Payday Loan, Advice Needed Please.

andie666

OK, I'm in a bit of a sticky situation I took out a payday loan, was fully aware of the payments and charges (£200 with £50 interest) and was at the time able to honour everything on the dates due.

I am due to pay the loan back on the 2nd April, this Thursday which is payday but have now been told by my employer that due to changes in their own banking system we will be getting paid by cheque this month, this means I will not have the cleared funds in my account when PayDayUK go to take the money.

I have contacted PayDay and they have told me my 2 options are to defer for a month paying only £50 this month then paying £250 next month to clear the balance, I have told them I am not able to do this on the 2nd (will not have the £50 in my account to cover this) but will be able to pay off the balance in full next week after the cheque has cleared, they have told me that they will still try to take the money on the 2nd as this is what I have agreed to..gulp.

I really don't know what to do now, if they try to take the money I will be charged by both them and the bank if it doesn't go through.

I am able to pay the debt as soon as the cheque clears but can not hold them off from trying to get it on the 2nd, do I or can I cancel my card then call them to make a payment as soon as I have the funds??

Really not sure about the best course of action here, I am aware that I signed the agreement and have every intention of making the payment, it's all gone wrong at my end though :embarasse

Any advice more than appreciated:o

uktyler

You could use a cheque cashing service, most high streets have these, but they charge a fee. This would give you the cash to pay off the loan.

Costly but it works.

andie666

Thankyou uktyler for your quick response, I should of mentioned that the cheques will posted out from head office on the 2nd which means we will not receive them until Friday 3rd at the earliest.

I get the feeling I'm stuck with this awkward situation and will just have to face any charges.

PinkPig

Can you try speaking to your employer about getting a cash advance of £50? It might be worth a shot since it's their changes that mean you're getting paid later than you were previously.

andie666

Cheers Pink, have tried to get cash advance before when the changed our payday from fortnightly to monthly and hit a brick wall then, will give it a shot again tomorrow though, I've got nothing to lose by asking.

Not sure what my options are if I can't get my hands on any cash and that's what scares me, is it too early for a glass of wine? Ha, at least I'm still smiling

gizmo111

Have you tried talking to your bank?

andie666

Would they be able to put a stop on the payment if I asked them, I hadn't thought of that Gizmo, well I had but to tell them my card had been stolen.:embarasse Didn't know if that would work though.

getmore4less

If you over run this will cost you another £50 min so try to pay the full amount and get out of the PayDay cycle now.

A credit card cash advance would be cheaper than this.

Do you have a credit card? I guess not or you would have used this rather than PayDay.

Talk to the bank for a temporary OD that will be cheaper.

andie666

I know getmore, PayDayUK explained that it would cost an extra £50 to defer till next month, I have no credit card and my bank account is a basic account with no overdraft facility, hence the need for the payday loan.

Is it worth speaking to my bank, either asking them to stop the payment (it is not a direct debit I just gave my card details to PayDay) or telling them my card has been stolen (really not sure about that though!), I'm so confused and have no way of getting my hands on any cash in time, it is so frustrating knowing that I can pay the full £250 just a few days after it is due.

Thankyou to everyone for your advice so far.

ShelfStacker_3

Get an overdraft facility. This sort of situation is what they're designed for.

andie666

If only it were that simple shelfstacker :-( I am unable to get any kind of overdarft facility on the type of account I have, wouldn't have got the payday loan otherwise.

Will cancelling the card that i gave them the details for stop them taking the payment or am I too late for that?