Spinner72 Posted October 22, 2010 Report Share Posted October 22, 2010 ^^ Exactly. You are paying back 29.99% intrest for a whole year. With Wonga, I paid 18.81% intrest and was clear in a week. *If* I had wanted to borrow it for a year, the APR would have been 2500+%, but if I had wanted that I would have gone to a long term loan company charging the likes of 7-11%APR definitely not a high street bank. Remember, the shorter the loan term, the higher the APR but the less you actually pay. For example - Borrow £100 from Clydesdale at 29.99%APR and you pay back £129.99. Borrow £100 from Wonga at 3253%APR and you pay back £110.70 - over £19 less. As Evil Inky said, credit cards (if you can get one) are another option if you need to make a quick/unexpected payment, but the advantage with Wonga you can have actual cash in hand at no extra charge, wheras withdrawing cash from a credit card, if the company allows, is extremely expensive and usually charged on a daily basis. Quote Link to comment Share on other sites More sharing options...
daveh Posted October 23, 2010 Report Share Posted October 23, 2010 [quote="Spinner72For example - Borrow £100 from Clydesdale at 29.99%APR and you pay back £129.99. Borrow £100 from Wonga at 3253%APR and you pay back £110.70 - over £19 less. That would be an incomplete comparison as you are assuming that the loan from Clydesdale is for a year, with no repayments until the end of the year, whereas the Wonga loan is for a much shorter period. Quote Link to comment Share on other sites More sharing options...
Spinner72 Posted October 23, 2010 Report Share Posted October 23, 2010 Ah but Clydesdale dont vary their rates, and would actually penalise you for repaying early, thus making it yet more expensive to borrow fro them. It just emphasises that it is a very different service and as such really shouldn't be compared like for like. Quote Link to comment Share on other sites More sharing options...
daveh Posted October 23, 2010 Report Share Posted October 23, 2010 Agreed. It provides a service and, judging by the Wonga website forum, the vast majority of those commenting on the facility sing the praises. Quote Link to comment Share on other sites More sharing options...
lerwick Posted October 23, 2010 Report Share Posted October 23, 2010 The best policy is to wait until you have the money before you buy or do without. Banks or loan sharks are not in business to help you. Quote Link to comment Share on other sites More sharing options...
BigMouth Posted October 23, 2010 Author Report Share Posted October 23, 2010 For example - Borrow £100 from Clydesdale at 29.99%APR and you pay back £129.99. Borrow £100 from Wonga at 3253%APR and you pay back £110.70 - over £19 less. No, what you would actually pay back to Clydesdale would be £100 + (APRn / (d/365)) where d = the number of days borrowed. I am assuming that any arrangement fee would cover more than one overdraft. Hopefully somone from Clydesdale Bank will be along shortly to correct my rusty maths. Of course Lerwick sums up the best idea (in most cases) is to wait, but in the case of half price hotel rooms I can see that this is not always the case. http://www.cbonline.co.uk/ Quote Link to comment Share on other sites More sharing options...
BigMouth Posted October 23, 2010 Author Report Share Posted October 23, 2010 As Evil Inky said, credit cards (if you can get one) are another option if you need to make a quick/unexpected payment, but the advantage with Wonga you can have actual cash in hand at no extra charge, wheras withdrawing cash from a credit card, if the company allows, is extremely expensive and usually charged on a daily basis. There are very few of my bills that I couldn't pay with a credit card if I really wanted to. In fact more often that not it is more convenient to pay the bill by credit card for all concerned. Quote Link to comment Share on other sites More sharing options...
MuckleJoannie Posted February 17, 2011 Report Share Posted February 17, 2011 This is exactly why Shetland Credit Union should be up and running as soon as possible! It shouldn't be much longer http://www.shetland-news.co.uk/2011/February/news/Shetland%20credit%20union%20by%20April.htm This week the Financial Services Authority agreed to register the Shetland Islands Credit Union as a trading company. After volunteer staff have been trained, the credit union is expected to open its doors at 8 Hillhead, Lerwick, in two months. Accounts will also be accessible through post offices and local banks. Quote Link to comment Share on other sites More sharing options...
shetlandpeat Posted February 17, 2011 Report Share Posted February 17, 2011 There is a scheme I have seen here that folk I know use. Sadly for us it did not work out as cheap as we had other deals we were tied to. But you can get all your utilities from them use their credit card and it can work cheaper. It is a little like pyramid sales but legal. It may be worth a look for some https://www.utilitywarehouse.co.uk/home/index.taf?exref= Quote Link to comment Share on other sites More sharing options...
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