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Jeff_Bridges_hair

asbokid wrote: »

Borrow £65 for 60 days from Wonga.com at 4,214% APR

Wonga would expect you to pay them at least

£120.68
(excluding charges)

It is no "mate" of mine who tries to lend money at that insane rate of interest!

But that is for 60 days? So that will include a roll-over payment as I cant think of any industry where people get paid once every 60 days.

Now go work it out for around a week - which the majority of these loans are for and then come back with how much you would have to pay back.

Whilst I dont particularly like these companies there was something in the loans board that mentioned the figures in the whole industry who dont pay back was around 15%. Now if they all only leant to 20 people a year that would be a high percentage but they lend to hundreds of thousands a year who have no problem paying back.

The fact surrounding these companies are very skewed as they have to show the headline APR. If they were allowed to show just the percentage of the amount you take back as interest then with rates up to around 25% do not sound too bad.And obviously Wonga are half that still.

But if people default or roll-over then like with a lot of financial products you get hit with penalties. And a lot of peoples overdrawn charges are a lot higher then 25% and thats even if they only go over by a pound.