Mass of payday debt, any advice welcomed!

[ChaosTheory13]

Hi all!

I've been browsing the forums for a while now for info on how to begin tackling my mass of payday loan debt. It's nice to know I'm not the only one who has suffered at the hands of payday loan companies, and the site as proven highly useful so far. I'd be at my wits end if it weren't for your excellent advice, but I've decided to post about my own problems to get some help tailored to my own circumstances. I haven't told anyone my problem, not even my fiancé, but just sharing it here is a huge weight lifted.

 

I currently owe various companies a whopping £2751! I won't bore you with the details of how I've gotten into this mess, but I just can't believe I have been so stupid as to let this happen. I'm really starting to panic and to worry as it's now become out of control.

 

Here's a breakdown:

WONGA : £1147.42 due today

QUICK QUID : £562.50 due 5th Dec

PAYDAY UK : £312.50 due 5th Dec

PAYDAY EXPRESS : £312.50 due around 25th Nov

WAGE DAY ADVANCE : £310.80 due 2nd Dec

TXT LOAN : £115 due 19th Nov

SPEED CREDIT : £301 due 20th Nov (I think this is Toothfairy, who I've read are a nightmare)

 

My hours have been reduced at work, which is why I can no longer afford to pay these or continue to roll over and pay the interest. I have around £200 spare each month to divide between them.

 

Wonga emailled me to this afternoon say that they have been unable to take the repayment from my account. I reported my debit card as stolen after this email was received, but cannot close my account due to an overdraft. I have sent Wonga an email explaining that I would like to set up a repayment plan, paying £80 a month. I used one of the templates from this site, asking them to freeze interest and to not add charges to the account, and stating that all further communication should be in writing. No reply as of yet.

 

I get paid four weekly and the dates are a bit weird (7th Nov, 5th Dec...) I need some advice as to how to tackle the three loans that are before the end of the month. I've just been paid, and my account is now empty due to paying off and reloaning, or paying their extortionate interest rates. I managed to salvage about £100 to live off for the month, but what do I do about the loans, as I currently have literally nothing to offer them until I get paid on 5th Dec.

 

Also, my council tax is in arrears. I have lost the ability to pay in instalments due to simply forgetting and paying my tax late on several occasions. (With juggling payday debt, I forgot to pay online and they've had to send reminders) They are now asking for the remaining council tax for this year to be paid in one go, which is £342. This is due tomorrow. I have contacted them explaining my debt, and asking if there are any other options available to pay in smaller instalments, but I think it's too late for this now. I am yet to receive a reply though. Can anyone advise on how to tackle this or is there somewhere else I can post to ask about this problem?

 

I know I should have done something about this earlier, and have only myself to blame, but any help will be received with thanks, as I'm upset, angry with myself and extremely scared

[citizenB]

Will try to find some help for you.

 

I think we need to sort out the council tax issue first and foremost as that is a priority debt.

 

Have you done yourself a budget sheet ? I have attached one below. Meanwhile, I will flag your thread for attention.

 

[ATTACH]31361[/ATTACH]

[ChaosTheory13]

I did a very basic income and expenditure list for myself, so I could calculate what my total debts were, priority debts, and "disposable" income, but I'll have a go at filling this one out.

 

The council tax is the thing I'm most worried about really. I think I may just have to bite the bullet and come clean to my fella, but I know he wont be able to afford to pay it either, as he's just paid our npower bill for the last quarter.

 

Thank you for responding so quickly

[Conniff]

Hello CT,

 

is your council tax subject to a liability order ?

[ChaosTheory13]

is your council tax subject to a liability order ?

 

Forgive me, I'm not entirely sure what that means? I've been late with monthly payments on 3 occasions, but have paid them after they've issued reminders.

The first letter I received said:

"If you have paid £324.00 within the last four days:

Please ignore this notice.

 

If you have not paid £324.00:

As we warned in the previous Reminder Notice we sent you, the law states that you have now lost the right to pay by instalments.

 

Unless you pay £324.00 in full and by 9 November 2011, the Council could apply to the Magistrates' Court to issue a Court Summons against you. This is the start of legal action to recover the Council Tax you owe and means that you would also have to pay the extra costs involved in issuing the Summons.

 

If you think our records are wrong or you are having difficulty keeping up with your instalments, please contact Customer Services straight away.

 

XXX City Council have issued this Notice under the Council Tax (Administration and Enforcement) Regulations 1992.

 

Please read the notes on the back of this Notice for details of how to make your payment."

 

The next day I received this:

"The Council Tax Bill issued on the 7 March 2011 for the year 2011/2012 has been amended because :

you have lost the right to pay by instalments.

