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Timewitch
19-10-2009 04:34 PM

Joined: 19 Oct 2009
Posts: 1
Hi There

I am hoping someone can give me some advice.

I currently have a few of payday loans on the go at the moment. I dont know how it has escalated but I can no longer afford to make these apyments and keep rolling them over. This month my entire wages will be taken in repayments leaving me no other option than to take out the loans again.

I do no know what to do. They have my work details and my home numbers and I have heard that if you default they will keep calling and calling you even at work. If this happens then my job could be in jepoardy!

Can anyone explain to me how I can deal with this?





charlottem
21-10-2009 12:58 PM

Joined: 21 Oct 2009
Posts: 1
I would suggest that you call the individual companies and explain your situation. I was in the same boat a couple of years ago and i called them all and made a repayment plan over six months. It was no walk in the park but it stopped them incurring more charges and I was able to get out of the trap. Good luck, alternatively you can wait untill they pass it on to a collections agency and arrange a repayment schedule with them.



POMPEYBOY
20-04-2011 10:12 AM

Joined: 20 Apr 2011
Posts: 3
I WAS IN THIS TRAP FOR ABOUT 18 MONTHS, IT GETS TOO MUCH SO YOU BORROW FROM FROM ANOTHER COMPANY, AND IT JUST SNOWBALLS. THESE COMPANIES ARE VULTURES, LEGALISED LOAN SHARKS AND WILL TURN OFTEN NASTY IF YOU TRY AND WORK OUT A PAYMENT PLAN WITH THEM. IN THE END I WENT TO A DEBT MANAGEMENT COMPANY WHO DEAL WITH THESE VULTURES ALL THE TIME. THEY WORK OUT HOW MUCH YOU CAN AFFORD EACH MONTH, AND CALCULATE HOW MUCH TO PAY THE SHARKS ON A PRO RATA BASIS. THEY WILL NEGOTIATE WITH THEM AND COME TO AN AGREEMENT. YOU THEN PAY THE DEBT MANAGEMENT COMPANY A LUMP SUM EACH MONTH AND THEY DISTRIBUTE YOU MONEY TO EACH CREDITOR FOR YOU. I KNOW THEY TAKE A PERCENTAGE FOR THEIR TIME BUT IT IS MUCH CHEAPER THAN ROLLING THESE LOANS OVER, AND THEY GET THE INTEREST FR0ZEN. THESE SHARKS SEEM TO CHANGE THEIR TUNE WHEN DEALING WITH A DEBT MANAGEMENT COMPANY, FOR EXAMPLE, I HAD A £480 PAYDAY LOAN WHICH I KEPT ROLLING OVER COSTING ME £120 A MONTH INTEREST. I TOLD THEM I CAN'T AFFORD TO REPAY ANYMORE, THEY WOULD NOT STOP THE INTEREST AND THREATENED ALL SORTS OF THINGS. THE DEBT MANAGEMENT COMPANY AGREED A PAYMENT OF JUST OVER £10 A MONTH WITH NO INTEREST. IF ANYONE IS TEMPTED BY PAYDAY LOANS, MY ADVICE IS DON'T!



spiritualone 20-04-2011 10:15 AM

Joined: 10 Aug 2010
Posts: 447
My Profile
2 year old thread RELEVANT advice, and can you please stop writing in caps,

funny thing about payday loans though if used as an emergency and for less than a week there typically cheaper than BANK CHARGES...........

:)



sickofit
20-04-2011 10:58 AM

Joined: 20 Apr 2011
Posts: 5
hi im getting alot of letter of a debt company at the moment they said i have to pay a certain amount each month and i told them i cant afford this amount as i have just had my baby daughter and cant afford the amount but i made a offer of half the money but the refused it and told me iwill have a debt collector round my house if i dont pay this aount they are asking for im very worried about this as my girlfriend is at home on her own all day with my daughter and im at work all the time i keep telling them its to much a month and i can pay half the money but they they no all the time and sending letters to my house in the last week i have had 4 letters i pay my debt on line so i onyl have to pay half but they keep ringing me all the time and sending me thee letters is there any thing i can do to stop the harresing me and let me pay what i can afford





POMPEYBOY
20-04-2011 11:13 AM

Joined: 20 Apr 2011
Posts: 3
I take it you must work for or own one of these companys then?



