Safer alternative to payday loans

abbierhodes

I'm looking for some advice about a short term money problem.

My DH lost his job a few months ago, and we've trundled along until now, using credit cards (that we already had) our small bit of savings and generally tightening our belts.

Now though, we've reached crisis point. He has had a job offer, but it is going to be several weeks before he is paid.

We urgently need about £600, that we will be able to pay back within 2 months (possibly sooner). So you can see why I'm tempted by the payday loan option.

Does anyone have any suggestions?

For the sake of not 'drip-feeding'- I have a well paid job, so we're not able to get any help at all from the government. The reason that we're in such a mess is that we took on debts for home improvements based on 2 wages, which we now don't have.

But we have some extra money coming in about 3 weeks, plus my wages at the end of the month, and DH will be paid again by the end of July so we'll be fine by then. Unfortunately though, we need the money NOW.

Any suggestions?

FireWyrm

OK, so how many weeks exactly do you need to last? Are there children in the house?

Why do you 'need' money now? Can you give us more information on your circumstances.

FYI a payday loan of any stripe (even a credit union) isnt a good idea. Your best bet is to tighten that belt yet further, so with that in mind, you need only feed yourselves for 'x' weeks until the money comes in. This is why I ask, "why do you 'need' money" because unless you have a 'pressing' bill, you can stall them all for that month.

abbierhodes

Hi,
Thank you for replying.
We have only enough food and petrol money to last a few more days. We are overdrawn (over our limit) so the bank charges are racking up. The car is uninsured and I need it for work (it bounced) and the phone is about to be cut off.
Yes, we have small children.

I get paid in 3 weeks. We have a cheque for £5OOish which could arrive in the next 2 weeks or could take up to a month. I'm painfully aware that when it arrives it will still take a week to clear.

JournalGirl

Have you talked to your bank. With the evidence of your partners new job, they may be wiling to cut you some slack.

Alternatively, you mention you are in a well paid job....would your company give you an advance on your wages to get you through this short time?

FireWyrm

abbierhodes wrote: »

Hi,
Thank you for replying.
We have only enough food and petrol money to last a few more days. We are overdrawn (over our limit) so the bank charges are racking up. The car is uninsured and I need it for work (it bounced) and the phone is about to be cut off.
Yes, we have small children.

I get paid in 3 weeks. We have a cheque for £5OOish which could arrive in the next 2 weeks or could take up to a month. I'm painfully aware that when it arrives it will still take a week to clear.

Right. Forget the phone, it's non-essential. The car insurance is if you intend to use the vehicle. Do you have any holiday you can use because now would be a good time not to travel if you can help it. Can you ask your employer to allow you to work from home for a few weeks? Any chance of an advance on your wages?

You say that you only have enough food for a few days, but often that isnt strictly true. You can live (for a few weeks) on pasta, rice, tins of tomato and other mystery meals. I suggest a real inventory of your cupboards. What have you got? Even a tin of spam is another meal and it sounds like you're down to the wire here.

A loan probably isnt going to happen from any reputable source, so I suggest you direct your attention to survival for the next few weeks. I wont kid you, it's going to be unpleasant, but for the sake of less food than normal, you might just scrape through...

Any more information you think might be helpful?

Tixy

When does he actually start employment?

Is there any chance of getting an advance on his first wages (once he has started)?

Any chance of a small loan from your employer? or an advance on your wages?

Anything you could sell to earn some quick ready cash? old phones / games consoles etc could you do a car boot sale?

Any family you could borrow a small amount off?

Have you tried speaking to the bank to ask for a small temporary extension to the overdraft? explaining the circumstances?

If you did go for a payday loan would you be able to repay it if either the potential employer pulls the job offer or if he starts but then they decide for some reason he is not suitable and terminates his contract?

Who is the £500 cheque coming from? any chance you can chase them or get them to guarantee when it is coming out to you?

Maybe if you could break down the £600 you need in to main categories how much for food, how much for petrol, car insurance etc then maybe people can come up with savings / individual suggestions.
Food wise - any nectar points or clubcard points or even boots points or anything you can use?

abbierhodes

Taking time off work or getting an advance isn't possible unfortunately.

Also, I know I sound very matter of fact and flippant, but I've done 'extreme survival budgetting' in the past. This is beyond that, there isn't enough food. And I have to get the car on the road.

Sorry, I don't mean to rebuff all the advice, not at all. But I've answered theads like this myself when the true answer has often been that the poster isn't trying hard enough to cut back. I just want to make it clear that this isn't what is happening here. This isn't about cutting out my daily latte. We're truly, truly broke.

abbierhodes

X post tixy. Hang, on, let me look at your suggestions and reply properly!

FireWyrm

do you have anything to pawn?

How about the TV, the video, the Ipod, Ipad, Gannys Ring? Anything at all?

What about penny tins? Holiday money? Forgotten tenner trapped down the sofa?

As for food, it depends what you mean by 'enough'. Value brands are pennies - you can by a kilo of rice for 30p. Obviously, you feed the kids first, but a few mystery meals wont hurt them. What do you really have available? Surely your cupboards arnt truly bare?

Also, calling in sick might be an option and if it comes down to it, your great aunt might have a medical crisis you are required to help with...yes, i know it's immoral, but morality doesnt pay the bills right now. You just need to get by.

theoretica

Why are you asking for a 'safer' alternative to a payday loan rather than a 'cheaper' alternative? Just an interesting choice of words, especially as you are so confident you can repay it on schedule.

You could probably get food from a foodbank, or religious centre and can pay them back by making a donation once you are back on an even keel.

If the £600 includes the whole year's insurance could you pay monthly instead?

abbierhodes

The reason I'm using the word 'safer' is because I've heard all sorts of horror stories about what they can do to your credit rating, and I don't want to make my situation any worse.

Right- my bank won't help, not even in the short term. My credit rating is 'fair'. Not due to any defaults, just due to the amount of credit I already have.

I am going to spend the afternoon getting some stuff on ebay. I also have various old clothes that we could do 'cash for clothes' with, so that might help a bit even if it isn't a lot. My main priority if the car and food.

I'm concerned because my bank charge £5 for every day I'm over my limit, and it will be a while before I can get it under. And both of us have accounts which are over their limit. My 2 credit cards are maxed out due to the last 3 months of surviving on half our previous income.