PayDay Loans - I used one responsibly, and didn't get stung!!!

sharpy2010

Ok, we've all seen the countless threads where people moan and whine about PayDay Loan companies and how they're the worst things ever.

I've got a slightly different view. As someone who has used one of these companies in the past, and paid off the loan, on time and in full, I've never had any of these so called problems that some people seem to get.

So, with that in mind, who had used a PayDay loan company, repaid the loan without problems, and actually thought "Hmmm, that was useful in the circumstances"?

I'll start by saying I have!

Misty_Blue

Me. My bank account was almost cleared by fraudulent activity the week before Christmas two years ago. I got the money back from the bank, but obviously I knew that wouldn't happen overnight, and I had some direct debits due out. I used a PDL to cover the direct debits, than repaid it in full once the bank refunded me.

The PDL charge was way less than what a stack of bouncing direct debits would have cost me!

sharpy2010

Misty_Blue wrote: »

Me. My bank account was almost cleared by fraudulent activity the week before Christmas two years ago. I got the money back from the bank, but obviously I knew that wouldn't happen overnight, and I had some direct debits due out. I used a PDL to cover the direct debits, than repaid it in full once the bank refunded me.

The PDL charge was way less than what a stack of bouncing direct debits would have cost me!

Excellent! Less than 5 minutes after my post, a reply confirming that actually PayDay Loans CAN be useful, used correctly!!!

You might think I'm PRO PayDay Loans - Actually that isn't the case. They're an expensive way to borrow, after all. The point I'm trying to make is that they aren't as evil as some people would have us think.

gingertilly

I too have always had a good experience with QuickQuid and Wonga, in fact paid a £250 loan back this morning to QQ and it cost me £3.47 in interest to borrow it for 4 days so much cheaper than an unauthorised overdraft!

Michael

sharpy2010

Good to hear! Never used QuickQuid, only Wonga, and can't say I've ever known them to do anything other than what they say they will.

gingertilly

If you intend to pay back early then QuickQuid work out cheaper (for me as I'm a platinum member ) but they always have codes flying about.
I actually took out a loan back in October for £150 and had a 25% code for the finance charge, only had the loan out for 2 days and paid back £149!

Quids in lol

If people use them how they were intended, for a week or two (or a month max) then they are great, if you cant pay back then thats where the problems start :eek:

Michael

property.advert

Perhaps the balance to this argument is that people should not blow every last penny they ever get but actually set aside some regular savings, however small, to tide them through periods like this.

Being a high ranking platinum member of a parasitic pay day loan company is hardly something to brag about but rather an indication of constant and prolonged mismanagement of money.

backinbusiness

property.advert wrote: »

Being a high ranking platinum member of a parasitic pay day loan company is hardly something to brag about but rather an indication of constant and prolonged mismanagement of money.

I have to agree with this - not to mention the adverse effects on the user's credit file.

Sorry, OP.

sharpy2010

property.advert wrote: »

Perhaps the balance to this argument is that people should not blow every last penny they ever get but actually set aside some regular savings, however small, to tide them through periods like this.

Being a high ranking platinum member of a parasitic pay day loan company is hardly something to brag about but rather an indication of constant and prolonged mismanagement of money.

Thanks, but that wasn't what this particular thread was about, might've been a better idea to post it in the ones slagging off PayDay Loan companies, cheers.

gingertilly

property.advert wrote: »

Being a high ranking platinum member of a parasitic pay day loan company is hardly something to brag about but rather an indication of constant and prolonged mismanagement of money.

Well to say I was bragging is stretching a little also the use of the word "parasitic" already indicates a preconceived notion you have :cool:

Now to become an awesome Platinum member you must have had a total of 10 or more loans out with them, which over the past 4 years I have.
It doesnt mean that I waste my money just that it gets to wed/thurs before payday (I get paid weekly) and I fancy a beer or a takeaway or some gas/electric on my meter. Therefore I take a loan out with them and pay it back the friday I get paid, costing me between £0 and £4 in interest.

Just to clarify, I have used one (or ten ) responsibly, and didn't/haven't been stung.

Michael

Johntea

How about you save that £4 (example) you're paying in interest in a coin jar or something every week? That'll buy you a pint or takeaway!

All it takes is one slip and you're stuck in the trap. Fancy a few extra beers? No problem I can just text Mr Payday Lender from my mobile in the pub and the cash will be in my bank account 15 minutes later! Sadly the hangover will last all month...and possibly beyond.

There are much more responsible ways of lending before having to resort to these. For starters (exluding savings), how about setting a small formal overdraft up with the bank. It shouldn't be left 'maxed out' it can be used for a few days to fill the gap before payday then cleared in full each payday.