At the moment, wherever you walk around the in the UK you are bound to come across a Wonga.com advert in some shape or form. They do not cease to annoy most people and where they reel people in they do not do their customers any favours.
It is easy to see why people might see Wonga.com as their saviour. They essentially advertise their service as easy, quick money for those who need it. As such some people will easily be misled because the company is not a charity or even a bank, but more of a loan shark. A charity helps the needy, a bank lends to the needy (and businesses), whereas a loan shark’s job is simply to exploit the needy.
Every advert for Wonga.com shows how you can get your hands on a ‘simple’ loan, however once anyone sucked into the system has experienced it they will come to understand that this business exists to make an unethical amount of money from every customer. The key fact about Wonga.com is the interest rate which is absolutely ridiculous (and therefore never normally shown on marketing materials), if put into a yearly perspective is 4,217%… Needless to say this ends up with even more people crippled by debt but a very happy shark.
Under normal circumstances in today’s society every household contains goods which hold value to others. This means that selling ones own items is the true simple and easy way to get hold of income (which you don’t have to pay back again). Whether its unwanted technology, furniture, or cars, there’s a lot out there which will generate much needed cash when required. A lot of the time there are expensive treasures hiding right beneath your nose.
You could argue that some people feel they do not possess the skill-set needed to professionally sell their stuff. However this is where eBay brokers and Trading Assistants step in and help out. Where consumers feel they do not have the time, patience or expertise to deal with online sales we simply do it all for them. Its a very simple and effective solution which is often overlooked, but in the face of loan sharks such as Wonga.com and others it wins hands down. There simply is not a possible argument for short-term lending at high interest rates versus selling your stuff on your own or with help.