Sam’s Story on Bad Credit Loans

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I am Sam. I hail from Bristol, UK. I have been working in a veterinary centre for four years. I have only son who is 17-years-old. Six months ago, my financial condition was bad. I started to notice that I began to run out of money, my credit card bills were creeping up and utility bills continued to be overdue. It was getting harder to meet financial obligations that resulted in lower credit score and penalties. It was driving me crazy. I felt like I was going to fall in debt. 

Even though the situation was getting worse and I was not able to take the full control of it instantly, I knew that there were more than one cost-effective ways to deal with it. Eventually, my laptop conked out that I would use for Office work. I did not have enough savings, so the only option I had was taking out bad credit loans with instant decision and no brokers.  

I borrowed £500 in the last week of February 2019 and the length of the loan was only 30 days. I tried to find a lender who could allow me to pay off the debt in instalments, but I was turned down as that scheme was mainly available for good credit borrowers. I got disappointed, but I had to bite the bullet. 

Why I decided to take out a loan

I had emergency cushion that I could dip into to have my laptop repaired, but I thought I would not be able to borrow money if any big unexpected expense pops up as small loans do not allow top borrow large funds. I preferred to choose a direct lender instead of broker as I did not want to pay broker fees and they take instant decision. 

Strategy I followed

Of course, I had to pay off the loan in a period of 30 days and that was not easy at all. Since I had been struggling to pay off my credit card bills, I carefully made a plan before applying for the loan. 

First off, I made extensive research to make a list of lenders whom I wanted to apply to. I read reviews on their websites and social media. Finally, I chose The Easy Loans. My salary was £2000, so I thought that I could easily qualify for my credit need that was £500. When my lender asked me to submit my income statement, they told me that they could lend me only £450. Although I needed more money, I was happy at least they considered my repayment capacity before signing off on the loan. To recover the shortfall, I had to dip into my emergency cushion. I did not mind that.

The lender charged interest £15 per £100 borrowed, which means I had to pay £67.5 plus £450. It was definitely not very cheap deal, but I knew that it was because of my poor credit history. In total, I had to pay back £517.5 at the end of the month. 

Since I could not afford taking the risk of paying late payment fees and interest penalties, I set aside £520 so that I did not fall behind repayments. I had already spent £250 before the lender approved my loan. This is why I was left with £1,230 after stashing away debt payment. I did not contribute to emergency cushion because I had to meet all my expenses out of £1,230. 

My expense list was so long that I knew it was not possible to meet all of them with such nominal amount. I took a look at the list to find out how I could whittle down. Surprisingly, I found that after cutting back on non-essential expenses such as dine outs, night outs, I managed to save £120. Since the loan was my additional expense, I wanted to have the same amount of money by skimping on my needs. I successfully managed to save £120 out of £520 by cutting back on discretionary expenses, but my target was to save £400 more. 

I had to switch to wholesale markets to buy food and drinks, cover short miles on foot and make do with what I had. Despite the rigorous strategy, I could save £100 more. I did not mind that. I was happy because I managed to pay back the whole of my debt.

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