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  • FIRST POST
    EllaBeagle
    Wonga / Payday Loans BEWARE!
    • #1
    • 21st Sep 12, 10:11 AM
    Wonga / Payday Loans BEWARE! 21st Sep 12 at 10:11 AM
    Just wanted to warn people considering getting a pay day loan and give my experience.

    Before I start this I take full responsibility for the fact that I've got myself in this mess, however its very easily done! And I think wonga and the like should take some responsibility too.

    I got a wonga loan a few months ago of 100.00 for a household bill. When the time came to pay wonga back, it clashed with an insurance charge. This resulted in me paying the wonga loan and then getting another one to cover the approx 120.00 I had lost paying it back and to pay for the insurance.

    When I was due to pay this back again, obviously for a larger amount, it came at a bad time (I think every week is a bad time for me bill wise!) and I had to get another wonga loan to cover what I had lost to repay it.

    It has now got to the point where this week I owed 400.00 to wonga. When I checked the bank this morning, wonga couldn't go out because a direct debit went out before it (one which bounced back a few days ago as there was insufficient funds and they must have tried again). Again my fault as my head is a bit of a mess at the minute. This meant there isn't enough money in to pay wonga back fully so they have just taken whats there. Me and my partner now have 0.00 in our banks, wonga is still owed money so I can't get another one until its paid and I haven't been able to pay one bill this week, not even rent!

    I now have to draw money out off our credit card to pay it into the bank so I can pay wonga back, get another wonga loan to pay our bills for this week and when we have to repay wonga back I will then need to take out another loan to cover what we've lost and so on.

    Its a viscious circle and it was so easy to get into! I thought I was finally managing my bills until I got involved with them!

    So just wanted to let you know my situation so you would think twice about using them. If I ever get to the point where I can pay it off and still have money for bills and food etc I would never use them again!
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Page 1
  • Mindless Clone
    • #2
    • 21st Sep 12, 11:01 AM
    • #2
    • 21st Sep 12, 11:01 AM
    Unfortunately OP, that's the problem with these payday loans. Unless you can work it so you pay back in full as early as possible, the costs will mount.

    I do find it amazing how so many people turn to them. What did we do before them? We begged, borrowed, cut back or sold something to make ends meet. If you're going to ask anyone for an advance, ask someone who isn't going to charge you 4000% interest. I wouldn't mind betting even your credit card charge less for cash advance and interest and you'd have a month to pay that back. And companies can be quite accomodating if you phone them and let them know you're struggling to pay the bill so you might be able to work something out to spread the impact out a bit.

    If ythere's nowhere you can cut back or nothing you can sell, my advice now would be to try and organise an overdraft or loan / credit card advance through your own bank and pay Wonga off in full ASAP. Because it's going to skyrocket if you leave it even another week and almost anyone else lending you the money will be much cheaper in the long run.

    And next time you can't pay a bill, speak to the billing company first and explain you're struggling!
    • maninthestreet
    • By maninthestreet 21st Sep 12, 11:20 AM
    • 15,358 Posts
    • 13,924 Thanks
    maninthestreet
    • #3
    • 21st Sep 12, 11:20 AM
    • #3
    • 21st Sep 12, 11:20 AM
    Why are you blaming Wonga?
    Post an SOA (Statement of Affairs) on the DFW board to see if someone can offer advice ?
    "You were only supposed to blow the bl**dy doors off!!"
  • EllaBeagle
    • #4
    • 21st Sep 12, 11:34 AM
    • #4
    • 21st Sep 12, 11:34 AM
    Why are you blaming Wonga?
    Post an SOA (Statement of Affairs) on the DFW board to see if someone can offer advice ?
    Originally posted by maninthestreet
    I'm not asking for advice. I'm sharing my experience to warn others.

    Thanks anyway.
    Comping wins: Gig tickets, Lovemydog tag, Country Livings Christmas fair tickets

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  • EllaBeagle
    • #5
    • 21st Sep 12, 11:38 AM
    • #5
    • 21st Sep 12, 11:38 AM
    Unfortunately OP, that's the problem with these payday loans. Unless you can work it so you pay back in full as early as possible, the costs will mount.

    I do find it amazing how so many people turn to them. What did we do before them? We begged, borrowed, cut back or sold something to make ends meet. If you're going to ask anyone for an advance, ask someone who isn't going to charge you 4000% interest. I wouldn't mind betting even your credit card charge less for cash advance and interest and you'd have a month to pay that back. And companies can be quite accomodating if you phone them and let them know you're struggling to pay the bill so you might be able to work something out to spread the impact out a bit.

