In such a mess at 20!

[Gwarna]

20 years old living with parents. Been in this trap for ages and was being stupid with these loans. Kept it quiet from my parents but it had become too much and could not keep up with paying what i owe them so had to tell them i couldn't afford to pay them because i have had payday loans! They went crazy especially as i'd borrowed of them too!!!!

I could not keep living the lie though and had to tell them. So now hopefully i can get this sorted once and for all.

 

FIGURES INCOME- £860 P/M

 

PAYDAY LOANS

 

SPEED CREDIT- £130 DEFAULTED TODAY

QUICKQUID- £ 518 DEFAULTED THURSDAY

PDUK- £412 DUE 17TH MAY

 

PAY OFF MY CAR THAT I BOUGHT TO STEPDAD AND RENT - £400 PER MONTH ( COULDNT PAY ANY THIS MONTH DUE TO PAYING OFF TO PAYDAY LOANS! EMPTYING MY ACCOUNT)

 

PHONEBILL MONTHLY - £40

FUEL MONEY

OWE £75 TO A FRIEND NEXT MONTH

NEED MONEY FOR UPCOMING INSURANCE LATER THIS YEAR

 

 

I am going to try and get another job. Cant wait for the day when i get on top of it all! What should i do about the defaults?

[asmilecostsnothing]

Have you now told your parents? do they know you've had your account 'raided'?Have you been in touch with the lenders? it is sad, the payday loan companies have lent you so much with your income Could you see about overtime where you are now or sell stuff on ebay?

[renegadeimp]

First: http://www.consumeractiongroup.co.uk/forum/showthread.php?343246-HELP!-Payday-loan-nightmare&p=3765954

 

 

 

Dont get another job to pay them off. Just write to them and ask for a repayment plan that you can afford. Not what they want. Most PDL's are starting to agree to low plans now, because they are under investigation, and there is a debate next week about changing the law in regards to them.

 

 

Easy way to work out a payment plan.

 

Total income : xxx

 

Total amount per week/month for priority debts. Rent, electric, gas, petrol, socialising etc.

 

Total amount left per week/month: xxx

 

Take the total amount left, take the total amount of creditors, and share it between them. Dont budge from it when telling the PDLs youw ant a repayment plan, unless some accept a lower amount. Also, always ensure that you ar enot just paying the interest off each month. Make sure you are paying the actual debt off, as some PDL's accept a repayment plan, only to tell you later that youve been paying interest only.

 

As for the defaults, ignore them for now. It's just PDL talk to try and justify charging you more money. You can always complain and contest these later, along with putting in a full complaint to the OFT and FOS.

 

 

But in the first instance, write by recorded delivery and try and negotiate a repayment plan. Then go from there.

[renegadeimp]

Have you now told your parents? do they know you've had your account 'raided'?Have you been in touch with the lenders? it is sad, the payday loan companies have lent you so much with your income Could you see about overtime where you are now or sell stuff on ebay?

 

Theres no need to do any of that apart from telling his parents. Especially selling stuff or stressing and working overtime. The key is to negotiate a plan that he can afford. Even if it will take a few months to pay them all off. Most PDL's are actually accepting very low repayment plans now and waiving interest and charges, due to the OFT investigation and the debate on the law next week which the PDL's exploit in order to do business.

[timmydust22]

i know this wont go down well, but i would honestly set a new bank account up and get your wages in there. sort your priorty debts out eg family and mates. then work out to pay the loan sharks ie payday companys. when they pass to dca they normally offer you a reduced figure anyhowdont panicits taken me nealry 2-3 years to get my finances on back on track. i only have 2-3 to pay off considering i had nearly 9 at one stage.make sure you dont give them your card details if you cancel

[renegadeimp]

Timmy, friends and family repayments are not counted as priority debts. Theyre in the same boat as PDL loans, unless the repayments are for rent etc.

[timmydust22]

i agree that strictly speaking they arnt priorty debts. But i know when i was in big trouble i was more worried about not paying my dad or my mates etc.pdls can take a wide berth in my opinion, as long as you show you are trying to pay (setting standing orders of £5) when the above has got himself in a situation where he has sorted his family and mates out then he can tackle the sharksthats my opinion,

[renegadeimp]

You may be more worried, however PDL's have a bigger right to be paid, even though they are the lowest of the low.

[asmilecostsnothing]

Theres no need to do any of that apart from telling his parents. Especially selling stuff or stressing and working overtime. The key is to negotiate a plan that he can afford. Even if it will take a few months to pay them all off. Most PDL's are actually accepting very low repayment plans now and waiving interest and charges, due to the OFT investigation and the debate on the law next week which the PDL's exploit in order to do business.

 

Do get real, this forum is full of people having problems is it not? I would be dead now if I was still dealing with the horrid payday loan lenders My decision was to get rid of as quickly as I could and it's worked for me so I'm passing on 'what worked' Like I said before of course payday loan lenders are quashing charges like there is no tomorrow - we know why! and I only hope it comes to fruition... they didn't once upon a time and I think you are forgetting that, sorry Why on eath would I lie to someone and say it is easy?