 

The statement below gives revised details of the charge for your property:

 

Period 01.04.2011 to 31.03.2012:

Council Tax for Band A £905.41

Payments/Transfers -£581.41

Total amount due: 01.04.2011 to 31.03.2012 £324.00

 

Your method of payment is: Monthly Instalments (Standard)

First Instalment of £324.00 due on 09.11.2011

followed by 0 instalment(s) of £0.00 (Next due )

 

£324.00 is at Final Notice recovery stage; please pay immediately"

[citizenB]

If you think our records are wrong or you are having difficulty keeping up with your instalments, please contact Customer Services straight away.

 

Right, well in answer to Coniff's question you do not yet have a liability order.. They do however give you the opportunity to perhaps renegotiate the instalment plan. Speak to the council as a matter of urgency tomorrow and explain the situation again. Hopefully, you will be able to perhaps return to instalments

[sequenci]

They may claim you've lost the right to pay via instalments but you should still be able to negotiate a reasonable repayment arrangement. You are right to concentrate on the council tax and should try and negotiate an affordable payment in writing. It might take a few attempts, always send a copy of your budget sheet every time that you write to them. You may wish to draw to their attention that they should adhere to the council tax good collection guidelines and that you are currently experiencing financial difficulties.

 

Once you've sorted the council tax any remaining surplus spare money can then be divided up on a pro-rata basis amongst the payday loan companies. It'll be worth trying to find out if any of them adhere to the lending code for small cash advances, these gives them more obligation to treat your situation in a fair and reasonable way - although having said that they should already do so in adherence to guidelines in place by the OFT.

[sequenci]

They may claim you've lost the right to pay via instalments but you should still be able to negotiate a reasonable repayment arrangement. You are right to concentrate on the council tax and should try and negotiate an affordable payment in writing. It might take a few attempts, always send a copy of your budget sheet every time that you write to them. You may wish to draw to their attention that they should adhere to the council tax good collection guidelines and that you are currently experiencing financial difficulties.

 

Once you've sorted the council tax any remaining surplus spare money can then be divided up on a pro-rata basis amongst the payday loan companies. It'll be worth trying to find out if any of them adhere to the lending code for small cash advances, these gives them more obligation to treat your situation in a fair and reasonable way - although having said that they should already do so in adherence to guidelines in place by the OFT.

[ChaosTheory13]

On their website they provide an email address for those with issues paying council tax, which I contacted yesterday but am yet to receive a reply. I did ask if there was any possibility of paying in installments again.

I called them when I received the letter, I did speak to someone but was on hold for 15 mins whilst she went to get someone, and I was on my break and had to go back to work. Tried to call twice since and keep getting the 'your call is in a queue' message. I don't currently have a landline and can't afford to stay on hold on a mobile.

 

Thanks so far guys

[sequenci]

Keep it all in writing, e-mail or recorded delivery post. That way you've got a paper trail. If the council drag their heels ensure that you request the name of the CEO in case you need to escalate a complaint.

[ChaosTheory13]

Sequenci,

I've calculated what I can pay to each on a pro rota basis, using a calculation I've read on the forum somewhere. Once the tax is taken care of I know exactly what I can offer to each company

 

I could pay the £324 to the council on my next payday but after normal living costs it would leave about £80 for the loan companies.

However, if it were possible to pay the council tax in one go, I'd have more to spare each month for the PDL's, as I wouldn't have to pay council tax again til April.

Just a thought, but I doubt PDL companies will wait for over a month for me to sort my council tax before receiving any money. And again, I doubt my council will wait a month without sending more letters etc.

[ChaosTheory13]

Keep it all in writing, e-mail or recorded delivery post. That way you've got a paper trail. If the council drag their heels ensure that you request the name of the CEO in case you need to escalate a complaint.

 

Apart from the first few calls to the council I've done everything in email, both to the council and the loan companies, and will continue to do so.

 

Sorry, I'm replying on my phone, bare with me as replies may be slow!

[sequenci]

Sequenci,

I've calculated what I can pay to each on a pro rota basis, using a calculation I've read on the forum somewhere. Once the tax is taken care of I know exactly what I can offer to each company

 

I could pay the £324 to the council on my next payday but after normal living costs it would leave about £80 for the loan companies.

However, if it were possible to pay the council tax in one go, I'd have more to spare each month for the PDL's, as I wouldn't have to pay council tax again til April.

Just a thought, but I doubt PDL companies will wait for over a month for me to sort my council tax before receiving any money. And again, I doubt my council will wait a month without sending more letters etc.

 

Well, the council tax is a priority debt whereas the PDL's are all non-priority; so the idea of clearing the council tax in full actually is a very good one. You would need to try and convince the creditors to freeze interest and charges, and sometimes that can take several attempts in asking them.

 

This little initiative could be right up your street:

 

http://www.cashflow.uk.net/about-client

[ivansmagic.]

