Got Wonga ?

Up until this morning I never heard of Wonga. This company is a short-term lending company based in UK. According to BBC “The company, which is regularly attacked by its critics for its lending practices, has started offering short-term loans to customers online in South Africa, Canada, Poland and soon it will set up in Spain.Here in the UK it has now lent £2bn to more than one million customers since it started back in 2007.And last year’s launch of a business lending money to small businesses, for up to one year, is doing well, says the chief operating officer Niall Wass.” Wonga is now eyeing the United States because according to Chief Operator Neil Wass the economy is massively driven by small, privately owned businesses. Unless you really need the cash short-term lending can be an expensive way of covering your budget gap. One of those reasons is that typically short-term lenders charge a crazy amount of interest rates. According to the BBC the company has been accused of using over-aggressive debt collection methods when trying to get its money back, a few years ago, from some borrowers it had suspected of fraud. So don’t be surprised if you start hearing Wonga anytime soon around the United States but as always be very,very cautious about short-term lending. It may seem an easy way to get money but it’s also costly. Click here to read the full article.

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