Trouble with payday loans. Please advise.

DonkinJames

nidO wrote: »

Assuming she doesn't, do you have the option to apply for an overdraft with your bank?
Although it's shifting her debts to you so carries some risk for you and an overdraft isn't exactly the cheapest credit going, if you have a good history with your bank asking them for a £1000-£1500 overdraft shouldn't be asking too much and will usually be an instant decision, so would make the cash available on Monday to be able to clear the payday loans on time, which will then give you longer to sort out actually paying the cash off and with vastly lower interest/charges while doing it.

Once the PDLs are paid off, you/she could look at the option as Jobseeeker has mentioned of applying for an ordinary loan for the £1300 to clear the overdraft, which will get your loan down to a nicely manageable interest rate that can be paid over a sensible period of time.

As mentioned, a DMP or bankruptcy for the sake of a relatively small debt is a hugely extreme step, with both of you working with a (presumably) stable income getting normal credit to pay a £1300 debt shouldn't be asking too much.

I think an overdraft would be a good idea, Because I'm really good at saving money and could pay it off a lot quicker. Would they just give me a £1500 overdraft though straight away? Iv been with the bank for about 9-10 years and have never missed a payment on my car insurance/loan/phone bill/gas/electric/water/tv license and soon.

nidO

DonkinJames wrote: »

I think an overdraft would be a good idea, Because I'm really good at saving money and could pay it off a lot quicker. Would they just give me a £1500 overdraft though straight away? Iv been with the bank for about 9-10 years and have never missed a payment on my car insurance/loan/phone bill/gas/electric/water/tv license and soon.

There's no way to know for certain without asking them and getting an answer, but I wouldn't have thought they'd decline you if you have a good history with them, depending on your bank its probably something you could do online and get an immediate answer.

dresdendave

As others have said DMP's or bankruptcy seems extreme for a relatively small debt for working couple. Usually borrowing to clear debt is not something I would recommend but if you can get an OD or loan with a mainstream lender to clear a PDL then go for it.

Take into account though that as your GF has PDL's the new loan/OD will almost certainly be in your name rather than hers.
If you were to split up the debt is YOURS alone and the circumstances as to why you borrowed the money are irrelevant.

If you do succeed in getting the OD it is important you concentrate on paying it off ASAP. Reduce all your outgoings to the bare minimum for a few months, no treats, eating out etc. Wonderful advice for belt tightening can be found on the DFW board.

[Deleted User]

Personally, I'd skip the OD, and apply to your bank for a loan.

If your history is as good as you say, a £1,500 loan should be a piece of cake.

Repayments will be £125, plus interest, per month, over 12 months.

ricky_v

Another option is to apply for a 0% interest super balance transfer credit card with a 4% fee (so costs £60 for £1500).

Longest is Fluid at 27 months at 0%. Aim to repay the lot within 26 months, so it's £60/month (£1560 paid over 26 months)

The advantage is also you can pay anywhere from the mininum to the remaining ammount. Again pay the balance off before the end of the 0%.

http://www.moneysavingexpert.com/loans/cut-loan-overdraft-costs