Cash until Pay Day Help

Woodsylou

Hi

I have managed to get myself in a real mess with those 'pay day loans' and i don't know what to do next.

I guess the whole idea of them is to get you more and more reliant. I got one, then paid it off, but then had to borrow again, and then get another etc. now i have three, totally @ £1500. even if i roll over each month, the interest alone leaves me over my non-existent overdraft.

does anyone have any advice on how i can get out this? how i can pay them back and get straight?

i have an awful credit record so getting a loan isn't really an option. i'd be quite happy to do that, if i could!

i feel so stupid asking, i wish i could turn back time!

Tixy

Have you considered the option of getting a loan from a credit union? They won't go on your credit score but on your affordability. The interest isn't the best but is better than these loans and many subprime rates (max of 24% I think) - see if there is one near you that you could join - http://www.abcul.org/page/members.cfm

gargrave50

Hi, these should be steered well clear off but I guess you know why now. Its never a good idea to get more debt to repay debt so don't think anymore about getting a loan. You need to contact them and explain your circumstances and see what your options are.

gargrave50

Hadn't thought about suggesting credit union Tixy. Don't you need to save with them before you can get a loan or was that back years ago?

Tixy

I think you can start saving a really small amount (£10) at the same time you take a loan out so it can still work out cheaper per month - and you get a bit savings for next time you have an emergency.

Woodsylou

thank you so much. i have no idea what a credit union is! i'll look straight into it. i am also drafting a letter to the companies to see if they can freeze the amounts and the interest to see if they'll let me pay them off in installments. do you think that might be an idea?

Woodsylou

there isn't a credit union near me (im in Essex, the nearest is south London) nor any related to my work

Tixy

Definatley a good idea - if you need a template look on the national debtline website sample letters.

Don't know for certain that a credit union will work but worth a try- I know other people have got loans from them to pay off payday loans. Credit Unions are usually either regional to an area or to an employer. That website link I gave should help you find one and give you more info on how they work.

Tixy

Oh thats a shame - I would have thought most areas had one now. In that case it might be worth speaking to a free debt advice organisation for help on how to tackle these payday loans (and get them to agree to reduced repayments).

Tixy

Are you anywhere near Basildon?
Colchester?
Harlow?
Witham, Braintree, Maldon, Halstead, Coggeshill, Kelvedon, Great Dunmow, Tiptree?
Romford?
Southend on Sea?
My Essex geography is appalling! - also if you work near any of these towns you could also be eligible.

Woodsylou

I'm in Harlow. i couldn't find one when i looked! i'll look again! thank you so much! i feel better already!