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Escaping Payday Loans
Former Member
Posts: 1,876,323 The Mix Honorary Guru
Right now I'm taking out Quick Quid loans to pay off Wonga loans to pay off UncleBuck loans...
Have applied for a loan from my bank but considering my overdraft's been in the red for most of the last few months I doubt they'll accept my application.
Anyone got any experience of loan consolidation plans or recommendations for getting an unsecured longer-term loan (6 months +) to get out of this hole without a good credit score and without piles of documentation?
Have applied for a loan from my bank but considering my overdraft's been in the red for most of the last few months I doubt they'll accept my application.
Anyone got any experience of loan consolidation plans or recommendations for getting an unsecured longer-term loan (6 months +) to get out of this hole without a good credit score and without piles of documentation?
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Comments
If you're still a student then the best thing to do would be go and speak to your student union or university advice centre. They can help negotiate an affordable payment plan with the likes of Wonga (in theory at least) or they might be able to help you from the hardship funds at the University.
If you're not still a student (I can't remember in your case) then go and speak to a money adviser at your local CAB, or give CCCS or National Debtline a call.
In either case, your payday lender will have a continuous payment authority on your debit card. This means they'll just keep bunging payment requests through until your bank honours it. The best thing you could do if you cannot afford to repay them is to cancel your debit card at the bank; this makes the CPA worthless and they have to listen to a money adviser then.
You're clearly having a hard time with debts and money issues. Must be really tough but Arctic Roll's advice is great.
Here's a link to theSite's debt resources page - http://thesite.org/homelawandmoney/money/creditanddebt/topdebtresources
It has the details of the Consumer Credit Counselling Service and the National Debt Line.
In fact theSite's whole section on Credit and Debit advice may be helpful to you - http://thesite.org/homelawandmoney/money/creditanddebt
I also find this really helpful on the MoneySavingExpert website - http://www.moneysavingexpert.com/loans/debt-help-plan
It's got check-lists of things you can do when in debt problems. It makes the process of getting out of debt seem less daunting as you're doing a small manageable task at a time.
Even though this is a pretty crappy situation to be in, it's great that you're talking about it and looking for solutions. A problem shared is a problem halved and all that.. :thumb:
Hope this helps.
Keep us posted.
I've had a similar problem. I currently am in debt to 8 payday loans, a bank, council tax + tv license, water + electricity and an old employer, totalling around £9,000 (mainly interest thats been added on).
I ignored them for months on end, some for even a year and then went to see my citizens advice bureau, who then assigned me to a debt manager who i have monthly meetings with. They then contacted them all and found that 3 of the payday loans had removed my details from their system and just cancelled out the money i owed them which was pleasantly surprising! With the rest i just set up payment plans and although im now fairly skint at least i'm paying them back and have a weight off my shoulders.
So don't worry, i thought there was no escaping my situation which was similar to you, borrowing to pay others off but i'm back on track now.
spliffie: https://debtremedy.cccs.co.uk/start.aspx is a fantastic website.
I thought it was worth putting this link in, showing who payday loan companies try to justify their extortionate charges. It pisses me off when I see things like that, and the examples they use to try and justify things, to me anyway make them seem even more expensive rather than the wool over eyes pulling that some people fall victim to.
Borrowing £200 from Wonga is a whole lot cheaper than allowing your bank to give you an "unauthorised" overdraft. The APR is high because you're borrowing a small amount over a short timescale, but if banks had to publish APRs for "unauthorised" overdrafts they'd look like the biggest bargain in the world in comparison.
If you borrow £200 for a month from your bank on an "unauthorised" overdraft, the APR could be as high as 25,000,000% APR if memory serves me correctly.
That said, the way payday lenders market is a disgrace. But when the owner of the biggest payday lender, Wonga, is a major donor to the Conservative Party and believes that employment law "stifles the economy", I won't be holding my breath for any changes.
The worrying thing about wonga etc is not that they're expensive, it's that they're actually the best option for certain groups of people.
We can always point to other examples of cunty finance practice, but I've never been a fan of pointing out other turds to distract from the turd just stepped in.
How expensive Wonga are is really worrying; it's borderline criminal. I was reading something the other day about borrowing £100 from Wonga and if you didn't pay any of it back you'd have the national debt of the U.S. within 7 years.
Wonga aren't the "best" option for anyone. They're often just the only option left for people who are out of "credible" lenders.
I had issues with payday express for a long while, I defaulted on payments on 2 occasions and debated taking out another loan with a different lender to fund the original loan with payday express i'm glad i didn't... since recent clamp downs with the OFT payday express has really bucked their idea's up and been allot more willing to negotiate a payment plan around which I can afford.
Far from a perfect result but things are defiantly on the up.
Thanks for your post and welcome to the boards.
This thread is from a long time ago and here on the boards we don't like to drag up old threads as the matter has probably been resolved for the original poster (OP).
If you have a new query then you can post a new thread. This thread is already closed.
Also feel free to post in the Introduce Yourself section.
Happy posting!