Negative Effect of Payday Loans on Someone’s Mental Health

If you’ve ever had money troubles, you will be familiar with the gut-wrenching, stomach-churning feeling that comes along with it. Worrying about money can put an extreme impact on someone’s mental health, especially if the money worries are coming from a place that’s supposed to help. 

Payday lenders are particularly responsible for this because although they claim to provide a helping hand and useful solution to money problems, sometimes they can actually make this issues worse. They make the issues worse by not being supportive, not being understanding and sometimes even doing illegal things to get more money out of people. When you think about why people turn to these lenders in the first place, this type of behaviour is outright despicable. 

Payday loans can have a huge impact on people’s mental health – and never in a good way. If someone is struggling with money so they have turned to a payday lender then you can make an educated guess that they’re probably already incredibly stressed out. Having to borrow money isn’t nice, and when you’ve got loan companies breathing down your neck, it can make these problems even worse. 

People who already suffer from depression, anxiety and a whole host of other mental issues can have these problems exacerbated by those who they have turned to the help them. Think of the payday lenders that have charged such extortionate rates that people are forced to borrow more, just to pay them back? This is going to have a massive impact on someone’s mental health, and they are more likely to become even more stressed out. This could go even further and send some people into a depression, where all they can think about is their money problems. In extreme cases, some people have even committed suicide just because they were so worried about their debts and couldn’t see another way out of it. 

Because payday lenders are supposed to be the good guys, people expect good customer service from them. However this isn’t always the case, and unfortunately, a large majority of people who have used a payday loan have complained about poor customer support. When the company who is supposed to be helping you can’t be bothered to return calls, or are rude down the phone it can make people feel very down. It can make them feel like they have no one to turn to, and no one who understands and so become very withdrawn and isolated. This may mean that they cannot find a job and so are still unable to pay back the loan that got them into this place initially. 

Another negative effect that payday loans can have on someone’s mental health is that it can make people feel very worried and paranoid. Especially in the case of certain companies who were found to be passing on sensitive and personal data to other companies. If someone owes a company money and they start to get letters or phone calls from other companies, or in a lot of cases, withheld numbers, then they may start to panic and become worried that loan sharks are chasing them up. On top of all the other worries they have, it can lead to people not going out of the house, not answering the phone to withheld numbers, and potentially not answering the phone to people they know. 

Payday loan companies have a responsibility to look after their customers and provide them with security and peace of mind while they are using them. Unfortunately, many people have found that their problems worsened once they started using a payday lender, and the company did very little to help. In some cases, the company actually made the problems worse and caused people to become very ill.