Loan to cover bills?

LUTG37

My maternity leave came to an end on the 18th September and I am now on annual leave until the end of the month. I took the year off, using savings to cover the last 3 months I did not get paid. I normally get paid the 25th of each month for that months wage so presumed I would get paid 2 weeks annual leave for September today. To my horror I have not been paid and work have told me that I will not get paid for the annual leave until the end of October. I have no savings left so I have no idea how to pay my direct debits that come out of my account this month.

What would be the best option? I will need around £500. I am thinking about getting a bank loan from my bank but the minimum is £1000 and I'll be paying it off for ages. I thought I could get a payday loan and pay it off when I get the money next month but I'm a bit scared of all the horror stories and don't really understand how it works. The only other thing I can think of doing is phoning round and asking to delay my direct debits. Help!!

marcarm

Get a £1000 loan from the bank and not spend all of it?
Overdraft?
Credit card with cash transfer option?
Family and/or friends?

Sure other posters will have ideas as well.

Pixie5740

I would avoid a payday loan, the interest rates are horrific and a payday loan on your credit files won't look good to future lenders. I would opt for an 0% money transfer card as it will be the cheapest way to borrow the money and give you 12+ months to repay before any interest kicks in.

https://www.moneysavingexpert.com/credit-cards

Do you already have a credit card? If so you could check to see if your current card issuer(s) has any money transfer promotions on. I know that a couple of my credit card providers are always trying to get me to balance transfer or money transfer.

DCFC79

Better ways than pay day loans, a credit card is an option.

What are the bills ?

Anyway you can cut back on anything else like grocery shopping ?

sourcrates

Just explain to your creditors why you can’t pay and pay double next time.

No need to borrow, they won’t bite you.

Fireflyaway

I've been in this situation and I agree with sourcrates. Don't borrow for the sake of £500. Especially not payday loans. They mess up your credit file and will just leave you broke the following month.
Try to pay your rent / mortgage but everything else you can negotiate. Get the cheapest food in / use up what you have, then call round everyone and explain. Utility providers are used to this and will try to help. I was able to catch up over a few months. Cancel the direct debits though - you don't want bank charges.

National_Debtline

Hi LUTG37


I would agree with Sourcrates and Fireflyaway, cut back on what you can, pay as many essentials as possible, and for things you can't afford contact the companies and explain your situation. It is likely they will allow you to set up a payment plan to catch up on the arrears once your income is back to normal.


You may want to seek help from a food bank in the short term, you can find your closest one here https://forums.moneysavingexpert.com/discussion/5718054.


Be very cautious about taking out credit as the debt can quickly escalate, especially payday loans due to the high rate of interest and the fact they have to be repaid in a very short space of time.


Susie
@natdebtline

downhillfast

I'm not normally one to disagree with the experts but IF you are definitely going to get the money next month IN ADDITION to what you need that month (ie the money is just later than you were expecting) then I would go with the borrowing option (NOT A PAYDAY LOAN though). Making arrangements with creditors could lead to a marker that will be on your credit file for 6 years! Dipping into an OD or a balance on a credit card for a month won't have as much negative impact as an 'arrangement to pay' marker.

iolanthe07

Could the bank of Mum & Dad help? I would gladly lend or give my children £500 to seem them through a sticky patch.

Fireflyaway

downhillfast wrote: »

I'm not normally one to disagree with the experts but IF you are definitely going to get the money next month IN ADDITION to what you need that month (ie the money is just later than you were expecting) then I would go with the borrowing option (NOT A PAYDAY LOAN though). Making arrangements with creditors could lead to a marker that will be on your credit file for 6 years! Dipping into an OD or a balance on a credit card for a month won't have as much negative impact as an 'arrangement to pay' marker.

I disagree with this. Simply phoning and telling the gas company you are going to pay a little later as a once off, is unlikely to cause any late payment markers. It certainly never happened to me and I was severely behind on everything. The key is to explain before the event, pay a token payment if you can, then stick to your promise to pay. If it drags on for months that's different.