I’ve been meaning to write this for a month or so, I am really scared and saddened:
Since New Year I’ve seen several new adverts for Guarantor Loans, Payday Lenders and Hire-Purchase companies; while these are nothing new, it bothers me that they’re getting smart.
I think most of the population is now immune to the bad “oh no! what will I do?” acting you get on payday lenders’ adverts, but the scary thing is that the loan sharks know that too!
There is an advert for ‘lending stream’ that I switched over to part way through and to start with I thought it was an ad for some technology: The graphics were good, the stream logo looks like a digital output or sound bars…and then the sales pitch kicks in (with the usually teeny writing containing ridiculous APR rates)!
Another one, an H-P company, use an adorable cat cartoon. (Dare I say it’s child-friendly and may even be there to get kids used to the company…nasty.) There is a parade of things we might want or need being rubbed around or played with by a cute cat (again with the minuscule Ts&Cs)!
PLEASE DON’T BE SUCKED IN!
There are dozens of these companies because we keep using them: Please Stop!
We have a friend who recently said her dishwasher had broken and she was going to get one on H-P through a catalogue. (Still counts as Hire-Purchase and still a silly price by the way…credit-offering catalogues are just as bad as these other companies.) The sad thing was that she genuinely believed that it was the only way she could afford one. The repayments were to be £20-30 per month, at which point we reminded her you can buy second-hand or save up- I’ve never paid more than £50 for a dishwasher in the 16 years we’ve been married! (All 3 have been second-hand and lasted a decent amount of time.)
I’m not trying to be mean or preachy, but we’ve been there. I had 3 catalogues and bought everything new when we were first married, then got into debt and took years to pay it off with reduced payments! (Not to mention all the defaults on my credit report.) So I just want to save you from some pain!
The fact is that second-hand is usually the best option: It’s done most of the value depreciating it’s going to after 2 years, there will be multiple prices and styles available locally, you won’t have to wait 3 weeks for delivery and, perhaps most importantly, it won’t be put in landfill by the person who doesn’t want it anymore!
So have a think, try all other ideas and options first. If you’re struggling, talk to your current bills about reducing payments temporarily or seek professional guidance. I have many options and helpful companies listed in these posts: Why We Have A Budget, Budgeting Basics, Financial Help and Useful Info and many more on my Budgeting Page.
Good luck out there!