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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

AIBU To consider a payday loan

47 replies

FlockOfTwats · 04/03/2015 13:23

So this month has been totally and utterly disasterous with one thing after another going wrong. Im absolutely broke and now on emergency electricity.

I have an offer for a payday loan, but ive heard all the horror stories and im not sure. Theres zero chance of getting anything from mainstream lenders and i think if i pay it on time is it that bad?

OP posts:

Grumpyoldblonde · 04/03/2015 14:40

Also thinking aloud, Husbands parents, can they help? kids piggy banks/savings accounts, Broken gold/silver to sell. Food bank is the obvious port of call, any Nectar points or Boots points or similar?
piles of clothes you could sell instantly for cash, cant think the name of the company but they pay out instantly. For sure call the electric company if you can. really hope you get sorted out soon, do the council/dwp still do crisis loans?

Fudgeface123 · 04/03/2015 14:44

What is your partner doing to resolve this? Does he have friends/family he can ask?

DrHarleenFrancesQuinzel · 04/03/2015 15:05

I dont think you should consider a payday loan in your circumstance.

I took one out once as I had an emergency bill and couldn't afford to pay my electricity DD which is set up monthly. I knew I was going to get tax credits on the Friday and my bill was due out the Thursday. I looked into my DD failing and the bank charge me £10 for that. Wonga charged me £9 for the loan over 3 days. I would do it again, but only if it was a case of a few days and I was certain I would be able to pay them back.

chimchimini · 04/03/2015 15:35

How much money do you have left in your bank account? 2. Is this enough to cover direct debits etc until more money gets paid in? 3. Cupboards/freezer/fridge, how many meals could you make with what's in there? 4. Make a meal plan, work out what additional ingredients you need. How much will these cost if you use own 'basics' brands? 5. Do you have any clubcard points/ nectar points that you could use to pay with?

Someone else has already mentioned it but the moneysavingexpert site is bloomin fantastic if you have money worries/debt. . The best advice is on the forums, I use old style moneysaving a lot, particularly the grocery challenge.

Good luck.

bigbluestars · 04/03/2015 15:39

I would speak to your bank. THey may be willing to extend you an overdraft for a few weeks- much cheaper than a payday loan.

specialsubject · 04/03/2015 15:53

Wonga have cut their interest rate. It is now a mere 1500%.

bank of England interest rate (which of course no-one can get but for comparison) 0.5%

the sooner these people are outlawed totally, the better.

windchime · 04/03/2015 16:06

Can you go without electricity for a few days

lmao at this ^^

expatinscotland · 04/03/2015 16:07

Call the supplier to see if they will up your emergency credit.

Foodbank for a parcel.

LMAO @ go without leccy for a few days. FFS.

Kittymum03 · 04/03/2015 16:20

This reply has been deleted

Message withdrawn at poster's request.

DrHarleenFrancesQuinzel · 04/03/2015 16:33

That's what I did Kitty I didn't look at the interest rate just the £9 charge for the amount over a few days. Yes it would have been cheaper to get a loan from somewhere else, but it was so easy to just use Wonga. Plus I dont have the best credit rating so would have no chance of obtaining money elsewhere. It was cheaper than to defer the DD anyway.

That sounds like I work for them or something, I don't and totally realise that you have to be really careful about using a payday loan which I was. I would only do it again if I had to and knew I could pay the money back in time.

NerrSnerr · 04/03/2015 16:35

Can your husband's family help? Do you have any jewellery you can sell?

Mrschicken01 · 04/03/2015 16:48

Hi OP

Please do consider using a foodbank. You may need a referral, but the HV or kids school / childrens centre should be able to help. They will give you enough food for three days and most banks will give up to three lots of food without any issue at all. A large proportion of their clients will be people on zero hours contracts so sadly they will be completely up fazed.

That will be the food side of things sorted.

I second then phoning left company's and explaining your situation, also that you have two young DC. If you are on a low income generally they have a duty to help you and maybe even put you onto as social tariff I believe.

I have taken out pay days loans in the past, I did manage to clear the payments but ended up rolling it over a few times and eventually paid back three times what I borrowed, in just. Few months.

I also

AttilaTheMeerkat · 04/03/2015 16:57

Do not take out a payday loan; it will just make things worse for you in the long run.