    If ythere's nowhere you can cut back or nothing you can sell, my advice now would be to try and organise an overdraft or loan / credit card advance through your own bank and pay Wonga off in full ASAP. Because it's going to skyrocket if you leave it even another week and almost anyone else lending you the money will be much cheaper in the long run.

    And next time you can't pay a bill, speak to the billing company first and explain you're struggling!
    Originally posted by Mindless Clone
    Thanks mindlessclone luckily I've found a good job which starts in a weeks time so hopefully as we'll have two wages coming in again I'll be able to get on top of this.

    I can say I've learnt a very valuable lesson and won't be turning to them again. I've always been able to manage money quite well and keep credit cards, catalogues, credit etc to a minimum but with this it just seemed to escalate.

    I watched This morning on wednesday about the woman who turned to prostitution due to payday loans. I actually had to disagree with her! No matter how bad things may have got with wonga I would never have thought that was my only way out
    Last edited by EllaBeagle; 21-09-2012 at 11:40 AM.
    Comping wins: Gig tickets, Lovemydog tag, Country Livings Christmas fair tickets

    Freebies: Redken hair product, Cow teddy, Pebble grey illuminated compact mirror.
    • timberflake
    • By timberflake 21st Sep 12, 11:41 AM
    • 1,600 Posts
    • 506 Thanks
    timberflake
    • #6
    • 21st Sep 12, 11:41 AM
    • #6
    • 21st Sep 12, 11:41 AM
    The thread title is a little misleading to be honest. The problem here isn't Wonga as such, it's with your ability to keep track of what's going out of your bank and when, and make provisions to ensure the money is there.

    You need to start taking control of your finances. Set up a spreadsheet listing your monthly income each month at the top and all of your outgoings below it. Auto-sum it at the bottom and see what the figure is, if it's more than 0 then it sounds like all you have to do is get better at managing when things go out, if it's less than 0 i.e. you don't have enough coming in to cover the outgoings, you have a problem and need to start cutting all non essential spending.
  • EllaBeagle
    • #7
    • 21st Sep 12, 11:52 AM
    • #7
    • 21st Sep 12, 11:52 AM
    The thread title is a little misleading to be honest. The problem here isn't Wonga as such, it's with your ability to keep track of what's going out of your bank and when, and make provisions to ensure the money is there.

    You need to start taking control of your finances. Set up a spreadsheet listing your monthly income each month at the top and all of your outgoings below it. Auto-sum it at the bottom and see what the figure is, if it's more than 0 then it sounds like all you have to do is get better at managing when things go out, if it's less than 0 i.e. you don't have enough coming in to cover the outgoings, you have a problem and need to start cutting all non essential spending.
    Originally posted by timberflake
    The problem started when my job ended. So whereas before we had two wages coming in to cover everything, going down to one wage was extremely difficult.

    I've always kept a spreadsheet of all incomings, outgoings. All I can say in this instance is that I thought everything would be ok as I started off with a manageable amount but sometimes things change and you have to try to work around it i.e the surprise insurance charge but thats another story. In some cases it can escalate beyond your control, when you think you can cope, you actually can't.

    I'm sure many people have been in the same boat. As I said in my first post, I'm not asking for any advice whatsoever. I just want people to really think about whether they should turn to these lenders or not.
    Comping wins: Gig tickets, Lovemydog tag, Country Livings Christmas fair tickets

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    • antrobus
    • By antrobus 21st Sep 12, 11:54 AM
    • 16,827 Posts
    • 23,816 Thanks
    antrobus
    • #8
    • 21st Sep 12, 11:54 AM
    • #8
    • 21st Sep 12, 11:54 AM
    .. I thought I was finally managing my bills until I got involved with them!...
    Originally posted by EllaBeagle
    Obviously not, since it appears that you regularly don't have sufficient funds to pay your bills. Taking out the payday loan was only a temporary solution to a more permanent problem. You need to address that problem. As suggested above the DFW board might well be the place to start.
    • gregg1
    • By gregg1 21st Sep 12, 11:56 AM
    • 3,007 Posts
    • 4,131 Thanks
    gregg1
    • #9
    • 21st Sep 12, 11:56 AM
    • #9
    • 21st Sep 12, 11:56 AM
    I'm not asking for advice. I'm sharing my experience to warn others.

