We're aware that some users are experiencing technical issues which the team are working to resolve. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Payday Loan Muddle

Options
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.

Comments

  • michael1983l
    michael1983l Posts: 1,916 Forumite
    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.
  • 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
    nikki2804 Posts: 2,670 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Most pay day loans charge about 2000-3000% apr :eek:
  • Ada3050
    Ada3050 Posts: 227 Forumite
    Car Insurance Carver! Cashback Cashier
    Saw an ad today charging 2300% :eek:

    Don't go near them!
    Know the difference between what you WANT and what you NEED. :T
  • if you're desperate try Quick Quid...i've used them in the past.....£250, you'll have to pay back £317 ish?
  • 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:
  • 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.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.7K Banking & Borrowing
  • 253K Reduce Debt & Boost Income
  • 453.4K Spending & Discounts
  • 243.7K Work, Benefits & Business
  • 598.4K Mortgages, Homes & Bills
  • 176.8K Life & Family
  • 256.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.