I got a Loans2go loan that has defaulted and need advice.

Cudge82

Hi guys. I have a really bad credit rating and was desperate for cash last year and stupidly got a loans2go loan. Borrow 1k and pay back over 4k. 

I defaulted on it because I became stressed about the payments and the predatory behaviour of the company. 

I contacted them to ask if I could make a 1 of payment and offered them double what I borrowed but they were having none of it..

They are telling me they could settle at 3k or they can set up another affordable payment plan with me..

What are my best options here in the sense if building my credit rating? 

Should I pay it off in full or set up a payment plan and make the payments? 

What would have the best effect on my score? 

Thanks

[Deleted User]

Your best option is to get it marked as settled as soon as you can.  Whether part of full will make little difference as you've already defaulted.

Don't worry about the drop in score when you pay it off as only you see it.

sourcrates

Is this your only debt ?

Looking on their website this struck me as been a tad high -

"Representative 1013.3% APR"

Your credit file is impacted by the default, and will be for 6 years regardless of what you do.

As said above, it makes little difference if its settled or not, as its the default that does the damage.

If you can afford to settle, then do so, if not, make arrangements to pay it off, but make sure payments are affordable to you.

[Deleted User]

One      t h o u s a n d   %       interest being repaid each month ........... 

@Cudge82 , you are in a good position to start a debt-free diary - your experience would/could help a lot of people out there.

One persons experiences are such a good motivator for others to aspire to, no-one admires another more than someone who's gone from debt to debt-free through sheer hard work.

MalMonroe

[Deleted User] said:

One      t h o u s a n d   %       interest being repaid each month ........... 

@Cudge82 , you are in a good position to start a debt-free diary - your experience would/could help a lot of people out there.

One persons experiences are such a good motivator for others to aspire to, no-one admires another more than someone who's gone from debt to debt-free through sheer hard work.

Well that's more than a tad patronising. OP wants help advice for themselves in the first instance!

DCFC79

Don't worry about your score/rating, it could be poor anyway now.

Have you checked on all 3 reporting agencies what your credit histories are like ?

Id post over on the debt free wannabe board, you need to cut back on your spending to get it paid off.

I see 2 ways, you either cut your spending or do extra hours whether at work or a second job, vacancies have opened up for employers with Christmas round the corner, if you wanted too you could look at your spending and get a second job.

[Deleted User]

Cudge82 said:

Hi guys. I have a really bad credit rating and was desperate for cash last year and stupidly got a loans2go loan. Borrow 1k and pay back over 4k. 

I defaulted on it because I became stressed about the payments and the predatory behaviour of the company. 

I contacted them to ask if I could make a 1 of payment and offered them double what I borrowed but they were having none of it..

They are telling me they could settle at 3k or they can set up another affordable payment plan with me..

What are my best options here in the sense if building my credit rating? 

Should I pay it off in full or set up a payment plan and make the payments? 

What would have the best effect on my score? 

Thanks

By predatory behaviour you mean you went of your own free will to a website and applied for a loan knowing you couldn't afford it?

D3xt3r5L4b

camelot1971 said:

Cudge82 said:

Hi guys. I have a really bad credit rating and was desperate for cash last year and stupidly got a loans2go loan. Borrow 1k and pay back over 4k. 

I defaulted on it because I became stressed about the payments and the predatory behaviour of the company. 

I contacted them to ask if I could make a 1 of payment and offered them double what I borrowed but they were having none of it..

They are telling me they could settle at 3k or they can set up another affordable payment plan with me..

What are my best options here in the sense if building my credit rating? 

Should I pay it off in full or set up a payment plan and make the payments? 

What would have the best effect on my score? 

Thanks

By predatory behaviour you mean you went of your own free will to a website and applied for a loan knowing you couldn't afford it?

Indeed yes. But “you know who” will be here soon preaching “irresponsible lending”...

John_

Cudge82 said:

Hi guys. I have a really bad credit rating and was desperate for cash last year and stupidly got a loans2go loan. Borrow 1k and pay back over 4k. 

I defaulted on it because I became stressed about the payments and the predatory behaviour of the company. 

Could you clarify what you mean by this bit please? You could afford to keep making payments, but decided that you didn’t like the company, so chose not to?

Does this mean that you then saved up the money that you would have been paying?

[Deleted User]

MalMonroe said:

[Deleted User] said:

One      t h o u s a n d   %       interest being repaid each month ........... 

@Cudge82 , you are in a good position to start a debt-free diary - your experience would/could help a lot of people out there.

One persons experiences are such a good motivator for others to aspire to, no-one admires another more than someone who's gone from debt to debt-free through sheer hard work.

Well that's more than a tad patronising. OP wants help advice for themselves in the first instance!

🙄
Well of course they do 🙄 
Don't think that's it's only them and you reading the replies, there will be fresh eyes looking at this forever more and so, to them, they might just find those few words of interest.