    Thanks anyway.
    Originally posted by EllaBeagle
    I sympathise with your predicament but do have to reiterate what other posters have said. Wonga are there to make money and unfortunately you are their perfect customer. I do hope you can sort things out.I know you are not looking for advice but Citizens advice can help you sort out your debts, they are very good at that sort of thing. I suggest you give them a call and they will help you get out of the vicious circle you have found yourself in. It's not really Wonga's fault (although I do think they make it too easy for people to borrow money, ultimately we all have to take full responsibility for our finances). Good luck, i understand how easy it can be for things to get out of hand
    • timberflake
    • By timberflake 21st Sep 12, 11:58 AM
    • 1,600 Posts
    • 506 Thanks
    timberflake
    The problem started when my job ended. So whereas before we had two wages coming in to cover everything, going down to one wage was extremely difficult.

    I've always kept a spreadsheet of all incomings, outgoings. All I can say in this instance is that I thought everything would be ok as I started off with a manageable amount but sometimes things change and you have to try to work around it i.e the surprise insurance charge but thats another story. In some cases it can escalate beyond your control, when you think you can cope, you actually can't.

    I'm sure many people have been in the same boat. As I said in my first post, I'm not asking for any advice whatsoever. I just want people to really think about whether they should turn to these lenders or not.
    Originally posted by EllaBeagle
    I know where you're coming from. I got myself in a lot of trouble a few years ago, but thankfully managed to salvage the situation!

    IMO there is never a good reason to turn to these shiesters, they're out for one reason and one reason only and that's to fleece you for all they can.

    Get yourself sorted out and see this little experience as a life lesson. At least you'll know never to turn to them again!
  • EllaBeagle
    Obviously not, since it appears that you regularly don't have sufficient funds to pay your bills. Taking out the payday loan was only a temporary solution to a more permanent problem. You need to address that problem. As suggested above the DFW board might well be the place to start.
    Originally posted by antrobus
    And the problem will be addressed. Thanks everyone for offering me advice but this thread really wasn't meant to discuss my financial problems. As I keep saying all I want to do is share my experience so others can think twice.

    You think it won't happen to you, you think everything will be fine, you think you will be able to manage but it all falls apart!
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  • Mindless Clone
    I watched This morning on wednesday about the woman who turned to prostitution due to payday loans. I actually had to disagree with her! No matter how bad things may have got with wonga I would never have thought that was my only way out
    Originally posted by EllaBeagle
    Very respectable profession that. One of the oldest in the world.


    Obviously not, since it appears that you regularly don't have sufficient funds to pay your bills. Taking out the payday loan was only a temporary solution to a more permanent problem. You need to address that problem. As suggested above the DFW board might well be the place to start.
    Originally posted by antrobus

    I am guessing you posted that without reading this posted before it:

    The problem started when my job ended.
    Originally posted by EllaBeagle
    Understandable and these things happen. FWIW it's all very well for us to sit here and say "oh you should never use them rip off merchants" but some people really don't realise what they're getting into. These companies have very clever marketing strategies making it look easy to borrow small sums and pay back and look transparent what you are paying. Paying say, 120 back on a 100 short term loan looks pretty reasonable to a lot of people who have no real money experience. These companies target the younger generation so perhaps have got into situations through short term poor money management; people who probably wouldn't think twice to spending 20 on a round of drinks on a night out so it seems like a good deal.... until next week when they can't pay it back and the interest rates really start to kick in.

    So yep, the more threads and articles out there that say "beware of payday loans" that will get indexed in search engines, the better.
  • EllaBeagle
    Very respectable profession that. One of the oldest in the world.





    I am guessing you posted that without reading this posted before it:



    Understandable and these things happen. FWIW it's all very well for us to sit here and say "oh you should never use them rip off merchants" but some people really don't realise what they're getting into. These companies have very clever marketing strategies making it look easy to borrow small sums and pay back and look transparent what you are paying. Paying say, 120 back on a 100 short term loan looks pretty reasonable to a lot of people who have no real money experience. These companies target the younger generation so perhaps have got into situations through short term poor money management; people who probably wouldn't think twice to spending 20 on a round of drinks on a night out so it seems like a good deal.... until next week when they can't pay it back and the interest rates really start to kick in.

    So yep, the more threads and articles out there that say "beware of payday loans" that will get indexed in search engines, the better.
    Originally posted by Mindless Clone
    Exactly. People always think it will never happen to them.

    Take for instance my first loan of 100.00. I paid 120.00 which hit me hard unexpectedly. I then got another loan for 150.00.

