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Have you ever used a payday loan?

by John Fitzsimons 18 May 2012 |

13 comments | Love

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Which? has published some really scary research on payday loans, finding that 60% of people that have used them have done so to meet the costs of essentials like food and nappies.

There have also been many issues with hidden charges. You can read the full research here http://www.which.co.uk/news/2012/05/new-which-research-exposes-payday-loan-failings-286258/

So, have you ever used a payday loan? What did you use it for? How did it go?

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Comments (13)

81

rbgos posted
Never have done, never would.
Posted on 18 May 2012 | Love 0 loves Report
3

philipwalduck posted
I have used payday loans when people who owed me money let me down. found them very easy to use but horrendously expensive if used long term
Posted on 18 May 2012 | Love 0 loves Report
879

MikeGG1 posted
There have been a number of questions on payday loans but we have always given the same answer - DON'T DO IT!!!!!!

Mike
Posted on 18 May 2012 | Love 0 loves Report
643

electricblue posted
I doubt that more than a very tiny percentage of Lovemoney readers would fit the profile of anyone likely to use these. These loan companies must make an absolute fortune preying on desperate people.
Posted on 18 May 2012 | Love 0 loves Report
21

leah AKA global leah posted
Sadly I am one of those people that uses payday loans, because I had to go into a little bit of "emergency" spending so I could get my car back on the road. They are such a rip off, because the "£100" you borrow, you have to pay £125 back, so to start with, you are that much short before the other normal bills kick in, and then you run out of money before the end of the month, and you go to them to borrow again, and it accumulate into such a problem, you would end up using most of your wage just to pay them off!

I haven't got myself into that situation as yet, but repaying them have been more than a struggle, and I'm glad I have managed to borrow money from "the bank of parents" and paid them back interest free. I did NOT want to go to my parent to help me out, but in the end it was either that or I would end up giving my wage to those god damn company and live on nothing because I don't have the money to buy even just the food.

I have a bad credit rating, that was why the payday loan came in in the first place, if anybody think about borrowing from them, I would definately advice them NOT to, ask families and friends first, because the one GOOD thing is, you DON'T have to pay them interest.
Posted on 19 May 2012 | Love 0 loves Report
72

The Bank Manager posted
Another thing leah AKA global leah, is that friends and family are 99.99999% unlikely to crucify your credit rating at all/any further.

If my children ever came to me for support, I'd do so without hesitation, especially if the purpose was for essentials. It goes without question....

These payday loan companies are parasites and although they abide by the law to advertise their rates and repayment costs, the fact they know they have the borrower by the nadgers, causes them to prey on the unfortunate circumstance of the individual(s). This is a disgrace to the financial industry in my opinion.

The payday loan companies will claim however, that they do not force 'customers' through their door and no doubt it will be that they blame the Banks and Building Societies for causing the borrowers to approach them. It's never their fault...is it??!
Posted on 19 May 2012 | Love 0 loves Report
43

hopefultom posted
Payday loan companies justify their exhorbitant rates of interest by claiming that they are cheaper than going to your bank and borrowing on an unarranged basis.
If we, via our government were to "rationalise" these fees, we would take the legs from under this argument and it ought to be easier to get to grips with these firms by legislating to cap their interest rates at, what we might consider affordable levels.
The problem with this, though is that some of the firms, particularly Wonga, have reached such a size that they are " branching out " and it would not surprise me, in the least if they were already giving sweeties to the posh boys.
Posted on 19 May 2012 | Love 0 loves Report
0

QuietDave posted
I had to take out a payday loan two years ago from a high street chain. Never again, I had to roll it over a few months while paying it off bit by bit. If I paid the interest early the new interest due date was set at this earlier date, thus I was in effect paying a higher interest rate than advertised on those months. Example: due date was the 28th of the month, paid the interest one week early on the 21st as I had the money on me, next month's due date became 21st.
Posted on 21 May 2012 | Love 0 loves Report
0

paultorres365 posted
Don't go for payday loans......try with P2P Lending instead on sites like http://www.yes-secure.com
Posted on 21 May 2012 | Love 0 loves Report
0

PeterSmith2774 posted
Payday loan surely only one step on the criminal scale better than robbing an old lady outside the post office :)
Posted on 23 May 2012 | Love 0 loves Report
10

Thirdman posted
Yes I have. When the choice is either take one of these out costing you £100 for £90 in your pocket or direct debits not being paid and your credit rating getting worse I alway took the short term loan.

This was ~8 years ago when I had a terrible credit rating (partly due to me and partly due to an error on my record I was unaware of) and outgoings which exceed my incomings every month. There were no options open to me from the bank.

Whilst I can see the pitfalls of the loans I believe they can have their uses. There was no possiblity of "rolling over" the loan at this time which is a real downward spiral.

I probably took out about 6-7 over the space of a year. Then, by getting a better paid job and improving my credit rating I was able to use other routes to reduce my debts. But without these I would have not been able to improve my rating.
Posted on 23 May 2012 | Love 0 loves Report
0

harrylee posted
Yeah i have...

It has been 2 months when i was facing the worst face of my life. My payday was too far, like there was 7 to 8 days of gap and it was my telephone bill that blocked the way of happiness. I was seriously out of pocket to pay out the bills then i got to know about http://www.paydaybazaar.co.uk that's an UK broking agencies. It is a licensed firm. I borrowed 500 pounds to them and i am very delighted with their services.
Posted on 01 May 2013 | Love 0 loves Report
0

Joyharry posted
Agree with harrylee

I also borrowed 400 pounds from http://www.paydaybazaar.co.uk and they were quite helpful
Posted 5 hours ago | Love 0 loves Report