Avoid pay day loans!

Determined_diva

Hi there

Just preparing my annual financial statement for myself to look back and reflect on.

I stupidly took out PDL to get by each month.

I wanted to share with you my calculations to help you not be tempted by them or to pay them off quickly if you have them!!

I had 2 that i used throughout this year: money shop and wage day advance

WDA:
borrowed: £1,940
Interest: £860
Total paid back:£2,800

Money shop:
Borrowed: £1,150
Interest: £460
Total paid back: £1,610

That makes total interest paid this year: £1,320 :eek:

Now let this be a lesson to you all and hope my mistake helps you not make one!

It may seem like £50 here in interest and £70 there but it really adds up, especially when doing it on a regular basis.

They are just not worth it!!! Plus it now sits on my credit file. Great!

Now that holiday/ night out/ birthday present doesn't seem worth it does it???

I can confirm that they was both paid back a month ago and I haven't borrowed since.

Good luck to your financial 2013!

DDx

Lou67

Shocking interest, :eek: and these companies should be banned! I feel sorry for people who get so low and desperate that they turn to these legalised loan sharks.

Glad you're on the straight and narrow and aren't going to borrow again.

DCFC79

Nothing wrong with pay day loans as long as they are used correctly and not taking 1 out after another.

Is a shame people resort to these lenders but people aren't in the right frame of mind to think of other options.

opinions4u

Avoid pay day loans

Seems like good advice.

I will.

Thanks!

Determined_diva

I totally agree with you but to explain where I ended up with re occurring ones and I suspect some others may be the same...

I borrowed for an emergency ( a real emergency might i add)as I didn't have the money

Unfortunately the interest is so high it meant that I couldn't repay in full.

I knew the apr and its totally my fault but I did what I had to at that time.

It then became a vicious circle. Luckily I got out of it as soon as I could through taking on an extra job etc but want to warn others of what they are really letting themselves in for by taking these out.

Lou67

Hi DD. This is why I think they should be BANNED. They take advantage of the vulnerable, needy and desperate, and there are MANY people like this. People get so desperate that they do use these dreadful loan companies.

What's more: is there really so much need for the interest rates to be so high? It's fine if you pay it on time, but if they don't/can't, then they get in the crap.

nyc_451

Lou67 wrote: »

This is why I think they should be BANNED.

There are so many bad things in the world, you can't just ban everything.

Lou67

It's just my opinion Blue Mango. Hence I said 'I think' they should be banned. And I do.

Anyhoo, I have to go. Got visitors coming at 7.30pm. And a large buffet to prepare.

Good day everyone. Have a good night. :beer:

27col

Perhaps you should be doing an annual forecast and budget, not looking at what has happened afterwards. You cannot do anything about what is past, but you can certainly do something about what is to come.
There are lots of expenses that are entirely predictable well in advance and none of them will come as a shock if you budget a bit each month, so as to have the money available when you know that it will be required.
Keeping a spending diary is also a good exercise. It will tell you just how much you are spending/wasting many aspects of your life. It may seem a bit tedious but once you get into the habit, it does not take long to do each day. I think that you will be very surprised at some of the stuff a spending diary throws up. Best of luck for the coming year.

dresdendave

Lou67 wrote: »

Hi DD. This is why I think they should be BANNED. They take advantage of the vulnerable, needy and desperate, and there are MANY people like this. People get so desperate that they do use these dreadful loan companies.
.

If Payday lenders were BANNED who would the vulnerable, needy and desperate resort to? The mainstream lenders wouldn't want to know so presumably their only option would be illegal, unregulated Soprano-like loan sharks. When they're lying in their hospital beds having their knee caps repaired I bet they'll thank you for banning PDL's.

Surely a better solution is to educate people to improve their budgeting, live within their means and save up a bit each week towards that unforeseen emergency.

iaintw

These payday loans charge a lot of interest to pay your loans. Here is my advice do not used payday loans! You will be in debt a lot more and you will have finance problems too.
these payday loans should been banned forever they don't know the laws in this country.
They are not allowed to give you a miss payment at all eg one payday loan charge £20 for a late payment and more ones £45
Your banks can help you further with brorrowing eg loans, overdrafts, credit cards etc.
why dont you do the same thing to not go to payday loans its so simple.
Payday loans companies should offer assistance your money issues that you have and its in lending code.