In such a mess with money

[JasmineLee]

Looking for some advice or help. Please dont tell me how stupid I am because I already know

I got into a bit of mess with payday loans. I know they are the worse place to borrow money but I was desperate - had rent and gas/electric bills to pay and I didnt know what else to do. I soon got into the awful habit of taking out a new one to pay off the old one etc etc

A couple of months ago I used a debt reconsolidation company to roll off all these debts into one and pay these one monthly payment. I knew I would probably end up paying more but the stress of paying money out all over the place was getting too much.

I pay these a good chunk of my salary each month, and in turn they said they would contact my debts etc.

However I have been paid today and noticed that one of the payday companies have taken 300 pounds, with no warning or permission. Plus theres my monthly payment to the debt company, its left me with not enough money yet again! Are the payday company allowed to do this? Shouldnt the debt consolidation company have stopped things like this if im paying them to sort my debts?

Cant believe I have got myself in such a mess, id say the loans only total around £2000 but these huge payments are leaving me with no money to survive on.

I'm so sorry you're in this situation, sounds very stressful and worrying. :( Could you make an appointment with a CAB debt counsellor for some professional advice? Or sometimes there are debt counsellors associated with family centres if there's one near you. Also take a look at the Moneysaving Expert website for advice.

Thanks sinkingfeeling. I thought just getting it off my chest might help with the worrying - its not something I would talk to my friends 'in real life' about. Feel ashamed and embarassed that I have fallen into the trap of these companies when they have so much bad publicity.

I will make an appointment with CAB thankyou, didnt think of that

It sounds like you have entered into a Debt Management Plan, the company should have advised you to cancel all payments to your debts. Payday loans have what is known as continuous payment authority "CPA" which means they can deduct the money from your card - this CPA should have been cancelled, did you cancel it at the bank?

Did you change your bank account prior to entering into the DMP?

moneyaware.co.uk/2012/07/how-to-cancel-a-continuous-payment-authority-cpa-on-a-payday-loan/ Have a read here on how to cancel a "CPA"

Has your payment to the DMP gone out yet? can you cancel it at the bank, obviously you need this money for food etc and this needs to be your priority at the moment.

The OFT has recently issued guidance on CPAs and payday loans www.oft.gov.uk/business-advice/treating-customers-fairly/cpa-principles/