Cash in or payday loan....

Glennn

Right then... please read all the below before posting views

I will be short £400 odd pounds this month due to one thing or another (Don't think the reason is relevant). I also have two sharesave schemes at work which I currently pay into. Both of these are worth about 1k and £500. The easy option is to cash the small sharesave and use the money as needed but...

I am confident when this scheme matures (30 months) it will be worth about double in value and 3k will be paid in when it matures. Of course nothing is guaranteed so it could be worth exactly what I put in...

With that in mind a payday loan came to mind. For £400 this will cost me £100. An overdraft/credit card/mainstream loan are not options.

So,

A) Cash in the sharesave, will lose money in the long term but it's not money I ever had and technically I am not losing.... just not gaining anything.

Take the payday loan, will cost me £100. Next month is fine I will of budgeted so will not need to take another next month but.... It is still a payday loan.

MonkeyMad

I can't remember how ShareSave works but do you also need consider if you have a tax liability for leaving the scheme early - this could bring £500 down to closer to £350ish?

If you are reasonably sure of the maturity value, then you would be better off in 30 months by having taken the PDL if you are certain you can pay it back

KingElvis

Only take the payday loan if your 100%, gilt edged sure you can pay the pesky thing back.

Why can't you ask your bank for an overdraft? that would be best.

InsideInsurance

If you are going to go down a payday loan remember to get cashback via the likes of QuidCo as the up to £75 they tend to offer makes a decent deduction in the fees (and certainly in the past you were able to make a profit from it)

geoffky

You need to be 110% sure you can pay it back because it could be 2k in a matter of months if you dont..TRY family and friends first or have a word at work..

BugsyBrowne

I would also go the overdraft route.

Glennn

Thanks for the replies and advice.

I did try the overdraft route but they declined, which I think is due to me not using this account for my wages for very long. I decided against the payday route in the end and cashed in the smaller of the two sharesaves I have. I know I will lose out long term but didn't want to get drawn into a bad place should something happen.....

Oh and I don't lose out by leaving the scheme early I get get back exactly what I have paid in.

geoffky

A good decision m8...never ever let payday loans enter your head again..you start playing with the devil in more ways than one