kicking myself!

jackkerouac · 10 July 2012 at 8:38PM

i posted on here a while ago asking for advice about old debts of mine which i had almost finished repaying. it was totalling around 10k which i had ran up whilst a student pre 2003.

last month i was meant to make my last ever repayment however i have stupidly went crazy overspending, and have ended up with a few payday loans as a result. i have no problems paying this back on time although it will leave me literally penniless for the next couple of months.

apart from the fact i will be skint, i am starting to worry how these may affect my credit rating. all my debts bar one are paid up and all defaults i had on my credit file have been removed as over 5yrs ago so i am kicking myself that this might land me back in the !!!! again in regards to my credit rating. i have also had an application for finance for a new laptop declined.

after years and years of paying everything i am sick as a dog that a few crazy moments might scupper me right at the finish line.

i have gone from owing 660 from my next wage, to owing 2100 over my next two. would i be completely stupid to apply for a short term loan from my bank(if even they would give me it) to allow me to get this paid off and repay at a more comfortable rate over the next 6mths, or is their a better soloution.????

many thanks in advance, i need all the advice and help i can get

cheers

Tixy · 10 July 2012 at 9:00PM

Payday loans on your credit file are generally seem by mainstream lenders as a sign you cannot live within your means.
In the short term they will very likely make it hard for you to get any new mainstream credit.

Assuming you can repay them all on time and don't default on them and don't take out any more then in time the effect on your abilty to get credit will diminish.

If you apply for credit in say a year a lender would see you had obviously struggled on your income in the past or had a short term financial crisis but have come out of that now.

I'd try to pay them all off if you can even if that leaves you on a really tight budget for the next month.
Your own bank may consider a small overdraft which would help you get through or perhaps see if they will give you a loan as you mentioned.
Whether they will is hard to say - they will know more about your finances, but will also be able to see payday loans being paid into your account.

jackkerouac · 10 July 2012 at 9:17PM

the harsh reality of it is i have been an idiot.....on paper it looks as though i cant live within my means, but i can actually live very comfortably within my means, i have just taken it a little too far and gotten caught up in the moment recently when out having a good time and needing instant readies.

maybe an overdraft is an option, but i somehow doubt this as even though i have never been overdrawn and have had a perfect paying history for dd's etc over the last 5yrs since ive been with this bank they will still only give me a savings acct, not even a current acct with an overdraft facility, despite a decent salary every month

thanks for the advice

Tixy · 10 July 2012 at 9:27PM

Did you buy anything you didn't really need that you can take back to the shops to help repay the loans?

Anyone who can help you out short term? anything you could sell to get you through the next month for essential outgoings?

Well done on paying off your old debts -I'd get clear of this new lot asap even if it means living very frugally for another couple of months.

jackkerouac · 10 July 2012 at 9:34PM

no believe it or not this was run up during one exceptionally drunk and expensive weekend in manchester seeing the stone roses. seemed worth it at the time............

i am not averse to paying it off over the next 6weeks, however i am going to have to ask for some help from parents to get by, which i hate having to do.

i cant even blame it on being young and stupid anymore, as im more than old enough to know better.

i am just so concerned how this will affect my credit after all these years of finally getting it looking good.

theoretica · 10 July 2012 at 10:23PM

I imagine the damage to your credit file has been done and paying them off now or over the next couple of months will make no difference so long as they are paid on time. As has been said they should only be a problem for the short term, not as long as defaults.