Please help me escape payday loans!

dan22031986

Hi all,

I'm hoping someone one can help me sort out my problem.

I have a BAD credit rating from being foolish for a few years. I have a managed loan with my bank of £2500 and a credit card with a limit of £250 which i pay off in full each month.

However i am missing payments here and there because i am stuck in a vicious cycle with Payday loans.

I can't afford to stop getting them as the charges are so high!

i need to borrow £1000 over 12 months and then i can get back on my feet again.

I earn around £1500 a month and cannot get a loan for love nor money.

My mum has even agreed to be a guarantor but to no avail as she is not a homeowner!

Any help anyone can provide would be massively appreciated.

Cheers,

Dan

Ames

You could try your local Credit Union, they sometimes give loans to get people out of the payday loan trap. In the mean time, cancel the dd, get a new card or whatever so that they can't take the money. If your credit rating's trashed already then they can't make it worse, if you can't get a loan then just pay them what you can afford each month.

dan22031986

hi

thanks for the quick reply. I think that may be the best plan.

Do you know what will happen if i do this? will it register as defaults and ccj's against me?

At the moment i only have one default from 5 years ago and i dont really want to add any new ones !

sarahb7538

How many payday loans do you have and for how much?

dan22031986

just one and for 650. but this will cost me 850 next month! i have to keep getting them as i cant afford not to!!

Ames

I don't know for sure but I imagine it will be marked as a default. A CCJ can only be granted after they take you to court, which they probably wont do as it'll cost them money.

dan22031986

thanks again for the response. I think i will try speaking to them on monday and seeing what they can do. I will repost on monday to let you know what happens! Thank you both again for the help!

Ames

When you speak to them, just keep in mind that they can't have what you don't have. They can threaten and bully all that they want, but they can only have what you can afford, after you've paid all your priority bills, and food.

GeorgeUK

Does your mother work?
Is her credit rating okay?

If so would it be possible for her to get a 0% Virgin credit card?

She could then transfer the money to your current account (at 0%) with which to pay the loan off and your monthly payment would only be £25 if you needed time to get things together again - just an idea if the credit union requires you to be a member for a few months before they can loan to you.

tealady

Hi. If you put up your SOA then we may be able to help you cut back so you can get away from these people. I would imagine the APR's are horrendous.