HayleyJayne Posted December 16, 2009 Share Posted December 16, 2009 Hi Has anyone ever taken out a pay day loan? I am major skint and so is my OH and we dont want to ask anyone to borrow money as we feel a bit embarrassed... both of us have had a bad month, I had a lower wage due to starting a new job and he had probs with his car and now we have run out of funds... The one I have seen charges 9.99 for the loan of £100 if paid back with in 30 days... Is that a good rate and what are people's experiences? Thanks Hayley Link to comment Share on other sites More sharing options...
brus Posted December 17, 2009 Share Posted December 17, 2009 Hi Has anyone ever taken out a pay day loan? I am major skint and so is my OH and we dont want to ask anyone to borrow money as we feel a bit embarrassed... both of us have had a bad month, I had a lower wage due to starting a new job and he had probs with his car and now we have run out of funds... The one I have seen charges 9.99 for the loan of £100 if paid back with in 30 days... Is that a good rate and what are people's experiences? Thanks Hayley On T.V. the other week it was saying what a rip off this pay day loan scheme is, very high rate of interest for such a short time, 9.99 is no where near what they will charge you, according to the T.V. programe. Try asking you bank for an short term overdraft, it would be a better option. Link to comment Share on other sites More sharing options...
HayleyJayne Posted December 17, 2009 Author Share Posted December 17, 2009 On T.V. the other week it was saying what a rip off this pay day loan scheme is, very high rate of interest for such a short time, 9.99 is no where near what they will charge you, according to the T.V. programe. Try asking you bank for an short term overdraft, it would be a better option. I have a reducing overdraft and a student one... both maxed out (I got into a lot of debt a few years ago and still paying it off)!! Most I have seen are like £25 at least however this one looks reasonable... http://www.moneyshop.tv/cash-til-payday/ I will try my bank tomorrow and see if there is something they can do... we get paid next week!! Link to comment Share on other sites More sharing options...
Alex C. Posted December 17, 2009 Share Posted December 17, 2009 Just remember many overdrafts now carry an overdraft arrangement fee alongside the interest so they may work out more costly... Link to comment Share on other sites More sharing options...
Strix Posted December 17, 2009 Share Posted December 17, 2009 Have you any idea how mad your OP reads? you're prepared to pay back 10% of what you borrow for just a months worth of borrowing it? Do you have any idea what an APR is? Do you know what this loan APR is? If you hadn't missed the program already mentioned, you'd also know that loan sharks have found a way round operating illegally - just apply for the licence to loan money, and there's no cap on how much you can legally charge for that 'service' Now how mad do you think family will be if they find out that you got yourself tangled into this kind of thing without coming to them first? Swallow the embarrassment and speak to those who care about you before they wind up having to bail you out of something more serious! Just make sure you know EXACTLY how much you need to tide you over, and EXACTLY HOW and WHEN you'll be paying it back Link to comment Share on other sites More sharing options...
Bonjon Posted December 17, 2009 Share Posted December 17, 2009 Your probably best having a look on http://forums.moneysavingexpert.com/ , even though there frowned upon you will probably get better advice and less judgement than you would on here. Link to comment Share on other sites More sharing options...
willman Posted December 17, 2009 Share Posted December 17, 2009 Make sure you can pay it back when agreed - they are not mean to be long term loans. Link to comment Share on other sites More sharing options...
Glennis Posted December 17, 2009 Share Posted December 17, 2009 I think you can ring the DWP and ask for a crisis loan, even if you are in work. Anyone can apply for a crisis loan, apparantly. It might be worth giving them a ring and just asking, before you go down this much more expensive route. Link to comment Share on other sites More sharing options...
Zebra Posted December 17, 2009 Share Posted December 17, 2009 My advice is to avoid pay day loans like the plague. I know someone who borrowed every month for nearly a year, each time paying back within the month but being short on the next wage and then asking for more. Ask a result they now cannot afford the most recent loan. It's very easy for it to get out of hand, so the best thing is not to do it in the first place. Link to comment Share on other sites More sharing options...
Dave_H Posted December 17, 2009 Share Posted December 17, 2009 Their best interest rate is 819%. If you haven't got an excellent credit rating it could well be higher. Best solution would be to talk to the bank (easier said than done, I know) for a temporary extension to your overdraft or family for short term help. Other possibility is one of the credit cards offering interest free balance transfers. Transfer balance from a maxed out card, then you have some slack on the original card. You need to be really focused on getting them paid off or the costs will spiral out of control. Hope you can work something out. Link to comment Share on other sites More sharing options...
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