I had arrears on my council tax from a previous financial year some months ago and it was transferred to the council's debt management team. when I spoke to them, they were very helpful indeed and quickly agreed to accept £10 per week with no awkward questions being asked. A word of warning though, it was made VERY clear that I MUST not default on this as they would immediately seek a Summary Warrant ( in Scotland ) which would be granted allowing them to obtain an attachement of earnings ( ie arrest a proportion of your salary )

 

That said, dont worry about that happening. Make sure you agree to a repayment plan you can afford and you know you wont default on it.

 

Like I said, my local council were excellent when I contacted them, so I assume all council's have to adhere to the same policy when dealing with arrears.

[ChaosTheory13]

Thanks for that guys, I think I'll pay off all, or at least the majority of my council tax asap, but will continue trying to contact them in the mean time.

Any ideas how to approach the other payday companies? Should I default first or start sending my proposed repayment plan now?

[flowerchild]

Thanks for that guys, I think I'll pay off all, or at least the majority of my council tax asap, but will continue trying to contact them in the mean time.

Any ideas how to approach the other payday companies? Should I default first or start sending my proposed repayment plan now?

 

I've had arrears reminders & even summons for CT in the past (2 different councils) yet I always managed to get back to installments after talking to them on the phone. They have even told me those letters are sent out automatically saying the whole balance is due but they do allow you to pay by instalments if you set up a DD. In practice they can't really demand full payment as it covers up to March nxt year so they would be asking for payment in advance!!! Normally you should do everything in writing but I've found dealing with the councils over the phone is just fine and unlike banks & DCAs they do keep their end of the bargain!

[ChaosTheory13]

Thanks Ivansmagic and Flowerchild, slightly calmer and reassured about the council tax now!

[ivansmagic.]

my 3 PDL's are not yet in default and have contacted them all by email but am still to hear back from any of them. I guess that will all change when they do fall into default. I guess the sooner you start trying to sort this out, the better. I certainly feel much better for doing so.

[dx100uk]

forget the ruddy pdl co's

pay that council tax!!!!!!!!

 

and your other utils bills first!

 

give the pdl's £1 pcm end of!

 

they'll go nowhere near court

 

take control!

 

dx

[ChaosTheory13]

forget the ruddy pdl co's

pay that council tax!!!!!!!!

 

I am, I've acknowledged that the council tax is most important, just need some advice on the loans. If I pay the tax all in one go on my December payday, the pdl companies get nothing til January. Or I can ask the council if I can return to monthly instalments, and set up payment plans for the loans now before defaulting

[ChaosTheory13]

Wonga have emailed me saying they are glad I contacted them about my problems and are happy to set up a repayment plan, but have to call them first as they apparently need verbal contact with me first.

Is this true, or should I email them again to reiterate that I asked for contact to remain in written form?

[dx100uk]

def written format only

 

so can you not just pay the council via internet banking?

do an installment now

and phone them too again

 

get that sorted first

then worry about the pdl muppets

 

dx

[Conniff]

There really is no need to be scared CT, you can't go to prison for debt, you might get a lot of silly people shouting, telling porkies about bailiffs etc, but as they say, sticks and stones ..............

 

Forget the pdl's as the others have said, put them right out of your mind as if they didn't exist for now. it would be nice to get the council tax out of the way in one go, but lets not forget that Christmas is coming and if you pay all the ct at once and then have no money left, you might be tempted to go to the pdl again, so try for 2 instalments if you are certain you can afford it in 2.

 

What we don't want is a liability order granted to the council as that can add £60 to £100 to your council tax bill.

[quackquack]

I am, I've acknowledged that the council tax is most important, just need some advice on the loans. If I pay the tax all in one go on my December payday, the pdl companies get nothing til January. Or I can ask the council if I can return to monthly instalments, and set up payment plans for the loans now before defaulting

HELLO YOU WILL ALMOST CERTAINLY FIND THAT PRIOR TO LETTING ALL PDL YOU ARE GOING TO DEFAULT LIKE I DID BY EMAIL ONLY THEY WILL NOT COME TO AN ARRANGEMENT UNTIL YOUR DUE DATE HAS PAST AND THEY WERE DECLINED YOUR PAYMENT ..THEY WILL THEN GET BACK TO YOU OR SEND THEM AN EMAIL THE DAY AFTER THE DUE DATE REMINDING THEM YOU ARE WAITING FOR AN ANSWER TO YOUR QUESTION ON A PAYMENT PLAN.QUICK QUICK DID THIS TO ME AND IM ALL SORTED SO GOOD LUCK UL BE FINE AND ITL WORK OUT GOOD IN THE END

[citizenB]

Wonga have emailed me saying they are glad I contacted them about my problems and are happy to set up a repayment plan, but have to call them first as they apparently need verbal contact with me first.

Is this true, or should I email them again to reiterate that I asked for contact to remain in written form?

 

It is your legal right to communicate in writing. That way there can be NO misunderstanding.