Show me the Wonga

Wonga

4214% apr

As we know, times are tough, and lots of people need short term loans whether for unseen emergencies or simply to get through the month.

Cue modern day loan sharks!

Wonga are a typical example. See their TV and online ads featuring lovable old folk giving a nice comfy feel to the business. But look at the  APR, 4214% ….Yep, that’s over four thousand percent.

They’re not the only ones of course and our High Streets are filling with ‘pay day loan’ companies and modern pawn shops like Cash Converters.

How the people who run these businesses can sleep at night, preying on the financially vulnerable  – and why such inflated interest rates are allowed – is beyond me.

It’s a bit late now but wouldn’t it have been an idea for the Government to have set aside that £75Bn they just wasted on the banks and offered these loans that people need. It could have been done via Post Offices (I think we still have some) at a much better rate.

Or maybe this is part of the Government’s plan for the economy. The financial sector get richer and all the out of work Estate Agents and Public Sector workers get jobs in Payday loan shops.

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3 Responses to “Show me the Wonga”

  1. department of education loan Says:

    department of education loan…

    […]Show me the Wonga «[…]…

  2. aaaaargh Says:

    I understand they don’t do annual loans and the apr is a legal requirement.

    It’s not just the company I dislike, it’s anyone who preys on people’s misfortune for profit and Wonga are the best known example.

    Yes, they provide a service that is needed by some but in the end I know from experience that this kind of debt tends to mount up then come back to bite you…. and I doubt that Wonga cares where that leaves people.

    As I said in the post, the money the Government throws at banks could be better spent by helping people out directly.

  3. Gemma Says:

    I think you’re missing the point. Wonga doesn’t do annual loans but they do show you the real cost of the money and they have been a pleasure to deal with on a couple of occasions over the past year or two. it seems you are basing your dislike of the company on an irrelevant number rather than real experience

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