Is a payday loan always a no-no?

Saturnalia

Hi all,

I started a full time permanent job at the start of December and won't be paid until 28th Dec. I have £80 which if it were a normal month, would be more than enough to live on, but it's Christmas and I have 8 gifts to buy!

Now I know my friends and family will be fine if I explain (they know I am skint and didn't have much work in November) and tell them they will have a gift at the start of Jan -but I'd like to be able to send them so they can unwrap them on Christmas Day itself.

My income will be £1400 and my outgoings are:
Rent £720 (all bills included in that)
Travel £136
Phone £25
Food about £100

So if I borrowed £100, that would more than cover what I need and I would be able to pay it off in one go without going short.

Is it a bad idea to borrow money? What would you do in this situation?

YorkshireBoy

Saturnalia wrote: »

What would you do in this situation?

Personally I'd not buy for them, and explain why. If they're real friends they'll understand.


Alternatively, ask one of the family members you're buying for to loan you the £100 for a few weeks. I guarantee they'll then say "don't bother getting us anything, we know your situation".


Payday loans should be avoided at all costs, because the damage they'll do to your credit file will still be there long after you've taken the tree down!

CKhalvashi

Unless you're over a credit limit, then please don't do it.

There's always the option of buying their present in the sales, for following week; my first Christmas present for this year, was bought on December 26th last year.

CK

Saturnalia

Yes you guys are talking sense. My friends and family know how skint I have been as a temp, so won't be expecting me to get them anything (though I have always managed to). I'll send cards and tell them they'll get a present at New Year. Then I can shop in the sales and give more gifts for less money!

I already have a gift bought for my 4 year old nephew. His brother has just turned 1 so won't even be aware of what Christmas is this year (but I have seen something small & affordable that is appropriate so I'll send it for him.)

Nebulous2

It depends a bit on who you are working for, but employers will often advance some money to new employees. I used to do it occasionally (pretty much everyone who asked) particularly where people were moving from weekly pay to monthly. If its a big company you can often go through HR with very little involvement from your manager. It is likely you will have to sign a form allowing them to deduct it from your first months salary.

27col

I cannot believe that you are seriously considering going into debt to buy a few presents. If the potential recipients don't understand your situation then it is a pretty poor set of relatives and friends. If you explain, I am sure that not one of them would even consider expecting a gift from you this year.

DigForVictory

OP, please Just Don't!
If it's £100, ask one of your family for a short term loan. Which you'll either be given or lent - please, *don't* go to the payday loan folks, as what starts as just a small amount, depsite good intentions, grows and it is *vile*.
Family & friends will/should understand (& if they don't point, those who do at them!).
If any of my tribe needed a short term boost, I'd see what I could afford to give & hand it over. I really hope your family do things likewise.

macman

Pay day loans are not the only source of borrowing-why would you consider them first? Overdraft, put it on a credit card, family loan?
And a payday loan of £100 means that you will be paying back a lot more than £100.

Clive_Woody

Saturnalia wrote: »

Yes you guys are talking sense. My friends and family know how skint I have been as a temp, so won't be expecting me to get them anything (though I have always managed to). I'll send cards and tell them they'll get a present at New Year. Then I can shop in the sales and give more gifts for less money!

I already have a gift bought for my 4 year old nephew. His brother has just turned 1 so won't even be aware of what Christmas is this year (but I have seen something small & affordable that is appropriate so I'll send it for him.)

I am sure your friends and family would rather you avoid paying 4000% interest (or more) for their sake. Tell them you are delaying Christmas until January.

eBay is great for kids toys and gifts for your nephews. My kids are both really into lego and I've saved a fortune buying second hand lego rather than buying it new. Kids really don't mind second hand toys.

missindecisive

honestly, tell the adults you are skint, they will understand. Have you had a look in charity shops for the kids, you can often pick up really nice books for about 75p. Also poundland do lots of stuff...my younger ones love all the tat in there! It really doesn't matter what, gel pens, colouring books, silly little squeaky monkeys that light up..have a lovely xmas don't go down the pay day loan route x

Apples2

If you delay it a month you will have an extra 30 quid to spend on them (the money you won't be paying in interest) and you could buy more for your money in the sales, a win/win