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To be considering a payday loan?

(35 Posts)
APieOfButter Mon 30-May-11 16:41:30

Sigh. I know, we should have budgetted better. I know that, we don't need to discuss it, we have detailed plans in place and a separate bills account all ready to stop this happening again. It is based around the last landlord not giving us our deposit back unfairly (proceedings going hrough deposit protection scheme right now), benefits being slow to be paid and the fact that we are a bit rubbish and miscalculated, and also that we thought there was just about enough in there until yesterday.

BUT, tomorrow our rent will go out. Tomorrow DH will get paid. However, the rent is £595, we have £502 in our joint account and DH gets paid £88 into his personal account. We can transfer using online banking tomorrow, but a) it is likely the rent will have already bounced and b) it's still not quite enough, and with the bank holiday it's not even like we can borrow a bit of cash off relatives/raid the kids piggy banks and pay that in. The only way I can think of to get that money into the joint account before the rent goes out is a payday loan.

We have at least £1000 coming to us from the benefits and deposit we are owed, but we don't know when they will actually come (benefits are due by the 6th though) and we have another £300 coming on Friday the 6th as well, so we will be able to pay it back, and the interest is preferable to not paying it, as that would a) annoy our landlord, and we are only on a six month lease in a house where we want to stay for years and b) cost us more in fees anyway.

Still, payday loans are one of those big no-no things, aren't they?

cwtch4967 Mon 30-May-11 16:45:55

You know all the arguments against and accept you have made a mistake so I'm not going to say the obvious! The bottom line is this - will the interest on the payday loan cost less than any bank charges you would incur? Do you have an overdraft facility?

overthehillmum Mon 30-May-11 16:46:46

personally, if it was a choice between defaulting on my rent or having to pay some interest and if I knew that I could definitely manage to pay it back then I would do it as a last resort. Everyone hits sticky points every now and again.

I would go for it.

cricketballs Mon 30-May-11 16:47:27

why don't you speak to your landlord and explain the problem? Maybe he/she are quite willing to wait until the 6th. Payday loans are very, very costly and you can easily get into a cycle with them of paying it off, then having to take another one out as it has cost you so much to pay back etc.

We are long term renting and went through a period when we were struggling (due to medical issues) but we spoke to LL and they were more than happy to come to an arrangement where we paid slightly less during this time, then paid the amount owed over a short period of time when we were back on our feet.

QuintessentialOldMoo Mon 30-May-11 16:52:08

I would speak to the landlord and tell them that due to the deposit not having been returned yet you are a bit short. You can also ask if you can pay the rent on the 7th of every month, because that is when you get paid, and it makes it easier for you to budget if the rent and the wages are coinciding. (you dont have to go into detail of what is paid when)

MeRightYouWrongMeBigYouSmall Mon 30-May-11 16:52:43

I'm not ashamed to say this, I went to Wonga - borrowed £230, repayment was £250 - the loan was for 8 days.

£20 interest in a desperate situation was not bad at all in my eyes.

Not something I would normally do but I needed to get a flight to attend a funeral of a close family member (so obviously this would not be budgeted for)

In your circumstances OP I think the pros outweigh the cons - it's up to you though, your money.

I got my loan within 20 minutes.

EdithWeston Mon 30-May-11 16:57:19

A pay day loan is usually a big no no, because of the very, very high interest rates. How much were you thinking of borrowing, for how long and how much will it cost you? Then it's up to you to decide if this cost is worth paying, and whether you can indeed pay it off straight away without wrecking you budget for the next month (the cycle cricket balls refers to).

You'll only be £5 short if you transfer what you can asap. The landlord will notice, but if you apologise and pay it as soon as you can, then it's unlikely to wreck it for you.

But that means nothing until 6th. Do you have food in the house, or can you borrow from a relative later in the week?

aliceliddell Mon 30-May-11 17:02:11

Try a Credit Union. Citizens Advice. Anything but payday loan leeches. Good luck!

Serenitysutton Mon 30-May-11 17:02:28

I don't think Yabu but why not just explain the situation to the LL? there is nothing they can do to you in that short space of time.

Serenitysutton Mon 30-May-11 17:04:14

Sorry yes meant to say transfer what you can to LL and make up the rest when you have it. Citizens advice won't be able to help you

NettoSuperstar Mon 30-May-11 17:05:30

Explain to LL.
Nothing bad will happen in a few days.

jenniec79 Mon 30-May-11 17:06:07

Can't you speak to your bank manager - may be able to authorise a small overdraft while you juggle money?

cricketballs Mon 30-May-11 17:06:24

alice; credit unions will not lend any money until you have been saving with them for a while so they are not an urgent solution.