Have you looked at credit unions?. They do not operate in the same ways as payday loan companies do and would be a far better option than a payday loan service.

I would also look at foodbanks and see if the Trussell Trust operate in your area www.trusselltrust.org.

Martin Lewis explains credit unions below:-
www.moneysavingexpert.com/banking/credit-unions

AttilaTheMeerkat · 04/03/2015 17:00

Re your earlier comment re credit unions:-

"I think you have to be with them for a few months"

I do not think that this is the case, it would be a far cheaper way of tiding you over than to go to a payday lender or even worse doorstep lender.

TreadSoftlyOnMyDreams · 04/03/2015 17:05

Zero Hours - threads like this make me understand why people stay on benefits indefinitely. You are truly stuffed when there are no hours/income

I'd run a mile from Wonga and their ilk but I know how tempting it must be.

So, to aid my understanding, it's Tuesday 4th today and the earliest your family expects to see any income is Friday 13th assuming your husband gets some hours next week?

SolidGoldBrass · 04/03/2015 17:34

Do you have any gold/silver jewellery at all? If so, pawn it. If you can get it back within a month it won't cost much, and the absolute worst that can happen is you ultimately lose the jewellery.
Also, if you have a Cash Converters or similar nearby, you can 'pawn' stuff like your mobile/iPod/laptop and buy it back again after 29 days. They will also do this with small electrical goods, garden tools, ornaments (if worth anything at all) etc. You will need ID to do this, but they don't give a fuck about your credit rating.

miniavenger · 04/03/2015 17:40

Do you have a credit card you can use and pay at the end of the month OP? If you call gas/electric suppliers and council they may be willing to change the negotiate spreading the price differently.

NynaevesSister · 04/03/2015 17:50

Can you go without electricity for a few days

Dear god in heaven! Just THINK about what you wrote!

As for other suggestions - the best ones are food bank (HV, family support at your school/children's centre/GP can give referral), and call the electricity company. If after all that you still have a shortfall then give the payday loan company a go.

In the long term DO open an account with a credit union. Even if you only save £1 a month. In the future it will save your bacon. Also make an appointment with the CAB to go over all your finances they may know of money or benefits you can claim etc.

ahbollocks · 04/03/2015 17:54

Dh got intp horrible trouble with wonga. I hate the bastards.
Try putting things on ebay on a 1 day listing- kids outgrown clothes from next sell amazingly well, especially occasion dresses/ suits.
Do you have a pandora bracelet or similar? These also sell really well.
If you have an iphone could you take it to cash converters and buy a 10 quid cheapie?

SnottyCowbag · 04/03/2015 18:00

If he ends up with a week with no work i know i wont be able to pay it back

This is why I would not use a payday loan in your circumstances. I would do everything possible to get cash from elsewhere. I would risk 'worrying' your mother rather than risking a payday loan. I'm suprised that you have been offered a loan. Did you apply for the loan through a middleman company or direct to a loan company?
Have you given your credit card details to the company?

Some of the companies that offer to find you a loan are even more unscrupulous than the loan companies themselves. Some of them don't make it clear that you will be charged for the service even if you don't eventually end up with a loan.

RedButtonhole · 04/03/2015 18:10

Electricity supplier should be able to give you a code which you can take to your nearest paypoint along with your key and can be topped up with whatever amount you need to tide you over. You agree the amount over the phone, and how you will repay (set amount comes off meter over a number of weeks).

Some banks may give you an emergency overdraft of a tenner or so.... Would that be enough to help with food if you got the leckie sorted?

Local authorities sometimes offer discretionary emergency grants or loans in circumstances like these.

CtrlAltDelicious · 04/03/2015 18:14

Getting a payday loan was my worst financial mistake ever.
It started out being a case of "ooh I can borrow fifty quid and pay back sixty five - that's just 15 quid to keep me going until the end of the month." And at first I payed it back in full.
Then I borrowed £150.
Then £200.
And I was stillpaying it back in full each payday....but then I was skint again by week 3 and needed to borrow again.
So I decided to pay a bit each month and Oh My God how the interest rocketed. In the end I payed a figure I can't even bring myself to type for an original £200 loan. Luckily I am no longer in that position and can safely say I will NEVER touch a payday loan again.
PLEASE don't do it if you can avoid it.

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