nikkileanne

Ok here goes I!!!8217;ve got myself in a right pickle or ten!!! I!!!8217;ve done lots of reading of this forum and it has been very helpful. I!!!8217;m planning on a self managing.

So at the moment I have several loans etc behind by two months on one, on top of this I have 6 payday loans all taken recently (stupid I know) and have no way of paying these!!! And a large overdraft with the bank.

So far I have spoken to the bank about my overdraft and have arranged an eight month plan to get this to zero. I can keep making the regular payments in my loans and have agreed a plan with the one I!!!8217;m in arrears on for a year and this is manageable and still leave me enough to
Live and provide for my daughter.

My issue is with the payday loans - I wanted to ask advice - could I propose a token payment to then for 8 months till I!!!8217;ve cleared the above? This will then give me the money once I!!!8217;ve cleared the above to throw at the payday loans from January 2019.

Any advice appreciated.

Thanks.

National_Debtline

Hi Nikkileanne and welcome to the forum


The first thing you need to do is make sure the payday loans can't take money from your bank account. You need to cancel the continuous payment authority (CPA) in order to do this. You'll find a sample letter to send to your bank here https://www.nationaldebtline.org/EW/sampleletters/Pages/Withdraw-your-continuous-payment-authority-from-your-card-issuer-%28sole-name%29.aspx.


To have the best chance of successfully dealing with your debts you need to include all of them and treat them fairly. Start with a statement of affairs (SOA), with the money you have spare each month split it proportionally between all of your debts. Then send each creditor a copy of your SOA and a letter asking them to accept the reduced offer and freeze all the interest.


That will include your overdraft so open up a new bank account somewhere else that you do not already have debt. One of the free debt advice agencies can help you work out your offers, provide sample letters and look at any other debt options you may have available.


If you want to post your SOA back on the forum (format for MSE) we can offer you more advice. You'll find a SOA here
http://www.stoozing.com/calculator/soa.php. Good luck.


Susie
@natdebtline

Nikkileanne

Is there not anyway to do it as stated above??? Sorry i'm very new to all of this.

I don't want to p*ss off my bank - I have a loan with them as well as the overdraft - like above the loan payments are all fine and the repayment plan I have agreed to already for the overdraft and is only 8 months.

Thanks
Nikki

National_Debtline

Hi Nikki,


I thought I would reply, as Susie is busy.


I understand the logic of how you want to approach the debts, but it wouldn't be advisable to do it the way you have suggested as it would mean some debts would receive a disproportionate payment. This is known as a preference payment, and if your debts become aware they are not being treated fairly they may refuse to negotiate with your and/or be more aggressive in taking court action.


Changing banks is essential, without doing this it will be very hard to negotiate. Don't worry about changing the plans you have put in place so far. They were done with the best intentions, but need tweaking. You can change these and will need to do so in order to be as fair as possible. Good luck,


Laura
@natdebtline