Monyet   10 #1 Posted April 15, 2014 Hi! New to the forum and needed some advice on something,  Has anyone here had any bad experiences with payday lenders such as wonga, etc? What happened and which are the ones to watch out for? Share this post Link to post Share on other sites Share this content via...
mlfc   10 #2 Posted April 15, 2014 Has anyone had good experiences with payday lenders? Might be a shorter thread I suspect.  I wouldn't advise anyone use one if they can possibly help it as the initial funding problem perpetuates itself and grows once you join the system.  The problem is the model more than the individual companies I would suggest.  Welcome to the forum though! Share this post Link to post Share on other sites Share this content via...
EODM83 Â Â 10 #3 Posted April 15, 2014 I'd avoid like the plague pal - too many bad experiences that I've heard of - If you're really struggling see if the bank will help - extend overdraft etc. Failing that I've heard the Sheffield credit union is worth checking out. Hope you can sort things out soon. Share this post Link to post Share on other sites Share this content via...
mrs brady   10 #4 Posted April 15, 2014 Do not go down that road , however desperate you are . Share this post Link to post Share on other sites Share this content via...
Bonzo77   13 #5 Posted April 15, 2014 Hi! New to the forum and needed some advice on something, Has anyone here had any bad experiences with payday lenders such as wonga, etc? What happened and which are the ones to watch out for?  Stay away from all of them, even logbook loan lenders etc. If you need to borrow money, or are in a financial mess, go to your bank for help.  Using PD lenders can get you in deep trouble. Even if you pay the loan back as planned and on time, it will affect your credit record for a long time and you will struggle to get a mortgage in the future.  As I said, even if it's paid back on time, using a PD lender only demonstrates one thing, you are not in control of your finances. Share this post Link to post Share on other sites Share this content via...
Lexx_Yun   10 #6 Posted April 15, 2014 I have used wonga, and to be honest they're not as bad as people make them out to be. i got myself in to a rut and the debt mounted up to £250 and they agreed on a payment plan of £30 a month, paid it off, no problem. Share this post Link to post Share on other sites Share this content via...
truman   10 #7 Posted April 15, 2014 Stay away from all of them, even logbook loan lenders etc. If you need to borrow money, or are in a financial mess, go to your bank for help. Using PD lenders can get you in deep trouble. Even if you pay the loan back as planned and on time, it will affect your credit record for a long time and you will struggle to get a mortgage in the future.  As I said, even if it's paid back on time, using a PD lender only demonstrates one thing, you are not in control of your finances.  Why is using a PD lender and paying back on time worse than an unauthorised od/missed payment on something else? Genuine question.. Share this post Link to post Share on other sites Share this content via...
Bluey1 Â Â 10 #8 Posted April 15, 2014 If it's a smallish amount, you're much better pawning/putting on but back an item that you can manage without. You part with your item for cash, then pay a small amount of interest on top if the initial amount to get it back. If you can't, the item gets sold to cover the cost, you don't get chased for the money at all. Share this post Link to post Share on other sites Share this content via...
Bonzo77   13 #9 Posted April 15, 2014 Why is using a PD lender and paying back on time worse than an unauthorised od/missed payment on something else? Genuine question..  I didn't say it was.  But, for example. If you bank with HSBC and your mortgage is with HSBC and you get yourself into trouble, going to HSBC for help will be far better than going to a PD lender. HSBC have the relationship and despite what people think about banks, having that relationship helps, to a certain extent.  ---------- Post added 15-04-2014 at 16:03 ----------  I have used wonga, and to be honest they're not as bad as people make them out to be. i got myself in to a rut and the debt mounted up to £250 and they agreed on a payment plan of £30 a month, paid it off, no problem.  No problem until you want to move or remortgage. Share this post Link to post Share on other sites Share this content via...
sgtkate   10 #10 Posted April 15, 2014 Why is using a PD lender and paying back on time worse than an unauthorised od/missed payment on something else? Genuine question..  It's to do with how/what most lenders look for when they run credit checks. I don't know exactly why they seem to look down so badly on payday loans as opposed to a missed payment. At least getting a PD loan shows that you were aware enough of your situation to make sure you didn't miss a payment...  I had to get a payday loan several years ago when my and my ex broke up. I ended up having to pay bills and rent on 2 properties for 1 month and my finances didn't stretch far enough. I got a loan, paid it off next payday. It's on my credit file but didn't affect me getting a mortgage late last year or a loan on a car. All these stories are anecdotal though and I don't know if there is any REAL evidence of payday loans affecting future credit. Share this post Link to post Share on other sites Share this content via...
Bonzo77   13 #11 Posted April 15, 2014 It's to do with how/what most lenders look for when they run credit checks. I don't know exactly why they seem to look down so badly on payday loans as opposed to a missed payment. At least getting a PD loan shows that you were aware enough of your situation to make sure you didn't miss a payment... I had to get a payday loan several years ago when my and my ex broke up. I ended up having to pay bills and rent on 2 properties for 1 month and my finances didn't stretch far enough. I got a loan, paid it off next payday. It's on my credit file but didn't affect me getting a mortgage late last year or a loan on a car. All these stories are anecdotal though and I don't know if there is any REAL evidence of payday loans affecting future credit.  I used to approve mortgages for HSBC. It definitely was part of their lending policy back in 2010. Might have changed, but I doubt it. Your bank would rather you go to them for assistance. HSBC used to do crisis loans for people in your situation. They were at 7.something % APR instead of 5,800% Share this post Link to post Share on other sites Share this content via...
TheBlueDragon   10 #12 Posted April 15, 2014 I got myself into a mess with my finances a couple of years ago. I called my bank "halifax" and they put me on a "Debt Management" account where I did not get charged for going overdrawn for 1year. This greatly helped me and I now have my finances back on track. They have now put me on an account which is between a "debt management" and a standard account. So I do get charged but only £10 a month instead of £31.  I wouldn't advise a PD Loan as I've heard too many bad stories Share this post Link to post Share on other sites Share this content via...