[renegadeimp]

Im not disagreeing with you. However its much easier to negotiate a low plan than falling into their trap of selling goods to pay it off at a much higher repayment rate. I wasnt trying to antagonise you or call you a liar. I'm sorry if my post came across like that.

[asmilecostsnothing]

Oh jeez I can see what you are meaning, well I am really sorry I'd got the wrong end of the stickI just see my idea as being one step better then ever going back down payday loan hell, having witnessed someone being told it is ok pay back and reborrow smaller amount recently elsewhere (didn't think it was the best advice but y'know...)yeah course it could be like getting more credit/debt really to pay back whats owed

[Gwarna]

Hi guys i told my mum and she will be telling my stepdad later that he won't be getting any money this month at all and my situation! I agree with what someone said above. I worry sick about friend debts and family and i think thats why i kept borrowing almost to cover it up and hope that eventually i would be able to solve it all with out anyone being the wiser!

 

I replied to quickquidse email about me defaulting saying.

 

Hello

I have really been struggling recently juggling my finances and cannot afford anything this month. I am more than willing to settle this debt once and for all and if theres a way to arrange a payment plan over the course of a short time that would be very beneficial. For too long i have been deferring the loan and repaying nothing. My next pay day is the 17/05/12. I hope there is something you can do for me. As you can see by relying asap I'm prepared to sort this out with the company. In addition i would like to let you know that i will only be communicating through email so i have it all on my records. Thankyou

[Gwarna]

Also i did have two other loans and they cleared out my entire wage this month! Very disheartening all of this but only me to blame...

[renegadeimp]

You're doing the right thing. However, when you get the response, please post it here minus personal info. This is just in case they try to add on extra charges or inflate the debt as some PDL's try to do. The last thing you want to do is pay more than you owe, just because the PDL is trying it on.

[Gwarna]

My stepdad knows now so won't have to hide it all now. This will help me to get on top of it all. I will put up the payment plan quick quid sent. If I get a new bank card will it stop them having access when they want.

[renegadeimp]

You need to report the card as stolen, then write a simple letter to your bank manager telling them that you want ALL CPA's cancelled on your account and require them to do so under FSA regulations.

 

The reason you need to declare the card stolen is because the card number and authority is cancelled immediately. If you simply get a new one issued without reporting the previous one as stolen, some bank representatives are very lax in the way they work, and allow the previous card to authorise transactions up to 2 weeks later, instead of cancelling it as soon as the new card is used.

[Gwarna]

UPDATE

Stepdad and mum are really annoyed now with me saying i got to get a second job and me not paying the companies is going to black list the house and effect there credit etc!

Stressful time at home at the moment!

[sillygirl1]

The house cannot be blacklisted that is completely the wrong idea.

 

For the companies who cleaned out your bank account I would send the following

 

Dear sharks

 

Thank you for leaving me with no funds this month - I now deem that I owe you nothing.

 

XXX

 

Should they try to take you to court the fact they cleaned out your account (which is theft)can be highlighted and that they left you destitue and in danger of being homeless all goes against them.

 

Is it possible to pay one company off completely this month and then the others in order, you can start with the smallest amount owed. If you have rolled over more than 5 times then offer the original loan amount as your negotiating point.

 

Get another bank account numnber asap as they will continue to clean you out - simply changing your card isn't sufficient protection as banks now do a 'run on' service where everyone who had access to your old debit card now has access to your new card, whether you want them to or not.

[Gwarna]

How do i go at getting a new account number?

 

And thats what my parents think, that all this me defaulting e.t.c goes against the house and could stop them from getting credit, mortgage etc

 

Also next pay day i will be clearing off speed credit in full and possibly payday uk.

 

The problem is not just the loans my stepdad is adding all this money that i haven't paid him for rent up that i now owe him. So I'm gonna be skint for months!!!

[renegadeimp]

Tell them they are wrong. It is impossible under law for a house to be blacklisted.

[Gwarna]

UPDATE

 

SPEED CREDIT - PAID

 

PAYDAY LOANS REMAINING

 

PAYDAY UK - £412 (GOING TO EMAIL ABOUT A PAYMENT PLAN)

 

QUICKQUID - £518 (NOW ON A PAYMENT PLAN OVER 3 MONTHS WHICH I CAN AFFORD)

 

I now owe my stepdad £££££££££££££!! Still gonna be skint but at least i can get these sharks of my back!

Main thing next i want to change my account, never know who's gonna have a go at taking money out! Been transferring money straight to savings account where it can't be touched!

[renegadeimp]

Your stepdad can wait. Once the PDL's are out of your life, then you can pay him back whatever you like. As you said, he's pretty angry, but he'll calm down soon enough. At the end of the day treat it as a lesson learned, never to be repeated.

 

As for accounts, Sillygirl1 has the right idea. Have a few accounts, 1 for Bill payments, 1 for your day to day money, 1 savings accounts. If any bill needs paying, you can send money to the bill account, and make sure the dates are staggered, so you know theres no chance of a crossover happening.