Helping a friend out Payday Loan help

LDJ2009

In my experience, sad as it sounds, Wonga are the best of the bunch as when you extend the loan, you are paying something like 20% off the orginal loan balance each time plus their extension fee of around £18.50.

No other payday loan company, to my knowledge does this.

The trick to clearing a Wonga loan early is to not keep extending it by a full month at a time. Even by reducing this to 20 days, you are paying less interest overall and the debt will be cleared quicker. You then have 20 days to get the next extension fee together and although you'll pay the £18.50 fee, that's another 20% of the loan paid off and so on.

Wonga are quite difficult to negotiate repayments with and add interest on defaulted loans daily so it can quickly mount up. That's why they were one of the first loans i cleared when i sold my car.

The other option is a loan to clear the payday loan over a longer term. If you google kwikloan, you will see the company i am referring to but this is not a recommendation or an advert for them, just an option another forum member suggested to me when i first got into problems. The apr is very high but you can pay off over a year and make early repayments at no charge.

Hope that helps