Short Term Loans

[starone]

Has anyone else noticed the amount of interest you pay to Wonga for borrowing money from them - 2689% APR? Is anyone daft enough to borrow money at that rate?

[redcrx]

yes but as you say, they are short term. ie borrow £10 today pay back £15 next week. Thats why the APR rate is so high.

[theshedman]

Yes they are a rip off but people still use them. I see there is a post on Business & Finance about such a company. I didn't think you could advertise on here. Maybe it has slipped through the net.

[starone]

Must be absolutely desperate though?

[ummmm]

Desperate and probably have bad credit.

[cazzz1975]

I know a bloke who uses things like that and pay day loans, he is a complete plank and is always broke

[hc4361]

APR is not really relevant on these loans, but the companies are required by law to display it.
If you borrow a large amount over 12 months or more, APR is a very good way of comparing interest rates, but it does make small loans over a very short period seem exorbitant.
If I were in the business of lending small amounts to people with very bad credit, no security and a high likelihood of not paying, I'd be charging that sort of rate too.

[boxtops]

I've just gone to look for that thread this morning, seems it's been pulled, someone must have reported it. It's often in the early morning they sneak through, a quick report usually does the trick.