If students keep falling for payday loan offers, perhaps they'll never get out of debt.
In case you've been living in a cave for the last three months, you should know about a cash advance company that is (or was) offering student payday loans to get caught up with their arrears. The name of the company that was issuing these types of payday loans is called Wonga. (reported by this page) Their interest rates on these types of loans are old girl 4600 and APR… who in their right mind would agree to pay such high interest rates on these kinds loans? We completely understand that a lot of people get into financial bind and are desperate for money, however this is not the answer to a person's problems.
These types of loans will actually get you further in debt, even though temporarily you solve your problem by getting this high interest loan.
These kinds of loans also ruin people's lives because usually they get caught in a vicious cycle of paying this loan back in because the interest rate is so high, they are never actually able to apply any of their payment principal, therefore, the loan that keeps spiraling out of control and the borrower never gets any closer to paying it off.
You can also read more about this story at the Daily Mail.
These types of loans will actually get you further in debt, even though temporarily you solve your problem by getting this high interest loan.
These kinds of loans also ruin people's lives because usually they get caught in a vicious cycle of paying this loan back in because the interest rate is so high, they are never actually able to apply any of their payment principal, therefore, the loan that keeps spiraling out of control and the borrower never gets any closer to paying it off.
You can also read more about this story at the Daily Mail.
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