Whenever I am surfing other personal finance web sites, I sometimes glance at the advertisers that sponsor their site. Many times, I see that payday loan companies are paying for their own banner or link on personal financial websites that I believe would not normally advocate someone to get a loan from a payday loan company. So, why are bloggers still earning advertising money off of payday loan companies? I understand that many of you are producing a high quality informational product. I am always amazed at some of the knowledge and expertise that is out there when it comes to the world of personal financial blogging, however, I think bloggers have a personal and professional responsibility not to be hypocritical when it comes to the products and companies we endorse.
You cannot argue that using a payday loan is ever a good idea for someone trying to become wealthy or win with money. Payday loan companies prey on the weak and poor people in our society. Did you ever notice that those shady looking payday loan offices always seem to be in the bad parts of town and never the richer parts of town? The fact is that rich people don’t use them, and neither do middle class citizens. You cannot argue that they are offering a legitimate service to “get someone out of a jam”. Many of us complain about the horrible APR interest rates for credit cards, because they can range somewhere between 15% – 35% annually. Payday loan APR interest rates can range anywhere from 400% to 800%!! These are predatory lending practices, and they get away with it because their target customer base is those who are in a desperate need or too uneducated to realize the decison they are making.
I am not here to tell anyone how to run their blog, but I urge you to consider the ramifications of endorsing products and services that you would not use yourself. Be consistent with what you teach, and your readers will respect you more for it. I may have Google payday loan ads pop up around this post, but that is only because I don’t know how to filter out that stuff in Google Adsense yet! So, I am sorry if this post already looks hypocritical, but sometimes even Google isn’t smart enough to sense that I am talking negative about payday loans.