need advice on existing money shop loan

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hel8itch
hel8itch Posts: 404 Forumite
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hi there,i took out a £100 loan from money shop last august i was working then,but am no longer working and for the last 6/7 months they have been taking £25 a month to extend it as now i am on benefits and cant afford to pay out the full £125 .I have paid back over the original loan amount plus more.they have just text to say they want payment on friday but i really cant afford it again is there anything i can do atall.i worry about this all the time but have no idea what options i have.any help would be great thanks
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  • paddyrg
    paddyrg Posts: 13,543 Forumite
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    Sell some stuff? Just get it paid off and have done with.

    Yes, it's an expensive way to borrow money, rolling over short-term loans, and that is why you've already paid so much - but you have had plenty of opportunity to repay it and you do still owe the money you borrowed.

    How about you call them up (or go in in person) and offer say £100 (or £75, or whatever you think they will take) as a full and final settlement. They may accept, they may not.
  • Poosmate
    Poosmate Posts: 3,126 Forumite
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    It's that advert isn't it? The one that's telling all the silly people to take out a payday loan to go on holiday!

    Poo
    One of Mike's Mob, Street Found Money £1.66, Non Sealed Pot (5p,2p,1p)£6.82? (£0 banked), Online Opinions 5/50pts, Piggy points 15, Ipsos 3930pts (£25+), Valued Opinions £12.85, MutualPoints 1786, Slicethepie £0.12, Toluna 7870pts, DFD Computer says NO!
  • hel8itch
    hel8itch Posts: 404 Forumite
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    where did all the rude unhelpful people come from on this forum.never used to be like this.peoples circumstances change you know.we dont all sponge of the government willingly.some of us try!! i was working last year but due to very bad health cant work no longer,the holiday has gone out the window too and im not quite stupid enough to book the holiday with all this hanging over me,i was just trying to get a guide price in my head you know something to work too.
    my god i came on here asking for a little bit of advice regarding moneyshop and you all jump at the chance to be arrogant and totally unhelpful
    i am one of many many people stuck in the payday loan evil circle so dont talk to me like im the only stupid person to do it..Thanks for all your sarcastic and unhelpful rubbish.if you could offer no real help why come on here.
  • electrobix99
    electrobix99 Posts: 323 Forumite
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    It seems the loan forum has just turned into the play ground for !!!!!!.
    Total Debt Feb 2012 [STRIKE]£12,153[/STRIKE] 10674 16.5% Paid

    Halifax Credit Card £4448.6. Loan 1 £3000. Loan 2 £2696.13.

    Aiming to be debt free by 31/12/2013.
  • natscat84
    natscat84 Posts: 115 Forumite
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    Is the £25 covering the interest on the loan, or is there interest still accruing on the loan? Is there a way that you can pay more than £25? I now it may mean struggling for a few weeks, but it sounds like you're struggling every month so perhaps throwing more money at it in the short term would help in the long term.

    Can you possibly get them to try and freeze the interest so that there are no charges added on to the total?
  • electrobix99
    electrobix99 Posts: 323 Forumite
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    natscat84 wrote: »
    Is the £25 covering the interest on the loan, or is there interest still accruing on the loan? Is there a way that you can pay more than £25? I now it may mean struggling for a few weeks, but it sounds like you're struggling every month so perhaps throwing more money at it in the short term would help in the long term.

    Can you possibly get them to try and freeze the interest so that there are no charges added on to the total?

    If it is still the same as it was back in 2006 (the last time I used the money shop) then they do not charge interest as such as just a fee to extend the repayment of the loan. They will advertise the interest rate that works out at but it should just be the £100 still remaining.

    Have you tried getting £100 overdraft from your bank? You could make a dent in paying that back at £25 a month instead of paying it to TMS.
    Total Debt Feb 2012 [STRIKE]£12,153[/STRIKE] 10674 16.5% Paid

    Halifax Credit Card £4448.6. Loan 1 £3000. Loan 2 £2696.13.

    Aiming to be debt free by 31/12/2013.
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    Hi Hel8itch

    To end the trap

    Could you put a full and final settlement offer to them like someone else said
    even if it meant choosing a direct debit not to pay one month - be it water, telephone perhaps or strip back on something else

    Could you try joining a credit union in your area? or talk to a free debt management company - CCCS or Payplan
    or use any other different form of credit to get rid of - just avoid the loan with guarantor idea

    Ask family and pay them back at a more affordable rate

    Once you break the ridiculous cycle it gets better, all the above was stuff I've considered as once I was determined that was it - no going back no matter what
  • malkyh
    malkyh Posts: 1,085 Forumite
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    electrobix99 wrote: »
    It seems the loan forum has just turned into the play ground for !!!!!!.

    Wow, for someone who only registered within the last 6 days you seem to think you know a lot about this forum. Wonder what your last username was.
  • brownstone73
    brownstone73 Posts: 24 Forumite
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    Hi,

    I was in the same boat 2 years ago with a £200 loan. after paying it off and paying it off I ended up paying almost £350 and after just owing £75, I called moneyshop and offered £50 to settle it, which they did.

    I also have a question though, the Monshop has taken an unauthorized payment off from my credit card. I have launched a complain in early January, but I'm still waiting for a response to the matter, they did it twice totalling £100. They are true robbers, but so are all the payday loan companies.

    Is there further action I can take agains the Moneycrooks... sorry Moneyshop?
  • Apples2
    Apples2 Posts: 6,442 Forumite
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    brownstone73 wrote: »
    I called moneyshop and offered £50 to settle it, which they did.
    Did they agree to settle this in writing so you have something to back up your claim??
    brownstone73 wrote: »
    I also have a question though, the Monshop has taken an unauthorized payment off from my credit card.
    It would only be unauthorised if you didn't owe it, but they took money from you (refer to my point above)
    brownstone73 wrote: »
    They are true robbers, but so are all the payday loan companies.
    Is there further action I can take agains the Moneycrooks... sorry Moneyshop?
    It is more a case of robbing from the robbers. If the loan is repaid exactly the way both parties agreed to, there is seldom any problems.
    The problems start where people do not repay because they thought the repayment was optional.
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