help with a loan :{

Gaz · 30-09-12, 10:06 AM

need some advice guys.
A friend of mine has gotten herself in to debt with a load of payday loans. like quickquid, paydayuk, paydayexpress, txt loan etc. and they just add loans on the longer u don't pay etc.

shes only 21, (22 in october) and she needs a 10k loan to pay off all the debts at a rate she can afford.

She went to her bank and they wouldn't lend her the 10k. or lend it to her family.

I'm going to the bank tomorrow to see if i can get the loan for her, but i'm doubtful as alto i've never had any debts or borrowed money or anything before, i'm on a lo income atm less than 10k per year. so i think they will prob say no

I really need to help her and get her out of this mess. can anyone on here offer advice?

Daveymaclad · 30-09-12, 10:48 AM

Some people will say go for an IVA or go bankrupt, but I'm not keen on those as they ruin your ability to get loans and mortgages for years to come but also because I firmly believe that if you spent the money you should pay for it.

So, one way of improving your credit rating in the short term is to manage your 'available debt'. Basically your credit rating depends on how much available debt you are using, believe it or not, using too little WORSENS your credit rating. I had this when trying to get a loan for £10k to buy a student house. I had a £15k credit card limit with only £800 debt. My experian report said I was using too little of my debt, so I called up my credit card and cut my limit to £4k. They asked why and I told them and they knew that was a measure of creditworthyness. Called back up after the credit was lowered and straight away I was accepted for the loan. So manage your credit limits on cards and store cards.

Then, try getting a loan for £9,999 as there's a whole different set of criteria for loans of £10k and over.

Hope this helps.

missfire · 30-09-12, 11:28 AM

You live and learn by your mistake is all there is to it really, take the pain. Tell her to move in with a relative and send all of her wages off until it is paid. The quicker the better. Taking another loan won't solve anything.

I did just that after leaving college (had to live with the mother in law FFS!!

) It was only for a couple of grand though from rent, bills etc. from a student house, but.. learn my lesson I sure did! Took me bloody four months to pay it off. Never had an empty bank account since, never borrowed any money since. Never bought anything I can't afford since. The threat of living with a relative is just too horrible to contemplate!

No laughing matter, but it's a hole that the unwary are lured into deliberately by these companies, and all the profit goes to nice 'respectable' investors and share holders, you know the kind.. she needs to turn her energy to hating these people and to pay it off to spite them, that'll put a spanner in their business plan.

The positive side is she's young. Better to learn these lessons early and nip it in the bud! Don't mean to be harsh but, been there, glad I learned the hard way.

rich.r · 30-09-12, 11:33 AM

Quote:

Originally Posted by Gaz

need some advice guys.
A friend of mine has gotten herself in to debt with a load of payday loans. like quickquid, paydayuk, paydayexpress, txt loan etc. and they just add loans on the longer u don't pay etc.

shes only 21, (22 in october) and she needs a 10k loan to pay off all the debts at a rate she can afford.

She went to her bank and they wouldn't lend her the 10k. or lend it to her family.

I'm going to the bank tomorrow to see if i can get the loan for her, but i'm doubtful as alto i've never had any debts or borrowed money or anything before, i'm on a lo income atm less than 10k per year. so i think they will prob say no

I really need to help her and get her out of this mess. can anyone on here offer advice?

Do you want honest no messing about advice that you may not want to hear?

Dont get involved especially borrowing money for someone else it WILL end in tears.

Even if you are lets say romantically involved it will go tits up

Probably not what you wanted to hear but you did ask.

Hanuman · 30-09-12, 01:52 PM

1. Citizens advice bureau.
If you're serious, get advice from someone qualified. Your local CAB may be able to point you at the exact people you need to talk to. While there's a lot of good info and comment on here, it is a public forum, which risks several problems.
-people's advice can be issued based on common morals, which are not necessarily the same as legal principals.
-it's essentially a private matter, capable of becoming highly emotive. All in the public view
-the risk of discussing in public, what might be resolved in private with right help.

2. Visit
http://www.direct.gov.uk/en/Dl1/Directories/DG_10016420

There's loads of companies out there which might look like providing help. You need to avoid the ones that will make it worse

http://www.moneysavingexpert.com/new...p-payday-loans
Sign the petition

3. By all means be supportive, helpful, etc. but as suggested, do not get directly financially involved, as it may well make things worse for both of you. Especially if you 'manipulate' the reason for the loan. Which could be taken very seriously.

