We believe that if you can borrow money from payday loan companies are included doorstep lenders in a debt management plan. A plan for the debt management designed to reduce the payments to all secured creditors of a budget adjustment to pay, you can afford it.
You need all your unsecured debts into a DMP.
Cash loans they gave to the lender at home or in pensions or company payday loan fast as noble and should always be included. Besides the fact that these debts are usually relatively small cash loans and paid once a week, there is no difference between them and the balance on a credit card account or list.
The loans are unsecured debt and should be treated as such when using a DMP.
Canceling payday loan payments
One of the issues with a payday loan company or door step lender debt is that they are not normally repaid in the same way as catalogue or bank debts. Payments towards a doorstep loan will generally be collected by a company representative in person.
In order to stop making these payments, you will need to tell the representative that you are no longer in a position to pay and that you are implementing a debt management plan.
This is not a nice thing to have to do but the agent you deal with will generally be understanding and tell you that they will inform the head office and leave you to deal direct with the company.
Payments to a payday loan are often taken directly from a debit card. The only way to stop your bank making these payments is to cancel the card.
If your bank is reluctant to cancel and re-issue your card for any reason, one way of ensuring that this happens is to report your card as lost. The old card will then be cancelled preventing any further payment from the card.
What if the lender does not agree to the DMP?
When you use a debt management plan, there is always a risk that a lender will not agree to the reduced payments you are offering. You could come up against this problem whether you are negotiating with a payday loan company or a normal bank or credit card business.
In these circumstances, you should stick to your plan and start to pay them at the reduced amount regardless. No consumer creditor can refuse to accept a payment you make to them however small.
Of course, their disagreement to your debt management plan offer may mean that they continue to add interest and charges to your accounts.
If this happens, do not try to pay them more as this will leave you without enough to maintain your other DMP payments. However as time passes, if you are able to save a bit extra or earn more money, use this to increase the payments to this debt so that it is repaid faster.
Leaving a payday loan out of the agreement
It is never a good idea to leave any of your unsecured debts out of your debt management plan. The primary reason for this is that if your other creditors find out that you are maintaining the normal payments to some of your debts, it may well make them more difficult to deal with.
However, another problem with payday loan debts is that the weekly repayment amounts tend to be relatively large. As such it may not be unusual to be repaying £25 a week to a payday loan company.
In itself this figure does not sound much. However over a month this adds up to nearly £110. Trying to maintain this payment as well as your DMP payment will often be impossible and mean that payments to your DMP are missed and agreements that you have made with some of your creditors start to fail.
Do not borrow to solve a debt problem
If you are already struggling with your debts, you may be considering trying to borrow more for consolidation or simply because you are running out of money before the end of the month.
In these circumstances you may consider borrowing from a payday loan company as they are willing to lend to you where your bank or another lender would not.
In these circumstances, borrowing more money will generally not resolve the situation and could will make it worse.
A better solution could well be the implementation of a debt management solution such as a debt management plan which will resolve your cash flow problems. Any payday loan or doorstep debts that you already have can be included in this solution.
What to do next?
If you are struggling with debt, experts are available to speak to you about your debt problem and offer advice and solutions. Our vibrant debt forum gives free access to experienced industry experts and others who have suffered with debt problems. Useful guides, calculators and information are also available designed to help you understand how to manage and resolve debt problems.
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