Katie Hopkins sparks backlash after branding payday lending 'a good business model'

LOUDMOUTH Katie Hopkins has provoked a Twitter row after she defended payday lending companies, saying they were “a good business model.”

The controversial star took part in a heated TV debate about debt last night in which she also criticised teenage mothers and slammed people for spending too much money on Christmas. 

Hundreds of people took to Twitter to condemn her views but today she remained defiant in the face of mounting anger. 

Ms Hopkins made her comments on Channel Five’s The Big 'Can't Pay' Debt Debate: Live, which was hosted by Nick Ferarri. 

She was was joined by panelists Jim Davidson who was declared bankrupt, former premier league footballer Lee Hendrie whose problems with debt drove him to attempt suicide, and Olympic legend Eddie ‘The Eagle’ Edwards who has also struggled with debt.

When the issue of payday loans with high interest rates was raised Ms Hopkins said : "I think it's a decent business model."

She slamed another woman, who had struggled with debt after spending £1,600 on Christmas presents, saying: "You have to save for Christmas.” She later questioned how anyone can spend that kind of figure on children’s gifts.  

The 39-year-old’s appearance on the show sparked a fierce reaction on Twitter.

TV psychologist Jo Hemmings wrote: “Is @KTHopkins obligatory in every TV debate? If they can only find one gobby mare like her, it's hardly representative.”

‏Another, @MetalOllie, added: “Why do we need to hear from that vacuous, hate filled bag of spew. Katie Hopkins voice is of NO value to ANY serious debate

While ‏@JoeyRymell  posted: “@KTHopkins we don't hate you because you're famous, you're famous because we hate you.

But Hopkins too took to the social media site to hit back at those criticising her.

She wrote: “I don't worry about debt because I don't buy things I can't afford. We save for the future, insure against illness & tell kids 'no'. Simple”

She also tweeted: “The only thing people in debt have in common other than bad money management, is an ability to blame anyone but themselves. #debtdebate”

The debate was held after research by Channel 5 discovered British families owe a record £1.4trillion, the equivalent of £54,000 for every home.

Nine million people are said to be struggling to pay their debts. Millions of Britons would have to borrow money to pay their bills within a month of losing their job. 

Forty per cent would need a loan within three months, while one in 10 is so close to the financial abyss that they live week-to-week and would have to go cap in hand to friends or family to make ends meet.

Even when mortgages are taken out of the calculations, the average family still owes more than £8,000, according to the survey.

Christian Guy, director of the Centre for Social Justice, said: “Years of increased borrowing, rising living costs and struggling to save have forced many families into a debt trap that is very difficult to escape.

“Problem debt can have a corrosive impact on people and families. It can wreak havoc on mental health, relationships and wellbeing.

“People are awake until the early hours worrying about their finances and bills, while some of the poorest are cut off from mainstream banking and have no choice but to turn to loan sharks and high-cost lenders.” 

The study also revealed a worrying lack of financial knowledge, with one in six borrowers having no idea what interest rates they are paying.