Lofty · 30-09-12, 01:56 PM

Are you mad Gaz ? You'll end up 10k in debt and she'll probably run up more debts judging by current form.
As Mark H sez....send her to the CAB.

Hanuman · 30-09-12, 02:02 PM

As an aside, I think it's a bloody disgrace that these companies have been allowed to pop up all over the place, pretty much unchecked. It's almost like they want everyone in he same frigging boat. Next step, revolution!

Minty · 30-09-12, 02:23 PM

The Real MSH's point 1 says it all.

Your friend should get proper professional advice, which means the CAB as the starting point. A vital first step will be her accepting she will need to live through a period of financial rehabiliation. It is a harsh lesson being faced by many.

Once they 'roll up' (meaning the interest outstrips the minimum contracted payment) the only viable way to repay these loans is with a one-off lump sum, which she clearly doesn't have. The CAB are adept at negotiating with lenders, and these companies now know - by and large - that they won't win at law, so they generally cooperate with fixed term repayment plans.

This whole area is the financial equivalent of the wild west, but is shortly to be subject to some regulation. It won't solve all the ills but it'll be a start.

4v6 · 30-09-12, 02:38 PM

These loan companies are nothing more than sharks.

1734% apr being somewhat typical of the interest they pile on.
Why dont people simply do the bloody math before they do anything else?

If you borrowed a tenner youd owe them 170 quid. Period.
Its nuts to have anything to do with them and yet people keep getting drawn in by the grinning twats advertising these "services".
As others have said, CAB first and see what they say but the long term fix is simply to have nothing to do with credit if you can avoid it.

The irony of the credit crunch is if there was no credit and everyone had to pay in cash thered be no bloody debt, but apparently its immoral to pay in cash according to some shit thick politicaians....

rtz62 · 30-09-12, 04:53 PM

Agree with The Real MSH.
But ask yourself this; didn't she really honestly know what she was getting herself into?
I have to say it, having worked in a bank years ago, our adage was don't borrow what you can't afford to pay back. The point being; if she borrows off you and other (gullible?) people will she be able to pay it back? NO!

30-09-12, 10:48 AM	#2
Daveymaclad 4 ring whore! Classic Audi Club Member Join Date: Feb 2009 Location: Bursledon - Southampton Posts: 2,575	Some people will say go for an IVA or go bankrupt, but I'm not keen on those as they ruin your ability to get loans and mortgages for years to come but also because I firmly believe that if you spent the money you should pay for it. So, one way of improving your credit rating in the short term is to manage your 'available debt'. Basically your credit rating depends on how much available debt you are using, believe it or not, using too little WORSENS your credit rating. I had this when trying to get a loan for £10k to buy a student house. I had a £15k credit card limit with only £800 debt. My experian report said I was using too little of my debt, so I called up my credit card and cut my limit to £4k. They asked why and I told them and they knew that was a measure of creditworthyness. Called back up after the credit was lowered and straight away I was accepted for the loan. So manage your credit limits on cards and store cards. Then, try getting a loan for £9,999 as there's a whole different set of criteria for loans of £10k and over. Hope this helps. __________________ 2008 RS6 avant SOLD 1988 UR Quattro

30-09-12, 11:28 AM	#3
missfire making wooden things Classic Audi Club Member Join Date: Dec 2009 Location: cow land Posts: 8,156	You live and learn by your mistake is all there is to it really, take the pain. Tell her to move in with a relative and send all of her wages off until it is paid. The quicker the better. Taking another loan won't solve anything. I did just that after leaving college (had to live with the mother in law FFS!!) It was only for a couple of grand though from rent, bills etc. from a student house, but.. learn my lesson I sure did! Took me bloody four months to pay it off. Never had an empty bank account since, never borrowed any money since. Never bought anything I can't afford since. The threat of living with a relative is just too horrible to contemplate! No laughing matter, but it's a hole that the unwary are lured into deliberately by these companies, and all the profit goes to nice 'respectable' investors and share holders, you know the kind.. she needs to turn her energy to hating these people and to pay it off to spite them, that'll put a spanner in their business plan. The positive side is she's young. Better to learn these lessons early and nip it in the bud! Don't mean to be harsh but, been there, glad I learned the hard way.

