Wonga Advice

Itazura

Hey guys,

I'm one of many people who was stupid enough to go down the Wonga route and would like some advice of how to proceed as I don't ever see myself being strong enough to stop using these...

I have a Wonga loan that needs repaying on March 1st to the tune of £1097. I earn £1268 per month after tax, etc... (I am on a salary) athough my salary will increase by £1500 per year from the end of this month, so this will go up somewhat but not sure how much yet.

I keep needing to borrow money each month to get through but despite the best of intentions I just can't seem to cut back on things I don't need. I've been in this loop for eight months and actually managed to pay it off after Christmas but have fallen straight back in the trap again.

I feel as though I have two options:

a) Take a loan out for the amount I need to pay my bills (£720, so will need around £450) and then sell some stuff for money for anything that comes up throughout the month -- I've already sent a load of CD's to MusicMagpie for £108 and plan to take some games to CEX next month. It'd mean a tight April after paying it back but I would then be free... I hope.

or

b) I arrange a repayment plan and hope this stops me from getting another loan elsewhere as I really don't know if I will have the willpower to not fall in this trap again. I don't have any other debts but have already failed to get a loan from the bank to consolodate the loan in to one I can afford so know that months of Wonga has ruined my credit file for the time being. Does anyone have any experience with these as I have read a lot of horror stories from 2010-2012 but nothing of them sticking to them.

I just want to hear any advice and any stories of how people resist the temptation to keep using companies like Wonga. I know it's entirely my own fault but I also know that whilst I don't earn loads my bills (including council tax, which March won't include) come to £850 and that earning £400 more than that should never even have to consider using a company like Wonga. My girlfriend and parents have no idea I am in this situation and think I am good with money and not borrowing month to month to fund a lifestyle I clearly can't afford and the stress/worry is starting to get to me, but I also worry I can't help myself and resist temptation.

Any comments at all would be appreciated, even if it's to tell me I am an idiot!

DCFC79

Arrange a payment plan with wonga or speak to 1 of the free debt charities,maybe move your money to a new account so wonga dont swipe it all (not saying they will but its better to be safe than sorry).

yoshiyella

I don't have any advice regarding the wonga loan but I can personally recommend speaking to either your GF or parents. I discussed my finances with my GF (now fiancee) and she helped me see in the cold light and sort out a payment plan (mine were far worse than what you have stated) and even offered that we had a "quiet" year - so staying in more often, not spending on christmas presents etc for each other and so on. I'm now in a position where I am still paying off my debts but have also started to save money as well and enjoy the odd luxury!

yoshiyella

Also could you see your bank about a possible overdraft which over a year you can reduce it each month until there is no overdraft?

tell_it_how_it_is

I agree with the above. If you can't trust yourself not to keep falling into the trap, have a word with your girlfriend or a family member, basically whoever you think might be best placed to help you sort yourself out and break the habit.

sacha28

I have been exactly where you are now with wonga and it sucks! The biggest problem that I can see is not the loans, it's your attitude.
Sorry if that seems a bit harsh but it comes across as if it's more a control issue than a necessity.
My spiral came whilst I was on maternity leave and my wages drastically reduced. I would borrow, pay it straight off but then by the middle of the next month I needed to borrow more as I didn't have the money for formula or nappies (or whatever). We were buying things that were a necessity, that's the difference I think.
Setting up a payment plan is the easy(ish) part, changing your attitude towards unnecessary and damaging spending is where the hard work comes in.

Whilst at the CAB, sorting out the mess I had gotten myself into, the advisor did tell me that it is possible to 'exclude' yourself from getting credit. Apparently it's a bit like people with gambling addictions getting themselves barred from betting shop,s and if you apply for, and obtain, credit but fail to pay it back they can't come chasing as it's seen as irresponsible lending. Is this something you could think about doing, see as you really don't trust yourself?

imoneyop

Itazura wrote: »

I just want to hear any advice and any stories of how people resist the temptation to keep using companies like Wonga.

Your problem is that you are obviously spending more than you are earning - you're probably not going to get the answers you want in this board as getting another loan is the last thing you want (although regulars of the DFW board do pop in occasionally).

You would be better off asking for this thread to be moved to the Debt Free Wanabee board (or start a new one in there), where there are going to be people in (or have been in) the same situation as you with the desire to do something about it.

Post a Statement of Affairs and you'll get good advice on where you can cut back.

paddyrg

Just be aware Wonga do not have to accept your offer to enter a payment plan, and some PDL's will decline to do so before taking the court/CCJ route.

rizla_king

Be aware that Wonga are a member of the FLA and have committed to the OFT to follow their guidelines.

Tell them that you know this and will report them to the OFT/FCA and FLA if they do not abide by it.

Help for customers in financial difficulty

If you are in financial difficulty, we will:

> Deal with you sympathetically and positively and do what we can to help you manage what you owe. This
may include making new arrangements about how you will pay off your debt. In doing so, we will consider
other debts that you owe.

> Freeze interest and charges if you make repayments under a reasonable repayment plan or after a
maximum of 60 days of non-payment.

> Not contact you or take any action to recover the money you owe us for 30 days, if you are making a
genuine effort to agree a repayment plan using either a debt-counselling organisation or as 'self-help'
approach (for example, you are suggesting a repayment plan). If you or your adviser provide us with clear
evidence that real progress is being made in reaching a repayment plan, but work has not yet concluded
we will extend this 'breathing space' for an additional 30 days.

> Tell you about free and independent debt-counselling organisations. These include: Citizens Advice, the
Consumer Credit Counselling Service, National Debtline or the Money Advice Service.

> Not allow you to borrow further from us until all outstanding loans with us have been repaid.

> Deal with people whom you have asked to act on your behalf, with your authority, unless those people
behave unreasonably.

Further information on how we can help you if you are in financial difficulty is available in our industry Code

Mozette

Stop thinking of it as a trap; it's a choice that YOU make. Either stop spending on stuff you don't need and get it paid off, or keep borrowing. Take responsibility for your own actions and stop blaming anyone except yourself. Then choose what YOU want to do; you say you 'can't cut back on the things you don't need'; well if you can't, who do you think is going to do it for you?

bsms1147

Itazura wrote: »

...borrowing month to month to fund a lifestyle I clearly can't afford

As someone has pointed out, your attitude to money is one of the things you need to address. It is important not to live outside of your means, and the slope will get slipperier the longer this continues.

Head to the Debt Free Wannabe board and post a SOA.