Paydayloan Struggle

RJc

I have got a lot of payday loans out of serve stupidity lately and need advise on my options.
They need £1,200 per month I have 522 a month disposable income. I have spoken to a financial adviser from the company GW financial, they advised I take a "Debt management plan" with them, and that's my best option. But I'm rather confused as to what options are best for me, as IVA, bankruptcy etc are all new to me.

The offer they made me was £380 each month for 13 months and for the first 4 months they keep £150 and 5-13 they keep £57

The total Debt as it stands today is £2873.47

I have tried to get a loan from a few companies like tesco, barclays etc, to try and consoliate my debts that way plus the interest isn't a killer like the payday loans but was declined.

What should I do?

Willing2Learn

Hi RJc and welcome to the forum

RJc wrote: »

I have spoken to a financial adviser from the company GW financial, they advised I take a "Debt management plan" with them, and that's my best option.

Whatever you do, don't go to a company like GW financial as you will pay through the nose for their service. Use a free debt counselling service such as StepChange

If it were me, I would start by using the StepChange online 'debt remedy' tool.

Also, if you feel that you have been sold credit by payday loan companies who have acted irresponsibly, without taking into account affordability, then you may have grounds to complain.

RJc

Willing2Learn wrote: »

Hi RJc and welcome to the forumWhatever you do, don't go to a company like GW financial as you will pay through the nose for their service. Use a free debt counselling service such as StepChange

If it were me, I would start by using the StepChange online 'debt remedy' tool.

Also, if you feel that you have been sold credit by payday loan companies who have acted irresponsibly, without taking into account affordability, then you may have grounds to complain.

Thank you I'll defiantly check out StepChange. Grounds to complain?

Willing2Learn

RJc wrote: »

Grounds to complain?

Yes. A large number of the PayDay Loan customers have made official complaints and have won their cases against them. Have a read of the thread below:
Reclaiming money back from various payday loan companies

and for guidance on how to complain, if you feel you have a case, then have a look at the DebtCamel article:
How to get a payday loan refund (with template letters)

Edit: Are you currently working?

Fireflyaway

I've been in the same situation. At one crazy point I had 7 payday loans and the monthly repayments far exceeded my income.
Don't stress too much, it can absolutely be sorted.
Definitely don't pay anyone to handle this. Its just increasing what you owe, even if monthly payments are lower. Also don't borrow more money to pay it off either. That's not sorting the problem, it's just moving it around.
I'd recommend you contact the company directly. Explain your circumstances have changed and you can't pay the required installments as that would cause you to miss priority bills. Tell them what you can afford each month and set up a standing order to pay it. Don't agree to an automatic card withdrawal just in case they clear your account.
One tip. Don't agree to a payment that leaves you too close to the line. Things come up and you need some extra money to deal with such things.
Agree to something that is genuinely affordable.
In my experience these companies are used to coming to payments arrangements. I'm pretty certain they will agree to something. Don't be afraid.

RJc

Willing2Learn wrote: »

Edit: Are you currently working?

Thanks for the links I'll give them a read and yes I am currently in full time employment.

TriggerHappy

Hiya,

Have you tried calling and speaking to the companies directly?

Which are the companies are some are "friendlier" than others, but bankruptcy, DRO or IVA are not for you. I don't think a DMP is the way to go either.

Go to the Debt Free Wannabe forum and post up a statement of affairs (SOA - income, outgoings, etc).

Clearing up under £3k of debt when you have over £500 pcm disposable income (you'll need to be very specific in your SOA to be sure this is realistic.

Putting the matter of money to one side, why/how did you rack up the debt? Sorting out your immediate debts is a good thing but not if there's something more sinister behind the debt like gambling...

RJc

TriggerHappy wrote: »

Hiya,

Have you tried calling and speaking to the companies directly?

Which are the companies are some are "friendlier" than others, but bankruptcy, DRO or IVA are not for you. I don't think a DMP is the way to go either.

Go to the Debt Free Wannabe forum and post up a statement of affairs (SOA - income, outgoings, etc).

Clearing up under £3k of debt when you have over £500 pcm disposable income (you'll need to be very specific in your SOA to be sure this is realistic.

Putting the matter of money to one side, why/how did you rack up the debt? Sorting out your immediate debts is a good thing but not if there's something more sinister behind the debt like gambling...

I haven't yet - the companies include; Sunny, Lending Stream, Satsuma, SwiftSterling, Wageday, Mrlender, Unclebuck, loans2go. Whats the Debtfree wannaba section?

No I'm not addicted to gambling, I have had a past with substance abuse, although this was accumulated on Holiday, with me just not working out how well I could pay these off. I was just hoping to get a loan for 3k or so from a big company and pay off all debts and go from there, I haven't tried amigo yet though.

Willing2Learn

RJc wrote: »

I haven't tried amigo yet though.

I urge you not to consider Amigo or any of the guarantor loan companies, as it can just lead to you falling out with the guarantor if things become unmanageable financially. Much better to sort out your monthly budget, to be in control of your spending and manage your finances well.

As said, it might be a good idea to head over to the Debt-Free Wannabe board and to post up your SOA That way you can get more targeted advice.


http://www.stoozing.com/calculator/soa.php

Shakin_Steve

The worst thing you could do is to try Amigo loans. Anyone who uses them is a fool, and their guarantor is an even bigger fool. You wouldn't be taking the loan out, your guarantor would, and if you didn't pay, they would have to.
Anyone who is daft enough to backstop an Amigo loan should realise that they would be better taking the loan out themselves, at a much reduced interest rate, and passing it on to the loanee.

DCFC79

RJc wrote: »

I haven't yet - the companies include; Sunny, Lending Stream, Satsuma, SwiftSterling, Wageday, Mrlender, Unclebuck, loans2go. Whats the Debtfree wannaba section?

No I'm not addicted to gambling, I have had a past with substance abuse, although this was accumulated on Holiday, with me just not working out how well I could pay these off. I was just hoping to get a loan for 3k or so from a big company and pay off all debts and go from there, I haven't tried amigo yet though.

Dont try amigo, 1 the apr will be extortionate and 2 you have to find a guarantor willing to make the payments if you dont.

Look at your spending and cut back, do some extra shifts at work, sell some stuff, ditch the brands and go shops own items.