Repay Wonga with credit card?

kenh11

Evening.

I am in dire need of some advice.

Recently faced up to the fact I have planted myself firmly in the !!!! with the nasty cycle of Wonga that I have trapped myself in. Basically I have to take a loan out every month to replace my depleted wages from paying back the previous months loan.

Something I'm sure the more experienced members of the board have seen several times already.

I'm entirely responsible and now want to sort it out. I am at a crossroads for some extremely serious events in my life and I am fighting for control, my finances being one of the first ports of call.

Before I post up lists of incomings and outgoings, I wanted your opinions on getting a Capital One Classic credit card to pay off the Wonga loan in full as opposed to paying it in installments, and changing bank accounts etc etc.

It's a bit 'rob Peter to pay Paul' but surely paying £1000 off over a whole year a 34% is going to be easier than going through the motions with Wonga?

Or am I looking at this the wrong way?

Salary is good, job is secure.

Apples2

Sadly you can't pay off loans like this with a Credit Card.

Not sure if they do cash advances to transfer the cash into your acount, this too is costly.

If you do pay off Wonga, could you keep up with payments on the card??

UsetheFORCE

If they will give you a limit that covers the loan, i.e £1000 and let you cash advance it at a cost of 3% (£30) plus monthly interest then I certainly would do it!

You must be paying hundreds a month in interest, the biggest issue is whether you'd get it, Wonga loans show up on Experian and Call Credit.

27col

I am glad to see from your post that you have finally realised the real nature of PDL's. Best of luck with sorting it out.

kenh11

I'm wondering what my options are then, as I'd really rather not have to change all my bank account over.

Are wonga generally helpful in these situations?

Would they set up a payment plan or just try to take it all regardless?

It's currently at about £1200

worried48

Try for the credit card. In fact there are several cards for bad credit on the market but just be warned - I recently applied for a Luma card - already have a Capital One card on which I have neve rmissed a payment and they do say that after 6 months you are welcome to apply for a Luma card as well. They declined on the basis that there is something on my credit reference file that they don't like. I did take out a Wonga loan (only for five days) a couple of months ago so it could well be that. But it might not be - in your position I'd give it a try. Don't fall into the trap I did though - do try to actually pay the card off!

Apples2

kenh11 wrote: »

Are wonga generally helpful in these situations?

Would they set up a payment plan or just try to take it all regardless?

It's currently at about £1200

Wonga are generally regarded as the best of a bad bunch.
They may well expect you to default first but if you do contact them and explain, there are many reports of them agreeing a payment plan, freezing interest and honouring their side of the agreement.

Rrambles

UsetheFORCE wrote: »

If they will give you a limit that covers the loan, i.e £1000 and let you cash advance it at a cost of 3% (£30) plus monthly interest then I certainly would do it!

You must be paying hundreds a month in interest, the biggest issue is whether you'd get it, Wonga loans show up on Experian and Call Credit.

Can i ask, is having payday loans on your credit file a bad thing even if you pay the loan on time?

Apples2

Rrambles wrote: »

Can i ask, is having payday loans on your credit file a bad thing even if you pay the loan on time?

Yes it's a bad thing. It tells lenders you cannot make your wages last from one payday to the next.
Hardly a good risk to go lending money to.

You would never in a million years keep up with the repayments. How could you if you can't even last until payday now?

Moneymash

Approach Wonga to sort out a sensible repayment plan, some other posters have been successful and you never know until you try.

kenh11

Thanks for all the replies so far, been unwell so not had chance to reply.

So if I ask wonga to sort a repayment plan, would this go on my credit file as a default?

And what are my options for a credit card? Never had one before so not entirely sure how it works?

Thanks