    Paid back 180.00 on the 150.00 meaning I was 180.00 down. Again hit us hard. Got another loan for 200.00.

    And it goes on. I'm now up to 480.00 as had to get another one today to help with bills.

    I can only hope that within the next month it will be sorted and I'll never have to use them again. It doesn't matter how much you carefully plan your finances. **** happens!
    Comping wins: Gig tickets, Lovemydog tag, Country Livings Christmas fair tickets

    Freebies: Redken hair product, Cow teddy, Pebble grey illuminated compact mirror.
  • EllaBeagle
    Very respectable profession that. One of the oldest in the world.





    Originally posted by Mindless Clone

    That will be my thread for next week.
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  • Mindless Clone


    Do yourself a favour and speak to your bank or credit card company ASAP - first thing Monday if not possible to do it sooner. Arrange a small loan and take the money straight to Wonga and pay it off. If you explain to them why you need it and what's happened (job wise) and have a realistic repayment term with them, it's still far better than anything Wonga offer. Get yourself OUT of debt with them ASAP, even if it means owing someone else in the slightly longer term.

    If your credit rating is otherwise good, a 1000 loan over, say 12 months should not be difficult for you to get and probably cost you less than 100 a month and total interest will probably be less than what you've already committed to Wonga. You can usually pay loans up early too.
  • EllaBeagle


    Do yourself a favour and speak to your bank or credit card company ASAP - first thing Monday if not possible to do it sooner. Arrange a small loan and take the money straight to Wonga and pay it off. If you explain to them why you need it and what's happened (job wise) and have a realistic repayment term with them, it's still far better than anything Wonga offer. Get yourself OUT of debt with them ASAP, even if it means owing someone else in the slightly longer term.

    If your credit rating is otherwise good, a 1000 loan over, say 12 months should not be difficult for you to get and probably cost you less than 100 a month and total interest will probably be less than what you've already committed to Wonga. You can usually pay loans up early too.
    Originally posted by Mindless Clone
    I have a very poor credit score and only have an electron card haven't got a current account . My partners credit score is also rubbish however he's just been accepted for a vanquis credit card with a limit of 250.00. What we've had to do is pay our bills for this week with wonga (AGAIN! ) And we're going to live very carefully until next week on the credit card for food and petrol.

    Is there anyone other than the bank we could ask? Other than that I was just going to wait until I start getting a wage in and try to wean ourselves off them.
    Comping wins: Gig tickets, Lovemydog tag, Country Livings Christmas fair tickets

    Freebies: Redken hair product, Cow teddy, Pebble grey illuminated compact mirror.
    • VitaK
    • By VitaK 21st Sep 12, 8:43 PM
    • 623 Posts
    • 850 Thanks
    VitaK
    The problem is that people take out these loans, knowing full well that they cant meet the repayments.
    • piglet25
    • By piglet25 21st Sep 12, 9:52 PM
    • 891 Posts
    • 1,050 Thanks
    piglet25
    Out of interest, if the 400 you owed Wonga wasn't paid for a whole year what would the total owed amount to? Not good at working out the rates and just wondered how expensive a short term loan would be over the longer term
  • Mindless Clone
    Out of interest, if the 400 you owed Wonga wasn't paid for a whole year what would the total owed amount to? Not good at working out the rates and just wondered how expensive a short term loan would be over the longer term
    Originally posted by piglet25
    By this calculation:

    http://blog.moneysavingexpert.com/2011/09/21/fact-borrowing-100-at-wongas-apr-costs-more-than-the-us-national-debt-over-14-trillion-after-7-years/


    at least 16,800.
    • Pollycat
    • By Pollycat 22nd Sep 12, 7:33 AM
    • 23,352 Posts
    • 63,027 Thanks
    Pollycat
    Take for instance my first loan of 100.00. I paid 120.00 which hit me hard unexpectedly. I then got another loan for 150.00.

    Paid back 180.00 on the 150.00 meaning I was 180.00 down. Again hit us hard. Got another loan for 200.00.

    And it goes on. I'm now up to 480.00 as had to get another one today to help with bills.

    I can only hope that within the next month it will be sorted and I'll never have to use them again. It doesn't matter how much you carefully plan your finances. **** happens!
    Originally posted by EllaBeagle
    You say you didn't want advice (just posting a warning about payday loans) but I really do think you need advice.

    Don't just 'hope' that it will be sorted in the next month - do as maninthestreet suggested in the second reply you got and post a SOA on the DFW board.
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