mortgage problem

Dan-Dan

ACG wrote: »

Why?

Because of high APR?

Ignore the APR its stupid and pointless on payday loans. Your comparing a long term loan with a short term one.

In reality if you borrow £100 and pay back £110 - your paying 10% interest.
Ive just gone on to wonga and you can borrow £400 for 30 days. You pay back £125 in fees and interest, to me thats about 30% not 14000000% or whatever the crazy APR figure is.

Hi ACG

i just was under the impression a pay day loan on your credit file , even if fully settled within agreed terms etc , is a red flag to any potential creditor ?

midnight_express

MBNA DO good cash advance deals on their credit cards.

ACG

Dan-Dan wrote: »

Hi ACG

i just was under the impression a pay day loan on your credit file , even if fully settled within agreed terms etc , is a red flag to any potential creditor ?

It doesnt look great, but a 1 off with a decent enough reason if its say 12 months down the line isnt a major problem. I think the main priority is avoiding a late payment on his credit file - it could be the lesser of 2 evils.

Crashandburn

Dan-Dan wrote: »

Hi ACG

i just was under the impression a pay day loan on your credit file , even if fully settled within agreed terms etc , is a red flag to any potential creditor ?

No red flagged. It's frown upon if an over reliance on them in a 24 month period. A one off would be fine and as ACG says, if used for the right purpose and paid off within say 7 days of having it, then not too much of an issue.

Bank overdraft is the first port of call though, pay-day loan last resort. A missed mortgage payment would be a bigger issue to other creditors than a payday loan.

shortchanged_2

ACG wrote: »

Why?

Because of high APR?

Ignore the APR its stupid and pointless on payday loans. Your comparing a long term loan with a short term one.

In reality if you borrow £100 and pay back £110 - your paying 10% interest.
Ive just gone on to wonga and you can borrow £400 for 30 days. You pay back £125 in fees and interest, to me thats about 30% not 14000000% or whatever the crazy APR figure is.

Come on ACG this is quite scary advice for a financial expert.

APR as I'm sure you are well aware is the interest rate based over a year. So if someone doesn't clear the debt it rolls over and so on.

So the 30% you are quoting is for 1 months interest.

Now multiply that by 12 and you get a figure closer to 360% APR.

Hence why pay day loans are a very bad idea.

JimmyTheWig

If it is a case of a payday loan that you are confident you will be able to repay or missing a mortgage payment, I'd go for the payday loan.
But it is an expensive and risky way to do it.

A bank overdraft has got to be the cheapest way to do it if you can, OP.
If not, would it help to get a credit card and buy everything (e.g. weekly shopping, petrol, etc) on that for a while, freeing up the cash you would have used for those purchases to pay the mortgage?
Have you got anything you could sell? I tend to make about £100 when I do a car boot sale.
Any old gold, etc?
You say you don't have family who can lend you the money, but would they be able to lend you some of it?

I can't see how much your mortgage is, but someone has mentioned borrowing £400.
I'm saying what if you get £100 from a car boot sale, put £100 of shopping on a credit card and put this money towards the mortgage and borrow £100 from family. Then you'd only need £100 from a payday loan or credit card cash advance, which is going to be much cheaper and safer than doing the whole lot that way.

Alternatively, are you going back to work for the same company who you used to work for? I.e. they know you and know you are reliable? If so, could you ask them for an advance on your wages?

Crashandburn

shortchanged wrote: »

Come on ACG this is quite scary advice for a financial expert.

Is it? We're on the 20th and the payment goes out next Thursday. The Lender has stated they won't help, not enough time to get a new credit card up and running and bank overdrafts could come with a £15-20 fee.

We obviously don't know the extent of the OPs need but with a lot of other doors shut, then don't look down on it too much as a complete one off.

If the mortgage payment is bounced, they you could be looking at a £25 fee from your bank plus charges from the C&G of £35 which could outweigh a payday loan. As others have said, a bank overdraft is the first port of call.

salmonking

ACG wrote: »

I dont think the OP is someone who belongs on the jeremy kyle show though. He seems pretty responsible, knew something was coming up and tried to pre-empt any problems.

this made me laugh fair play!!nooo you wont see me on Jeremy kyle anytime soon!!. sounds like I will have to have a word with the bank manager!!.as said I did try to sort all bills out before I had my op but this one month has caught me out!.i don't really want to go down the line of payday loan to be honest.thanks for the comments guys.

salmonking

Crashandburn wrote: »

Is it? We're on the 20th and the payment goes out next Thursday. The Lender has stated they won't help, not enough time to get a new credit card up and running and bank overdrafts could come with a £15-20 fee.

We obviously don't know the extent of the OPs need but with a lot of other doors shut, then don't look down on it too much as a complete one off.

If the mortgage payment is bounced, they you could be looking at a £25 fee from your bank plus charges from the C&G of £35 which could outweigh a payday loan. As others have said, a bank overdraft is the first port of call.

hi thanks for the reply.im not sure I made myself clear,ive got this months payment,it is the april payment I may struggle with.as for work im self employed so I don't just work for 1 person,but I do have lots of customers waiting for me to start back.

JimmyTheWig

salmonking wrote: »

im self employed so I don't just work for 1 person,but I do have lots of customers waiting for me to start back.

Don't know what line of work you are in, or what your relationship is with your customers, but how about a special offer where they get, say, 30% off if they pay for their next order this month?

Alternatively, what do you do about income tax? Do you have an account that you pay into each month so that you can pay the bill when it comes? Could you borrow from this pot?