Payday loan - to pay or not to pay?!

hollycupcake

At the end of this month I have 4 payday loans due to be paid off. One of these will be £625. Due to a bit of a win in bingo I will be able to pay them off but it will mean being totally maxed out on overdraft (and reserve so -£1000) and then my wages that go in that day will take me up to about £150 OD.

My question is this. Should I pay off all the payday loans at the end of this month and then live in my overdraft till Sept pay day and try and chip away at the overdraft & reserve (which could cost about £200 in charges) or contact the biggest payday loan lender and see if I can pay the £625 back in 4 instalments? If I did this would they add interest to it? How would it affect my credit rating (which to be fair is already appalling at the moment)? Are they (QuickQuid) likely to even agree to it?

Thank you for any advice.

sourcrates

Unfortunately most of these companies wont entertain any sort of repayment plan until you have actually defaulted, way they operate im afraid, if you do nothing, they will empty your account anyway, so you will have no choice, if you want to take control the only sure fire way to stop them draining your account is.........to open another account and get your wages transferred into it, then close the old one ASAP, its your choice really, hassle both ways :cool:

ilovelondontown

I read the title and thought OH DEAR GOD PAY UP AND RUN!

Seriously though, the fact that you had 4 pay day loans says your finances are not in the best shape. If you roll these over or do anything else of the like the chances are you're not going to pay them off but will keep rolling and adding ridiculous interest or defaults along the way.

Thank your lucky stars for the bingo win, pay off the pdl and then review why your finances are as they stand and work out how to get the overdraft not just out of the reserve but back into the black.

hollycupcake

Thanks for your replies.

The win came at the right time and was enough for me to (finally!) get a grip of myself and close my bingo account. I earn enough now to cover all debt payments and pay for groceries etc but will have to start in my overdraft / reserve which I'll obviously be paying for. I must admit though that I do prefer the idea of just paying all the PDLs off and then I only have to concentrate on my regular outgoings and getting out of my overdraft.

ilovelondontown

hollycupcake wrote: »

Thanks for your replies.

The win came at the right time and was enough for me to (finally!) get a grip of myself and close my bingo account. I earn enough now to cover all debt payments and pay for groceries etc but will have to start in my overdraft / reserve which I'll obviously be paying for. I must admit though that I do prefer the idea of just paying all the PDLs off and then I only have to concentrate on my regular outgoings and getting out of my overdraft.

You only need to spend about 20 mins on these boards to hear the stories that come out of getting pay day loans. They should be avoided at all costs, seriously, I have never been so horrified at the way money can be made out of other people's financial misery and I urge you to do the right thing, pay them off and THEN tackle the other debt. There is no other "right" way to do this, it's the ONLY way to do this.

scotdebs

Hi hollycupcake - please please listen to ILLT's advice get shot of the payday loans then sit down and take a good hard look at your finances and devise a plan to live within your means and tackle another debts

Congrats on the bingo win its a kick start to getting your finances on track but don't rely on it getting you out of a scrape in the future

asmwp

Hi hollycupcake, congrats on the bingo win but please take it as the real stroke of luck that it is, you do not get very many 'get out of jail' cards in life. I agree with the above, get rid of the blood sucking PDL's with your good fortune and breath a sigh of relief they are gone, then sit down and make a plan on how to get out of your more manageable debt.

This is a great board that provides great advice and so much help is available, good luck! :-)

Vikipollard

As previous posters have said, pay off the PDLs. The charges for your OD will not be anything like as astronomical as those for the PDLs - and that presupposes they stick to any arrangement you are able to make and don't just take your money anyway.

Pay 'em off, live on beans on toast and pasta and look at any ways possible to cut your outgoings to bring you back in the black.

hollycupcake

scotdebs wrote: »

Hi hollycupcake - please please listen to ILLT's advice get shot of the payday loans then sit down and take a good hard look at your finances and devise a plan to live within your means and tackle another debts

Congrats on the bingo win its a kick start to getting your finances on track but don't rely on it getting you out of a scrape in the future

I certainly won't! I've closed the account. Those sites were my financial downfall in the first place. I'm really not an idiot (honest!) but I cannot explain how I got myself into this mess. I used to see the PDL adverts on tv and think how ridiculous they are and how no one in their right mind would go down that route. But here I am! I have had my LBM now, I think, and I'm scrimping every bit of cash I can to throw at my debts. Seriously, if you stand still long enough in our house you'll end up on eBay! I'm going to pay off the minimum amount for each of my credit / store cards for a few months and concentrate on my overdraft/reserve, then when I'm back in the black I can up my payments and try and get them cleared. I get a bonus in November (usually around £500) so if I can stay afloat till then it will help immensely.

Thanks again to you all for taking the time to reply

asmwp

Good luck! :T:j

scotdebs

Sounds like you are on the right track - it might be tempting to hit the overdraft first but if the cards are on high aprs you'll save more money in the long run and clear all your debt quicker by hitting them first - check out the snowball calculator best of luck :-)