Wonga.com?

[Kobold-Bard]

Due to various factors (no hours available in work for nearly three months, power & Internet companies annoyingly syncronising their payments to just before I need it) I'm going to be broke between next week and the end of the month, which is when my student loan gets paid.

Because they'll be suggested, over the summer (no student loan and irritatingly no hours in work) I've already tapped out any savings I had, my emergency credit card, my family have already helped this month and my friends are all skint so can't help.

Has anyone ever used Wonga or one of those payday loan sites? Did you have a good experience, or is there some secret catch I'm missing? My S-loan will be more than enough to pay it back, so I'm not at risk of defaulting.

Thanks in advance,
K-B

[KuReshtin]

The secret catch with these types of short-term loan sites is the APR being about 2600%.
I believe that in their ads on tv, they mention that on a loan of £120 for 9 days, you'll pay £16.20 in interest.

Now, that's a hell of an interest rate, and something previously thought to be reserved for mobster loan sharks, and not something that would be a legitimate business.

These are of course just my thoughts on the issue.

[Kobold-Bard]

The secret catch with these types of short-term loan sites is the APR being about 2600%.
I believe that in their ads on tv, they mention that on a loan of £120 for 9 days, you'll pay £16.20 in interest.

Now, that's a hell of an interest rate, and something previously thought to be reserved for mobster loan sharks, and not something that would be a legitimate business.

These are of course just my thoughts on the issue.

I know it's obscene, but if I don't I become homeless. As I said I can pay it back, I'm just hoping there isn't some horrible tiny print I'm missing.

[Dr. Bath]

Due to various factors (no hours available in work for nearly three months, power & Internet companies annoyingly syncronising their payments to just before I need it) I'm going to be broke between next week and the end of the month, which is when my student loan gets paid.

Because they'll be suggested, over the summer (no student loan and irritatingly no hours in work) I've already tapped out any savings I had, my emergency credit card, my family have already helped this month and my friends are all skint so can't help.

Has anyone ever used Wonga or one of those payday loan sites? Did you have a good experience, or is there some secret catch I'm missing? My S-loan will be more than enough to pay it back, so I'm not at risk of defaulting.

Thanks in advance,
K-B

I would suggest talking to your bank about extending your overdraft slightly to be honest. a) they may well do it if you ask nicely and b) no shady loan sharks involved at all!

I'd be incredibly wary of any company that charge interest that high.

[Zeb The Troll]

Can I ask how much it is you need? Have you asked your bank for help? Have you explained your situation to your creditors, noting that you'll be able to take care of your business within a week or two of the due date?

I just went to the Wonga site (I'd never heard of it) and right there on the front page it says you'll pay 2689% APR.

[Kobold-Bard]

I have 2 accounts: Im sitting at the bottom of one overdraft (who won't extend it unless I've been in credit for at least 2 months previous to my request) and the other won't attach an overdraft without an income of at least £700/month, which I don't have.

The bills have already gone out last week, which is why I'm considering the loan.

I know it's a lot but needs must sometimes, and I genuinely can't see another way of surviving until loan day, and I'd never consider one of these if I didn't have a guaranteed way to pay them back on time (costs £24.50 + £10/day you're late). From the looks of it no-one has used them here (which is lucky I suppose) so thanks for the suggestions, but i suppose this can get locked, I'll try somewhere else :smallsmile:

K-B

[IonDragon]

My cousin once got stuck in one of those "payday advance" scheems. After a few months she was living on her 'next month's' paycheck. She had to keep going in or she wouldn't be able to pay her bills on time. While that may be an extreme case, be sure to watch out and make sure it doesn't happen to you.

[Kobold-Bard]

My cousin once got stuck in one of those "payday advance" scheems. After a few months she was living on her 'next month's' paycheck. She had to keep going in or she wouldn't be able to pay her bills on time. While that may be an extreme case, be sure to watch out and make sure it doesn't happen to you.

Yeah I've been warned about that. Fortunately the fact that I have the student loan coming in means I don't have to worry about that, because I have my month's wages plus the extra to pay it off.

Though that is a fairly unfortunate situation to get stuck in; the spiral of DOOOM!!!!, as it was so gently described on another site.

