21, bad credit, need a quick loan.

Ames

jamesd wrote: »

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.

For a prime lender I'd agree. But for a PDL company Emmzi is spot on. They just don't listen - or if they do, they see it as a red light and go raiding accounts. I think having a PDL on your credit file is going to cause enough problems, the default isn't going to have much effect.

jamesd

I agree with the bank account part as a precaution, but not with failing to get advice before defaulting, that might make it unnecessary to default.

Merely having a payday loan isn't going to do much harm compared to a default.

There are undoubtedly unethical payday lenders out there that choose to risk their licenses by ignoring the OFT guidance on debt collection.

jonesMUFCforever

If OP says he can easily afford the repayments on a £2k loan over 12 months then he is saying he has a minimum of £200 surplus funds left over from his wages every month - why is he in debt??????

Morzor

jonesMUFCforever wrote: »

If OP says he can easily afford the repayments on a £2k loan over 12 months then he is saying he has a minimum of £200 surplus funds left over from his wages every month - why is he in debt??????

I'm right here by the way. And yes, if I keep expenditure down, I will have roughly £300 a month left to spend on whatever. However, after all my bills have been paid, I don't have over a grand to pay back, thus the cycle restarts having to take out another payday loan.

Fiddlestick

Morzor wrote: »

I'm right here by the way. And yes, if I keep expenditure down, I will have roughly £300 a month left to spend on whatever. However, after all my bills have been paid, I don't have over a grand to pay back, thus the cycle restarts having to take out another payday loan.

And you can't take out a loan for £300 less each month?

malcolmffc

OK, so this month take a £700 loan and use that plus your £300 to pay off the £1000. Next month, borrow £400.... see where we're going here? In 4 months you'll be debt free.

elliesmemory1

I would change bank acounts asap. move any money in to new acount so the pdl cant take your money. Then ring cccs or debt line.
I would not try to borrow more money. You will just be robbing peter to pay paul.
Cccs should be able to sort out a repayment plan for you.
You need to sort this asap as pay day loans will spiral out of control and drag you down.
The best thing is to get advice from a debt charity NOW

Wheredomy£sgo?

Hardupandfedup wrote: »

I would change bank acounts asap. move any money in to new acount so the pdl cant take your money. Then ring cccs or debt line.
I would not try to borrow more money. You will just be robbing peter to pay paul.
Cccs should be able to sort out a repayment plan for you.
You need to sort this asap as pay day loans will spiral out of control and drag you down.
The best thing is to get advice from a debt charity NOW

This is extreme with the bank account, just say you have lost your card and cancel it. I know there are loads of stories on her of people telling the PDL company they have lost/stolen card but you need to tell your bank! the way a PDL company works means that, on your payday, they use your card details as though you are there buying something from them. they have NO authority to access the bank account it relates to, it is NOT a DD or a standing order. If you card HAD been stolen and you reproted it so, and the thief wen to tesco to buy groceries the next day, the card would not work... this is exactly the same!

With regards to the 200-600% APR loan mentioned above... BE CAREFUL! this could actually be MORE expensive than a PDL. whilst PDL companies are forced by law to quote 2,300% APR rates and more, their ACTUAL simple interest is no more than 360% (if you borrowed £100 from 321cash.co.uk , the MOST you would pay back if you paid nothing for a year would be £460 (£30 per £100 interest x 12). PDLs do NOT compound interest. If the above loan is for a year, it is more likely they WILL compound interest (you are charged interest on your interest like on a mortgage) and so a 400% loan would be more expensive (in simple terms) than a PDL!

Sorry if that confuses you, its hard to explain. In summary, I would avoid BOTH if you can! I'd contact any creditors you have to reduce payments, they WILL listen. Enter a Debt management plan, avoid further credit!

CHR15

Wheredomy£sgo? wrote: »

. If you card HAD been stolen and you reproted it so, and the thief wen to tesco to buy groceries the next day, the card would not work... this is exactly the same!

It IS different.
When you go into Tesco and present your card, you are authorising the withdrawal right there and then. If the card was cancelled the previous day/week, the withdrawl attempt would indeed fail due to the fact the card has already been cancelled.

When you take a PDL you are authorising the withdrawal immediately, but agree to defer the physical withdrawal until a later date. For this reason cancelling the card AFTER you have ALREADY agreed to pay it may fail.

This is the same as Continuous Payment Authority where you agree right from the second you sign up, that they can take a regular amount each Month. It doesn't matter if you cancel the card as you pre-approved it whilst the card was functional.

There is a Martin Lewis statement to this effect with a stark warning as to the difficulties in stopping these payments. Only the company concerned can stop them, not us as the customers.

There is a lot of waffle on this board from people accusing others of talking rubbish.
The truth is, if the payments stop once the card has been cancelled, consider it a bonus, it isn't normal and is poor advice to suggest it is.

Wheredomy£sgo?

CHR15 wrote: »

It IS different.
When you go into Tesco and present your card, you are authorising the withdrawal right there and then. If the card was cancelled the previous day/week, the withdrawl attempt would indeed fail due to the fact the card has already been cancelled.

When you take a PDL you are authorising the withdrawal immediately, but agree to defer the physical withdrawal until a later date. For this reason cancelling the card AFTER you have ALREADY agreed to pay it may fail.

This is the same as Continuous Payment Authority where you agree right from the second you sign up, that they can take a regular amount each Month. It doesn't matter if you cancel the card as you pre-approved it whilst the card was functional.

There is a Martin Lewis statement to this effect with a stark warning as to the difficulties in stopping these payments. Only the company concerned can stop them, not us as the customers.

There is a lot of waffle on this board from people accusing others of talking rubbish.
The truth is, if the payments stop once the card has been cancelled, consider it a bonus, it isn't normal and is poor advice to suggest it is.

I appreciate what you are saying Chr15, but where have you got this information from please? If you try and pre-auth a card, it will ONLY accept it if there are sufficient funds in the account to do so, which would mean all these people asking for the loan, would have to have the equivalent loan plus funds for interest ON APPLICATION... which 95% (absolute guess ;-)) don't!

I know the continuous payment law which is directly linked to your bank account, but these agreements are linked to your CARD, not your account. In fact, the only reason a PDL company takes your account and sort code is so they know where to pay the funds. A CRA (credit reference agency) can verify that an account belongs to a person and can verify that a card belongs to the same person (at the same address), but not one can verify that the card relates 100% to the account. Trust me on this one.