Payday loan hell

Debtfreemooo

Hi everyone

Stuck in a bit of a rut, currently on maternity leave and due to big drop in income and a poor credit rating I stupidly took out a payday loan and then another one and my OH did the same and now can’t afford to repay them each month.

Do I carry on repaying but then falling behind with other outgoings or stop paying and contact the lender and arrange £100 per month for all 4 so £25 each per month (total loans are around £2500 incl interest etc) .

Thanks

sourcrates

Hi,

Payday loans are the same as any other unsecured credit debts, they are non priority and are bottom of the list for payment if you are struggling.

You need to speak to the lenders and make affordable arrangements to repay them.

Debtfreemooo

Thanks for your reply.
Think I knew that was the answer but just really mad at myself as I!!!8217;ve not applied for credit in a few years after getting into a mess before and now I stupidly did this !

sourcrates

Debtfreemooo wrote: »

Thanks for your reply.
Think I knew that was the answer but just really mad at myself as I!!!8217;ve not applied for credit in a few years after getting into a mess before and now I stupidly did this !

You will need to contact them quickly to avoid them taking the agreed payments.
Most are easy enough to deal with.

National_Debtline

Hi there and welcome to MSE,


Sourcrates is right, that a payday loan is no more important than any other credit debt (credit card, loan, catalogue etc). If you have debts like this as well, you will need to approach them all in the same way. Do a SOA, list the money you have coming in and all of your essential bills (rent/ mortgage, council tax, gas, electric, phone, travel, food, clothes etc) and the money remaining is for the debts. You need to divide that money fairly between the debts so they all get a proportioned offer. So if one debt is bigger than another, they would get more money per month.


You will also need to cancel the Continuous Payment Authority that payday loans have. Unfortunately, cancelling the direct debit and bank card may not be enough. You need to withdraw the authority with the bank. You can do this by sending your bank this letter (recorded delivery) - https://www.nationaldebtline.org/EW/sampleletters/Pages/Withdraw-your-continuous-payment-authority-from-your-card-issuer-%28sole-name%29.aspx Once you have done this, no more payments should be sent. If they are sent, after the bank has received this letter, then the bank must refund you.


Laura
@natdebtline