The Downward Spiral of Pay Day Loans

After a few months of getting my new full-time job (with good pay for a 19-year-old party girl) I noticed that I was lacking the cash after going out and buying new clothes every month, going out most weekends and just having passed my driving test. I had brought a Laptop on finance, and started to pay rent at home. Things soon started to mount up so when it came to the second week after pay-day, I was skint. I had no petrol to get to work, my car needed a new tyre, and I couldn’t miss my payments on my insurance. After doing a bit of research (when I say researched, I mean google) I found a website that lent you some money untill your next pay-day. Brilliant! I could still go out and do the things I wanted to do, but I wouldn’t have to worry about it untill next month. My first Pay Day Loan was £100, but with the interest, obviously I had to pay back more, around £150. That stung my bank balance.

Lets skip a few months of me being greedy and borrowing more money. My first real problem was when I didn’t have enough to pay the £400 Pay Day Loan. I remembering thinking “what the hell am I going to do?! I don’t have £400 and where can I get it in 3 days?!” So I went to the trusty bank. I extended my overdraft to £450. A couple of months went like this, but I was borrowing more from the bank as well as the PDL. I was getting charged for my overdraft and missing payments to the bank because I couldn’t afford it. The next thing I know, I owed the bank over £1,000. It may not seem a lot to some people, but for a 19-year-old, I thought my world was ending. I had never experienced this before, one night, I stayed awake untill 5 am crying because I didn’t know what to do.

In the morning, I sat down with my mum, and I told her exactly what I had been doing, and my god, I may have been 19 at the time, but she still bollocked me like I was a 7-year-old. Luckily, she helped me plan out what to do so I called the bank and set up monthly payments. She changed my log in information to my pay-day loan website Now, I had to pay the bank, I had to pay rent, insurance, my nan for my car, petrol, my laptop and still manage to have a social life. Stupidly, you would have thought that this would have stopped me getting out more pay-day loans, but no. I went onto her e-amil, reset my password, and away I was again.

The next year carried on like this, taking out loans, paying them back, then not having enough money for the next month so I had to get another pay-day loan with more interest just to see me through the month. I had kept this a secret from my mum, and the rest of my family who didn’t have a clue what I was up to. My dirty little secret.

Now, I was 21. You would have thought I would be more grown up, learn my lesson and be more sensible with my money? I would love to answer this question with a yes. I found a Pay Day Loan that not only lent me the money, but put the money in my bank within half an hour, AND let me add more cash if I needed it in the same month! At this time, I was paying off 2 cars that I didn’t have (the first one had broken down beyond repair and the other one, well, it decided it wanted to go for a roll in the field on my way home from a night shift) I started asking to borrow money off my dad. Every month, without fail, I would pay back my PDL, take out another one, then be skint by the 2nd or 3rd week and text my dad, who very kindly agreed to give me some money. I tried my best to pay back my dad as well as everything else. It felt like every pay-day, I wouldn’t see a penny of the money I earnt, it was all borrowed.
By this time, my dad started to catch on that I had no money and I came clean to him. Dad was very understanding, but still gave me an earful for being so stupid. It wasn’t long untill my mum, nan, stepdad, brother and his then girlfriend found out. I felt a heroin addict who had just been found out, so much guilt and shame. There has been countless amounts of times where I was in floods of tears, arguing with my mum and stepdad about my money. All because of these stupid pay-day loans. Near enough everytime that I went on the internet, my mum was asking me if I was getting out another loan, the heroin addict came out of me and I began lying. I couldn’t stop.
Everyone had tried to help me. My brothers then girlfriend sat down with me to do a spread sheet of all my outgoings, all my incomings, and how to budget my money. I followed it. For 3 days. My dad had even sat down with me, and gave me the chance to get out of all of this silly, silly debt. I promised him I wouldn’t get another pay-day loan out. The fact that I broke that promise still makes me feel like shit today.
Now I was lying to everyone. The one thing I cannot stand other people doing, I was doing myself. All because of money. I didn’t want them to be pissed off with me or disappointed because I hadn’t sorted myself out, I was 21 for gods sake, I’m an adult now. I should have learnt from my mistakes

Now I’m 22. Still taking out PDLs. Still lying to people out not taking out loans. The only person I have been completely honest about my loans is my Fiance, Robbie. He’s tried to stop me taking them out, and I appreciate the fact he has, but it hasn’t stopped me. My dad has stopped lending me money, as he said “Bank of Dad is now closed.”

I have recently been signed off work for a month with depression, and I think that this has something to do with it. I am constantly feeling stressed, and angry at myself for getting myself in this mess.

Currently, I owe nearly £2,000 to PDL companies. And yes, that’s plural.

Last pay-day, after doing the food shop and getting a couple of christmas presents, I was left with £30. I have exceeded my limit on both of the PDL companies I have accounts with. I can’t ask anyone to lend me the money.

A couple of weeks ago, I attempted to get ANOTHER PDL with ANOTHER company. I know, you’re probably screaming at your screen at me. But this money was needed urgent. The other companies I have used, I do not want to name, but this company I will happily tell you about. SGE Loans. They find loans for people with bad credit. They took my details. They found me a loan. I got off the phone to them and thought to myself. What the hell am I doing?! I can’t do this anymore. This is getting out of hand. I called them back straight away and cancelled my application. They accepted it. Good. Come this pay-day, I have notice that £79.99 has come out of my account, and guess who by? That’s right, SGE Loans. immediately, Robbie called them to complain and to get refunded for the money that they did not have permission to take. The guy on the other end was snotty, rude and arrogant. He stated that we should have read the small print and declined to let us speak to his supervisor, and declined to give me a refund. So I e-mailed them. They told me that I needed to cancel the loan within 7 days of it being processed and that they would not refund me. This infuriated me! How dare they take MY money that I have earnt?! I have filed a complaint with the financial ombudsman as I have read that this company has done it to hundreds of other people.

