Wage Day Advance **

[matthulme]

Hi,

 

I have been trapped in the payday loan spiral for over a year now and can no longer afford the repayment. Each month I have borrowed more to try and make up for the interest charges. Funny how when you re-loan they give you the option to increase but not decrease the amount borrowed!

 

After reading some of the great advice on here I have set up a new bank account (Snatch-West) and have arranged for my wages to be paid into that at the end of this month. I've moved my non payday loan direct debits to my new account.

 

I'm going to cancel the WDA direct debit a few days before they are due to take payment to try and avoid any bank charges. There won't be any money in the account so I assume I won't need to report my debit card stolen (I'm assuming that my bank won't charge me for a failed debit card payment?).

 

I have a small overdraft of £100 on the account I have been using so I suppose Halifax are going to get on my case about that when they realise my wages aren't going in there anymore! I also can't close the account at the moment as I don't have the £100 to pay off the overdraft unless I take out another loan with a different company, but seeing as I would have to default on that one too it's probably not a good idea, although tempting!

 

I will owe WDA £925.00 which I do want to repay but can't realistically afford much more than £50 per month.

 

My questions are:

1. How do I stop WDA adding lots of charges to the above amount?

2. How do I stop them calling me at work (I'll be on leave when the proverbial hits the fan)?

3. Should I contact them before the payment is due?

4. Is there anything else I should have though of or be doing?

 

Really appreciate any comments, it has taken me so long to get round to doing this but they are crippling me.

[Jamie Kingston]

so far so good. 1) contact them prior to payday 2) realistically you cant stop them from calling you at work, some will say send them some template letter but it never works because they just dont care 3) you should deffinetly call them before payment is due, this will put your situation in a better light 4) no, start by contacting them by phone, its easier tell them this is what you can afford and hopefully they will agree, you will need to have everything confirmed in writing and pay them directly only. they might ask you for and i and e, if you want to give them this and show you can only afford £50 pm then they normally accept straight after that. keep us posted.

[26072004]

If you dont intend to use the Halifax debt card cancel it just in case.

 

The Halifax may honour the payment request and say you have an unauthorised overdraft (this can cost more than a payday loan).

[sillygirl1]

Contacting them in advance is a good plan, this company doesn't seem to receive many complaints so they are quite reasonable.

 

I think you can pay the £50 off the loan online, ask if you can have that facility. If they start going on about daily interest being charged tell them a court would be very interested in their rates.... they may start blustering about damaging your credit rating.

 

DO NOT go hunting for other payday loans as a lot of them lead you back to WDA... and you willl get lots of automated credit checks done, a well as offers texted and emailed to you, inviting you to update your bank details... there are a few of the traps I know about, there may be others

 

Now you have your salary protected you may be able to get your finance back on track. Well done for getting the new bank account set up, that really is the key to this issue.

[matthulme]

Thanks for all your comments so far. Nearly at d-day, WDA are expecting to be repaid on Thursday but my wages will be going into my new account. I'm reporting my debit card stolen tomorrow and canceling WDA's direct debits at the same time. My main concern is Halifax paying them in some way resulting in me having an unauthorised overdraft but I've done all I can there short of closing the account which I can't do just yet due to the £100 authorised overdraft.

 

I'm going to contact WDA on Monday and tell them I can't pay this month and see what they come back with.