The Student Room Group

Wonga

Should we be worried that more and more students are using sites like wonga? I've used them before in the week before my loan came in and didn't have any trouble...

http://www.bbc.co.uk/news/education-33328374
Yes, we should be worried. It is hugely concerning that 1. Students cannot get the funding required to live and feel the need to turn to these lenders and 2. Students have little issue with actually turning to these lenders. Yes, they are quick and easy, but the cons completely outweigh the pros. I spent most of last semester studying payday loans and the statistics are just shocking. Yes, payday loans are now more regulated, but they are in no way a smart option for anyone.

Also, you may not have had any trouble in terms of your debt spiralling out of control, but your Wonga loan will stay on your credit history for 7 years and you may find it difficult to get a mortgage in that period.
we should be worried, students can get up to 2k overdrafts in some cases and some still need to turn to payday loans shows how much debts some people get into.
Original post by claireestelle
we should be worried, students can get up to 2k overdrafts in some cases and some still need to turn to payday loans shows how much debts some people get into.


I'm in a huge amount of debt its sort of terrifying.
Original post by TomatoLounge
I'm in a huge amount of debt its sort of terrifying.


I thought you said you didn't have any troubles with Wonga? You might have been able to pay back the Wonga loan, but the fact you're already in debt and needed to take a Wonga loan suggests you're already in trouble (unless it's only a student loan and you're still a student, that's less concerning).
Original post by GoingToBurst
I thought you said you didn't have any troubles with Wonga? You might have been able to pay back the Wonga loan, but the fact you're already in debt and needed to take a Wonga loan suggests you're already in trouble (unless it's only a student loan and you're still a student, that's less concerning).


Its the overdraft that I'm worried about!
Original post by TomatoLounge
Its the overdraft that I'm worried about!


dont your bank give you a good solid two/three years to pay it back?
Original post by TomatoLounge
Its the overdraft that I'm worried about!


What are your overdraft terms? What are you doing to actively reduce the amount you owe to the bank? I can try to help you come up with some kind of plan if you want? I've done a few budgets for my friends who were deep in their overdrafts and they were all out within 1 year.
I ****ing despise payday loans. Having seen my closest friend completely broken by taking out payday loan after payday loan in her final 2 years of uni I think it's disgusting how these companies target vulnerable people. She owes so much and I have absolutely no idea how she's ever going to pay it back, it's a horrendous cycle of taking out a loan to pay off another loan. She's had people knocking on her door and all sorts, god only knows what it's done to her credit score. I don't understand how this is legal.

I've known other people who've taken out one but they were 100% sure they had the means to pay it back (e.g covering the first month of a new job), which is one of the few circumstances where it would be ok to take one.
I never understand why people don't use their banks for such things?

At least with a bank, you've got a solid creditor and decent interest rates?
Original post by GoingToBurst
Yes, we should be worried. It is hugely concerning that 1. Students cannot get the funding required to live and feel the need to turn to these lenders and 2. Students have little issue with actually turning to these lenders. Yes, they are quick and easy, but the cons completely outweigh the pros. I spent most of last semester studying payday loans and the statistics are just shocking. Yes, payday loans are now more regulated, but they are in no way a smart option for anyone.

Also, you may not have had any trouble in terms of your debt spiralling out of control, but your Wonga loan will stay on your credit history for 7 years and you may find it difficult to get a mortgage in that period.

not the mention over 1000% APR how the hell will you ever be able to afford to pay it off you end up in more debt so you need more loans thus gettin in even more debt and your trapped

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