And that’s when it hit me. These past 4 years, that’s what the PDL companies have been doing to me. They’ve been taking my hard-earned money with their extortionate interest rates and charges. No more. I have e-mailed both companies I have Loans out with, and I have explained that I cannot afford the £2,000 next pay-day. I have set up a Payment plan with one, and the other, I am waiting to hear back from. It’s going to take me 4 monthly payments of £204 to pay back this one, but I am guessing it’s going to take me a hell of a lot longer to pay back the other one. After I have paid them both off, there is not a chance in hell that I am ever going to use a Pay Day Loan again. Looking back on it now, I want to slap myself for being so greedy that I had to take out the first one.

So there you go, now all of my friends and family reading this now know the truth. This is why I am always skint. I just hope people learn from my mistake.

My advice to you, is no matter how hard up you are one month, do not, ever, take out a Pay Day Loan.

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13 comments
  1. Naomi said:

    Totally admire you for this, im so sorry i didnt realize! 😦 I love u loads babe, im always here if u need to talk!
    Ive had money issues too and i know how stressful and hard it can be. Theres people out there a lot worse off then you, and this whole country is in debt… Now you’ve admitted it to everyone and urself things will change, you will be skint but as soon as its paid off, you will feel better and least you have learnt from this, alot of people dont.
    Love u loads babe xxx

  2. Gary said:

    The whole thing sounds incredibly dumb. Sadly though, there are thousands like you. It seems the younger generation weren’t taught how to save, or the value of money. Or ever told the word NO. You nailed it yourself, right at the end. Greed. It sucks to have to go without something you want. Unless your mature of course, in which case it simply becomes a goal to aim for.

    gimmie gimmie gimmie want want want now now now.

    NO

    sorted

    • Naomi said:

      Wow.. All i can say is, what an arrogant bastered you are to write such a thing like this! You seem to have forgotten just who raised this generation… Loans, we didnt invent them, people way before our time did just for this exact reason! Look at our economy. We are in a recession incase u havent realized! And that was not down to people our age, you older lot have created all of this, so no what do you expect. Everyone is different! You can not go through life saying it has been perfect and that you have not made any financial mistakes. This just happened to be my best friend who wrote this and she has so much respect from a lot of people for writing this. Her experience will help others not to make the same mistake, everything happens for a reason in life and her reason for this mistake was clearly for this blog right here. She making people aware and warning them. What you said wasnt very nice at all. Why even post anything if all you’ve got is negativity to say about the whole situation. You cant just put all of us into one catigory either… My parents grew up smoking, i dont smoke and neither does my sister.
      Stop being such a busy body and open ur eyes a little bit more, try actually understanding because everyone has their reasons! It is hard these days to get by, the poor stay poor and the rich stay rich.
      Go be a doom gloomy one on ur own, we dont want to hear it.

      How about you walk in someone elses shoes….

      Done!

      • Naomi said:

        Wow.. All i can say is, what an arrogant (Yeah) you are to write such a thing like this! You seem to have forgotten just who raised this generation… Loans, we didnt invent them, people way before our time did just for this exact reason! Look at our economy. We are in a recession incase u havent realized! And that was not down to people our age, you older lot have created all of this, so no what do you expect. Everyone is different! You can not go through life saying it has been perfect and that you have not made any financial mistakes. This just happened to be my best friend who wrote this and she has so much respect from a lot of people for writing this. Her experience will help others not to make the same mistake, everything happens for a reason in life and her reason for this mistake was clearly for this blog right here. She making people aware and warning them. What you said wasnt very nice at all. Why even post anything if all you’ve got is negativity to say about the whole situation. You cant just put all of us into one catigory either… My parents grew up smoking, i dont smoke and neither does my sister.
        Stop being such a busy body and open ur eyes a little bit more, try actually understanding because everyone has their reasons! It is hard these days to get by, the poor stay poor and the rich stay rich.
        Go be a doom gloomy one on ur own, we dont want to hear it.

        How about you walk in someone elses shoes….

        Done!

  3. Another thing I have really noticed is that for many people, poor credit is the consequence of circumstances over and above their control. For instance they may be actually saddled with illness and as a consequence they have more bills going to collections. It might be due to a work loss or the inability to go to work. Sometimes divorce proceedings can truly send the financial circumstances in a downward direction. Many thanks for sharing your notions on this blog site.

  4. Hey there! Would you mind if I share your blog with my facebook group?
    There’s a lot of folks that I think would really enjoy your content. Please let me know. Thanks

  5. Christine said:

    I completely understand how you feel. You are not the only person who has been in this situation, myself and my other half have succumb to the offer of money that you don’t have to think about until next month. It started with a few bills that we we’re struggling with, and then other times it was because we sometimes just wanted to be able to enjoy the money we earnt….so when it all goes on bills you feel like you are working for nothing. As for Gary….it is not about getting what we want, when we want it, but if you have not noticed, we are in a recession, things are tough….the cost of living goes up while the £££’s per hour stay at the same low rate…so excuse us for wanting to indulge every now and again….

    But yes, pay day loans are a very bad idea….we tend to not think about how we are going to afford it when next month comes around, luckily I have some very lovely family members who were happy to help me out when it was difficult, but I felt incredibly guilty that I was letting them help me out when it was myself who got into the mess. I still get loans out every now and again, but it is something I am trying to stop, as I currently have a lot more debt that I need to deal with, without that too. But good luck and I hope you manage to pay it all off, you’re young, and if you didnt make mistakes you wouldn’t (eventually) learn from them

  6. Monty said:

    Wow, this piece of writing is nice, my sister is analyzing these kinds of things, so I am going to let know her.

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