Is a payday loan always a no-no?

SilverSaloon

^^^ what all the others have said.

Avoid PDL at all costs - tell the adults you cant afford it, or get them a box of chocolates each from poundland for something to open.

for kids, do the same, chocolates, chrarity shop books/games. they wont know any different.

i really dont understand people even considering getting into debt for christmas.

Also, it sounds like you have only just started a new job. Getting a payday loan on the basis of your new income before you've even had one month of it is completly crazy.

Pippin12

I agree with everyone else - it would be so unwise to take out a Payday loan to pay for christmas. I would go to the pound shop - it's amazing what you can pick up there which if packaged in some nice cheap tissue paper can look really special. Apparently just having a record of a payday loan can damage your credit rating. Don't do it.

Saturnalia

I asked my boss yesterday for a small advance and he said it wouldn't be possible, however come this morning he has had a word with the payroll lot and they have ok'd it. So no pdl needed.

TBH I'm not getting some of the replies though? Like one person said about paying 4000% interest. That's if you don't bother paying the loan back as agreed, which if you see my income and outgoings, isn't going to be an issue.

And the whole thing of "getting into debt for Christmas" I always associate the phrase "getting into debt" as spending silly amounts you can't repay and ending up in real problems - not borrowing £100 and paying back in full 3 weeks later!

Not trying to be snide by questioning what you're saying, I honestly don't understand and would like to learn.

dotdash79

£100 would cost you at least £25 to service and then pay back the capital for 3 weeks. That's a stupid amount to pay and especially for stuff that not essential.

boiler repair, car MOT/ Tax or travel card for the first month off working I understand presents it's bonkers.

SilverSaloon

You really shouldnt be getting any debt to buy christmas items. If you cant afford to buy these gifts then dont. Gifts are a luxury to give.

The best way forward (even with an advance on your wages) since you have even considered a PDL would be to speak to your adult friends and say "i cant afford a gift, i wont get you one, please dont get me one". Buying a cheaper gift for children should be easily done. if they are too young to understand the affordability of things then they wont care what the gift is/where it comes from/2nd hand. if they are old enough to be dissapointed about that then they really should be able to understand that the reason they are only getting a small amount of gifts is because you cant afford it this year.... maybe promise a later treat for the new year?

spending money you dont have on christmas, whether it is presents, food or whatever is madness - and a slippery slope to further financial issues. sorry

Sinhanada

Saturnalia wrote: »

And the whole thing of "getting into debt for Christmas" I always associate the phrase "getting into debt" as spending silly amounts you can't repay and ending up in real problems - not borrowing £100 and paying back in full 3 weeks later!
.

I understand what you mean and the advice on here is sound. Although it seems like an easy option, and the thought I have enough money to pay it back makes it seem ok. The problem comes when you do pay it back and realise you're £100 short + the £25. Some people (myself included here) then think I'll take another loan just to tide me over. I got caught in a cycle I couldn't break out of. Although I was on a very good salary, within three years I was borrowing to repay the previous loan.

I don't think anyone on here was being snide, or trying to belittle you but to stop you making a mistake.

There is also another post on here which states it will affect your credit rating - this it will do and no matter if you pay it back in one go and never touch it again - for a time a lot of lenders will not even consider you as you have taken one out.

Glad to hear you have been sorted though

Clive_Woody

Saturnalia wrote: »

TBH I'm not getting some of the replies though? Like one person said about paying 4000% interest. That's if you don't bother paying the loan back as agreed, which if you see my income and outgoings, isn't going to be an issue.

Sorry, my fault, I was being lazy and not being clear. I think the typical APR for payday loans is up in the 1000% interest or more.

As you state you don't actually pay back this much interest as you would not pay this back over a year so the APR is mostly irrelevant but is useful for comparison to give you an idea of how extortionate these loans are compared to regular bank loans.

Obviously different loans for different purposes but as many people find out the PDL borrowing can descend into a horrible cycle of borrowing then having to borrow more next month just to cover repayments and so on until finally the penny drops and the poor sod realises they are in a very deep hole.

This is why people say avoid PDLs at all costs as they really do mess up people's lives. Borrowing for Christmas is a bad idea and real friends and loving family will not expect you to do this.

Anyway, good to hear that you got an advance. Have a good Christmas.

barbarawright

Make fudge or chocolate truffles. I don't know any adult who wouldn't rather have some homemade food than a dvd or new scarf or whatever your were planning to buy

freeisgood

Can you wrap them up each an I O U and then promise to get them something in the sales, you can even make them all home made biscuits/ fudge to open on the day. Or give "promises" a child a trip to clowntown an adult a trip to the cinema, 5 dog walks, etc.... maybe the thrifty thread on this board will help you.


Or make mini hampers with a combination of home made food and a couple of poundshop candle/foam bath, or for the kids, colouring books, chocolate. etc

Jobseeeker

Do you have a credit card? Even that would be better than a payday loan.

Alternatively can you make presents, there is a thread in the christmas board with suggestions