Funding Circle - Personal Loans?

wood1985

Hi,

Are there any companies like funding circle that offer personal loans?

My financial situation is challenging.

I literally pay around 400-500pcm in interest which is around 25% of my monthly income.

I'm repeatedly relying on payday loans every month (200+pcm in interest alone) to get through the month.

I recently applied to my bank and then appealed. I only need 7,500 to get out of this situation.

I'd be able to make payments of £170 or so over 4 years to clear the debt and leave myself with around 8-900pcm free. That was my proposal to the bank.

I documented my current outgoings, how long it would take me to get back to a stable position, and showed a comparison with a loan. They didn't even look at it.

I have around 8 different credit accounts so I need to stick to the minimum on each and with a payday loan thrown in it makes it difficult to get out of.

Even if I could get something with a high rate such as 10-12% I'd be in a much better financial position.

I can't look to halt payments via the 'stop all interest' type methods due to my job.

LondonGal

What is wrong with embarking on a DMP through something like cabmoney (-eg- https://nedcab.cabmoney.org.uk/ )? Would this not achieve the same end result, but possibly faster as you would more than likely get interest frozen on accounts?

yan101_2

your digging yourself in deeper to be honest, the reason i got so far in debt was re financing a loan i got for a car in the hopes that it would sort me out. started out with a 5k loan for a car, then borrowed a bit more, then a bit more, bank wouldnt lend me anymore so i got 2500 from another company and i ended up owing 13k minus interest. i was paying out half of my income and this was when i lived at home. When my girlfriend fell pregnant it finally hit me how bad i was in debt. Not alot to some people but i was a civil servant on a low income. i tried to negotiate for years myself with threatening letters etc but i eventually i turned to stepchange, got my interest frozen, they dealt with all the correspondance with my creditors, worked out my income and expendature and paid what i could afford. i paid off almost half of it, and due to an accident at work i lost my job, so i was lucky enough to be offered a full and final settlement of the rest of my debts for £500. i paid it with money i loaned from my grandmother, and i am now debt free. It can take time, but chasing loans and especially pay day loans is not the way to go trust me. Its wasted money in interest that you could be using to pay off the principal debt. had i gone to stepchange in the beginning i would have been debt free alot sooner.

dancingfairy

I can understand bankruptcy or an IVA being a problem but are dmp's a problem? It might be worth phoning your union or hr anoymously to double check.
Assuming it is a problem you could try your local credit union. Some will make loans to people struggling with payday loans. Apart from that I don't think you will be able to get any form of borrowing. The only other options are to cut down your expenses or up your income somehow (either by taking on a second job or by selling stuff on ebay/car boot).
Best of Luck
df

harrys_dad

You cannot borrow your way out of debt, especially if it includes payday loans. You need to clarify why you cannot default "because of your job". Check if a DMP will affect your job (I doubt that it will).

19lottie82

wood1985 wrote: »

I recently applied to my bank and then appealed. I only need 7,500 to get out of this situation.


I documented my current outgoings, how long it would take me to get back to a stable position, and showed a comparison with a loan. They didn't even look at it.

I don't mean to be blunt, but can you blame them?

wood1985 wrote: »

Hi,

My financial situation is challenging.

wood1985 wrote: »

I'm repeatedly relying on payday loans every month (200+pcm in interest alone) to get through the month.
.

wood1985 wrote: »

I have around 8 different credit accounts

10% isn't a "high rate". I'm sorry, but no commercial lender is going to touch you with a barge pole, unless you're willing to pay 50% APR plus

wood1985 wrote: »

Even if I could get something with a high rate such as 10-12% I'd be in a much better financial position.
.

LondonGal

Have a look at the link in post 2, they're good and your local CAB might be signed up to it now. It doesn't stop you doing it if they're not. If you don't want to manage a DMP yourself, Payplan, StepChange, National Debtline, CAP and many others offer free ones - DON'T EVER PAY FOR THEM!!!!!!!!!