A Wonga Scam to Spend What You Don’t Have
The media is constantly quoting financial experts who claim payday loan companies are a bad idea, financially. For instance, some have claimed a Wonga scam, where Wonga encourages people to spend what they don’t have and pay an exorbitant fee to do so.
Apparently these financial experts have never heard of credit cards, which do exactly the same thing. The idea of spending what you don’t have in inherent in almost all advertising. Car companies boast of financing when you don’t have to start paying for the car right away, and do most companies that sell high-ticket items.
There’s no Wonga scam that encourages people to spend money on things they can’t afford. Wonga lends money to people that have financial emergencies, such as electric that’s about to be shut off, or a car repair bill for a car that’s needed to drive to work. While they make no requirements o how he money can e spent, they don’t encourage frivolous spending at all.
Payday loan companies, at least the reputable ones, don’t prey the people in financial crisis. They provide emergency money when no other lender will. Yes, people pay for the loans dearly, but when a person needs cash, they are willing to pay for it, That’s not a scam, it’s a business, just like any other business.