Payday Loans

nathanjrb

Argh.

OK. So. I've had a fair few hard months since Christmas where my girlfriend and I broke up. I've been left with paying her share of the rent and this has had a massive impact on my finances.

I've struggled to keep my head above water and since January I've had around 15 payday loans (although I think many of the only count as '1' loan as I've topped up existing ones) in reality, I think there have been 5 months where I applied and possibly 2 months where I haven't applied for one.

I have ALWAYS paid these back, often early, in full and never missed a payment.

The last one I applied for I had to repay £430. I'm determined not to apply for anymore as I'm worried I'll get stuck in a debt spiral (to some extent I already am).

I'm quite scared however that I have severely damanged my chances of getting a mortgage, and more importantly a number of items which I would have to purchase on finance in order to use for my business.

I had a bit of a bad month a few months ago where I applied for a number of credit cards and got declined - I also opened a new phone contract with O2 which I stupidly didn't consider my credit score in when I applied for it (and also counts as TWO agreements due to their 'upgrade at any time' service).

My score plummeted from 'Good' to ' Very poor' in 2 months. Two months later and it's now sitting dead middle at 'Fair'.

I have opened a credit card with Vanquis with a £250 limit. I have been paying this back in full every month in an effort to rebuild my score.

So anyway - how badly have I cocked up with Wonga and how long will I have to wait until it will stop affecting my chances? You'll be pleased to hear I'm moving out in August and will be living with a friend so my financial difficulties will ease.

Thanks for your help.

DCFC79

Be a while before you can apply for a mortgage so focus on saving, looking at your spending and cutting back.

nathanjrb

How long is a while? 6 years?

BillJones

You've certainly not acted in a way that is going to encourage anyone to lend to you on reasonable terms.

There's no way to tell how soon someone will be happy to give you a mortgage, so just concentrate now on being sensible with your money. Start saving, use a credit card if you want, but have a direct debit set up to pay it off each month, and do not buy anything on any other sort of credit.

[Deleted User]

nathanjrb wrote: »

How long is a while? 6 years?

Yeah, that should do it

Most things fall off your credit file after 6 years.
But will 6 years be long enough to save the £25000 or more you'll probably need as a deposit?

nathanjrb

darkfield wrote: »

Yeah, that should do it

Most things fall off your credit file after 6 years.
But will 6 years be long enough to save the £25000 or more you'll probably need as a deposit?

Urgh! I only just set up a DD to pay off my student loan today.... £30 a month but it's a start! I believe it's also coming off my wage at work. I don't think that affects your credit score though.

I've got myself into a very frustrating mess.

CKhalvashi

nathanjrb wrote: »

Urgh! I only just set up a DD to pay off my student loan today.... £30 a month but it's a start! I believe it's also coming off my wage at work. I don't think that affects your credit score though.

I've got myself into a very frustrating mess.

Get saving monthly with a big lender (Halifax and Nationwide are the two biggest in the UK), monthly, maybe £1-200 a month after you got this PDL stuff out, and see what they offer in a few years is the only advice I can give.

CK

ViolaLass

Are you overpaying your student loan? Why?

[Deleted User]

I totally agree with one of the posters on here that paid payday loans entries lessens in time, give it a couple of years, though I don't believe mortgages are easy to come by, (much more eugh to likes of endowment miss-sell mortgages of the past!) it could be worse!

See a recent thread titled 'settled payday loans and credit rating' in the credit file & rating forum as this subject sadly keeps popping up

nathanjrb

ViolaLass wrote: »

Are you overpaying your student loan? Why?

Yes. I'd just rather be done with it!

nathanjrb

Deleted%20User wrote: »

I totally agree with one of the posters on here that paid payday loans entries lessens in time, give it a couple of years, though I don't believe mortgages are easy to come by, (much more eugh to likes of endowment miss-sell mortgages of the past!) it could be worse!

See a recent thread titled 'settled payday loans and credit rating' in the credit file & rating forum as this subject sadly keeps popping up

Thanks, I'll go check it out.

I think I'm on the upward ladder now, I just need to watch my spending this month as obviously paying off the loan has taken a considerable chunk off my wage. Worse comes to worst there are a few luxuries I can sell (and have done in the past!).

I will beat this!