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Kerry Katona wouldn't get a payday loan from bank | The Sun …

KERRY KATONA would be turned down for a loan by mainstream lenders, a
financial expert told The Sun last night.

The former bankrupt star caused fury this week by becoming the face of a payday loan firm aimed at women that charges a staggering
2,670 per cent interest rate.

Consumer finance specialist Dominik Lipnicki said: “I question whether someone
with Kerry’s profile would be given a loan by a bank or building society.

“As a former bankrupt without a steady monthly income, she’s a high risk.

Angry … Nikki Roberts slammed the star


“But payday lenders have looser criteria as they lend smaller amounts over a
shorter timeframe.”

He continued: “It depends on individual circumstances, but those who are
unemployed or discharged bankrupts can be eligible.

“The lender will normally give a loan of up to £100 at first and, once it’s
been paid back, then they will increase the amount you can borrow.

“But payday loans are a bad idea in the short term. If you can’t pay them back
at the end of the loan term, then you are often encouraged to roll the loan
over and just pay the interest, meaning debts can quickly spiral out of

“In the long term they can seriously affect your credit rating if you do want
to get a mortgage or larger, long-term loan in the future, for example.

“I would not recommend payday loans at all.”

Writing in a blog yesterday, Katona, 32, defended her decision to front the
campaign for cashlady.

She wrote: “A few loan companies have got a bad name because there have been
some horror stories of people falling into serious debt with some
unscrupulous lenders, but I know that doesn’t mean everyone offering a
payday loan is a shark.

“But I can hold my head up high. I’m paying off my debts, and the one thing I
know now more than anything is how to make ends meet for me and my family.

“And every now and again, for people like me, when emergencies come up, that
might mean getting a short-term payday loan.”

That doesn’t wash with single mum-of-four Nikki Roberts, who last night
blasted the reality star for her association with the company.

The 29-year-old, fell victim to payday loans firms when she moved house and
lost her job. Her £250 debt to lender tripled in a matter of
months and she ended up losing her home.

Nikki said: “It’s completely hypocritical of her to support a charity that
helps fallen families.”

Eventually she was put into a safe house away from her creditors by charity
Save The Family — whose most famous supporter is Katona.

She has donated Christmas presents to Save The Family, switched on their
Christmas lights, donated old clothes to their charity shop and chose them
as her preferred charity when working for an online bingo firm.

On that occasion Katona offered bingo players the chance to win dinner with
her in London in return for the firm supporting the good cause. Once she
even took a cheque from Iceland for £3,000 for the charity.

Nikki told The Sun: “I can’t believe Kerry Katona, as a fellow mum-of-four, is
putting her face to these legal loan sharks.

“She of all celebrities knows what it’s like to be at financial rock bottom
with four mouths to feed. It is entirely irresponsible.

“Some women look up to her as a fellow mum and trust what she has to say.

“Her promoting this company is disgusting. These companies are not on mums’
sides — they were a factor in me and my four children ending up without a

Nikki lost her job as a bingo caller when she moved from Blackpool, Lancs, to
Wellingborough, Northants, in 2009 to be with her now ex-partner.

She initially borrowed £100 from to cover food and bills, but was
unable to repay the charges and interest at the end of the loan term so took
out another £150 loan to cover the costs.

This spiralled to £750 in interest and charges when she was still unable to
cover the repayments.

Nikki — mum to Shawn, 11, Kali, seven, Phoenix, six, and Justin, four —
recalled: “As well as the payday loan we had other debts mounting. The
strain caused my partner and I to split, and because of the large amount of
debt in my name, I was unable to rent another home.

“In February 2010 my four children and I were moved into a safe house run by
Save The Family near Mold in north Wales.

“It was an incredibly tough time for us. I had to uproot the kids from their
lives and we were effectively homeless, living day to day on charity. It
broke my heart.”

The charity helped Nikki to make a debt management plan to repay at
£5 a week.

She finally left the safe house in August 2011 after 18 months and the family
now live back in Wellingborough.

Nikki said: “Kerry has visited the Save The Family house several times, the
same one where we lived when we had nowhere else to go.

“She has been bankrupt and knows only too well the stress and anxiety
financial ruin can cause mums with children to clothe and feed.

“She ought to be ashamed of herself.”

Read More:
Kerry Katona wouldn't get a payday loan from bank | The Sun …

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