21, bad credit, need a quick loan.

Morzor

Not a payday loan, thats the problem. I got into some trouble with payments in my flat and had to take out a payday loan. Im now stuck in a trap and the interest coming off each month being dead money has crippled me. I now need a loan of about £2,000

I was looking at a 12 month loan. These sites that charge higher interest and you pay it back over 12 months. Its annoying, I work full time (only had the job 4 months) and can comfortably afford the repayments of regular loan, but the banks wont look at me. Can anyone offer some advice and recommend me to some places?

No upfront fees please.

Hazzinho

Can you borrow off your parents and pay them back? Payday loans on your credit file means you have little chance of getting a loan. They are a big flag for lenders that you're struggling badly financially.

ses6jwg

you need to act fast, you have started into a debt cycle and if you do not get out now you will lose the best years of life owing money.

see if you can borrow the money off family and pay it off ASAP.

You then need to change your attitude and spending habits to avoid getting into trouble again

jamesd

If you don't have parents who can help your next most likely to be available option is Lenders Compared, the site set up after the Office of Fair Trading investigation into doorstep lending. The loans available there are typically in the 200-600% APR range, a big improvement on payday loans but still very expensive. If you take this route, be sure to get the loan for longer than you think you'll need. It's easy to overpay if you can, harder to deal with if you can't keep up. A year of interest from one of these places would be quite likely to cost less than a month or two's interest from a payday lender.

If you have a credit card you can also try putting all possible spending on that and asking people if you can put their spending on your card in exchange for cash. Cards aren't cheap but they are better than payday or doorstep and high risk case lenders.

If that fails or is insufficient you may need to make an arrangement to pay or seek the advice of a debt relief charity like CCCS. They can generally help to get interest suspended or rates reduced. It may be better to growth CCCS immediately rather than refinancing the loans at a lower but still high rate. Generally the earlier they get involved, the less bad the problem ends up getting.

Emmzi

bank of mum and dad or move back home for a bit.

chalkie99

Morzor wrote: »

can comfortably afford the repayments of regular loan,

Some of the most misguided words that appear so often here - only to be followed a while later by "my circumstances changed" ......

masterlumps

Morzor wrote: »

21, bad credit, need a quick loan. .

not going to happen

maginot

If you can't borrow off friends of family, you are better off ringing your creditors and starting some repayment plan. No one is going to lend you money if you have bad credit and only been in your current job for a small amount of time. Even the sub prime lenders are more fussy and as you've found with payday loans it just ends up with more debt and problems.

Morzor

Well this is the problem, I can't lend of parents due to other circumstances. I can't just ring up someone like wonga and organise some sort of repayment plan.. can i? Thats what trouble im in at the minute, as soon as i get one, i need to get another one.

Emmzi

immediately, open a basic account with another bank, and get your wages diverted into it from next payday, as the PDL companies WILL clear out your account and you will have nothing to live on. "Losing" your bank card will not be good enough.

Once you have defaulted get along to CAB and set up a debt management plan.

If you have no family to rely on and no assets to sell, that is about your only choice.

jamesd

Don't do as Emmzi has suggested and default. That will do unnecessary harm to your credit record. Contact CCCS first instead. Once a firm is told that you're discussing with an advisor they are supposed to cease debt collection efforts for up to a month to give you time to get the advice and set up a plan.