30-09-12, 01:52 PM	#5
Hanuman Trickster Classic Audi Club Member Join Date: May 2009 Location: Heckling from the cheap seats, Phnom Penh, KoW Posts: 7,028	1. Citizens advice bureau. If you're serious, get advice from someone qualified. Your local CAB may be able to point you at the exact people you need to talk to. While there's a lot of good info and comment on here, it is a public forum, which risks several problems. -people's advice can be issued based on common morals, which are not necessarily the same as legal principals. -it's essentially a private matter, capable of becoming highly emotive. All in the public view -the risk of discussing in public, what might be resolved in private with right help. 2. Visit http://www.direct.gov.uk/en/Dl1/Directories/DG_10016420 There's loads of companies out there which might look like providing help. You need to avoid the ones that will make it worse http://www.moneysavingexpert.com/new...p-payday-loans Sign the petition 3. By all means be supportive, helpful, etc. but as suggested, do not get directly financially involved, as it may well make things worse for both of you. Especially if you 'manipulate' the reason for the loan. Which could be taken very seriously. __________________ I wish they would keep the damned Chinese away now that I can go home, so that I can enjoy Fish amok and a draught Angkor

30-09-12, 02:02 PM	#7
Hanuman Trickster Classic Audi Club Member Join Date: May 2009 Location: Heckling from the cheap seats, Phnom Penh, KoW Posts: 7,028	As an aside, I think it's a bloody disgrace that these companies have been allowed to pop up all over the place, pretty much unchecked. It's almost like they want everyone in he same frigging boat. Next step, revolution! __________________ I wish they would keep the damned Chinese away now that I can go home, so that I can enjoy Fish amok and a draught Angkor

30-09-12, 02:23 PM	#8
Minty Senior Member Classic Audi Club Member Join Date: Jul 2008 Location: Wirral Posts: 1,528	The Real MSH's point 1 says it all. Your friend should get proper professional advice, which means the CAB as the starting point. A vital first step will be her accepting she will need to live through a period of financial rehabiliation. It is a harsh lesson being faced by many. Once they 'roll up' (meaning the interest outstrips the minimum contracted payment) the only viable way to repay these loans is with a one-off lump sum, which she clearly doesn't have. The CAB are adept at negotiating with lenders, and these companies now know - by and large - that they won't win at law, so they generally cooperate with fixed term repayment plans. This whole area is the financial equivalent of the wild west, but is shortly to be subject to some regulation. It won't solve all the ills but it'll be a start. __________________ 1984 GT5E Topaz Green 1982 GT5S Helios Blue - now in Ireland 1983 GT5E Topaz Green - donor 1986 GT 2.0 Tornado Red - long gone 2001 A6 2.4 V6 - exported to Ireland

30-09-12, 01:56 PM	#6
Lofty Senior Member Join Date: Jul 2008 Location: Mid western Ontario Posts: 1,817	Are you mad Gaz ? You'll end up 10k in debt and she'll probably run up more debts judging by current form. As Mark H sez....send her to the CAB.

30-09-12, 02:38 PM	#9
4v6 Ex Member Classic Audi Club Member Join Date: Dec 2007 Posts: 5,565	These loan companies are nothing more than sharks. 1734% apr being somewhat typical of the interest they pile on. Why dont people simply do the bloody math before they do anything else? If you borrowed a tenner youd owe them 170 quid. Period. Its nuts to have anything to do with them and yet people keep getting drawn in by the grinning twats advertising these "services". As others have said, CAB first and see what they say but the long term fix is simply to have nothing to do with credit if you can avoid it. The irony of the credit crunch is if there was no credit and everyone had to pay in cash thered be no bloody debt, but apparently its immoral to pay in cash according to some shit thick politicaians....

30-09-12, 04:53 PM	#10
rtz62 Senior Member Join Date: Nov 2008 Posts: 1,527	Agree with The Real MSH. But ask yourself this; didn't she really honestly know what she was getting herself into? I have to say it, having worked in a bank years ago, our adage was don't borrow what you can't afford to pay back. The point being; if she borrows off you and other (gullible?) people will she be able to pay it back? NO!