Pay day loans will match my monthly wages

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David.my

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Post by David.my » Tue Aug 31, 2010 11:06 am
I have a current account with barclays and currently have defaults with several credit cards and loans.At the moment I do not have a dmp set up. I do not have an overdrft facility with barclays but am always up to my limit using their "personal reserve" of £500. This costs me £22 per week to use. Due to mounting expenses i am always robbing peter to pay paul. I have recently started using payday loans to supplement my income and have come to a point now where next month the pay day loans will match my monthly wages. the only way is to borrow more of these companies which is getting me no where. My problems started when my partner left a while back. All the debts are in my name and wondered what to do.

I have considered opening a parachute account with another bank (with no overdraft facility) and resetting up my direct debits again. But wondered what will happen to the payday loans? I have heard that they can be quite vicious regarding daily charges etc.

I am considering an IVA at the moment. I have roughly £21l of unsecured debt, mortgage arrears which i am in the process of paying off.

Any advice would be appreciated
 
 

size5

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Post by size5 » Tue Aug 31, 2010 12:26 pm
You need to speak to a professional as soon as possible. I am sure that there will be help for you, and hopefully more than one option to look at, but getting a feel for these things in the first instance can be a huge weight off the shoulders.

Accordingly, visit www.iva.com have a look around and take time to speak to 2 or 3 providers before you make your next move.

As a side issue, there are statistics available which prove that, although payday loans by their very nature are hideously expensive, when compared to Barclays punitive £22 per 5 days in a Personal Reserve, they are a snip. I have seen examples of over 30,000,000% APR for a Barclays reserve. Exceptional circumstances of course, but worth noting nonetheless.

Regards.
Last edited by size5 on Tue Aug 31, 2010 12:26 pm, edited 1 time in total.
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Andrew Graveson

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Post by Andrew Graveson » Tue Aug 31, 2010 3:16 pm
Hi David.my,

I totally agree with size5.

For many reasons it is important for you to seek good advice very soon.
Andrew Graveson
Bright Oak Ltd
UK Debt Management Company
Website: www.brightoak.co.uk
 
 

liamjames

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Post by liamjames » Tue Aug 31, 2010 3:26 pm
Absolutely seek professional advice as soon as possible.

From the small amount of information given it would appear that an IVA would definitely be your most suitable solution, but an Insolvency Practitioner will go through all the other options in detail and explain the full consequences of this.

Good luck.
Take care,

Liam James
Varden Nuttall
http://www.vardennuttall.co.uk

Read our reviews here: http://www.iva.com/iva_companies/Varden_Nuttall.asp
 
 

GettingHelp

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Post by GettingHelp » Tue Aug 31, 2010 3:53 pm
Please seek professional advice, those pay day loans are a killer, you need to get advice as to your best options.
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kallis3

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Post by kallis3 » Tue Aug 31, 2010 6:21 pm
Please don't touch anymore Payday loans, you will only get in deeper and deeper.

Please visit the link that size5 posted, you will get free and impartial advice and hopefully some help with your problems.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
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MelanieGiles

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Post by MelanieGiles » Tue Aug 31, 2010 11:06 pm
Payday loans if used for the right reasons can be a handy, temporary cash gap method of financing which in principle are fine. The problem arises when the loans cannot be repaid on time, and the interest charges mount at a considerable rate. They should only be used in emergencies, and not as a regular form of financing.

I think that you would benefit from taking some professional advice at an early stage about your options - and agree that taking further loans is not a sustainable option.
Regards, Melanie Giles, Insolvency Practitioner
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