Wonga

Caroline_a

Just seen an advert for Wonga - 2689% APR!!!!!!!!!!! you'd have to be really desperate!

dtaylor84

You're a bit late.

Enfieldian

About two days late in fact, this normally gets posted on a Wednesday.

What has an APR got to do with a 31 day loan?

Hax

Caroline_a wrote: »

Just seen an advert for Wonga - 2689% APR!!!!!!!!!!! you'd have to be really desperate!

Or a few quid short on that last direct debit for your CC minimum payment clearing in your bank account. If the DD get's refused then you get late payment charges from your CC issuer PLUS DD refusal charge from your bank. Also, there's the possibility of having the late payment registered on your credit file. Total cost: 2x£12 + a possible late payment marker.

Borrowing £20 from Wonga for five days costs you just £6.76 and no late payment marker.

Quite a difference really.

Wonga (and other pay-day) loans are only meant for short term borrowing - an advance on your current pay packet - for when you've miscalculated or had an unexpected bill crop up. But you absolutely need to be able to pay it all back on your next pay day or you're in for a whole world of pain!

Unfortunately, some people try to use them as an extension to their income and that's when the big problems start!

dartilov

Hax wrote: »

Borrowing £20 from Wonga for five days costs you just £6.76 and no late payment marker.

This says it all for me, when you get charged £6.76 for JUST borrowing £20......leave well alone.

sharpy2010

dartilov wrote: »

This says it all for me, when you get charged £6.76 for JUST borrowing £20......leave well alone.

So you'd lend £20 off your mate if you were desperate and not consider buying them a pint or two when you got paid and were able to pay them back, because that comes to roughly the same price.

I don't think I'd considering lending my cash to you then.

Hax

dartilov wrote: »

This says it all for me, when you get charged £6.76 for JUST borrowing £20......leave well alone.

In an ideal world, no-one would want to borrow at these rates - but this world is far from ideal.

That was maybe a bad amount to choose as they have a standard fee of £5.50 for the fast transfer. Borrowing £100 costs you £10.70 for 5 days.

Anyway, regardless of your thoughts, these types of loan can work out a lot cheaper than a bounced payment...

dartilov

I am not disputing at all the amount that a late payment for a credit card or loan etc can amount to.

My opinion, rightly or wrongly, was based on a £20 loan from Wonga costing £6.76. I also appreciate that the world is less than ideal and that is precisely why companies such as Wonga, PayDay Loans have become very successful and well used in recent times.

Loaning £100 seems a better option which, if it can be guaranteed to be paid back straight away, in times of hardship can mean paying less in bank charges for missed payments.

I still, personally, would leave well alone.

theshadow

wonga is charging way more interest than last week due to xmas by looks of it!!!

KingElvis

Why anyone would work themselves into or further into debt over Christmas is beyond me, straight over my head, heathrow etc etc

Hax

theshadow wrote: »

wonga is charging way more interest than last week due to xmas by looks of it!!!

As I replied in your other thread:

NOTHING has changed. It cost around £6 to borrow £20 for 5 days last week and it costs the same this week. If you borrow that £20 over 30 days (which is the default) THEN it costs around £13.

You need to at least do a like-for-like comparison.