I recently helped a friend with a Wonga Payday Loan and setting up a repayment plan. He was unable to pay it off and didn’t want to defer payment as it was unlikely his situation would improve.
Rather than pay off the loan and take out a new one he asked about repayment arrangements and how he could set one up for his Wonga Payday Loan.
Setting up a Repayment Plan with Wonga
It’s quite easy based on the experience of my friend. When you log in to your Wonga account you should see a link called repayment difficulties. Clicking on that link takes you to a page where you are asked some questions about your financial situation including why you cannot repay your Wonga Payday loan.
You also provide information about your income and expenses. Essentially what you are filing in is an income and expenditure form. This income and expenditure form is commonly used when working out how much you can pay towards your debts, or in this case your Wonga Payday Loan.
In my friends case he was left with £100 per month after paying all his other expenses and debts. Dividing what he owes by the £100 per month he can pay means it will take 12 months to repay his Wonga Payday Loan.
What about the Interest Wonga Charge?
The interest was frozen once the repayment plan was agreed a couple of days after submitting the information through the Wonga site. It will remain frozen so long as he maintains his monthly repayment of £100.
What about being chased for the overdue Wonga Payday Loan?
My friend hasn’t received any letters or phone calls about his overdue Wonga loan. He has made three payments now without any issues. So long as you stick to what has been agreed then you should be fine.
How is payment collected by Wonga?
It is collected via your Debit Card. If that makes you nervous and it would me, then you might be better either moving to a new bank account and sending the money to your old account just before payment to Wonga is due so you don’t miss any payments to them. That way you won’t get any nasty surprises if Wonga decide to debit the whole amount from your account.
What about your credit rating?
Your credit rating will most likely be affected by this plan so it’s important to keep that in mind. If your credit rating is very important to you then you will need to find a way to pay back your Wonga Loan to avoid any negative data being logged on your credit file.
Your experiences of Wonga Repayment Plans
Please share your own experiences of Wonga in the comments box below. It is much appreciated.