This should be used if you are stuck in a debt cycle (each month you pay more than you earn). It is not for everyone, but it will change your life, both in calls, letters, sleepless nights and depression will end.
If you are at this point then you need to take drastic action, there are many secret tips, tricks and loopholes that can be implemented to help you achieve this. Gaps that banks don’t want you to know about. Some of you will be able to use some of these, others all, depending on your status (single, married, shared flat). So, if you’ve been considering IVA, debt management, payday loans, bad credit loans, debt consolidation, or just need debt advice, read this.
Cancel all debit cards
Cancel all your debit cards. Why? If you’re charged every month and have payday loans, loans, credit cards, etc., they have your card details and can use a PDU machine to debit your account at any time without your planning or planning. know. A large portion of your payday salary is taken in every month, never leaving enough to get out of the cycle. Have you ever had that feeling of looking forward to the end of the month, then checking at the ATM or online and seeing that more than half your salary is taken away in one day, then sinking into depression, when all others come out at night?
So cancel all of them, call your bank and ask them to put you in touch with the fraud team (only they have the power to completely stop your account), say that your cards have been stolen and someone has your password online and report it to me. (now no company can remotely debit your account) Now, the same day, enter another bank and open a basic account. It’s the lowest account available and you can literally only deposit and withdraw money, no overdrafts (they have to legally open it for you with proper identification, or threaten to go to the Financial Ombudsman).
Now put all the cash available and arrange for your salary to be put into this account every month, this means that you will now receive 100% of all your money on payday.
Contact all creditors
Payday loan companies
Call them all, tell them that you are losing your job and going back to your parents as you cannot afford the refunds. They will know that once unemployed they cannot expect me to pay the full monthly refund. Taking into account eventualities such as traps to be a lender, they will offer a lower amount or simply pay the amount borrowed without interest, etc. Using a few simple template letters, you can offer them a refund of as little as £ 20 a month, by sending additional letters, to prevent them from calling you at work and ringing the mobile phone. Be prepared for tactics like text messages / letters / calls saying you are going to court, red letters saying the sheriffs are coming, these are used to scare you and mean nothing.
Credit cards
Claim charges: Going back 6 years, simple and will give you some cash in your pocket. Withdraw the money from CashMachine when you receive the charges and place it in your new account. Then call the card companies and tell them the same as the payday loan excuse. Go on a payment plan and aim for the lowest £ 20 a month of anything in this region.
Any other direct debit
Now apart from city taxes / gas / electricity, do you really need the other services you are paying for? Call them or send them a letter with registered delivery citing the same excuse as above and offering them a lower amount to return
Rent / Shared apartment
If so, one word, MOVE OUT. This may seem extreme, but in the grand scheme of things, it is a fantastic strategy. Stay in the same area or in a different location, if you are receiving dozens of letters, DCAs, Marshals, etc., there are many letters that you can use to stop them (these have been mentioned in previous articles). For a breather though, move on, then call the post office and set up a redirect from that old address to the new one. This means that you will receive your old mail, but they will not be able to trace it to the new address. Obviously, use your old address in all correspondence so that all mail is sent to your new address, without having to enter a new address.
Conclusion –
He spoke to the fraud team at his bank and canceled all debit cards.
Have a new account with your salary entering and only essential direct debits going out.
You claimed the credit card charges and put that money into a new account
Spoken and written to all credit card companies and payday loan companies, stopping all accounts and now they are on a repayment plan
If necessary, move around and redirect all posts.
For the first time on payday, have 100% of your salary, now you can start saving again!
In Part 2, I’ll show you how to make money fast and jump-start your savings, so you never go back to this situation.