POMPEYBOY
20-04-2011 11:17 AM

Joined: 20 Apr 2011
Posts: 3
SICKOFFIT,
Take my advice and read what I've written, it's ok for Spiritual to say they're ok, he's not is this mess, that's if he does'nt work for or own one of these companies



sickofit
20-04-2011 11:24 AM

Joined: 20 Apr 2011
Posts: 5
i have read what you put but im trying to get my payments down thats all as its not a massive debt but just need advice how to get them to listen to me that i cant afford the payments they expect from me is there a way i can do it my self save going through any body else or that the only way to sort this out



Andrew Greechan 20-04-2011 11:36 AM

Joined: 07 Apr 2011
Posts: 136
My Profile
Hi sickofit,

Write down your income & expenditure and also all your debt and then work out what you have left to pay them and send this to them.

Regarding Debt Management Plans then I would advise not to go to a company who will charge you. First of all they will keep between 1 and 3 months payment as "administration fees" and this means your creditors are not going to get any money for months and then they will keep a percentage of the money you pay in every month. STAY AWAY FROM THESE COMPANIES.

CCCS and Payplan and National Debt Helpline are charities and do this for you for free.

I am in no way associated with the above named companies in case you think I am promoting these 3.

Andy
Charity Debt Advisor
Debt Support Trust



spiritualone 20-04-2011 12:38 PM

Joined: 10 Aug 2010
Posts: 447
My Profile
@pompeyboy,

i said your advice was RELEVANT as i agree with it HOWEVER i added in the bit about the bank charges as it was relevant,

EXAMPLE

Its monday mornin your skint and your paid on friday, you are a loner and have no-one to turn to to borrow 'short term cash'

it dawns on you you have a direct debit due out on wednesday for just under 50 quid,

youd be fine to pay it on the friday as your paid then anyway its just you cant pay it on the wednesday when its coming out and your bank charges (typically) 35 quid each time you bounce a direct debit,

so a quick calculation of a payday firm thats always advertising on telly tells me that if i borrow 50 quid unitill friday my total charges would be 11

so we can offset this against a 35 charge id be gettin fr0om the bank if i had no money etc etc and your actually up 24 quid instead of letting it BOUNCE,

that was my point and it was made because it was RELEVANT TO POINT OUT

all the best

S1



DW George 20-04-2011 12:44 PM

Joined: 01 May 2007
Posts: 1113
My Profile
Hi sickofit
Firstly can you please try and keep your question about your debt problems to one thread it makes things a lot easier.

How much debt do you have and how many creditors are there?

Could you also complete an SOA and well give you our advice about how best to deal with it.

If the debt collection company are harassing you you need to complain about them.

DWG



gback
20-04-2011 03:54 PM

Joined: 20 Apr 2011
Posts: 1
You might find this useful -

A payday loan (also called a payday advance) is a small, short-term loan that is intended to cover a borrower’s expenses until his or her next payday. There has been some criticism of these loans in the UK recently.

Controversial payday loans that charge astronomical interest rates of 2,000% or more over short periods to desperate borrowers have become hugely popular since their emergence in 2006, according to a report by a consumer watchdog. Paydayuk.co.uk, for instance, charges borrowers £50 for a loan of £200, which for short-term borrowing is an APR of more than 22,600%.

If you need a payday loan then you are at a point where you are so short of cash, there is no alternative and whatever you need it for, cash is needed. However, once they have you, they apply multiple tactics to get as much cash from you as possible. So if you have taken a loan and fallen behind on a payment, or they are adding extortiant amounts of charges on your account. Here is a guide to stop all hassle now.

Call your bank and tell them your card has been stolen and you need a new card. Why? The payday loan company has your details, which means without you knowing they will use a POS machine to debit your acc for the loan charges you didn’t know had been applied and you wont know until you try to use your card somewhere and its been declined. With new card details, they wont have them and wont be able to debit anything.

You would have had to put your employers address and tel number on the application. This means they will use the tactic of calling your work and trying to embarrass you into paying. Who wants their collegues to know they are in trouble? With one letter you can send it to the payday loan company which will mean they are in breach of Section 40 of the Administration of Justice Act 1970, and the Protection from Harassment Act 1997 if they hassle you at work.

CCA request, stall them further by sending off a CCA request for the original agreement. You will be surprised how many cant and if they cant, you owe nothing.