Mollydollydoll Mon 30-May-11 17:09:57

Do not do it they have about 1000% interest

tribpot Mon 30-May-11 17:11:26

Can't you withdraw the £88 in cash from your DH's account and pay it in in cash into your joint account? It'll get credited that day. Leaves you 5 quid short, is there no-one who could lend you a fiver tomorrow?

APieOfButter Mon 30-May-11 17:22:33

Anything getting done tomorrow still leaves us with bank charges if the payment gets refused.

We have food, nappies, etc. We would need a bus ticket for DH to get to work, so another £20, but that's it as far as I can see. I'm meant to be visiting my nana, who is ill, and my sisters will both be there for half term, making it our last chance to all be together until summer, but the £50 train fare is just beyond us, and frankly, a house to come back to has to take priority.

It's annoying - the deposit should rightfully have been paid back, the benefits have been approved, so why can't they pay the back pay straight away - they know all our financial details and know how poor we are.

We'll be fine by Friday, from then on, all will be well. I really don't want to wind the landlord up at all - what if something else happens another month? Last month there was confusion to do with the bank holiday (we paid it, but the bank processed it late) and, while that wasn't our fault, it looks dodgy, doesn't it, to have another problem with the rent the next month.

tribpot Mon 30-May-11 17:44:42

The payment shouldn't be refused if the balance is there by 4:30, but you could confirm that with your bank tomorrow.

I had a late payment from my tenants one month and was a bit concerned, I would definitely have been uncomfortable if there'd been a problem the month after. I'm assuming the rent is on a direct debit so offering to make a near-full payment is not an option, their bank/the agent's bank will already have requested the full amount?

QueenStromba Mon 30-May-11 18:12:51

If you are paying by standing order then you'll probably be ok as long as the money is in the account by closing time tomorrow. I know this is the case with Nationwide at least and they give you until 5pm. Check your bank's terms and conditions, it should be mentioned there.

beesimo Mon 30-May-11 18:17:49

Have you nothing you could pawn/sell you should always have some jewllery in the house for emergencies as gold will always hold its value. Worse case pawn your wedding rings do not get PDL

APieOfButter Mon 30-May-11 18:23:03

Wedding rings were £20 to start with when we bought them! It would cost me £6.50 to get to Newcastle to get to a pawn shop, and I would have the worry that the payment would still not go through.

Anyhow, I went on wonga and it will cost less than £20. I'm willing to pay that tbh for the peace of mind.

mousesma Mon 30-May-11 18:24:19

Do you not have any friends or family who could do an internet bank transfer now. The money should go in first thing tomorrow then.

Agree with some of other posters though that PDL not the best but under the circumstances as long as you can afford the interest then it's not the worse thing in the world to use them as a one off.

mousesma Mon 30-May-11 18:25:38

fair enough I think in your circumstances I would have done the same.

APieOfButter Mon 30-May-11 18:27:01

We had to spend all our savings when our ex landlord decided to evict us on a whim earlier in the year. Legally, they don't need a reason, just that they fancy the house back, 2 months and you are out on your ear, and you have to find a deposit for a new place and moving costs out of the money you have lying around, and then they have been dragging thier feet (as in, being uncontactable) for two months to pay back our deposit. It's messed up our finances big time. Oh well, we should be back on an even keel by this time next week, and DH has a steady job now, so we should be fine. Just brings it to the fore, when he is only earning £80 a week and I am too ill to work, how vulnerable we are to one lapse of judgement.

rulenumber1 Mon 30-May-11 18:27:05

Speak to your landlord they may well be sympathetic if you let them know the situation in advance. Offer an explanation and say how much money you will pay tomorrow and when you will be giving them the rest. Then whatever, you do, make sure you stick to the agreement or you'll lose their goodwill which is what you need right now. I have experience of these kinds of situations.

Otherwise, try to get a short term overdraft.

beesimo Mon 30-May-11 18:30:24

Any pawn shop will give more than there worth on Wedding rings as they know Women will strive to get them back take one of the DC with you and you will get more.

If possible go to a Jewish Pawnbrokers as they will be fairest avoid anywhere run by a skinhead with a mangy Alsatian.

Good luck pet and don't worry this is just a blip you'll rise again.

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