We’ve all seen the news this week, Payday lender Wonga have gone into administration meaning over 500 people could lose their jobs.
Many people think that all lenders operate the same (or basically the same) but that couldn’t be further from the truth.
For a start, Wonga loans were available exclusively online, this may seem convenient but it meant that if anything went wrong, there was often no human to speak to, to get issues resolved. Cockle Finance offer what’s known as Home Collected Credit (Doorstep Loans). This means that from the start, an agent will visit customers to get to know them and their circumstances before grating any loans.
Payday loans are, as the name suggests, short term loans. They are designed to tie you over until your next payday. Doorstep loans are spread over a longer period of time, allowing customers to pay back the loan in little bits over a period of months. At Cockle Finance, we believe that this makes our loans much more affordable and easy to manage.
A Wonga loan may of seemed like a good idea to some people, until they hit a change in circumstance, and couldn’t meet a repayment. This would mean that Wonga would add on extra interest and maybe even roll the loan over meaning they’d lend you even more money to cover the repayment, charging you extra interest as they went along. This is how some people ended up taking out small loans and ended up with very large balances! At Cockle Finance we don’t charge a single penny for late or missed payments. This means that if you have a change of circumstances part way through paying your loan back, it won’t cost you anything extra. With a Cockle Finance loan, you know the total amount you pay back at the beginning and you know it will never go up!
These are just a few of the differences between how a Wonga loan worked to how a loan with Cockle Finance works!
Got a question about Cockle Finance Loans? Give us a call on 01708 755490.