Payday Loan Muddle

SqueezyCheese

Hello everybody

This is my first post, so please be gentle with me!

I am usually o.k-ish with budgeting, I am a single mum to a young son, have a mortgage (£456 pcm) and a loan (£134 pcm) but I am lucky enough not to have to run a car and I don't have any credit cards or store cards.

I live a very long way away from my family and friends due to work commitments. I work full time, earning £19,800 per annum. My mother has recently been taken very ill and as a result of this I had a lot of expensive travelling between my home/ work and my mother. I have subsequently decided that I will have to relocate back home to help look after my mother in the evenings. This has meant I have incurred further travelling / interview expenses.

I will get to the point, which is that I need to borrow £200 - £250 until the end of December, if possible the end of January. However, I am unable to be credit scored at present. I have considered a payday loan, but just can not seem to bring myself to complete an application form. I think this is because I am not 100% convinced that using a payday loan company is the best thing to do, particularly after reading the forums on MSE.

I am getting myself into a terrible mess with worrying about it all. I am very weepy and have spent the day reading various payday websites, but none of the information seems to be sinking in anymore.

Any advice would be very much appreciated. I have also considered Credit Unions, however there aren't any within my local area or through my job.

I just can't see the wood for the trees. This is a one off situation due to the unexpected events and me not having a contingency (sp?) fund.

Could anybody please recommend a good payday loan company? There are so many of them out there - I just don't want to get into trouble or have callers at my door.

Thank you for reading and sorry for such a long post.

I am not usually this pathetic! honest!

Squeezy.

michael1983l

I would not use payday loan companies at all really or at most last resort, they are so easy to get out of control with the ammount of interest they charge and the ease of extension.

As it is such a small ammount I would recommend trying to borrow from a family member or a friend. If not do you have any old jewelery you do not use. If so get it down to your local jewlers and get them to give you a price for it.

Sell some tat on ebay and make a few sacrifices on lifestyle and you will soon make your £250 that you need.

I cannot recommend any more than to keep away from payday companies.

00mrmark00

Hi,

Just out of interest, what rate of interest do the pay day loan companies charge? How much more would you be expected to pay back on top of the £250?

nikki2804

Most pay day loans charge about 2000-3000% apr :eek:

Ada3050

Saw an ad today charging 2300% :eek:

Don't go near them!

dotstar24

if you're desperate try Quick Quid...i've used them in the past.....£250, you'll have to pay back £317 ish?

SqueezyCheese

Thanks to all for your advice - unfortunately for me I don't have any jewellery or tat to sell on E-bay as we already live pretty frugally, but I did have a good think about this option. I have now read through some of the other threads on MSE and it looks like QuickQuid would be a good option. Does anybody know if they credit check please?

I know that all payday loans have an APR of 1800+ %, but I read somewhere that this is because the rate is calculated over a year and obviously the intention would be to pay the loan off within a month, so the APR works out to be about 25% (still not great but desperate times and all that)

Thanks again for all your input. :cool:

bigdave1973

Yeah, you're right. The APR sounds ridiculously high because they work it out over a year. If you really can pay it back quickly then it is not a bad idea.