Do and Don'ts of Wonga scam

Published: 27th April 2011
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Recently I saw ad about Wonga scam showing the APR of 2689%, and to get reconfirmation I just gone through the website once again. Most of you must not be aware of the fact that wonga.com is a "PayDay Loan" company. Why I am as a reader and viewer so surprised that prompt to have a close look is the staggering APR quoted in the television advertisement. Being a writer I try to defy the news but latest update was Wonga.Com quote an APR of 2689%. Afterwards I reached their APR page also where they mentioned and shown their grief on the whole issue.

Before you ahead further with Wonga scam, one thing very much important to understand is about APR. Actually APR stands for annual percentage of rate, nominal APR, and effective APR that describes the annualized interest rate instead of monthly fee or rate that was provided on loan, mortgage loan, credit card, and more. Readers should know that this financial charge taken as annual rate. Further, nominal APR includes simple-interest rate for whole year whereas effective APR means fee +compound interest rate that gets calculated across a year. You must gather all these relevant details related to APR before heading for loan or mortgages because each country holds different definitions for that.

One simple example can make the Wonga scam issue more clear such as the company is providing the info that the annual cost of the DVD rental is £1095, and on the other hand saying that viewers should not judge the site by its available APR as being a short term loan instead should compare it with a DVD rental. Now what's the catch?

That's all very well, but if a standard credit card company were the DVD rental company offering an annual rental for £1095, Wonga would charge you £10,950 annually for the same film, and unlike a credit card that would charge you NOTHING if you returned the film before it was due, Wonga would still charge you a large amount of interest. Some people support wonga.com whereas some oppose it. Whatever the scenario you come across, you first of all must consult to your bank as may help you to come out of it. After this, I donít feel to recommend the users to use the services of this website anymore as will only kill the time and later will be loaded with debts. By this, I don't mean to say that itís a Wonga scam. Because reviewing all the circumstances the website still working within the laws but still lacks transparency in their doings. You can see the updates of their calculator that clearly indicates what users have to repay, and also APR status is very clearly updated. But then also, somewhere I feel that I can't recommend someone to use the website, and if someone really ignores the APR then will be responsible for the damages himself.

Debt Advice UK offer free Professional Confidential Debt Advice on a range of possible Debt Solutions. If you need personal advice, Wonga scam please do not hesitate to contact us. For more Informations Please visit our debtadviceuk.net Website.

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