Loan needed but pay day loans!

Hi,

I currently have payday loans totalling roughly £1500. I have a good salary per month but I am currently streatched. I applied for my latest payday loan one week ago. I am thinking about applying for a larger loan (£5000) to pay off all of my payday loans at a reduced interest rate and some of my car loan. I also need money for this month...

My questions are:

1. Would it be likily that I would be approved for a loan? I have good credit apart for applying and being accepted for payday loans (recent). No missed payments etc...

2. Are there any other options for me?

Basically I want to apply for a loan but I am scared of being refused and then not being able to get a loan from anywhere.

Other debts: £4000 for car

Comments

  • DCFC79
    DCFC79 Posts: 40,595
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    Why are you scared ?

    Why have you fell into the pay day loan trap ?

    Will the issues not keep on occurring next month and month after that ?

    You looked at your outgoings and cut back on your spending ?
  • I have pay day loans with four different companies, which makes keeping track of payments difficult. I didn't really need the money for essentials and just wasted it because it was easy access. Irresponsible comes to mind...
  • Anthorn
    Anthorn Posts: 4,362
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    A pretty good halfway house is a credit union which is likely to provide loans to new members of around 49% to 60% APR. Something to get your head around is that you'll need to save as well as borrow at the same time. You will also need to have some income or benefits paid directly into the union. Lastly they will credit search you.

    Overall, not good if you can get cheaper loans elsewhere but pretty good if you are stuck with payday loans.

    http://www.abcul.org/home
  • Ilona
    Ilona Posts: 2,449 Forumite
    Getting a loan to pay off other loans is not a good idea. Who would lend you money if you already have debt? There is another option for you. Gather together all your paperwork relating to your monthly outgoings and incomings. It's all about balancing the two. Cut back your spending to the bone, work out what you need to pay for which will keep you alive, food. Pay for your transport to work and essential bills, mortgage/rent, council tax. Savings can be made on gas, electricity and water. Anything else is not essential.

    Try this Statement of Affairs.
    http://www.stoozing.com/calculator/soa.php

    Good luck, you can get yourself out of this without digging yourself deeper in.
    Ilona
    I love skip diving.
    :D
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