Wage Day Advance Collapse- What's next for their customers?
Payday lender Wage Day Advance are no longer accepting new loan applications. Are you a Wage Day Advance customer? What should you do now?
As short-term lender Wage Day Advance becomes the latest the join the likes of Wonga as it's trading company Curo Transatlantic Limited is placed in administration, past and present customers may be wondering what happens next? Do you currently have a loan with Wage Day Advance? What should you do? Ferratum are here to help guide you through how best to manage the situation and what you should consider if you're looking for an alternative.
Do we even need short-term lenders anymore?
For some people who use the products responsibly, short-term loans are a real lifeline. The interest is high, but factoring in the interest of £36 on a one month £150 loan might be the difference between keeping a family afloat or defaulting on several direct debits. And in that scenario, you might be faced with an unarranged overdraft fee as well as several late payment fees to different companies that could easily start to run up to £100 or more! If you're living paycheck to paycheck and your car gets a flat tyre, how do you get to work for the rest of the month? Having the ability to access cash to sort real-life problems and repay on payday can be something that genuinely stops people losing jobs or ending up with masses of unpaid bills.
And there may not be many other options for people who don't have the high credit scores needed for traditional bank loans and overdrafts. Look at the hire purchase stores you find on the high street, or high-interest credit cards, these less regulated industries could have you repaying a lot relative to what you initially borrowed, and for longer too. And what about loan sharks and other unregulated alternatives, if consumers need the product, they'll still find it, but without the protection of the regulatory bodies.
Short-term lending is not a long-term solution to money problems, but there is a need for the products for responsible consumers who might be at a financial low point. Remember that short-term lending is growing, the flexibility of products offered is expanding all the time. Ferratum offers not only a one-month repayment loan but a flexible instalment product that can be repaid in 2,3 or 4 months.
All customers should remember that short-term loans are only to be used for short-term financial needs, and should not be used as a long-term borrowing solution, or if you are in financial difficulty.
I'm a Wage Day Advance customer, what should I do now?
If you've got an open loan with Wage Day Advance right now, there's no need to panic! Some Wage Day Advance customers may have their account transferred to Shelby (Shelby Finance Limited), you can find out by logging into your account here. And until any more information becomes available, the best course of action is to continue to repay your loan as per your contract.
If you are looking for an alternative lender, make sure you do your research about what different lenders have to offer, and always ensure that they are regulated by the FCA. Review websites can also be a good way to see how customers feel about the lender you're considering. Ferratum has a 4.7 rating on Google Reviews and a 4-star rating on Trustpilot, with hundreds of reviews from our happy customers.
Once you have repaid your loan with Wage Day Advance, that's it! The company will no longer be issuing new loans. If you do decide to find an alternative lender, consider Ferratum. Ferratum offer flexible loans with a fast and simple application process and award-winning customer care to help you along the way. Find out more using the loan calculator below.
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