PayDay Loans - Are they ok to use

,hills

I've just gone through the process of seeing how much PayDay Loans would charge for a £120 short term loan. They want £30 which I can go with.

I only need it until next week (although they are showing payable in 39 days).

Although it says I am accepted, I am a bit concerned I will now get another call/text saying after further checks it will be rejected.

I can definately pay it back but are there any catches I need to be aware of.

Many thanks

Evilm

If you fail to pay it back on time then I believe the interest and payments can reach very high amounts as far as i've heard.

I'm assuming you can't get a credit card but if you could then you usually get up to 56 days to pay before any interest is due so that would be the better option.

Evilm

please also search the forum for payday loans on more info as to how they can go bad... there is a thread about one taking 4 times the amount of the debt from their bank account due to charges etc.

talana

Well I suppose if
(1) you've exhausted all other options for short-term loans (borrowing from family or whatever) and
(2) you're 100% cast-iron guaranteed to pay it back on time
then there's possibly a place for them.
But they're expensive loans and as the previous poster said, fail to pay back on time and you'll live to regret it.

,hills

Thank you for all your wise advice

I wanted to make sure that the Company is OK and the £30 charge they say will be all I incur

I really can afford to pay it back next week

I hope I get it after the authorisation as I really need it

Thanks again

AMILLIONDOLLARS

Have you got a VERY VERY GOOD reason not to wait until you get paid next week?

AMD

,hills

Just to get through, food, get to work etc and that's it.

Took kids away for half term and spent too much.

I'm just worried that the £30 fee will be more.

I would rather pay next Thursday than leave it until the 39 days so I hope there is a way to pay it off early.

I hope I get it first because I need it.

AMILLIONDOLLARS

Now would be a good time to go through your freezer and cupboards, its amazing what can be rustled up and made into meals and give yourself a good clear out for next week's shop. With regards to money for work, going down the back of the sofa!! for loose change, or maybe a money jar sometimes can be satisfying. Failing that, why not the bank of Mum and Dad, Sister, Friend. These are some safer options

AMD

happyandy63

Pay Day loans are really bad news. You really want to avoid if you can.

Any form of spending 1st then paying back always costs you much more and in terms of these type of credit its ridiculous. when you don't have the cash you don't want to give it away if you don't have to.

Open a bank account that has a overdraft and use this instead.

undaunted

They are charging you £30 interest on £120 for a week (or even 39 days) - that's a huge APR.

Whether there is one in your area, you could immediately obtain a loan from them etc I don't know but try looking for a local credit union & you'll be far better off in the long run.

Try here,Association of British Credit Unions Ltd, as a starting point.
http://www.abcul.org/page/about/intro.cfm

Good luck

hopefulfooluk

,hills wrote: »

Just to get through, food, get to work etc and that's it.

Took kids away for half term and spent too much.

I'm just worried that the £30 fee will be more.

I would rather pay next Thursday than leave it until the 39 days so I hope there is a way to pay it off early.

I hope I get it first because I need it.

What will you do at the end of next month when you're not only £120 down like you are now, but £150 down from repaying the loan and fees? Are you then going to need a £150 loan (which becomes £180, and so on and so on until you are caught on the dependency cycle these loan companies thrive off)?

You have to be absolutely certain of how you are not going to get into the same situation next month before you take one of these out. Sit down, work out EXACTLY what you are going to spend next month, make sure it leaves you cash positive at the end of next month even with repaying the WHOLE AMOUNT of the loan back. If you are still in the plus after everything is accounted for then go for it, if not, it would be a very, very, very bad idea to take it out.

This post is coming from a person who has been through a bankruptcy and does not want you to experience what it is like to go through.

Just be very, very careful.