Wonga.com

pulliptears

I guess its because its not something I was raised with. My mother wouldnt even have a Littlewoods catalogue lol. I used to love looking through it at friends houses lol

DebtHater

Its a great business model though from their point of view. Prey on the people that need the money, because you can charge a higher rate.

BUT, I know these companies hate it when you get in a mess and start messing them about. Was reading in Wonga's forums a while back, where someone was saying that a short term loan, repayed within the 30 days, is worth so much more to the company than the people who dont pay it all back and get it taken to court, etc. Because the interest thats added just pays for the penpushers who have had to do all the court case paperwork.

Its good to know that there are companies there who can give you the cash when you need it. Providing its done in a sensible way and you can 200% guarantee you can pay the money back before 30days, then its all good.

dealer_wins

Where do I buy shares in Wonga?

EmzJenks

I've used wonga before when I've really needed cash for an emergency before payday. I paid them back within 6 days, with hardly any interest on the loan. People are absolutely right when they say that if you can't pay back the payday loan don't take it out in the first place you will unleash a whole world of pain on yourself.
But in my case I knew for a million percent I could pay it back & they really were a bit of a life saver for me on that occasion.

So my advice would be - if you know what you are letting yourself in for & can pay it back when you say you can they are not all bad. If however you take a loan from them knowing full well you can't pay it back, don't touch them with a barge pole because they will come after you for their money & a ton more.

MrsBartolozzi

Putting aside the case of preying on those in need, for any short-term loans the interest rate is always going to equate to a very high APR, purely because you are not intended to use it to borrow for a year! Take the example given earlier £100 for 30 days = £9 interest. If that equates to 2000% APR then how much % do you really expect to repay - 10% would mean you only pay interest at less than £1 - how the heck can any company sustain business gaining only £1 for lending you money for a month - it must cost them more than that in man-hours processing the whole thing, not to mention overheads, so I reckon its a reasonable deal for those who need it.

Didn't Martin write a blog or something a while back sayingsomething along the lines of: if you forgot your wallet on Friday night and your mate lent you £20 which you then returned to him on Monday, and you bought him a pint to say thanks this equated to over 1000% APR and yet most folks would see this as reasonable at the time. Just a thought...