Would you think hiring a reality television star known for having debt and bankruptcy troubles as the spokesperson for a payday lender is a good idea?
It seems bad, but it’s absolutely true: a payday advance lender has enlisted the aid of singer/spendthrift Kerry Katona as an advertising spokesperson, despite the fact that she had a very well-publicised bankruptcy hearing in 2008. Truth be told the woman does discuss her money problems during the adverts, but with it being common knowledge by now that the best place to go if you’re facing massive financial problems is a debt advice charity and not a provider of high interest rate short term loans, it seems like a poor fit for just about anyone that doesn’t have their head lodged squarely up their own bum.
The company that the once-and-future ‘Atomic Kitten’ member is now apparently sticking up for – despite her own financial troubles in the past – isn’t perhaps the worst and most egregious lender out here. Unlike industry leader Wonga, which charges 4,214 per cent APR interest on its payday loans, this firm ‘only’ charges an annualised interest rate of 2,670 per cent – an improvement to be sure, but it still translates to around £29 on average for every £100 borrowed – and with a maximum loan of £300, you’re paying back around £87 in interest alone; hardly an inexpensive lending option!
Right now it remains to be seen who’s the bigger fool at the moment – Kerry Katona or her new advertising client – but one thing you can be sure of: this could only encourage more people, especially fans of the singer and reality television star, to seek out payday lenders and end up mired in debt. The economy is still not growing at a rate that will lead to better financial conditions for a large number of Brits, leaving households short of cash nearly every month, but racking up even more debt through a payday loan provider is never the answer; in fact it’s just going to make matters worse, and you’re not doing yourself any favours by following in the footsteps of someone whose main claim to fame is winning a celebrity television competition.