Payday lenders are using bizarre ploys to lure families into debt – urging them to borrow for manicures, junk food and a chance to meet a kitten.
But the “playday loans” have been slammed by debt charities, who say they can cause “very real hardship”.
Other ways to look finance-friendly include tips for kids’ packed lunches and the gym.
Cashfloat, with an annual interest rate of 997 per cent, describes its debt plans as “fun money”.
Insisting it should not be used to cover emergencies, it urges: “Instead, it’s money spent purely as the mood strikes you and on non-essentials.”
Lending Stream runs an online competition for an animal charity to bring a kitten to your workplace. Its short-term loans carry interest charges of 1,333 per cent a year.
And Loan Pig gives tips on apprenticeships, university and packed lunches, while lending at an annual 1,261 per cent.
Sara Williams, who runs the Debt Camel advice site, said: “These ultra high-cost lenders are trying to appear like a useful and fun source of money advice.
“They dress up their operations as some worthwhile cause.”
Sue Anderson, of StepChange, added: “These kind of credit products are causing very real hardship. For those who are financially vulnerable they can turn out to be a trap.”
Lending Stream, Loan Pig and Cashfloat did not respond to requests for comment.
