Payday loans debt spiral, need help

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

sourcrates

Hi Rado,


Welcome to the forum,



You need to take a long hard look at yourself, you cannot go on borrowing in this way, if the payments are not affordable to you, defaulting is your only option, get some advice from stepchange, your credit will already be shot anyway, as sub-prime lending is not considered to be a good thing.


Some kind of debt management may be an option for you, as for reclaiming on old payday loans, a full guide to this is available here :


https://debtcamel.co.uk/payday-loan-refunds/

Rado123

What do you mean by writing about debt management. Sorry I have never heard about it. Please tell me how this could help me?

Regards
Rado

sourcrates

Rado123 wrote: »

What do you mean by writing about debt management. Sorry I have never heard about it. Please tell me how this could help me?

Regards
Rado

You asked :


"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?"


You cannot have one without the other i`m afraid, if you cannot afford to pay your debts at the contracted payments, then a debt management plan allows you to repay what you owe, at a lower rate than normal.


This is an entirely informal agreement between you and your creditors.



One of the free debt charities can help you set this up, and give you more information, there are also the statutory regulated debt solutions such as DRO, IVA, and Bankruptcy, each would depend on the value of your debt and your personal circumstances.