Some people might say, “Only in America!” but we wouldn’t be surprised to see this new type of loan become popular here in the UK too. Apparently, “puppy loans” are the latest idea in the US. But there are warnings that high interest loans, when combined with the emotional impact of a cute puppy, could lead to financial problems – especially when you consider the high costs of pedigree “designer” dogs. Could the next financial crisis be triggered by overly aggressive sub-prime puppy loans?
CBS Los Angeles reports –
“Now you can actually take out a pet loan and make monthly payments just like you do with any other loan. But things can go wrong when aggressive lending meets high emotions… Most of us use loans for big-ticket items like a house, a car or college. But now consumers are using financing to help pay for puppies… “Once you pick out the puppy, they finance you like a car,” Laura Eastman says… Eastman financed her $2,500 golden doodle, Astro, about a year ago from a pet store in Riverside County… She says for her and her family, financing seemed to be the only way to go… “I didn’t put any money down and you pay it off in three years, and they were small payments, ‘So, oh that’s feasible,’ ” Eastman thought… Eastman says she never had a chance to see the contract on paper as it was all done electronically in the pet store. Everything seemed fine until 14 days later when a payment was taken from her bank account without her knowing.”