Paydayloan Struggle

sourcrates

Hi,

Why not pop over to the debtfreewannabe forum, post your SOA and we can give you pointers on how to deal with this without the need to keep borrowing.

As advised, never use a fee charging debt management company, debt charities do it for free.

[Deleted User]

I would speak to the loan companies direct - they won't be bad as you fear, most of them don't even charge 'admin fees' or stuff like that so don't let scaremongering put you off. The best case is they will appreciate you are telling them you are struggling and cancel the CPA themselves because their charter or script by regulator tells them that is what must happen.

Is overtime or a bonus achieve able if you are in work?

I was a bit concerned about about a credit card I'd had to dip into - ended up as one of Britain's minimum wage workers, today everyone in the company got a pay rise and the bringing in of shift premiums so for once I am additionally going to be paid for working weekends and lates etc, many rises on the yearly salary of £1,250 which will take effect by December, only yesterday I was thinking me and my work pal would need to find out about the benefit system to top up what was our £15,270 - hours later it's all change and come end of day we're all now on £16,500 minimum. Imagine telling anyone you owed money to you now earn slightly more, got to be a weight lifted. (Never had a literal pay rise quite on this scale before) just got a bigger pay rise in a month of employment then when I was with an employer for 5 years! Christmas definitely came earlier!

You could also try a credit union, depending on your circumstances. I am another for speaking to Stepchange and or reading up 'payday payback' as snowballing. (You only need a couple of lenders to give you breathing space worst case - if you need to look at in small chunks) if you can get the book "When Payday Loans go Wrong" by Steve Perry so much the better. I am sure it will go better then you hoped.

TriggerHappy

Avoid Amigo like the plague, generally speaking debt consolidation should be avoided entirely!

8 lenders, £3k, an avg. of £375 each.

Ok, so it's probably not as straight forward as that but hopefully that gives it a little perspective.

Before you do anything, get pen and paper to hand. Check the pen works. You'll be writing down dates, times, names, agreements etc.

Personally, I'd get in touch with each company first and tell them that you're in financial difficulty and that you would like them to freeze interest and accept a reduced payment to clear the debt. You'll need to sit down and figure out what that payment offer should be, but although you say you have £550ish disposable each month I'd probably keep £100 of that back for emergencies.

So that means you'dd be offering a share of £450 which, assuming they all freeze interest, will clear it all in 7 months. You need to also explain that if it's not acceptable then you'll be contacting Step change - bear in mind that if one rejects the offer then the whole thing fails really.

If your offers are all accepted, happy days! If not, go to Step Change (or one of the other free debt charities) who will pretty much do the exact same thing

That's me personally, I just liked to keep a degree of control when tackling debt. It's not for everyone though and there is certainly nothing wrong with asking a charity for help straight away

Good luck!

Sncjw

Why do they want 1,200 a month but you only have a debt of 3k.

swardean

I know it doesn't seem it to you but your debt is peanuts in the scheme of things and insolvency option (IVA, DRO) or even debt management is not for you.

Better to deal with the lenders direct. Contact them, tell them you are in financial trouble but trying to resolve it. Ask them to immediate suspend interest and you will try to repay the capital. Contact your bank and ask them to remove the CPA on these loans so the lenders cannot take the money.

Please note the above actions will affect your credit report, but this will happen anyway if you cannot make your full payment.

Based on your income and expenditure and dependency on pay day loans you have a case for reclaim of mis-selling. You can take this route whilst adhering to the above. If you are successful you can get the damage removed from your credit file and even get any interest you have paid come back to you.

debtcamel is a great source of information on payday loan reclaims. Good luck

RJc

I have contacted my bank they said it would be quicker and easier to just send me a new card. Does that cancel my CPA?

Willing2Learn

Assuming they are sending you a card with a new long-card number, then all the CPAs would be as good as cancelled.

RJc

Updated to 1 person, also added a few bits and bobs like haircut, entertainment etc just so I have something left over.
Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 910
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 910

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 320
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 50
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 9.99
Groceries etc. ......................... 0
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 9
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 20
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 0
(Unnamed monthly expense)............... 0
Total monthly expenses.................. 488.99


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 0........(320)......0
Total secured & HP debts...... 0.........-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Sunny..........................336.42....134.......292
Lending Stream.................614.62....249.......1333
Satsuma........................147.6.....49.2......1575
CreditCard.....................345.89....37.21.....0
Myjar..........................1100......163.......237
Loans2go.......................250.......56.64.....990
Unclebuck......................200.......66.58.....1011
MrLender.......................250.......91.46.....1256
WageDay........................252.8.....253.......0
Swift Sterling.................500.......249.......1273

MovingForwards

Rent/board/food payable to your parents.

Petrol/mot/repairs/tax or contribution to your parents.

Travel to work is that walk/bus/drive.

Account for every penny that you pay out. What is left gets paid towards the debts.

Recalculate everything if anything changes (payrise/job change etc).

You will get through this.

TriggerHappy

Sorry buddy, I think you've missed the point of the SOA as (as pointed out above) you're missing pretty much everything...

If however you are living with your parents and they're paying for your food and you're not having to contribute to rent, bills etc(?) then have you considered coming clean with them and asking them to lend you the money while drawing up a contract where you commit to repaying over 6 months? Depends on your relationship, their ability to loan to you etc obvs. also you would have to be 110% committed as you don't want to screw up your relationship with them.

If however you do need to pay other things then I think that you'll benefit from having a call with a debt charity as you might not fully grasp your situation and what you need to consider/do to get out of it.

Bottom line, it's a few grand and thus not the end of the world