This post has sat in my drafts for a while as I have felt unsure about posting it. However, I just feel so strongly about this that I’ve decided to publish it. Before I continue, I apologise to those that I might offend but I really hope that you see my point on Pay Day Loans, after this.
In the last few months I have come across similar posts which I can only describe as extremely irresponsible.
Each post starts off by inviting you to read their great tips: how to make money quickly, earn whilst on maternity, beat the student overdraft, and so on. Give them their due, they do often include some great tips on making money. But, every time, hidden amongst the list is a not so subtle tip of using payday loans.
The posts, I assume, are a collaboration with Pay Day Loans companies. The bloggers have likely been paid to include that link.
For those who don’t know, a payday loan is a short term loan. These loans usually come with an exceptionally high interest rate. To put this into perspective, on a leading pay day loan site, you can borrow £400 over 30 days for just a measly £96 interest…£96! That is two months electricity for the average family (Annual Domestic Energy Statistics).
Pay Day Loans and Mental Health
Just recently, RSPH have released their Life on Debt Row findings about the impact of debt on well-being. Payday loans were found to have the biggest negative impact, contributing to an increase in stress related problems, medication use and unhealthy behaviours such as smoking and drinking.
What shocks me is some of these bloggers claim to be advocates for mental health and yet actively promote something which is contributing towards it.
Introducing Miss H
Some may say that those who borrow from these sites “deserve what they get” or know what they’re getting into. So, let me introduce you to Miss H.
Miss H fell on hard times after a botched medical procedure meant she was forced onto the sick. With children to care for and an intermittent father of her children, Miss H found herself behind on her rent. With not much support from family and not wanting to lose the roof over their head, she turned to a payday loan. A one-off payment to get herself back on track. Or so she thought.
Skip to a year later, Miss H is now in larger financial difficulties as her debts have spiralled out of control. The initial payday loan was not well thought out and she could not afford the repayments. It’s easy to say “serves her right” but given her vulnerable state at the time, it was extremely easy to make bad choices.
Now, we’re looking at a desperate single mother, relying on food banks and spending every last penny trying to get her head back above water.
Miss H isn’t made up. She exists and I am certain there are many more like her.
What I find so frustrating about these posts is that they are aimed at vulnerable people like Miss H.
Let’s not beat around the bush. The idea behind the post is to hook these readers in with the promise of making money. Once they’re in, you show them the quick money.
How much money is enough?
Now, I do appreciate that blogging, for some, is a full time job and money has got to be made. But, is it right to do it at the expense of others? How much money is enough that you are potentially putting vulnerable people at risk? For me, there isn’t enough money in the world.
According to the Insolvency Service, 99,196 people became insolvent in 2017 which was a rise of 9.4% from 2016. This is 1 in 467 adults – worrying statistics! Now, more than ever, we need to consider the impact of making these types of loans easily accessible.
More Information on Pay Day Loans and Dealing with Debt
If you want to find out more about Pay Day Loans, you can visit the Money Advice Service for what you need to know about pay day loans.
If you are somebody who needs debt advice for a pay day loan then the Money Advice has a pay day loan debt fact sheet to help you.