Single mum on benefits funds a lavish Christmas with EIGHT pay day loans

December 26, 2013 | by | 1 Comment

A single mum on benefits funded her family’s entire Christmas – with EIGHT pay day loans.

Katie McGill, 28, took out a series of the controversial loans from companies including Wonga to treat her children to a lavish Christmas.

She borrowed more than £1,500 in order to pay for her kids’s dream gifts as well as food for the big day.

Katie McGill, 28, with her two children Mya-Renee, 3, and Calvin, 8, at their home near Swindon

Katie McGill, 28, with her two children Mya-Renee, 3, and Calvin, 8, at their home near Swindon

Mya-Renee, three, and Calvin, eight, were yesterday able to unwrap new bikes, a new TV and DVD player each, as well as numerous computer games.

But now the festivities are over the unemployed mother is faced with more than £3,000 of debt – with only her benefits to use to pay it back.

Katie, of Devizes, Wiltshire, started borrowing money in the months building up to Christmas in order to pay for this year’s festivities.

The mother-of-two ended up taking out eight loans – borrowing around £1,700 to pay for the presents for her children.

Taking out pay-day loans is always tempting.

A few clicks and within minutes a large chunk of cash can be replenishing your depleted bank account.

But it comes at a price. And it’s a price that single mum Katie McGill will be faced with in the New Year.

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But the family are now facing a bleak New Year – with the prospect of paying back more than £3,000.

Katie says the only way she will be able to pay back the loans is by using the £40 per fortnight of her benefits that doesn’t already leave her account through direct debit.

Katie said: “Each time I’ve borrowed money I’ve started borrowing more and more and now I have ended up with £3,000 worth of debt.

“I started thinking about Christmas a couple of months ago and thought the only way I’d be able to get my kids the presents they wanted was by borrowing the money.

“They got loads of computer games for their Xbox, they got a new TV and DVD player each, new bikes and loads more – there were hundreds of presents under the tree.

“Their Gran passed away this year so it was nice to be able to treat them.”

Katie has now slammed Wonga and the other firms for letting her take out the loans without properly looking into her circumstances.

She added: “It’s stupid really because I’m on benefits and there is no way I can afford to pay it all back.

“When I first started taking out loans I was in a stable relationship and me and my partner both had jobs meaning when it came to pay day we could pay back what we owed.

“But now I am on my own and unemployed. Wonga haven’t looked into my change of circumstances though and they’re still allowing me to borrow.”

Katie has taken out loans ranging from £80 – £380 and will need to start paying back the money on the 2nd January.

But the young mum says that she simply won’t be able to afford it and she fears she will be stuck in a vicious circle.

“When I start paying back the loans I won’t be able to pay the bills or buy food and drink and basic necessities.

“Then I’ll start taking out more loans and it will just be one big, messy, circle.”

A spokesman for Wonga said it is not possible to take out multiple Wonga loans at once –  you have to pay off a Wonga loan in full before being eligible to take out another.

Category: News

Comments (1)

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  1. Anonymous says:

    I think this lady as acted in a very reckless way she knew when she took out the loans she could not pay them and what the conditions were to pay back. To spend all that money on presents for her children is stupid they do not need all those toys and will just end up being spoilt and expecting more and more I think she should be done for fraud, these companies advertise the rates and it is her choice to use them She cannot blame anyone but herself she need to be responsible for her actions. Perhaps if she got a job instead of scrounging of the state she would not be in this mess. What is she going to do next Christmas when she will have that much bad credit she will not be able to borrow anything get a grip.

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