Payday Loans Do's & Don'ts

southernbelle

I agree that Wonga are good in terms of allowing payment plans. They have been very good with me.

At the end of the day, I took out the loan, I read the small print and knew that the interest is high - my fault not Wonga's. They have behaved responsibly by allowing me to pay back less than I had agreed to - I can't see how this is bad.

cos_2

Small_Loan_Turns_Big_Debt wrote: »

Hello All,



You may think I'm stupid, but it happens and

Not at all. Back in the 90's I got into financial bother and used a company similar to today's PDL lot. If I remember right, I had to give them three or four post-dated cheques, and that covered the loan over three or four months. I can't remember what their charges were, but it must have been similar to Wonga et al.

Anyway, the point is I thought I was clever and quite savvy, but there I was getting loans from a high street shop to pay my bills It can so easily happen to any of us.

sefton

Small_Loan_Turns_Big_Debt wrote: »

I agree all Payday Loan companies are terrible, I can't think of any good points to them. But for some people they are the only wat they can get credit.

People with a Fair/Poor credit file cannot get credit from anywhere else, so in this instance if it is for an emergency you have no way off getting out of, I think they can be of use.

I do believe the interest rate is extortionate and you pay far too much for a small loan, but some people have no choice.

I find any sort of credit ridiculous, secured or unsecured; but these days there are many people looking for a quick buck and this can be the only chance.

The reason people can only get money from pay day loan companies is they are a bad risk. This stuff about use them in an emergency is PR nonsense for the pay day loan companies. For the vast majority of people who take a loan out with them it becomes a vicious spiral of re-loan or pay the interest each month. In effect these people take an effective 10 to 30% drop in take home pay for months on end..

The fact our government has not chosen to make the business environment as hostile as it possibly can for these companies is very worrying. With Wonga now sponsoring a premier league football team we are back to the bad old days when the drug dealers (big tobacco) sponsored sporting events and teams. Now they have been replaced by loan sharks.

Progress

antonic

thehig wrote: »

I need the influx of cash from them, I can afford to pay them back in full on each payday.
I only need to do it another 4-5 months before extra funds clear up as my DMP will end. (an extra £407 per month

You do realise that your DMP provider could cancel your DMP because of this dont you ?

Because when you start a DMP you are NOT supposed to take out any fresh credit.

Also if you need PDL`s to cover your DMP, I fear you will slip back into debt.

thehig

antonic wrote: »

You do realise that your DMP provider could cancel your DMP because of this dont you ?

Because when you start a DMP you are NOT supposed to take out any fresh credit.

Also if you need PDL`s to cover your DMP, I fear you will slip back into debt.

thanks for your concern, I realize I was in a Russian Roulette kind of position.
However I ended my Debtplan myself in December, and last month I cleared off my remaining debt, and February and this month have not used Payday.
Only debt I have left is 1 CC with £500 balance and an overdraft.

I wont be using Payday loans again, It can be hard to get out the cycle, but can be done.