To think that Wonga should not be allowed to target students?

[HedleyLamarr]

Their take on student loans. Apparently it's better to take out a series of high interest short term loans rather than a long term low interest loan you don't have to pay back unless you earn over a certain amount. Cunts

And breathe...

"With a Wonga loan the interest rate is much higher, but you only borrow it for a month and pay the loan back on a date that suits."

Its questionable marketing, but you'd have to be tapped to use one of these companies, student or no, and I've not a great deal of sympathy for those who do (sympathy for their being in a situation which would lead them to consider this as a solution, yes, but actually going ahead with it - no)

But surely students should be able to look at all their options and go what is best for them?

I got my student loans but lived at
Home and pretty much spent 3k on crap. Just because student loans are there does not mean everyone needs them iyswim?

They are entitled to advertise their service as an option just as students can look at the interest rates and say 'errr no that is idiotic'

The problem is that a lot of 18 year olds are naive financially and the thought of huge tuition fee etc debts it incredibly daunting.

The Wonga loans might seem to them to make a very convincing argument.

I think some people might have forgotten what it was like to be 18 and suddenly thrown out into the world and responsible for everything with very little experience.

I wouldn't have used it because I was completely risk averse, but my parents certainly hadn't prepared me for the outside world, and I sure I'm not the only one.

I do not see how a company that charges interest of over 1700% apr is allowed to exist full stop. They do not help anyone, if you are in such dire straits you need one of these short term loans immediately, then there is no way you are going to be in a better situation in a few weeks when you have to pay back the loan and massive interest.
Plus their adverst make my skin crawl.

YANBU. My eldest DD (19) has recently got out of a spiralling mess with this company after I opened one of her bank statements and bailed her out. She is still paying me back at a rate of 0%.

Fucking outrageous. On what planet does a short-term high interest loan help someone 'live within their means'?????

There latest targeting pensioners is worse, both patronising and dangerous.

DMIL was always having to ensure her much older DH didn't sign Direct debits to nice charity workers or agree to unnecessary home repairs.

Their, I did pass my English exams

They shouldn't be allowed to exist never mind target anyone!!!

Oh wongamum, you poor thing! The trouble is kids do not learn bout debt, interest rates etc at school, so get easily baffled by it all when they come to managing their finances. Rather than forcing everyone to do maths why not also offer a more lifestyle based maths lesson too?? Where they learn how to calculate repayments, calculate compound interest, discounts, etc etc...

I'm not really sure how you could prevent them targeting students - who are adults, after all. But is obviously idiotic to think of Wonga as a reasonable alternative to student loans. There's so much wrong with that link I don't even know where to start.

I agree that the interest rates these companies charge is obscene and immoral and should be outlawed. WongaMum, I think it was you that had a thread about this not long ago.

I think they should def teach finance at school.

Apr? Wtf?

I just have a 'NO' rule. No to credit
Cards, no to loans except mortgage, no to store cards but I think it's because I am just scared I would lose track/ not
Manage

Have recently been debating credit cards due to increased protection on purchases etc, but I just don't like the thought

Yes OP that was me last November. I was WongaWoman! I still have DD's bank card in my possession. She has paid me back about half of the money so far and has nothing more to do with that company.

DP used them without my knowledge and I was livid. It has had serious repercussions on our relationship because I found out. He borrowed £255 and paid back 280 in ten days I think. The company and others like it are disgusting as is DP

I think these companies are a disgrace let alone selling to students

YABU not because it's good for them, but if students are really dumb enough to be falling for it, they should not be students so I'm afraid I have no sympathy.

How on earth are students supposed to borrow money to then be able to pay back at the end of the month? Student loans are designed to be repaid once you're working when you have money. It's a completely illogical way to finance being a student

I have the same NO approach to credit Kayano

It's very sensible IMO.

Wonga et al are just e-loansharks, I give them 24 months before a sob story scandal emerges and some commission or another is set up to look at this whole area,

I am astounded they are allowed to exist and target anyone at all. How they can charge the rates they do is criminal. You wouldn't have thought these types of companies would be allowed - is daylight robbery of the naive and desperate.

THe thing is if people pay back the loans when they are due then generally the costs ARE lower than other options (e.g. unauthorised borrowing rates or doorstop loans). These companies depend on people not paying the money back in time and therefore accruing huge debts. There was some interesting stuff in the news lately about how some bank charges were actually at a higher % than payday loan companies.

link here

My cousin is a Social Worker who works mainly with adults with learning difficulties, and tells me that these loan companies have reps (sharks), who deliberately target these adults (they hang around the sheltered housing units and strike up conversation), and very quickly you have a vunerable person with a low IQ racking up hundreds in debt they will never pay back.

This worried more than dopey kids with A levels who don't do the sums!

Paula that is absolutely appalling. How do they sleep at night.