Payday Loan Company - Can't repay in full

BLT_2

SimIsOnTheUp wrote: »

Not at all. Sorry for my dim ways this morning!

I've just grasped where you're coming from now.

Am tired, but I didn't realise they worked like that (no wonder I'm in debt).

It's just clicked. Jeez, that is rather worryingly extortionate.

So basically I need to get this cleared 100%, within 3 weeks.

There's no way I want to get into the cycle of borrowing more from them to pay the previous loan off and so on..

If I do need more time, and do need to take out another loan for the £400 or £340 to pay off the initial £300, I don't think they'd actually agree to loan me the further £400 in the first place.

They told me last Saturday, when I borrowed the £500, that my 'credit limit' as it were, is £500, and after paying back the £200, I'd only have 'available credit' of £300 left.

However, I'm confused again now sorry.

I don't want to 'take out any further loans' with them.

I thought that they just charge a flat £18 (or something ) fee to roll over each £100 cheque plus interest.

Sorry. Tired. Will have to come back to this and work it out later.

Cheers,

Sim.

Whilst I understand your concerns regarding your 'credit limit' - the fact that the additional loan would be immediately repayed, thereby resetting your credit marker would mean that you were still within their limits.

That said you have to put this into perspective. If you pay off 100 pounds per month, by the time the debt has gone you will have paid them almost 250 pounds in interest on a 500 pound loan.

I would certainly recommend trying to get out of this spiral as soon as possible.

CannotFindHelp

I feel for anyone who feels they have to turn to companies like this....

Mrs_Ryan

Right, basically this is how they work. They charge a flat fee PER CHEQUE depending on how much you owe them. So yes, you are correct in saying there is a flat fee, which for a £100 cheque, is £17.98. So on a 300 pound loan, it would be 3 x £17.98= 53.98 :eek: But you dont have to keep reloaning - you can extend the cheques for however long you need to - I did it for 2 years (yes, this is a VERY stupid thing to do, and is MOST DEFINITELY not recommended. Im shot of them now though) If you can pay them off by flogging your computer, do it...

katsu

As you can't clear this in full try going to a local credit union. They often lend people money to get them away from payday loans. Their rates will be dfar more sensible. You can find them in the phone book.

If you are not willing to sell the laptop, start ebaying everything you can to give you some more money to clear the payday loans with.

BLT_2

Mrs_Ryan wrote: »

Right, basically this is how they work. They charge a flat fee PER CHEQUE depending on how much you owe them. So yes, you are correct in saying there is a flat fee, which for a £100 cheque, is £17.98. So on a 300 pound loan, it would be 3 x £17.98= 53.98 :eek: But you dont have to keep reloaning - you can extend the cheques for however long you need to - I did it for 2 years (yes, this is a VERY stupid thing to do, and is MOST DEFINITELY not recommended. Im shot of them now though) If you can pay them off by flogging your computer, do it...

Thats scary, rolling over a 500 pound loan for 2 years would cost 1900 pounds and you would still owe 500 pounds. I dont think I could work out the interest rate on that, I just tried to work it out on an online calculator and it couldn't deal with the sort of problem

No wonder these places are in business.

Mrs_Ryan

Thankfully, it wasnt £500, I dont have a cheque guarantee card so my 'limit' was only half that at £250. I paid about £35 a month for 24 months - £840 + 250 owed :eek: What was worse was at the time I took them out I only earned just under £600 in part time work, thankfully I now earn double that full time in a different job. They were very good with me though to be fair, but I always paid up on time and they earned probs more out of me keep extending.

SimIsOnTheUp

Mrs_Ryan wrote: »

Right, basically this is how they work. They charge a flat fee PER CHEQUE depending on how much you owe them. So yes, you are correct in saying there is a flat fee, which for a £100 cheque, is £17.98. So on a 300 pound loan, it would be 3 x £17.98= 53.98 :eek: But you dont have to keep reloaning - you can extend the cheques for however long you need to - I did it for 2 years (yes, this is a VERY stupid thing to do, and is MOST DEFINITELY not recommended. Im shot of them now though) If you can pay them off by flogging your computer, do it...

Thanks for the info Mrs_Ryan.

I am now going to have to pay the full £500 loan back.

Am so annoyed I've got into this mess a second time.

I was looking into going for a DRO for all of my debts, but I feel I'd like to try and repay everything gradually.

Also, if I was to let the cheques go to my bank, I could be done for fraud (as I told them I was working when I applied last time) by either MS or the A&L.

I have to be careful in that I'm not showing 'preferential treatment to one creditor over another' - as if I do, I won't have the option of the Debt Relief Order later on.

Really don't know what to do.

Two options really -

1 / Let the MS cash the cheques, taking my bank account with A&L overdrawn + charges (but at least the MS would have been repaid, and I can then treat the A&L bank o / d / debt as a seperate debt to be included in a DRO).

OR

2 / Try and pay the MS asap (no mean feat - not working - sole income ESA). I was aiming to pay one of the £100 cheques this Friday (and then in two weeks time, asking the MS to roll over the cheques for another month, before they cash them - and paying them the 4 * £17.98 = £71.92 - for the 4 remaining cheques)

On my income now though, this won't be sustainable, especially as I have rent arrears (already been to court in March / a whole load of other debts).

Am really starting to panic, as from what I've read on here, MS / all of the Pay Day loan companies are pretty non - communicative when it comes to negotiating.

My GF even helped me pay off the £500 last month, and I'm gutted I've gone and done this due to starting to drink again.

At least I'm sober now.

Thanks again for your help on here folks,

Sim.

SimIsOnTheUp

katsu wrote: »

As you can't clear this in full try going to a local credit union. They often lend people money to get them away from payday loans. Their rates will be dfar more sensible. You can find them in the phone book.

If you are not willing to sell the laptop, start ebaying everything you can to give you some more money to clear the payday loans with.

Thanks.

I can't go to a Credit Union though I doubt, as I was in debt to them just over a couple of years back, and I fell behind.

Eventually it was paid back.

However, I did try approaching them last year with my current debts, and they said no, due to my past history of falling behind with repaying them.

Cheers,

Sim

Emmzi

so.

selling things.

SimIsOnTheUp

Judas -

That is rather rude, uncalled for, and unhelpful.

Do try and be polite. If you can't be polite, then why bother saying anything?

I can't sell my computer as it has a fault, and won't sell. It wouldn't bring in enough money, even if it sold (which I doubt it would). Hence it would be pointless selling it.

Regarding your other comment - Where did I say I would be "taking out another payday loan, refusing to pay it back"?

You have obviously never put a foot wrong in Life!

I feel bad enough as it is, regarding what I've done.

I am trying my hardest to overcome addiction and mental health issues, and yes I've screwed up.

However, I am trying to put it right.

Again, if you can't be civil, why bother posting?

Regards,

Sim.