Have you ever wondered how strange it might be to borrow money from a friend if they treated you in a similar way to payday loan companies? If not, this funny infographic/comic tells a very interesting tale of a man who dares to ask his friend Melvin to borrow some money.
What follows is a series of events that are very similar to many of the horror stories we hear about people being mis-treated by payday loan companies – from growing interest rates and penalties to threats and seemingly helpful extensions of the loan that end up costing you more.
The payday loan industry may well not be as creepy or underhanded as Melvin, but their happy-go-lucky advertising which offers quick cash with no credit checks are targeting the very people who will struggle to repay it. Combined with the extortionately high interest rates (which they try to justify by saying it is only meant to be a short term loan) and you’ve got a recipe for disaster for many consumers.
The comic also shows how easily people can be swayed into borrowing from payday loan companies again, even after they have repaid way more than they borrowed. This is how these loan companies operate and you might find that if you take out a payday loan, it ends up becoming a regular loan as you struggle to get control of your cash flow to stop.
Infographic courtesy of DebtConsolidation.org.uk