Payday Loans

Brynawel4

Hi I need some help!! I feel like everything spiralling out of my control - but its all my own fault. Has anyone ever used payday loans? I have got three out at the moment which I have deferred payment until August - but this now means that when I get paid in August I am going to be at least £350 down on what I have left after payment my every day bills. Does anyone know how many times you can defer payments and to be honest - how can I stop using them and getting back on my feet?

Judith_W

Hi, not too familiar with payday loans. All I can say is they are a terrible form of borrowing as I'm sure you have realised.

Is there any ways you can make a bit more cash - ebaying, online surveys (and use the vouchers for something you would buy anything so you can use cash towards the debt), extra shifts or barwork or something.

Make sure you have cut everything you can out of your normal budget. It might be beans on toast for a while to get a bit more cash together to pay off the loan!

Tixy

Hi

You can keep deferring payment but obviously this costs you a fee each time and ends up really costly.
If they are 3 seperate loans remember you don't have to repay them all or defer them all. So can you get off them gradually? manage to repay one or 2 in August and defer the other, then repay that the following month.

As judith suggests can you raise some cash by selling anything you don't need? car boot sale? ebay? gumtree/local freeadds?
Have you worked on reducing your every day bills? checked you are with the cheapest supplier/tariff for everything? reduced you phone tariff? cut out all unnecessary items? The more you can save here the sooner you can be free of the payday loans.

I presume you don't have an overdraft available to pay off the loans? as overdraft interest would be much much cheaper than payday loans.

Workie_Ticket

I got into a vicious circle with these and it spiralled out of control. I ended up cancelling my debit card (ordered a new one from the bank) and didn't pay the loans back on the due date. I then set-up payment arrangements with them and repaid the amount owing over 3 months. I paid via bank transfer as well so they didn't get my new debit card details.

podperson

I used to use these all the time and I hate them with a passion, awful companies! Basically depends on what you have left at the end of the month - am going to assume you can't afford to pay all 3 off in August but do you have enough for one and the fees to defer the other 2? Then same again next month.
As others have said also look at surveys, ebay, mystery shopping, overtime etc to try and get a bit extra in the short-term to pay these off quicker as obviously the more you defer the more fees you will have to pay.
In the long term, is this a recurring problem where you are constantly going over your income and having to resort to these loans? If so look at making yourself a budget and can post a soa on here for advice on how to make savings.

lil_raine

i have got into a mess with payday loans to the stupid sum of £2800!!! they are a vicious cycle so today i decided to take the bull by the horns and see if i an come to an agreement with these companies.i owe to 6 different companies 5 of which have agreed a payment plan 2 have even frozen the interest altogether,1 however will not budge.what i am wondering is i wrote them a cheque for £833 , £700 for the loan and £ 133 for the interest,i usually roll it over by them swiping my debit card on payday for the £133,however last week my debit card was cloned so the bank are sending me a new one will this company still be able to take money from my account now my card number has changed ,also i m thinking of taking my wages out as soon as they arrive in the bank and letting them bank my cheque which i know will bounce due to lack of funds (and the cheque being for £833 and my guarantee card is only for £100 ) and just paying the bank charges and then i m sure this company will pass the debt to a debt collection agency who hopefully will let me set up payment plan with them. i would be grateful on any advice on if this is a good idea or whether i would end up in more trouble than it s worth. thanks

Marisco

I put this on the wrong thread:o Hi Raine, no I don't think they will be able to take money out with your new card. A while back I left my debit card in the BA fast boarding machine in Moscow airport and didn't realise till I got to Heathrow:o The staff in Moscow cancelled it so that was OK. I got a new card and thought nothing of it, till I got a couple of letters off things I pay by card, mobile etc. I phoned the bank thinking they had cocked things up, but it was because the card number was different to the one the creditors had. So if they don't have the new number they cannot take the money out, until you inform them of the new number.

lil_raine

ok thanks for that.i know i ve been stupid for getting into ths mess with the payday loans thats why i am trying to sort it and get myself straight,just so annoying when they won t listen.

katsu

OP look into your local credit union. They will often lend people money to get them away from payday loan companies.

DarkConvict

Payday loans can work, but it is easy to get trapped if you ever defer a loan payment. Fee and interest increase rapidly.

Credit unions can help, they often want you to save with them, however you could ask them.

A agree with others, start ebaying and try to get them paid. If you do decide not to pay and cancel the card etc. It will damage your credit file, either as late payments or a default. But it may give you time to arrange repayment.

WRINKLES

Sabastian6 wrote: »

[FONT=&quot]payday[/FONT][FONT=&quot]loans[/FONT][FONT=&quot]are extended over too long a period, or if a consumer takes one[/FONT][FONT=&quot]payday[/FONT][FONT=&quot]loan after another, it will put a strain on his or her financial situation.[/FONT][FONT=&quot]Payday[/FONT][FONT=&quot]loan fees are very expensive, particularly if a loan is extended over time. The fee charged for a[/FONT][FONT=&quot]payday[/FONT][FONT=&quot]loan is equivalent to a 250-650% Annual Percentage Rate (APR), which is by far one of the most expensive loan options on the market.[/FONT]

Have you tried the Halifax ,go ten pounds overdrawn , they charge one pound per day , i think that works out at 3,650% over a year , the m&*$adont charge that much on a loan.:cool::eek::(:mad: