A bit of a pickle brewing. Payday loans - any alternative?

Damone

Hi everyone.

I have got myself into a bit of a worrying state.

I took out a payday loan for some dental work. I am now slightly worried about paying this off. I borrowed £450 and I agreed to pay this off over two months(first payment due is the end of this month £112.50, the second is the end of July, £562.50) The first payment I can make fine, I am slightly worried about the second one.

I have the option to extend the loan but it will cost £112.50 so I could pay £350ish in each of July and August for each additional month which is excessive. Is there any way I could get credit to pay this off at a reasonable rate?

I earn just over £1000 a month, I have an overdraft which is always close to maxed come the end of the month( I was unemployed for 2 years previous to this job which I have been in for 7 months). And a credit card which the balance currently stands at £650 out of an £800 limit.

Have you any suggestions or do I just need to bite the bullet?

Thanks in advance.

manzanilla

And you didn't think of this before you took the payday loan out?

If you couldn'ty get credit at a sensible rate before, the chance of getting it now with this payday loan is even less

Could you work any extra hours? Get a second job for a coupld of months?

Could you ask any family that give you birthday / xmas presents to give you some cash now instead for this year? Or could a family member loan you the money to be repaid over 6 months say?

(nb I almost never advise people to borrow from family - unless they are trying to sort out a small Payday loan problem.)

Tixy

You say you are slightly worried about the second payment. Can you afford it or not?
I would suggest you work out exactly what you have coming in before that date, and what essential spending you have to make. Cut out all unnecessary spending for the next 6 weeks, live as cheaply as you possibly can and work out whether you can afford to repay it. Think about if you have any things you don't need you could sell to help raise a bit more cash.

Better a month of living super frugal and getting rid of the debt if its possible.

[Deleted User]

Damone wrote: »

I took out a payday loan for some dental work....

Have you any suggestions or do I just need to bite the bullet?

It depends on the quality of your new teeth.

fevlo

Take it from someone who spent way too much time in the PDL spiral.
If you can pay it off, even if it means living of beans on toast for a month and walking everywere, Pay it off !
Set out your expenditure for the month and see if you have the avaliable cash, you'll be surprised when you write it all down.

DCFC79

I'd be looking at what you can cut back for a few months eg look at your shopping budget, only buy what you need, buy the budget brands, go for the yellow stickered items you can find in the shops in the evenings.

Damone

Deleted_User wrote: »

It depends on the quality of your new teeth.

cheered me up.

I'll take the advice and live on beans on toast. Next couple of months will be a drag but I should be ok.

Thanks for the advice.

debtcutter

If you are only slightly short of being able to afford the second payment, does that mean you could afford more than £112.50 this month?

The more you pay this month, the better. If you can pay double the required £112.50, this month, it's going to reduce both the amount you pay in total and the £562.50 second payment.