Unemployed mother of two borrows £ 1,700 from EIGHT payday loan companies to buy ‘hundreds’ of Christmas presents for her children … but says she can’t pay them back
Meet the unemployed mom of two who borrowed £ 1,700 from EIGHT payday loan companies to buy ‘hundreds’ of Christmas presents… and now she says she can’t pay any of them back
- Katie McGil, 28, from Devizes, Wiltshire, now owes more than £ 3,000
- Unemployed mother, receiving benefits, wanted to “treat” her family
- Claims she will not be able to provide for the children when repaying
A single mom on welfare funded her family’s entire Christmas by taking out eight payday loans.
Katie McGill, 28, borrowed around £ 1,700 from companies, including the controversial Wonga, so she could give her two children a traditional meal and expensive gifts.
This meant that Mya-Renee, three, and Calvin, eight, could each unbox a new bike, new television and DVD player, as well as plenty of computer games.
Payments: Katie McGill, 28, wanted to ‘treat’ her children Mya-Renee, three, and Calvin, eight this Christmas
But now that the celebrations are over, their mother is grappling with over £ 3,000 in debt – with just her perks to be used to pay it off.
Miss McGill, of Devizes, Wiltshire, began borrowing in the months leading up to Christmas to pay for this year’s festivities.
She ended up taking eight of the controversial loans – which critics say charge exorbitant rates – from various lenders.
Now she says the only way she can repay them is to use the £ 140 of her bi-monthly benefits which are not already leaving her account through direct debits for various expenses.
Miss McGill said: “Every time I borrowed money I started borrowing more and more and now I find myself in debt of £ 3,000.
“I started thinking about Christmas a few months ago and thought the only way to give my kids the presents they wanted was to borrow money.
“There were hundreds of gifts under the tree. Their grandmother passed away this year, so it was nice to be able to look after them.
The single mother has now criticized Wonga and the other companies for giving her loans without properly examining her situation.
She said: “It is really stupid because I am on allowance and I cannot afford to pay it all back.”
Miss McGill said that when she started using payday lenders in 2009, she had a stable relationship and she and her partner both had jobs.
This meant that she was able to repay the loans.
“But now I am alone and unemployed,” she said. “Wonga hasn’t considered my changed circumstances, and they still allow me to borrow.”
Miss McGill – who took out pre-Christmas loans ranging from £ 80 to £ 380 – will have to start repaying them next Thursday.
Sumptuous Christmas: Mother of two was able to buy ‘hundreds’ of gifts for her children with the £ 1,700 she received from the eight companies
Struggle: Single mother, who receives benefits, says she will not be able to buy basic necessities when she starts paying back
But she says she won’t be able to afford it and is worried that she will end up borrowing more.
“When I start repaying the loans, I will no longer be able to pay the bills or buy food, drinks and basic necessities. Then I’ll start taking more loans and it’s just going to be a big messy circle.
A spokesperson for Wonga said the company does not allow people to take more than one loan at a time. Borrowers must repay each in full before they can take out another.