Payday loans, im screwed

amyhill

Just wanted some advice. I have £1000 worth of payday loans with these cheque cashing companies i.e the money shop and cheque centre, from my student days. Ive been just rolling them over to the next month each time, however this month due to my boiler packing in and having to get it fixed Im now pennyless until two weeks today. I have no money to pay the interest on these cheques and have six (£100) cheques due to be banked before I get paid next. I really dont know what to do. Has anyone any experience with these companies? I have spoken to the money shop who have said there's nothing they can do about it. Does anyone know how these companies go about chasing you for the money if the cheques bounce? I really dont want them to ring me at work for example.

Thanks
Amy xx

Valley's_girl

Hi Amy sorry I don't have any answers for you, but I am sure someone will be along shortly who will be able to advise you.
Best wishes
Ally xx

bev79

Hiya
Because the cheques are guaranteed I think your bank will pay them and jsut charge you. If they do bounce they may ring you and then represent a week later. They will only harass you if you ignore the calls but if they have your work number they may well try it.
Can you get an advance off your employer? A loan off a family member? Try not to take any more credit out. Have a look on the OS thread and get some ideas about whats in your cupboards so at least you can eat!

amyhill

Do you think the bank will allow me to go £600 over my overdraft limit? Im sh*tting myself at the minute. If they did I would get charged £38 times 6 which would obviously leave me short next month. I thought about cancelling the cheques and then dealing with their dca, at least then the interest would be frozen (after theyve charged me their own fees). It costs £86 a month in interest to roll these cheques over, if I paid a dca that amount each month then the actual amount would go down wouldnt it?

xxx

nethesi

Amy,

I would suggest if you can't get any other money to contact your bank now, and let them know of your situation. They may (?) be willing to grant you a temporary increase in your overdraft limit. This will save you the fees and higher interest associated with an unauthorised overdraft. It is always better to contact these people immediately they know you have a problem.

Then I suggest you follow all the wonderful tips that people on here for saving money. It sounds like you are on the verge or either getting into more serious financial trouble or having a 'light bulb moment' and kicking your finances into shape!

Good luck xxx

melie3

never dealt with these companies so dont know how they operate, but would your bank up your o/d to cover the cheques??
can you cutback somewhere?? try the O/S board for ideas. this needs paying one day not kept rolling over. would a friend or employer be able to help? got to be better than all that interest

amyhill

Thanks for the replies chaps. I think you maybe right, im almost on the brink of my lightbulb moment. I really cant go on like this its becoming such a struggle. The other problem is that my oh doesnt know about any of this debt and would go spare if he knew, and will find out if cheques start bouncing left right & centre! I cant borrow any money off any family as I dont really get on with any of them and id be too ashamed to tell my father. Im not sure whther my bank would help as Ive got a shoddy credit record, does anyone think that cancelling the cheques and then dealing with the dca is a good idea or not?

Thanks again xxx

nethesi

Amy,

I'd say cancelling the cheques and dealing with the dca is something to do if your bank won't help but may actually get you into more trouble, as I don't think these companies are known for their generosity . I think your bank is more likely to give you a 2nd chance - there is nothing to loose in asking them for a temporary overdraft, they can only turn you down, but I think it more likely they will give you a temporary overdraft (and charge you a nasty rate of interest, but it will give you breathing space!). Please at least try it...

(I'm a chappess by the way )

iolanthe07

id be too ashamed to tell my father.

Really? I don't know your personal circumstances, obviously, but I would hope my daughter would come to me if she got into this kind of mess. Could you not swallow your pride and ask him ?- you never know, he might be pleased to help. I know I would be.

MKDebt

I would be a little wary of cancelling post-dated cheques - I had a feeling that it counted as fraud....

Burlesque_Babe

If they are £100 each and you have a £100 cheque guarantee card (and the number is on the back of each cheque) the cheques will clear. However, the bank will get quite arsey as it will push you a long way over your limit AND the £38 x 6 for each putting you over your limit will compound the situation further.

I know what you mean about asking family for money. I was brought up to be ashamed to ask for money, it was seen as a 'secretive' thing when my My mum used to send me off to my Nan's house with a note asking for help with the gas etc and it was 'oh, let's not tell your Grandad' and that didn't help me when I started to get into debt from an early age as I kept it to myself.

However, that aside, you need some way of sorting this out.

Do you have anything you can sell on Ebay - I mean, anything. CD's, old console games if you have a Playstation? The Playstation itself? Clothes still with tags on, clothes worn once for a 'special occasion', shoes never worn, or fabby looking ones just worn once or twice. Books, anything. that will start to build you a small reserve of money.

How about looking for bar work on top of your main job. I know the extra hours are a killer but needs must and after it is all over, you'll know it was worth it.

Have a look at the Up Your Income board on MSE for other ideas for extra money here and there.

If you can take a deep breath and ask your Dad, please do it. The worst he can say is 'no' but at least you have tried (again, I know that may be difficult to do )

You need to start planning a strategy for getting out of this vicious circle and although it won't be easy, you'll get lots of support.