Some great money tips from The Times to beat the (very nearly official) recession here. Sections include how to boost your income and ten ways to manage your debt. Worth a read.

There are many reasons why a Wonga loan is different to a traditional loan, but perhaps the most fundamental point is that we make money when customers repay their cash advance. ‘So what?’ you might think, ‘Surely that’s normal.’ But in the world of unsecured personal loans and credit cards there’s a cast iron rule that usually goes unspoken… They generally make money by keeping customers in debt for as long as possible!

In an industry where new customers are won on low headline interest rates, cash is often made by other means. These tactics include long repayment periods, fixed terms and penalty charges.  

Even in these uncertain times of soaring inflation, nationalised banks and restricted lending, many rules of traditional credit still apply. Indeed, while there has been unimaginable turmoil in banking, true innovation in the way services are offered to consumers remains a rare thing. The credit industry is such an ancient one that in times of trouble it’s common for lenders to become even more cautious and rigid.

The best advice is to make sure you fully understand the terms of any form of credit agreement before taking the plunge. Always read the small print and, in the case of personal loans, check for early repayment clauses. Otherwise you could find yourself handcuffed to your debt for longer than necessary.

Or you could visit Wonga.com instead! At Wonga we have no desire to keep you in debt and the entire service is geared towards helping you manage your cash flow with short-term credit - on the odd occasion when unexpected expenses strike. You can choose exactly how much cash you need and exactly how long you want it for. That means you’re in control and you settle the debt quickly. 

Our commitment to responsible lending also means you won’t find any hidden charges even if you decide to repay your loan early. We will actually welcome it!

A recent survey by the Halifax has found students owe an average of nearly £220 on credit cards - adding to the potential long-term debt they’ll graduate with.

Here’s another statistic (for what statistics are worth!). The average student leaves uni owing some thirteen grand! Incurring this kind of major debt seems to have become an accepted part of education these days.

If you’re about to start a degree yourself, here are a few tips to bear in mind…
• Minimise student loans by only taking out what you need, not the maximum available
• Try taking out small Wonga loans for occasional emergency costs, but only when you know you can repay the cash comfortably within a month. That way you clear the debt within 30 days, not some years after you graduate
• Draw up a budget of your income and outgoings - and stick to it
• Shop around for banks offering student accounts with no charges
• Make the most of student discounts - many retailers offer them and you won’t get these kind of reductions again until you hit retirement age!

The FSA recently launched a new financial advice site aimed at the yoof, or ‘young adults’ as they put it. To be more specific, people who are lucky enough to be aged 18 to 24. It’s called What About Money.

These people may be in the prime of their life, but it can be a tricky time financially. Cash can be tight because you’re only just starting out on the career ladder and you might not have too much experience of borrowing either.

The site offers bags of independent advice about different products and also a forum where members can discuss queries, concerns or experiences. It’s certainly worth checking out if you’re in need of credit but want some guidance before jumping into the huge and complex world of loans.

With traditional, long-term loans it can often be a case of ‘borrow in haste and repent at leisure,’ because you’re tied in for years, so do your research before committing to any form of credit. Wonga’s website offers borrowing and debt advice.

An article on thisismoney.co.uk paints another gloomy picture of Britain’s economy today, with poor growth in the services sector and a dissapointing bank holiday weekend for retailers…

“There was also grim news on the High Street in the wake of a miserable bank holiday weekend for retailers in London and around the country.

“Exclusive research for the Evening Standard by SPSL showed Saturday was particularly bad in the capital, with shopper numbers down 3.8% on the equivalent day last year.

“Retailers fared slightly better on Sunday when footfall was down 0.8%, but the improvement could not hide the pain on what was seen as a vital weekend for struggling stores.”

Consumers are certainly starting to feel the pinch in a very real way. The rising cost of gas, leccy, petrol and grub, plus uncertainty over housing and tightening of lending criteria by banks are all contributing. It’s a sensible time to minimise your long-term credit commitments as far as possible - credit cards, overdrafts and bank loans.

It’s worth making a list of what you owe, who you owe it to and what the repayments are. You should also make sure you find out the early repayment terms of any such commitments and work out if you can reduce some of the balances or even pay off a loan ahead of time without being penalised.

Although it’s easier said than done, it’s worth cutting down on any luxuries in the short-term if it means you might be able to reduce your outstanding debt during turbulent times. Use Wonga’s budget tool to assist you.

The new court ruling on banks and the whopping fees they charge for unauthorised overdrafts has been widely reported in the media this week. The final outcome is still not certain, but it has put the issue firmly back into the public eye.

One of the main arguments against the scale of the charges is that they can be imposed regardless of how far punters go over their limit. For example, you could be hit by a fee of more than £30 for going £50 into the red for just a day or two. It goes to show the true cost of accessing instant cash in an emergency.

Wonga is planning to provide a fairer alternative. You’ll still need to pay for the speed and convenience of an instant loan of course, but you’ll be able to choose exactly how much you want to borrow and for how many days - with the full cost calculated for you up front.

As The Times reports: “The banks have until May 22 to decide whether to appeal. As they struggle with their own financial problems — as evidenced by Royal Bank of Scotland’s announcement of a £12 billion rights issue to cover a potential £5.9 billion write-down on its assets — the banks are thought unlikely to accept a judgment that could lead to billions of pounds being reclaimed. If the OFT concludes that the charges are unfair it could cap fees at a much lower rate than the £30 typically charged, costing the banks an estimated £10 billion more.”