Payday loans endless spiral.

Rado123

Hi,
I feel that I need some advice before I make any decisions.

Due to some financial problems since 2015 I took several payday loans, more than 20 and extremly high costs of loan got me to the point where I cant pay some bills. I was trying to avoid defaults so I was talking more payday loans to cover gap after another high cost loan. I hoped that after few months i would be able to consolidate debt in bank or with other lender but my credit score was too low. In 2013 I had a defaults now repaid but still harmed my credit score.

There are only 3 lenders where i took more than 3 loans and company that reclaim interest ignore others. What should I do to recover some costs and back on track?
Now I have second 118 loan 2k but needs to repay extreme 4.5k plus 800 pounds payday loan and 1000 pounds credit line in safety net credit that cost me 200 pounds per month. So I am paying over 500 pounds per month mainly interest and it's just getting worse.
I need to stop this somehow but I don't want defaults. Is there a way to settle repayments I can afford and don't grow debt?
Can I recover any costs from 118 credit line or other lenders where I had less loans than 3?

Thank you
Rado

-taff

You can try, go to the debt free wannabe board and look for the payday loan reclaiming thread.


It's not likely to be in tme to avoid defaults if you can't pay now though

MEM62

Rado123 wrote: »

Hi,
I feel that I need some advice before I make any decisions.

Due to some financial problems since 2015 I took several payday loans, more than 20 and extremly high costs of loan got me to the point where I cant pay some bills. I was trying to avoid defaults so I was talking more payday loans to cover gap after another high cost loan. I hoped that after few months i would be able to consolidate debt in bank or with other lender but my credit score was too low. In 2013 I had a defaults now repaid but still harmed my credit score.

Unfortunately, the slippery slope started with the first loan. As for consolidating, once you had a history of PDL's on your credit file the door to most of the mainstream lenders was closed. Also, as you have discovered, you cannot borrow your way out of debt.

There are only 3 lenders where i took more than 3 loans and company that reclaim interest ignore others. What should I do to recover some costs and back on track?
Now I have second 118 loan 2k but needs to repay extreme 4.5k plus 800 pounds payday loan and 1000 pounds credit line in safety net credit that cost me 200 pounds per month. So I am paying over 500 pounds per month mainly interest and it's just getting worse.
I need to stop this somehow but I don't want defaults. Is there a way to settle repayments I can afford and don't grow debt?
Can I recover any costs from 118 credit line or other lenders where I had less loans than 3?

There is no point in worrying about defaults now. Firstly, they are probably inevitable at this stage and secondly, your credit standing will not be so good at this point anyway.
Thank you
Rado

I would suggest that you take proper advice from one of the debt charities.

I suspect that the situation has got this far out of control because you were chasing loan after loan looking for a way out without further damaging your credit standing. You are already past the point where dealing with the debt has become more important than avoiding defaults.

I accept that you may be concerned that this will damage your credit file but further borrowing is not something that you should be considering anytime soon and, once you have a handle on your finances, time will improve things.

DCFC79

As for your score being low don't focus too much on it since only can see it, lenders see your history.