At this point they will be writing to you request payment. One simple tactic is to call them and say you are under consultation to be made redundant. You are being taken to court for non-payment of council tax and other priority debts. Which means, you only have enough to pay 70% of the original payday loan without any charges. Otherwise they will just have to wait for court outcome and are welcome to wirte to court.






brokeandstressed
26-04-2011 04:21 PM

Joined: 26 Apr 2011
Posts: 5
Hi be very careful with these sharks. I recently had the same problem and aggreed to a repayment plan - gave them my card details and they took £40 a month for two months then whipped out the whole lot just after xmas and left me in a terrible situation - im still shuffling things about because of this.
I even contacted my bank who advised that i had signed for the loan and gave them authority to take any monies due! This is best way to deal with them - beware they will call anyone you have given numbers for - they called my work and sister in law repeatedly it was so embarrassing!!

Cancel your current card with your bank and request a new card.

Contact payday loan place to arrange a repayment plan.

DO NOT give them your new card details! They can help themselves to any monies due and my bank confirmed this in writing to me.

Agree to go into the shop and pay over the counter - this is a pain but do not trust them to keep to a repayment plan, these are disgusting horrible vile people who have no mercy and these loan sharks should be shut down!

Hope this goes well and remember do not give them your new card details.

Regards



brokeandstressed
26-04-2011 04:23 PM

Joined: 26 Apr 2011
Posts: 5
I also forgot to mention if you go to debt management go to the consumer counselling credit service - their service is free of charge for debt management.

Regards



DW George 26-04-2011 04:38 PM

Joined: 01 May 2007
Posts: 1113
My Profile
brokeandstressed
For many reason we recommend doing your own debt management plan here, firstly CCCS is wholly funded by the creditors which in my opinion calls into question their impartiality and secondly fee charging debt management companies charge a fee. You are always better taking control of your own finances.

Thanks for the insight and comments about Payday loans.



matty1286
18-05-2011 10:46 AM

Joined: 18 May 2011
Posts: 1
Hi All

I've been skimming over the points raised in this thread and it is bizarrely comforting to know that there are other sensible, normal folks out there who have made the same mistakes I have in getting involved with these companies.

I took out my first payday loan back in June 2009 and then made some pretty poor decisions in the following months, consequently leading to me having 6 loans on the go at the same time.

Thankfully I have now started to take control of the situation (not before time) and have paid off one loan in full and set up manageable monthly payment plans for two others. However I am having a little trouble setting up a payment plan with WageDay Advance and wondered if anybody on here has had experience with these in the past.

Basically they are refusing a payment plan unless I provide bank statements/detailed income and expenditure sheets etc. I know that I am not legally oblidged to give them this information and have stressed that as a valued customer it is within their interests to reach a agreement with me, afterall I am seeking a way of paying off my debt rather than trying to avoid it etc etc.

I have changed my debit card and informed them that I will cancel my direct debit so that they cannot just help themselves to my money. I have requested that they provide me with their bank details to set up a monthly standing order and stated that if they fail to do this I will instead send a cheque to them. I have also pointed out that if they try to claim that my account has defaulted then the matter will only be passed on to a third party (debt collection agency) who will then have to arrange a repayment plan with me anyway, and that as long as I am making regular payments on my debt they don't have a valid point.

The response I got was that my account would be processed if I did not comply with them, and failure to do so will lead to incurring all manner of nasty things such as daily interest being added to my account, phone calls, etc.

Have I gone about this in the correct way? Do you believe that my repayment strategy will work.

I am grateful for any construction opinions.

Cheers!



DW George 18-05-2011 11:08 AM

Joined: 01 May 2007
Posts: 1113
My Profile
Hi Matty
Is there a reason for not giving them your income and expenditure and payslips. Whilst it is not a legal requirement, it is a good way to prove to them that what you're proposing in terms of a repayment schedule is genuine.

DWG



cats
24-05-2011 03:14 PM

Joined: 24 May 2011
Posts: 1
HI everyone,

I am already with a debt consolidation plan but a few months ago i needed money and stupidly went to Pay Day loans since then i have got a couple more.
My question is this will my debt plan company take on my new debt or will they chase me. I know it is my own fault but i am really worried and have learnt my lesson.

thank you

cats



DW George 24-05-2011 03:32 PM

Joined: 01 May 2007
Posts: 1113
My Profile
Hi cats
You may get a bit of ear ache but if you cannot afford to pay back the loans then they can either accept a lower payment or take you to court.

DWG



antalya
24-05-2011 04:12 PM

Joined: 24 May 2011
Posts: 1
I suggest that you should always seek legal advice --it's worth the few bucks out of your pocket.



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