In a bad situation

cb99

Hi,
Basically gonna spew out my life story from the last 2 weeks to explain why im seeking this advise. My mum isnt well, my partner left me and the job im in is refusing to offer support for my mental health at the moment. I have around 700 ish quids worth of bills to be paid by friday, and i need to figure out the best way to get myself back on track. Im £1200 deep into my overdraft, £450 deep on my argos card and i have a loan repayment this month from my bank of £301.(this is my final payment on this loan thank god). totalling in car insurance, petrol, rent and feeding myself, the onyl way i see fit is to take a loan to cover myself until im back in full time work, which will be next thursday, on weekly pay. im thinking of taking 3000 over 24 months to cover myself, however whatever i have left once i get back into a regular income i plan on paying back into the loan so it doesnt actually span the full 2 years.

Can someone please help me out on whether this is a seriously bad idea, or circumstances depending might be my only option, (from my persepctive it is)

TIA

foxy-stoat

IF you could get a loan it will probably be high interest rate if your income isn't great and your £1200 into over draft. I would sell stuff, down value your car/phone/lifestyle.

The only bills that you must pay are rent - everything else you can default if you want, it will hit your credit file but that will be the least of your worries.

cb99

my income is gonna be completely fine once im back into work really. however it is just a case of finding something to pay the bills this month really. like i said, the interest rate ive looked at is 19.7% over 24 months, so its not that bad in comparison to those such as likely loans for example.

EssexHebridean

DO NOT TAKE A PAYDAY LOAN!

They are seriously bad news and can have a nasty affect on your credit file even if it's paid straight off again on the due date.

The loan you are looking at - why over 24 months to clear it if this is a single month blip in finances?

Honest suggestion would be to give your bank a call and ask for a short term extension on the overdraft. it sounds like as a general rule you're pretty on the button with all things financial, so it's a decent possibility they might say yes?

Once you get yourself back on an even keel again it's time to start budgeting for savings for an emergency fund, so that if this situation arises again, you have something to fall back on.

I would also suggest putting together your SOA and posting it over on DFW - there's clearly a longer term issue here that needs attention allowing for the storecard (cut it up!) and the overdraft. It would be a shame to reach the end of one loan only to take another.

cb99

not planning on a payday loan in all honest as i know how bad news they can turn out to be. Its just to get me through the next month say, and then ill be back on my feet with a regular income and the lot. the bank have practically refused to help me even after noting my mental health issues at the moment on there. Just seems like all these companies dont actually care if they get paid if you get me, The obviously do like but yeah

Andyjflet

Just think how great it would be though if you didn't get a loan and you have your loan finishing as well, you will have £300 a month extra.

Sell some stuff, juggle the payments on the Argos and overdraft and come the new year you will feel so much better.

My advice, dont do it. Do an SOA and we can help perhaps find some areas for saving money.

EssexHebridean

Can you get enough cash out of the bank right now to buy basic food for the next few weeks until you get paid again? And is there enough slack left to pay anything like rent/mortgage, council tax, electricity/gas and water? If so then I'd be thinking about manually paying those early - JUST the priority stuff though - and then let everything else bounce - or not. If you can sort the situation a month later then you *might* get some defaults registered i the mean time, but then again you *might* not, but that might be better than you borrowing more than you need "just in case" and ending up paying it back for several years to come?

[Deleted User]

cb99 wrote: »

Just seems like all these companies dont actually care if they get paid if you get me, The obviously do like but yeah

They're reluctant to lend because they DO want to get paid.

SusieT

I think the advice above about getting cash to get food and then only paying rent and council tax as priority debts, followed by gas/electric. Then you pay the rest when you have been paid as they are not priority.
Getting a loan will only prolong the problems, ans 19%+ is high for an interest rate. Even if you can only make reduced payments after the first payday to some of the debts it will be better going forwards and with the loan finishing you can use that payment to help catch up with the others, and hopefully then start to put a bit of it away so that if things get bad in the future you have savings to fall back on rather than a big loan to repay with nothing in the bank.