Loan Help Required Please...(Payday loan mess)

nizzer999

Hello guys, im 25 ok ive get myself into a vicious circle with payday loans and as it stands i owe over £1000 on a monthly wage of £1400. Im currently just paying off the intrest to keep them at bay which is costing me £250 month. Ive confessed all to my family but they are not in a posistion to help me financially. I need to get these paid off and just pay one monthly fee. My dad has said for me to go to the bank to see if they will help but i know they wont due to my credit history. He is willing to act as a Guarantor. I got one Guarantor loan quoting £251 over 12 months for a £2000 loan apr 50.81% obviously i wont be doing that.

Help much appreciated guys.

jennihen

Hi Nizzer,
I think all the qualified peeps are having their tea!
The general advice on the boards are not to consolidate debts with a loan but to contact one of the debt charities first thing Monday morning.
The problem with guarantor loans is that it can lead to problems in the family especially if its a secured loan.
If you go over to the debt-free wannabe boards and read through half a dozen or so posts they will recommend that you post an SOA and work out how much you can throw at your debts.
Good luck!!

CLAPTON

if your father is willing to be a guarantor then discuss with him whether he would be willing to get the loan in his name and then clear your payday loans and then you pay his loan repayments.

He should only do this if he can afford to pay if you don't.... basically exactly like a guarantor loan except that maybe he can get a much better rate.

if you owe 1000 why are you considering getting a loan for 2,000?

what are your living arrangements? do you live at home... if you do can't you have a total no spend month and try and clear a bit more of the payday loan.

Ames

You could try your local credit union, they give loans to get people out of the payday loan trap, interest will be higher than they usually charge (from memory it's about 20%, but I could be wrong), but it'll be far, far less than the payday loan company are charging.

Morglin

Yes, but although credtit unions are brilliant, you do have to save with them first, (or you do with the one I belong to) and then they lend you x times whatever you have saved.

Lin

Ames

I've read on the DFW boards that sometimes they'll lend to non savers to help them escape payday/provident loans, but the interest is higher.