Payday Loans and Tom Jones

Let me share with you a quite-good Christmas cracker joke:

"Doctor! Doctor!  I keep thinking I'm Tom Jones."
"Don't worry...it's not unusual."

It's also not unusual to be skint after Christmas because it's an expensive time. 

If you are an employer, this really affects you. 

If a household is sailing close to the wind, Christmas can move it into trouble.    The person who earns the income for the household will reflect on how hard they work and how they never seem to get ahead financially.   

Their thoughts immediately turn to how much money they earn.    That's where the income comes from - so it's natural to go directly to the source.   Indeed, many well-meaning personal finance commentators advise to "negotiate a pay rise" as the first basic step to get financially sorted.

So then the next thought might be a pay rise request.    Or they may even start to look around for a better paid position elsewhere. 

If the need is a bit more immediate than that, their next thought may be to approach you for an advance on pay.    This is very, very common (i.e. it's not unusual).   The employer doesn't usually charge interest and there are no forms to fill in.

A lucrative money lending industry is booming on the back of this.  Payday loans, cash now, can'twait dot com.   On a TV ad last night,  I even heard the slogan "where to go, if the boss says no!".    I think this is unbelievably irresponsible.   Let's remember that these companies charge at least 500% a year in interest - and much, much more if repayments are missed.   Yes that does say 500%.  Five hundred per cent.

If you are an employer, this really affects you.   I know I am repeating myself - but it really does.

As an employer, you will sympathise with your employees - but a household that is in financial distress is not caused by how much you may pay them.    But you can help them.

Have a Sorted session at work about managing debt.    You can do it yourself, or I can do it for you.   

The information given at a Sorted session shows people what to do and where to go if they need some help.     Most of the time, it is getting people back on course.  Non-preachy, jargon-free and nobody is trying to sell them anything.

The sessions give people hope and show them that you are on their side.