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!

Wonga is proving to be a great name. Not only is it a slang term for cash - which is what we provide - but people seem to like it and it’s easy to remember. Wonga is a word you just have to say out loud and it’s kind of satisfying the way it rolls round the mouth like vintage Bordeaux.  

And now we’ve got another reason to celebrate our name, after a Time Team style discovery relating to an Australian (British made) steam ship from the 1800s. We stumbled across this description of the mighty vessel, an extract of which is below…

The Wonga Wonga. This fine steam-ship, which started on her first colonial trip on the 3rd instant, is the sister ship of the City of Sydney. She was built is the Clyde under the supervision of the Secretary of the Company, Mr Patterson, and is in every respect equal, and in some respects superior, to the City of Sydney. The particulars of her build, tonnage and engines have on several occasions been mentioned in this journal, and we feel it necessary now only to repeat that her engines were built by Thompson and Co, of Glasgow. They are direct-acting and of 180-horse power, nominally, but will work up to 300-horse power.

She has great capacity for carrying purposes. Her chief cabin is substantially and beautifully fitted up, and the sleeping berths are commodious and well ventilated. The cabin for second-class passengers is superior, and is equal to the usual fittings of a first-class sailing ship. For third-class passengers the accommodation is clean and comfortable. The Wonga Wonga went down the harbour and about five mile outside the heads on Monday. Some of the directors and shareholders were present, and were highly delighted with her performances.

Sounds like the Wonga Wonga truly was a “first-class” ship, just like our super-fast cash advance service! Mind you, we’re thankfully not reliant on steam power.

We have a winner of our Wonga Moments competition! There were some great stories about why people had used the service and it was a tricky job to select the most unusual or heart warming one.

From stag weekends to last minute wedding emergencies and dream birthday presents to poems about unexpected bills, the judges were debating for hours. Well, at least an hour!

But Lucie in Hove is the winner of the Sony Video Walkman. Her emotional recounting of the birth of some kittens had us weeeping into our man-size tissues. All together now, aaaaaaarrrrrhhhhhhhhhhhh.

It seems a medical difficulty during the birth required emergency help from a vet. And that’s never cheap. Wonga saved the day by providing the short-term cash to cover the costs and it all ended happily with five healthy kittens.

Thanks to everyone who took the time to enter and better luck next time.

Don’t forget our ‘Wonga Moments’ competition is ending this week. This is your last chance to win a cool Sony Video Walkman, worth over £100, simply by telling us how Wonga has helped you in the past. We’ve already had some great stories, but you’ve got to be in it to win it!

It’s easy to enter - you can either leave a comment, or drop us a brief email to competitions@wonga.com. More details are available in the previous post below. We’ll decide which is the most unusual, warmest or amusing Wonga Moment very soon…

A recent article in the Times exposed a flood of complaints from angry Barclaycard customers, who claim the monster bank may have been using dodgy tactics to extract fees from them.

They say they have been hit by late payment charges after their normal repayment date was shifted without warning…

 

Not since British Gas introduced its woefully inadequate boiler breakdown cover or TalkTalk underestimated demand for its “free” broadband have we received so many letters on a single subject. The sheer scale of the correspondence suggests an orchestrated attempt by Barclaycard to confuse borrowers into missing their payment dates so that it can levy extra interest and charges. Worse still, to judge by the letters we have received, the lender appears to be targeting borrowers who usually clear their balances in full each month.

Barclaycard’s inadequate explanation is that it gives all customers a minimum of 20 days to pay from the date that a bill is generated, but that this payment window can be as many as 32 days. It says that the date can change because of weekends, Bank Holidays and, crucially, “operational expediency” - a vague notion that can only mean “whenever we wish to boost profits”. This is simply not good enough.

It sounds like another example of the banks being about as clear as mud when it comes to the cost of their services. Wonga will never change your repayment date, but you are always welcome to bring it forward! We won’t charge you a fee if you decide you want to repay a cash advance early and save interest.

Fancy winning a cool Sony Video Walkman, featuring 4GB of memory, a 2.4″ LCD screen and built-in Bluetooth wireless headphones? Then tell us about your Wonga Moment…

All kinds of people use Wonga.com, for lots of different reasons. We’ve come to refer to those unforeseen situations where only a super-fast Wonga loan can save the day as ‘Wonga Moments’. We’d love to hear some of your more unusual, warm or inspiring stories about why you came to us and how the service helped you.

And the most interesting, unusual, amusing or heart warming Wonga Moment will win this lovely prize!

We’re only interested in genuine stories - perhaps you forgot an important birthday, the car broke down at a crucial time or you fixed a major DIY crisis for example? Tell us about your experience by sending an email to competitions@wonga.com. Include your name, phone number and a brief description of your Wonga Moment.

We’ll pick our favourite at the end of this month and notify the winner by email or phone. Your submission will remain confidential - unless it’s so good that we seek your approval to share it! Best of luck.

It’s an extreme example of the potential harm caused by an inaccurate credit history but, according to Thisismoney, a businessman is claiming he could face eviction after an incorrect black mark was placed on his credit record…

A businessman says he could lose his home after a mobile phone firm wrongly told credit reference agencies he had not paid his bill. John Peters believes the blunder by O2 ruined his credit history and triggered a chain of events that threw his finances into turmoil. As a result, the 42-year-old, who runs an internet business, fell behind on his mortgage payments and he, his wife and two young children now face being evicted.

While it’s questionable just how instrumental the error was in leading to the serious financial difficulties which Mr Peters now faces, it highlights how important your credit record can be and why you should never assume all the information held about you is accurate.

You can request to see your credit file from any of the three UK credit agencies - Call Credit, Experian or Equifax. These sites also offer advice about protecting and improving your credit rating, which can have a serious impact on the cost of borrowing cash.

Remember that using Wonga responsibly is a great way to quickly improve your credit rating too - check out this earlier post for more information.

Hey, we’re far too modest to claim that ourselves, but we’ve just been shortlisted in that prestigious category in this year’s Startups Awards! We’re also in the running for the Best Use of Technology gong. A double whammy.

The final judging day will take place in September and all category winners will be announced at the rather grand-sounding ‘awards luncheon’ on 30 October.

The judges told us: “we have received exceptionally high quality entries for the Startups Awards. Short listing was particularly tough, so you have done tremendously well to get this far.”

We can’t argue with that and the whole team’s chuffed to be nominated twice. Fingers crossed…

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!