Since the credit crunch, around five years ago, lenders have found it increasing difficult to acquire funds from banks and other financial organisations. As a result, many have turned to payday lending companies e.g. Wonga South Africa, to tide them over with short term credit until their next payday. Payday loans are a ‘last resort’ for emergency financial situations, such as unexpected bills or home repairs and on many occasions. It’s important to remember that these loans are not designed to be a regular staple of your budget, they’re only for short term emergency use and should be paid back as quickly as possible. Unfortunately there’s evidence that a small percentage of users are using them incorrectly.
As well as being a household name in the UK, Wonga have also grown throughout other parts of the globe and now have a presence in Spain, Canada and Poland. They’re rapidly growing their customer base in South Africa with over a million customers served already. The solidification of big brands in the short term lending market has helped reduce the risk to customers of loan sharking from smaller websites with less credibility.
The Future of online lending
With the financial situation as it is for many people, it seems that payday lending will always be part of the lives of many and if used in the way it was intended, it can help to alleviate urgent money worries. There are always times in our life when we aren’t quite prepared financially for unexpected costs and with access to payday loans, it can often save the hassle and stress which comes with being unable to make payments.