MSE News: Wonga branded 'morally offensive' for targeting students

opinions4u

MsDaisy wrote: »

"Paying off your student loan can take years and the chances are you'll have no idea what you spent it on.That's the problem with a student loan – it might work out cheaper than a standard loan, but you can easily get more than you need and be left with a nasty debt hangover after graduation."

Wonga APR 4214%

Student loan APR 1.5%


I know which company I'd rather my DS had a loan with

Depends. I suspect you'd end up paying back far more on the latter over 25+ years than you would from a 7 day debt to Wonga.

katsu

Congratulations Martin for taking Wonga to task over something so wrong.

I don't understand some of the posters to this thread. Asking Wonga to remove their website page which was misleading in its comparison of Wonga lending and student loans, is not stopping people taking out Wonga loans. It is stopping people getting the wrong impression about taking out Wonga loans.

I was far less financially literate as a student than I am now. Students are generally young people who are learning about independant living and they deserve not to be misled. Their education is important and I'd hate to think of people not fulfilling their potential because they got in over their head in PDLs and ended up with all the worry, stress and distraction of mounting debt that needs to be repaid during their education rather than afterwards.

Shame on Wonga staff and congratulations MSE.

Derivative

I am a student. I like to think of myself as reasonably intelligent - quite frankly, that's why I'm taking years out of my life for unpaid study.

The assumption that I can't figure out for myself that a Wonga loan is worse than student finance is rather ridiculous.

The information is out there, and we are generally expected to have basic mathematical skills, moreso when you consider a large percentage of us are actually studying quantitative subjects.

I pride myself on knowing that I'm doing well with my finances. I'm proud of the fact that my 1.5% student loan sits in a 3% ISA. I'm proud that I spend <£20 a week on food to minimize the amount I owe back at the end.

I tend to think someone who struggles with understanding that Wonga is a call of last resort should not be at University...

poppy10_2

EdgEy wrote: »

I tend to think someone who struggles with understanding that Wonga is a call of last resort should not be at University...

Again, Wonga were representing themselves not as a call of last resort, but as a better alternative to a student loan. This was wrong, regardless of your views of the people who believed them.

2sides2everystory

EdgEy wrote: »

I tend to think someone who struggles with understanding that Wonga is a call of last resort should not be at University...

Well we can see that Psychology and Philosophy aren't your strong points yet, EdgEy, but that wasn't quite what you meant was it ?

[Deleted User]

wonga loans are only MEGA expensive if you abuse them,i do wish MSE would cease perpetuating this myth that wonga are evil personified,it make them look like money saving morons not experts !!!

Derivative

poppy10 wrote: »

Again, Wonga were representing themselves not as a call of last resort, but as a better alternative to a student loan. This was wrong, regardless of your views of the people who believed them.

Welcome to marketing.

Colgate toothpaste represent themselves as better than Tesco Value for whatever invented reason they came up with this week. Colgate also costs 10 times as much.

I live happily in the knowledge that my lifestyle is subsidized by those who are ignorant - see bank charges, 0% and cashback credit cards, loss leaders in supermarkets, etc etc.

This is how for profit companies are run. People who do not understand the implications of taking out Wonga loans are the enablers. A company cannot exist without customers.

Think positively and act to solve the problems in your life via the means available to you, rather than moaning. I promise you you'll have a much more fruitious life.

MLGroupie

A lot of universities offer an interest free, short term loan facilities for students who are really desperate waiting for a student loan/salary payment etc. A far better option than a PDL. Students are adults and responsible for reading the small print themselves, but they would do better to research their options before signing up to a high fee, high interest loan.

banks4u

As per my thread a few days ago, Wonga are dodgy and only after any which way to make money. It's an easy buck for them!! I think the FSA should start to highly regulate them otherwise it will end up being a situation like what happened with sub prime mortgages. Missing one payment can't affect your credit rating!! These kids don't realise they will have a problem getting jobs in some professions if they have bad credit.

banks4u

I tell you all what, I don't mind setting up a payday loan service. I will give out loans to people and charge 500% interest. I would be able to pay my mortgage off within 6 months. What a great business idea, do you think my bank will lend me the money to start up?