Payday loan companies are often associated with usurious loan shark practices as it is easy to misuse the product. Any sort of finance in the wrong hands can be misused and reputable companies carry consumer notices of this nature. “Payday loans should be used for short term financial need only. Customers with credit difficulties should seek credit counselling before considering pay day loans.” Whether a customer chooses to heed this advice or simply take advantage of an immediate loan for a good night out is beyond the control of the lender. Still, many lenders actually encourage their products to be misused.
Much in the style of the L’Oreal advertisements which sell you a product “because you’re worth it”, some payday loan companies use the same seductive technique on their customers with lines such as “get the things you want and deserve today”. Not quite the presentation of emergency finance to cover a car breakdown, emergency hospital bill or utility disconnection they are supposedly intended for.
National Pay Day loans are a large loan company who use staff writers to churn out little gems to promote misuse of pay day loans, rather than responsible use. This particular plug was used as Valentine’s Day approached and was aimed to encourage unnecessary borrowing: “You don’t want to show up at your love’s house with a box of chocolate and a card. Think big, like diamonds, jewelry –relax – most payday lenders don’t even do a credit check”. If the suitor has bad credit and is already in debt he ought to be turning up with a flower from the garden, rather than diamonds he patently cannot afford.
Some payday loan companies are now encouraging the use of payday loans to pay to host parties. MyCash Now is advertising pay day loans for gift buying and has a handy calendar of holidays when you may find your self strapped for cash. There’s Father’s day and Mother’s day on their list, so you can borrow to buy a present which may well go against their own principals of never borrowing, and would surely not want you to get into debt to show you think of them.
Many payday loan companies are now printing on line site testimonials too from those who have had such wonderful experiences using them. There is no mention from those who have had to take a pay day loan to pay off the first pay day loan and spend their days wondering how they will ever get out of the debt they are in now, after stupidly buying a diamond on Valentine’s day for a woman who ditched them a week later.
If you think that pay day loans are a licence to spend what you don’t have then think again. If you choose to use them follow the small print advice of using them for emergency funding, and don’t fall into the subtle advertising trap of believing ‘you’re worth it.’ If you want to spend money on diamonds and gifts then save up first for the things you want and feel you deserve.