Payday Loans Best Options

jont80

I have currently fell into the payday loan trap and instead of getting more loans and deeper into it I want to start clearing it. I currently have 5 loans.....
Wonga £900
Lending Stream £ 420
Quick Quid £500
Payday Express £500
Payday UK £500

I currently have £670 i can pay off a month.I have tried to set up a repayment plan with some but they are not being helpful namely Wonga.
I was going to pay £50 each to QQ,PE and PDUK.Who i beleive are helpful to people in trouble. My dilemma is i am late on paying Wonga after numerous e-mails being ignored i am going to have to default on this to get a repayment plan set up.I was going to snowball my funds into clearing Lending Stream as i believe it wouldnt count to much on the Wonga account with them continuesly adding interst.I was going to make a token payment of £100 to show i want to clear the debt.Basically i am going to have to neogtiate with the debt collecters. Is that the right option ? So at least it is 1 less company to make a payment to next month meaning i have a little more to spend on the others ?

DarkConvict

It does come to a point where you simply have no choice but to default. You can't relend money and you can't pay them off.
What tends to happen is you refuse to pay, they default and if they guarenteed the loans then they cash the cheques/card payments and the debt ends up with your bank in the overdraft at a lower APR atleast.

Credit unions are a possibility as consolidation for pay day loans is about one of the only times consolidation is recommended. http://www.moneysavingexpert.com/banking/credit-unions

Monkeyballs

Hi,

Yep, DC is right. You'll have more luck in negotiating with the bank although in my experience Payday UK are actually not that bad...

I would look to see if you have a Credit Union near you.

Terms vary once you become a member but it is defo worth a shot.

The key is to not panic and blindly take on additional payday loans to try to cover yourself for one month as it just makes matters worse.

jont80

Do credit unions lend to anyone ? I am not a member and have a 2 defaults on my credit file. One is spent next month but the other is off 2007 so still has 3 years left on my file. Would this effect applying with a credit union ?? Do you need to be a member or do they lend to first time loan appliers ??

bottleofred

Hi Jont80,

Credit unions lend money to their members. In my CU, you need to become a member, save for 3 months and then borrow money. They've never done a credit check on me, but that's not to say one near you won't. In England it may be a different system, but hopefully someone with knowledge of this can advise shortly.

Good luck