'Wonga offered me a payday loan of more than my monthly salary': Borrower had to fight to escape from a spiral of debt
/li> 19 shares 30 comments Steve Doran took out a payday loan in March 2011 and cleared her debts only at the beginning of this year. She first borrowed about £170 but after paying it back took out another, bigger loan, and then eventually borrowed more than three times the original sum. Steve, 26, from Dartford, Kent, feels that young people need to be alerted to the dangers of payday loans. ‘My outgoings matched my incomings but there was little room for an emergency,’ she says. VICIOUS CIRCLE: When Steve Doran repaid her loan she had nothing to live on so she had to borrow again ‘When I repaid the first loan I no longer had enough money to get through the month, so I took out another loan and so the cycle went on.’ Steve, who works as an activities co-ordinator at a residential care home, borrowed from payday giant Wonga, which operates a ‘trust rating’. This means that borrowers who repay on time are often rewarded with the chance to borrow more n