Payday loans - discuss the MSE guide

MSE_Helen_S

Hi!

This is the discussion thread for our

Least Worst Payday Loans guide.

It was a tricky one to write... here's a quick taster of what's in it...

"Need some quick and easy cash? A payday loan feels easy, but this short term high cost credit can get you into an expensive nightmare of trouble – risking scarring your finances and leaving you repaying many times more than you borrowed.

We don't like payday loans. Most people who get them shouldn't. Yet if you're considering one, we want to ensure you can protect yourself. The first step is to consider cheaper alternatives. If that fails, we'll take you through the least nasty of a bad bunch."



Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.


Thanks, folks

roddycam

I liked TxtLoan (soon to become MyJar I think). £300 max, £17 per £100 borrowed.

Fruit_and_Nut_Case

Some good advice there. The problem is getting potential customers to read it before they start down the slippery slope.

fozmcfc

I expect, some people will criticise this thread, but if used responsibly, Payday loans can be less costly, than bank charges.

The only real advice is, if you take one out, you are going to need to budget the next month, to be able to pay it back and live.

Scooter23

Quid 24 are not to bad when you extend loan you pay the interest but it also reduces the debt £100 loan first extend £31.90 £20 from the debt the rest interest. If u have a problem they are helpful.

sunnsea

I have used wonga on several occasions. I use it because its fast and the money really is there within 15 mins from applying and not in a few days like a lot of the other companies are.
I wouldn't use it if I had another means of borrowing but as I've been transferred with my job, my wages have gone down and I cannot afford to pay all my bills without additional help until I'm up to speed on my new job (should take about three to five months for wages to rise)
Its easy for people who have enough money in their bank to say budget better, but as my wages have gone down and every other bill I have has gone up - I'm stuck.
I only borrow the money when I am desperate as I know it will be straight into my bank and so to have to wait a few days (as Martin suggests the regulators should enforce) would mean that I had to ask for the money before I actually needed it just to ensure I had it in time.
Hopefully, my situation will be ok in a few months and I can put this behind me.
Got to say I was shocked to read about mortgage lenders refusing to lend anyone who had had a payday loan. Anyone know how long it is from clear using payday lenders before you can be accepted for a mortgage? I was hoping that in the next couple of years I would be able to apply to get one as the rent has gone up again this month.

DCFC79

Should be OK with that sunsea (getting a mortgage in a couple of years.), makes sense PDL's affect mortgages. You tried reducing your outgoings sunsea ?

Herbalus

If you resort to payday loans because you can't afford your bill, you're essentially making a bill you can't afford even more expensive. If you're so tight for money that you need an extra £100, you are taking £130 from next month's budget which is really hard.

I know many people say they have no choice, but I would rather live off Tesco basic sausage rolls than give Wonga £30.

hosted

Ive used wonga and the speed and ease are second to none, but and its a big but. Its such a vicious circle and so difficult to break. It took me a year once I started maxing out. payday lenders also have a detrimental effect on your credit file. I was turned down due to "regular use of payday lenders in the last 12 months" by a high street lender despite the fact I never missed a payment to them and had no recent missed payments with any of my bills. admittedly that probably wont be the only reason as there is one default that is five years old that im trying to sort.

My advice would be not to go down that road If you can avoid. Id lend you £20 if it prevented you from going down that route if only to save someone the misery of ending up in the same situation i did with payday lenders.

Apples2

By definition, if you need a payday loan, you don't have any money at the end of the month.

High street lenders expect you to have money left at the end of the month so you can repay their loan.

Repaying a payday loan on time maybe honourable but it's hardly something worthy of boasting about.

JonathanJ

I believe payday loans have their use and a valid place on the loan market.
I have used them a few times to get out of sticky situations, such as car broken down, fridge packed up, unexpected things etc.
They have honestly got me out of difficult situations and have always been paid off in full when they were meant to be.

If you borrow the money as you simply don't have enough to live, too much month at the end of the money, well, thats not a smart position to get yourself into!..........