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anyone share any experiences with them?
It's a depressing thing to have to do but as a service it is convenient despite how morally bankrupt it is.
questions: how was the credit check? how long did it take to get the cash? lastly, if you put the wonga slider thing to £30 for 17 days it says "Borrowing £30 + Interest & fees* £11.45 = Total to repay £41.45". Is there some kind of hidden fee? Is it REALLY £41.45?
as long as you pay it back at the agreed date, etc
cash takes anything from 5 to 20 minutes to come through? something like that.
but i guess that works out marginally cheaper per day than the £1 a day i pay for overdraft fees when in the red.
That's why they're doing so well.
upset about the new Wonga shirt sponsorship. But Alan Pardew told them it's not important, as long as they just get out on the pitch and give 4,175 percent.
My mate took out a wonga loan for some poxy hipster camera. Got 3 little jobs now to keep him going. Coincidence?
basically they're fine as a one-off alternative to borrowing money from friends (i think when this was discussed before, someone used the example of when festival tickets come out a few days before payday). but going to them as a regular basis because you're out of money: not good.
Whenever I've had to use them it's been pretty painless, though.
A girl at work uses it every month and I say 'I think you should make lifestyle sacrifices so you are out of this sticky spot' and she says 'whatevs'. It's too much money to pay for such a short term loan. If you really want something so badly then save up money before otherwise DON'T BUY it.
...borrow money off a mate for a few days? try to get an overdraft at the bank? i know these aren't options for some people, i understand that...but these companies are based on desperation and exploitation - look into all of your options first and don't buy into their bullshit. paying back £41.45 on a loan of £30 for 17 days is INSANE...
Pretty sure Natwest would try to charge me £120 for borrowing £30 for 17 days if it was an unarranged overdraft.
I have used Wonga before to stop this horrible cycle of bank charges leading to more bank charges in the past and I will do it again.
but banks are far far worse for charging over the odds every chance they get, at least you clearly see how much your loan is going to cost you on Wonga.
Borrowing an extra £50 for a week, or borrowing money to get that festival ticket that released just before pay day... then it's a very useful and easy service. The problems happen when you start borrowing more then you can afford.
and for stuff like gig tickets or clothes....non essentials. I can see how it would be helpful for bills etc if you really can't pay them and would end up having a fee elsewhere. But still, i'd rather owe money to a legit company than something like wonga.
In the situations I used Wonga is could AFFORD the ticket in question but didn't get paid for another week, it wasn't as if I was spending money I wasn't good for. Remember you're talking me paying out £20 for borrowing £150, not taking out £1,000 for the hell of it. I see the £20 charge as the price for convenience.
I meant like an electric company or an essential bill you'd have to pay to survive.
Its up to you what you do with your money, i'm just saying i wouldn't wanna risk late fees etc with a company like wonga.
their adverts are annoying
and something like British gas/vodafone. If I don't pay my phone bill on the day I am meant to, they'll give me a week or so with warnings and eventually cut me off.....wheras I'm sure wonga have something like £20 per day for late fees.
they just keep on charging at the rate of interest. If you don't pay back in time they'll send it off to a bailiff. The interest charges will often freeze at that point.
If you know you're going to struggle to repay the loan on the repayment date and you're proactive about it and get it touch they will often freeze the interest for up to 14 days or set up an alternate repayment plan (with interest frozen).
The facility they offer is a good one. You're paying for the convenience and if your responsible about it, it can only be a good thing.
What isn't fine when used 'correctly'?
The distressing thing about payday loans is precisely that they lend themselves specifically to being used incorrectly. The sensible loan/credit market is fairly busy as it is- these companies didn't spring up to satisfy responsible borrowers.
who need tickets to gigs the day the go on sale.
Besides, loan sharks are fine so long as you use them correctly.
So... just like payday loans and doorstep lenders then? Except without the veneer of a shiny corporate facade...
that people are paying for convenience, I didn't 'Need' those Glastonbury tickets but I wanted them & instead of asking friends and family to lend us a spare 120 notes I just used the site and paid a crippling £20 in order to do so. If I went into my unarranged overdraft it would've cost me around £100, so I actually saved money, they can be abused and should probably have way lower caps but they clearly serve a purpose which is beneficial if you use them properly.
People aren't being educated about how to handle their finances as money is so easily accessible to anyone...without a credit check...and without much warning and thats how people get into serious shit and debt.
There are so many shops that you can just walk into, fill out a few forms, give over a bit of ID and they hand you the cash there.
a credit check takes seconds
I'm sure Wonga worked out great for you. Let's have a party.
Which of these two markets do you think is more lucrative for a lender?
a) People who are able to take out isolated loans and pay them back very quickly at little expense.
b) People who are chronically short of funds and unable to access credit from major banks.
and they can be cheap alternatives to some bank practices. As I have said many times in this thread though they do need far more restrictions put in place on them, such as number of payday loans people can have at any one time and the max amount borrowed. I think a limit of £200 is sensible but anything more then that is clearly for people who are using Pay Day loans to finance their life.
They obviously work fine for some people- lots of deeply flawed systems do. But people who borrow responsibly are tiny share of the payday market loan, thus my above question. If you start placing restrictions on what payday lenders can lend, to who, at what cost etc, they'll lose the vast majority of the market that makes them money- people who can't obtain credit when there are even slightly rigorous requisites to be met and are likely to be serial lenders.
