Pay Day Loan & Debt Trouble

rick2006lee

Hi, Last autumn/winter (2010) I had an outgoing of over £400 for something that had to be paid. As I am only on £10k a year (about £730 a month after tax) this was a massive amount to go out.
The only way i could cope that month was with a pay day loan, thin after paying that off the next month i needed a further pay day loan.
Basically ever since I have been living off of these pay day loans. Somebody please help me and advise what i can do??
Oh and I forgot to mention... I have tried to get a loan however was unsuccessful. Many thanks.

Sparkle78

I got a payday loan almost two years ago for £500 and still got £100 to pay to clear it. Never again! If you calculated what I have paid over the two years, it equates to thousands!!!!!

fishty

The only way out of payday loans is to stop applying for payday loans every time you are short of money.

Your lining their pockets, a luxury it seems, you can't afford

serverking

fishty wrote: »

The only way out of payday loans is to stop applying for payday loans every time you are short of money.

These payday loans are as addictive as crack to some people - you just gotta have another hit:p It's the shocking APR's that get me - how can you still be paying two years down the line for just a £500 loan?

These payday loans aren't regulated, and they take advantage of the desperate.....

rick2006lee

Hi all, Im not addicted in any way, its simply because i cant make it through the next month without one! I havent had it for 2 years, about 6 months...

CHR15

If you keep applying for new ones, you will never be rid of them.

Find another way, sell stuff, ask parents, friends etc.

Sparkle78

Due to getting £500 on a 2456% deal. Believe me, this was due to desperation and yes, it does take that long to pay off because you are simply paying the interest at first by deferring the payment! Thankfully, it'll be gone by next month but NEVER AGAIN!

fozmcfc

CHR15 wrote: »

If you keep applying for new ones, you will never be rid of them.

Find another way, sell stuff, ask parents, friends etc.

This the best advice you have been given.

Even if you have to live on bread and water for a month, do it rather than keep getting another loan.

Only other alternative would be to basically default on the loan and eventually get some sort of agreement to pay it back in instalments. But this will mean many weeks/months of hassle before they will accept installments and you will be very unlikely to get any further credit for the next 6 years or so.

You could try the debt free wanabee section of the forums, for advice/support from many members who are/have been in your situation.

dunstonh

I got a payday loan almost two years ago for £500 and still got £100 to pay to clear it. Never again! If you calculated what I have paid over the two years, it equates to thousands!!!!!

A payday loan is meant for periods of like 7 days and aimed at higher risk individuals and is priced accordingly. They are not designed for 2 year periods of borrowing.

They are not actually that expensive when used for their purpose. Indeed, they can be cheaper pro-rata than say borrowing money from a friend and buying them a drink. The problem is when people use them for long term borrowing and that is just a recipe for disaster.

jamesd

rick2006lee wrote: »

Basically ever since I have been living off of these pay day loans. Somebody please help me and advise what i can do??

Try LendersCompared . It's the site that big doorstep lenders are required by the Office of Fair Trading to use. Other companies who will lend to people with imperfect credit records also use it. The rates are quite high - often 400+% - but still cheaper than payday loans.

Tupperware_Queen

you could try your local credit union. Usually you have to have a saving account with them for a month/6 weeks before they will give you a loan, but they understand the trap that payday loans cause, and may be able to help you out.

The advantage of a credit union is that they are very low interest, and they usually get you to save as well as pay back the loan - our local one insists on this, and although the savings are very minimal, its about changing attitudes to money, the principle rather than the actual money involved.