I’m in debt and I’m stuck

mrtfc

Hello everyone.

Firstly I’m after no sympathy, it’s my own fault, I’m just stuck in life with debt. I’ve spiralled into debt with payday loans, that are now as much as if not more than my monthly wage. I just need to clear them, it’s making me ill and I’m in constant worry over them. For instance I’m paid Friday and I want to leave work at midnight to ensure I can get my rent out for my mother. I’ve now started missing payments as I’m not getting enough money and I’m scared to phone them!!!! I’m literally worried sick.

I sent off for StepChange help and have even received the breakdown of the pack to get them to help pay 527 a month for me but I’m scared to send it off as I’ve read I can’t even withdraw any money for myself! I’m all over the place and I’m reaching out for some guidance.

Thank you all.

EssexHebridean

Let me guess - these are all on recurring payments too, rather than being on standing order or direct debit?

First thing's first - can you ask your work whether you can get paid to a different account or whether it's to late to sort that out for this payroll? it may well be too late but worth an ask.

Do you have another bank account that isn't linked to any of the PDL's? if you haven't, open one - a nice basic one will do you. It should not be with the same bank your existing current account is with.
Is your existing account one that has an overdraft facility, and if so are you already into that facility or not?

Above all try not to panic - we rarely see a situation on here that can't be resolved.

mrtfc

It’s monthly payments out of my bank each month, so a direct debit i think? I’m literally scared to death nowadays, I’ve missed payments recently and am just ignoring letters and texts as I’m in a state.

My bank doesn’t have an overdraft but I’m somehow in one!

tlc678910

Hi,
Good idea to start with a fresh bank account/get wages paid into a different account, but in the mean time:

If you have online banking log on and cancel any direct debits or standing orders that you don't want to be taken. If you don't have online banking you might be able to phone or pop into branch.

Cancel your bank card (report as lost) so if the payday lenders are taking the money via the number on your card they should not be able to (hopefully)

Then work with Stepchange or another free debt charity. You will be able to have some money for you - and more so than if payday loans are taking all your wages. You will need to develop a realistic budget to determine what you can pay towards your debts and it might be that you have to slightly over estimate some of your expenses so you have a little bit of breathing room built in.

Edit: You can let your lenders know you are working with step change and I believe they are supposed to stop hassling you for thirty days while you progress this.

Tlc

EssexHebridean

mrtfc wrote: »

It’s monthly payments out of my bank each month, so a direct debit i think? I’m literally scared to death nowadays, I’ve missed payments recently and am just ignoring letters and texts as I’m in a state.

My bank doesn’t have an overdraft but I’m somehow in one!

Doesn't necessarily mean it's DD's - check via your online banking.

If you're in an unauthorised overdraft that will get expensive quite fast - Get yourself a Statement of Affairs (SOA) drawn up - the link is in my signature - and post it in here, let's see what we can work through for you. Try not to panic - this sounds odd to say here I know but it *is* only money.

David2Prit

Aye get yourself a new bank account first, transfer pay into that.

Cut up old card, and if the balance on bank account is 0, close it. Alternatively if it is continuous payment authorisation, get a new card.
If closing account, request statements for last few years, you may need them.

Go for a bog standard bank account.

If it is PDL, look at the reclaiming money from PDL thread and submit a complaint, may come back with nothing, may write a lot off.
I did this without much hope of getting anything, wiped out £6000+ of debt.

Your situation sounds a hell of a lot like mine when I got into a uncontrollable spiral. It was only when I wanted a coffee one day that bank said no, that was my LBM.
you’re in the best place, and if you follow the advice we give we can help you. You aren’t alone in this,

Post up SOA ASAP.

ferry

Just out of interest if the OP just instructs his bank to stop the CPA going through is that not enough to stop th PDL's payment to them?

sourcrates

ferry wrote: »

Just out of interest if the OP just instructs his bank to stop the CPA going through is that not enough to stop th PDL's payment to them?

Majority of payday loans are repaid by constant payment authority from your debt card, the first thing to do is to cancel the CPA with the bank, but this can be hit an miss, you should also cancel the payment card that you authorised originally, best way is to report it lost.

And, contact the lenders, tell them your in financial trouble, and ask them not to take payments.

You have to cover all the bases in this game, remove any avenues the creditor has to take the money.

Once you’ve done that, and you’ve taken stock, a resolution can be agreed.

DannyPearce90

Get a new bank account for your day to day use.

Contact Stepchange or another charity and get some professional help. Good luck with it