Should I take out a payday loan?

I'm due to start university on the 29th of September and had made plans to move this coming Saturday, problem is my parents don't have a car or the money to rent one. I currently do not have the money myself and my student loan won't be here until next week and my bank has refused to increase my overdraft.

So my options are as followed



What do you think?

Definitely would not recommend the pay day loan route. How much would you need? Is there any friends or family that can let you have that and you can pay back when you are sorted? Do you have a credit card, then that might be an option? Do you know anyone else going to the same uni who you could perhaps get a lift with? Whatever you do, don't take out a payday loan, you really will regret it.

Good luck and let us know how you got on.

Credit card >>>> payday loan, for sure. Go and ask for a student credit card in branch and explain that you've never had one before - generally they don't expect students to have anyway. I know credit cards seem scary (I resisted for ages) but it's good to use them sensibly to build up your credit rating.

Other option is peer-to-peer lending? You'd get MUCH better rates. I don't know how easy it is to set up but my friend Pete borrowed to buy a car and he's paying 5% or something. Funding Circle is one - the most famous begins with Z I think but I forget its name.

NO PAYDAY LOANS.

EDIT: Oh, and actually, talking to your university about it isn't a bad idea at all. They will probably have funds to help out struggling students. Just be honest about it and see what they say - they won't want you to have to miss lectures!

Don't do it, if your student finance comes in late you are going to get into so much debt it's unreal and it will seriously mess up your credit history . Call up your uni and ask for a crisis/hardship loan, why on earth you would consider a payday loan before that is insane to me.

What if you don't have a choice though?

I'm not the type of person who likes to borrow money of people and most of my uni friends have already moved in last week. I lent one of my friends some money in the past but he never paid me back the full amount, so asking them wouldn't be worth it. I know that may sound stubborn also never really had a credit card felt it was too risky, but it is definitely much safer than payday loans.

Have you ever taken a payday loan by any chance? I can probably pay it back on time and im planning to borrow about £200 and pay it back the following week or so.

Thanks for the advice

Hi,

I have not taken out a payday loan but have heard so many horror stories that I would stay away from them. Why won't you get a credit card? I have a credit card and I just pay it off as I go long. It is so useful to have and really no hassle as long as you pay the minimum off each month. Try ringing the uni to see what support they can give.

there is almost always a choice, but if you have no choice other than miss your first week of lectures I'd miss the lectures. You could end up finding yourself in a very very bad situation with no way out.

You make it sound like that if I take out the loan that being in debt would become a certainty.

Not a certainty but a strong possibility.
I am really just trying to give you the best advice possible, pay day loans are DESIGNED to get people to pay back as much money as possible. So it's no surprise people can end up in a lot of trouble and having to pay back 2 grand even though they only took out £200.

I just checked with one of the payday loans and they quoted that the total amount to repay would be £250 in a period of 2 weeks. I can afford that but you're telling me that risk is still too great, you're exaggerating slightly. Anyone having to pay back that much because of lending £200 would of probably paid months late.

Presumably you have accommodation sorted and ready to move into? So why not just get the train to your uni, take a sleeping bag and clothes and "camp out" until you have the money to get your stuff.

A payday loan is a quick way to get money but it will cost you a fortune, even if you pay it back on time, so you have to ask whether it's really worth it. And as others have said your uni should be able to help you out.

I just checked with one of the payday loans and they quoted that the total amount to repay would be £250 in a period of 2 weeks. I can afford that but you're telling me that risk is still too great, you're exaggerating slightly. Anyone having to pay back that much because of lending £200 would of probably paid months late.

It's £250 if you can definitely pay back in 2 weeks, which if you can that is great. But there are no definites that you will get your student finance on time, one of my classmates last year got his student finance ridiculously late in later October despite applying for it and having it approved in may. For me the risks would be far far too great to even consider a payday loan, the university loan should be your first option, why it isn't I have no idea as they will most likely give you a short term loan without the ridiculous interest rates.

Said everyone who took one out.
**** happens, money goes in and out and if you can't pay it you will wish you didn't take it out. It seems you don't want to take heed of the advice offered to you.

Seriously, one week of lectures ain't all that much compared to the **** you could potentially end up in.

Yeah, you're right thinking about it rationally getting in potential debt or risking it for a few missed lectures isn't worth it.