Waxoyl is about the worst coating you can put inside your boat hull. It will hold water between itself and the steel and allow oxygen through, causing worse rust.
It is great stuff underneath a vehicle where the water drops out and the air helps dry the chassis, but you might be better off leaving it than Waxoyling it.
Dry it out, grind off the loose stuff, leaving some rust behind and cover it in Vactan.
Fertan is good, but you need to rinse off the residue so you will end up with a wet bilge again!
If you want to overpaint the Vactan, feel free, but do NOT paint it in primer, as that will hold water too.
Aldi sell a straight-to-rust metal paint for a fiver a tin if you are on a tight budget. It works well, but takes about 16 hours to dry ...
ETA: As Matty says, make sure you have some steel before worrying about paint!