[Sholos]

My advice would be to look for any other possible solution. Sell your stuff that you don't need, if necessary. Taking loans out from these types is one of the worst (if not the worst) financial decisions you can make.

Also, don't ever count on having money that you don't have. Anything can happen in even just the span of a few days, so there is no such thing as guaranteed cash in the future (obviously this doesn't count for things like paychecks owed to you and the like). Still, spending money you don't have is generally (read: almost certainly always) a bad idea.

[Ashtar]

Man that rate is nuts. In Switzerland, I can get a 80'000 CHF (79'000$) unsecured loan at 5.9% yearly interest rate with no fees, no prepayment penalties or anything. Is the US loan situation that bad ?

I'd say, try to find a friend or someone else who can loan you money. How much do you need in fact? Or explain it to the person you're paying your rent to, show them the papers of your student loan coming in or something.

[Kobold-Bard]

The APR is misleading because you can't take it over a year, just a month, so they have to charge obscene APR to make it (very) profitable on short term loans.

As it turns out Wonga.com don't consider me safe enough to loan to (epic fail, they give these to people with £20k debts and who are robbing the benefits system).

Also as it turns out, when my significant other heard this information and called her ex and asked him to loan me the money. While good because it's interest free, it now means I have to thank the smarmy <the rest of this sentance is not board appropriate>

Thanks all, here's hoping I'm never in this situation again (yay work picking up).

[deuxhero]

Under the new credit scoring model a single late pay isn't going to do anything to your credit (it will give a minor hit to thouse still using the old FICO system). Taking out one of these "Pay day loans" is however, a very, very bad idea (there is a reason they are illegal in about a quarter of the US).


Eat nothing but ramen for a month, mooch of friends/family, just do not deal with them.

[Admiral Squish]

Sell things, throw yourself on the mercy of anyone who can help, ask for help from the bank, as the landlord if you can have a few extra weeks, Eat PB&J or ramen for a month. Swallow your pride and do whatever you have to, because there is NO justification for the payday loans.

You won't wake up on the street if you don't pay rent on time. They have systems in place. They'll give you a warning or two first. They don't WANT to kick you out. If they kick you out, that's one more apartment they have to sell, and they have to repaint all the walls, replace the carpeting... It's a lot of work.

[Kobold-Bard]

You don't get it, beyond the bizarre girlfriend's ex giving me money because he still fancies her (and thoroughly despises me) I have already tapped everything out. Family, friends funds, selling stuff, living off crisps from poundland, and anything else you can think of.

As for the rent, I haven't moved in yet so and it's in a very popular area for students so they could replace me in a heartbeat.

Thanks for the concern all the same :smallsmile:

[Admiral Squish]

You don't get it, beyond the bizarre girlfriend's ex giving me money because he still fancies her (and thoroughly despises me) I have already tapped everything out. Family, friends funds, selling stuff, living off crisps from poundland, and anything else you can think of.

As for the rent, I haven't moved in yet so and it's in a very popular area for students so they could replace me in a heartbeat.

Thanks for the concern all the same :smallsmile:

Then you MILK HIS CREEPY A$$ FOR ALL IT'S WORTH. This is not a situation where you have options. You have to do everything you can to avoid these places, no matter how distasteful you may find it. You will find yourself amazed at just what you are capable of surviving through when there are no alternatives.

As for the replacing, the thing is, it may be a popular place for students, but a bird in the hand is worth two in the bush, especially 'cause there's probably plenty of nearby places the students could take their business too.

[Douglas]

Eat nothing but ramen for a month
That's not such a good idea. I had a roommate whose friend got scurvy from doing that once. Aside from any health concerns, adding hospital bills to the picture would more than offset any savings on food.

[IonDragon]

That's not such a good idea. I had a roommate whose friend got scurvy from doing that once. Aside from any health concerns, adding hospital bills to the picture would more than offset any savings on food.
You don't get scurvy in a month. Besides, all it takes to ward off scurvy is an occasional orange. Something like twice a month at most, probably less.

Your friend probably already had bad nutrition.

EDIT: I stand corrected. Actually eating absolutely nothing but ramen for 4 weeks can cause scurvy. However it only takes an average of 10mg of vitamin C per day to ward it off or recover from it.