Tuesday, 23 March 2010

Moneyfesto: PayDay Lenders

Okay, so the social media learning curve is pretty much vertical here at Zero-credit today, but check this, from YouTube - How PayDay loans push the middle class deeper into debt-1/2 (dare we publish 2/2 too? - your comments decide...).

The thing is that, whilst APRs at around 400% are being fought in the US, here in the UK, our media merrily accepts 2000% plus as par for the course. Heralded as something approaching a social service for the needy, we have to consider who the target market for payday loans really is.

Meet middle income Britain... an untapped market of huge potential! Who else is better equipped to heap scorn on the stigma associated with poverty and buy into the lie of apparent prosperity?

When only 10% of us earn more than £46kpa and 20% are officially on low incomes, that leaves an awful lot of people who aren't as "comfortable" as they think. £46kpa isn't a huge sum, least of all when average house prices exceed £200,000. Indeed, it only seems so, when so few of us earn it.

Perpetuating the myth that those on the breadline are cheats who commit benefit fraud makes the prospect of poverty so unbearable that any escape will do. Media led prejudices feed a dependence on credit that will sweep millions into a debt legacy, unless we say no.

The Zero-credit Moneyfesto aims to unmask the truth of sub-prime lending, for never has it been so profligate, so cynical. And to those who still think that the return from this kind of investment is viable, welcome to the Virtual Revolution!

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