However, it is deeply unethical and hugely exploitative how the companies who offer these services manage their affairs. That's my issue anyway, I don't take issue with the "essence" of their product.
the first few times you use them. Though I think they should keep the cap to around that level, £1,000 is too much.
sites or shops in one day.
But that doesn't matter if the lenders internal scoring system doesn't give a shit on how likely you're going to pay them back on time.
The is a very real risk of getting trouble with them & they need to have further restrictions placed on them.
However my point is that they do serve a very useful service and have a purpose. I'd recommend anyone I know who needed a spare 50 quid or so to tie them over for a week until pay day to use Wonga if they don't want to ask friends.
A pay day loan place will as their main aim is not to help you out but to make money off the interest. So it benefits them if you can't and don't pay it back.
There is a risk of people getting in trouble but there is little to no information on that unless you seriously investigate it...which I can imagine people don't because they want money now. They make it look very easy and cheap on their adverts.
Once you're chasing debt, it's as good as turned into 'bad debt'. Their model is based on people repaying them with interest and it's based on a high volume of customers doing that. Their target customer-base are more likely to pay late/ not pay. Their (relatively) high interest rates are based on the customers who repay them making up for the ones who don't as it's high-risk lending.
There are individuals who get trapped in a spiral of mounting interest, but these people are how they make most of their money.
I would really rather these companies didn't exist, but I'm more angry about an environment that creates the need than I am about them.
On the surface, they provide a service which there is clearly a demand for.
However, their motive for existence isn't to help people out - it's to exploit people who have financial problems and problematic attitudes to borrowing and credit. They exist to keep people in debt because that's how they make their profit. As such, they're abhorrent organisations who create more harm than the good they purport to offer their customers.
If anyone wants a graphic illustration of this - go on iPlayer and watch the Panorama documentary on the subject that was on recently. Sure, they mainly featured doorstep lending (and the Wonga etc. companies were more highlighted for their lack of regulation following) but it made for gruesome, if entirely expected, viewing all the same...
Hangover fingers are resulting in a standard of typing even meths would baulk at.
To a board where the average salary of its members is seemingly 40 grand
Like they give you it straight away but pay every month and its something ridic like if you buy this sofa outright it'll be £900 but if you rent/buy it through us it'll be £1900. Bright house I think it is.
if you need a sofa to take to a festival or whatever.
flushing your credit rating down the pan?
Several major banks will not lend to you for 3-6 months following a payday loan, regardless of how promptly you paid it back.
It's not rocket surgery. Jeez.
Then it would be reflected in your pay cheque. That's just common sense.
1. Companies like this make almost no money the first time you use them. their only way of making money is on "rollovers".
2. Key problem is that so few people have savings of any kind. not even enough to cover you if the washing machine breaks down. No wonder people end up going to Wonga.
3. Provision of Credit Union services in many areas is really inadequate. Usually they're open a couple of hours a week and run by volunteers. They're a really great option to provide savings and low interest credit but they're woefully under-resourced.
4. Shit's going to get even grimmer when all the benefit changes kick in next year :/
Just a punt, but I'd wager the likes of Wonga make the lion share of their profit from a disproportionately small number of their customers. You can afford to operate a cost price/loss leader for most of your business if the rest of it runs a huge mark-up.
I think yesiamaduck was hoping to get tickets for Glastonbury next year, not in 3/4 years time...
some of the examples here are fine, £30 a few days before payday when there is no other way of getting the cash (I'd try and borrow from a friend or sell some stuff but there we go). They would probably go bust if everyone did that though. They make wodges of cash out of people who can't pay back their tiny loan, and it spirals into a ridiculous sum of money. All Wonga have to do is send reminders and sit back and rake in the cash, their overheads are tiny.
and any 'kneecapping' that comes with non-payment.
I only use them if I am going to miss a direct debit or something which would result in a much worse charge or, in particularly dire circumstances, if I don't have money to actually stay alive with until payday.
I don't think anyone should be judging other people for using them. It's just that, at the very least, they shouldn't be allowed to exploit people the way they do. There is no convincing defence of them to be made, imo.
It's fucking depressing having to turn to them knowing full well how exploitative and manipulative it all is but like people are saying, if it's a choice between using them or paying bank fees/not eating. I'm gonna use them.
but now I don't want to
If you need to borrow £30 again PM me and I'll send it over. No interest, no payback date. Don't use these companies, bro.
who would be applying for *another* loan and were generally fucked from using these sorts of services
like actual poor people not london hipsters buying ATP tickets
Where are you getting this information from, it says on Wonga's website that it can actually help your rating if you keep up payments. Who's right? Bearing in mind I don't plan to apply for a platinum AMEX card like all you rich fuckers.
then it *may* be improved by taking out payday loans and paying them back on time.
However I'd imagine for most people payday loans would have a negative effect.
Halifax charge me £1 a day I go into my overdraft of £10 or more, Convert that into an annual interest rate and I reckon it's up there with wonga.
is that the woman on the Pounds To Pocket advert "I wish I'd gone to Pounds To Pocket first as their application process was fast AND SIMPLE." can absolutely fucking go away.
here and made an article about it at work.
Here's how borrowing £11 from Wonga.com compares to going overdrawn by the same amount at your bank.
Not defending Wonga.com, but two days £11 inside your overdraft with HSBC will cost you almost four times what a Wonga loan would.
generally a few days before payday and they're proper skint and need the money. Never anymore than 20 or 30 quid. Seems to work fine as long as you know you're gonna be getting paid and don't take out too much.