THE MONEY SHOP - I Have taken a loan out with them - HELP!!

Foy453

Hi Everyone,

I work in Blackburn but live in Liverpool and need my car for essential commuting. I'm only a young graduate, with a pretty poor credit rating that is slowly but surely getting a little better but no way good enough for getting a loan or over draft etc form a bank. My old rust bucket of a car from my Uni days finally relented after a year of 500 miles a week and a desperately needed around £500 to put towards around £500 I already had for another car worth about a grand. Everyone turned me down including car credit people. Desperate I notice a cash till pay day offer in one of the Money Shops and was offered up to £600. I had to take this as it worked out I would only get around £500 in cash. I have no parent who could afford to help me or friends and was really desperate.

Unfiortunately although I could extend a couple of the checks the cash till pay day had a knock effect of that i was really poor each month following and started to fall behind in other bills. I also had to pay in advance soem fees for a course in work. I went back to the money shop and they advised me it would be better to get a £1000 loan thoough them and Icould pay it off £100 per month. Desperate and a little naive and soft I did it...and I have to now Pay back £2400!!! over the next two years at £100 a month - for a loan of £1000.

What can I do, I feel like it's a noose around my neck. I know it was my fault. I have rang them and been told I can pay it off in one go for a lesser amount, but how can someone in my position get a loan to pay that off?


I can't believe I have to pay £100 a month now for a whole two years for efecctively £500 towards a car.

Any advise out there anyone please!!

Thanks!

Patrick

jennihen

Hi Foy. At first glance it does seem like there is much you can do. If you have entered into an agreement you will have to stick to it. Unfortunately these types of loans have notoriously high levels of interest and it is easy to get sucked into thinking "I can afford £100 a month repayment" before you realise that this is over 2 years.
I would switch over to the Debtfree Wannabe board and post an SOA - there are plenty of links and people who can advise. Think of this as a valuable lesson in life - these people 'advise' in such a way that they end up quids in!! No one lends you money cos its good for them. They lend cos you are desperate and they make wads - £1400 to be exact!!
You're young - there is still time! You need to pay this money back and make provision so that you are not in the same position 2 years from now. I wish you the best of luck and if I see you on the DFW board I will happily help. Its a tough lesson to learn but life is tough - at least you have the support of people on this board to help you
JH

Foy453

Thanks for your concern. I didn't think there was much I could do. Just feel rerally gutted. For £500 I am paying them £2400. I would have prefered the £100 a month over two years to have paid of my student loan!! Never mind, as you say, lesson learnt. Could I just ask, what is an 'SO' post on the debt free bulleitin board? Thanks again, Foy

jennihen

Hi foy453 - I am sorry it wasn't what you wanted to hear - on the plus side this could be the lesson about finances that sets you up for life. Some people don't learn until they are much further in debt and in serious trouble with repayments.
An SOA is a statement of accounts. There is a link on the debt-free wannabe board which you can follow. All you do is input your monthly income and outgoing. It calculates how mch spare you have left at the end of each month for debt repayment. By posting it for every one to see loads of MSErs will come along and suggest ways of money-saving!!
JH