Payday loans?

chimaeric

I find myself in a sticky situation. I am at the limit on my overdraft and credit cards, with a fair amount of payments still to go out this month. One of them is a loan repayment that I really can't miss.

I've thought about a few options, such as speaking to my bank, but I don't think they will extend my overdraft (already £2,000).

So I started looking at payday loans. One in particlar, https://www.3monthloan.co.uk seemed appealing, for a couple of reasons.

Come the end of March, I should be getting a bonus of a few thousand pounds, which would more than pay the loan off (and help towards my other debts). My girlfriend also gets a student loan through at the end of this month of a few thousand pounds. So it's hopefully a fairly temporary thing brought on by additional payments this month for council tax, car tax, birthdays, etc etc.

I have been planning on posting here with my SOA, because I need some longer term advice. But with payments due in 5 days and few options, what do you think? Payday loans, are they the worst thing ever?

Thanks in advance for your advice.

chimaeric

Well, I just applied and got my form to fax back on Monday.

It's an extortionate amount to pay, borrowing £350 and paying back £490 over three months. But it appeared to be my only option, and I know I will have a good amount of money within two months.

Of course I assume it's not binding until I fax everything over, which will be Monday, so I might yet change my mind ...

fatbelly

That website says

'Typical 621.8% APR'

which is the highest i've ever seen! OK, £140 interest may not be much on this small loan. But it sems to me that this may be a 'tip of the iceberg' thing(why are you paying council tax this month? Feb and March are usually free months if you pay by direct debits).

I'd encourage you to post a SoA on the debt-free board.

nomoneytoday

As per a previous post,

Debt_Free_Chick wrote:

You can't borrow your way out of debt.

ohmsoft

Agreed with the SOA advice and the fact that it is a really, really, expensive interest rates.

There are other less expensive ways - one suggestion is, can you contact the loan company (the one you say payment must be made) and explain the situation - perhaps they can offer a payment holiday? Speak to your employer ask for an advance on the bonus? etc etc....

£140 on £350 over 3 months is shocking

TBeckett100

i really wouldnt advise this, i think you would be better speaking to the bank, explain the bonus situation. i think you know that you cant rely on bonuses to see you through and that you need to assess your situation.

if you borrow once you will do it again, dont get on the spiral. i was 10k in debt until a few years ago, it was very stressful and now thanks to being better paid and less payments, i am starting to enjoy life again.

can you not ask the parents, loan companies can be flexible and the bank could say yes!

savvy

I think you need to exhaust all your sensible options first, before you start thinking about going down this route, such as actually talking to the bank and not giving up without asking them first!

I'm going to move you over to the Debt Free Wannabe board as they may well be able to suggest more help, HTH

saintly_2

i borrowed £80 an will be payin back £100 on payday, i was ashamed to do it but needs must, i had asked everyone for some help. I will not be doin it again, and keep telling myself that!!

janiegs

They're daylight robbery! Why is it you must not miss the loan repayment?

itsarichmansworld

No No No

My friend "fell" into this trap not worth it!

Please dont do this at all, speak to bank loan company, bank of mum and dad someone else but no this

iceicebaby

NO dont do it!

My friend took out 80 pound paid 100 back
following month took 100 pound paid 125 back
next month took 125 out paid 156 odd back

Its a never ending spiral

Speak to the bank/loan comapny/parents, ANYTHING before resorting to these sharks

hope you sort it out xx