Helping Our Neighbors Get Out of Debt
When individuals need a small loan to meet an unexpected expense - they have few options. Often, the only place to go is to a lender that charges high interest rates or holds the individuals vehicle title as collateral. These lending practices have been identified as a major barrier to escaping poverty for low-income individuals.
Tricia, a middle aged single mom, was laid off from her job after 15 years in the service industry. Her savings was exhausted! She was served an eviction notice. She desperately needed money to prevent her electricity from being disconnected in 2 days. She felt trapped! She mistakenly believed that a PayDay Loan was the answer to getting the needed money - it was easy and quick. A PayDay Loan for $200 at 528.33% Annual Percentage Rate (APR), the twice monthly payments of $64.69 seemed manageable. Without realizing it, she was caught in the cycle of debt! It would cost her a total of $765.91 after she made all 12 payments as scheduled.
Tricia’s crisis was eased with a new full-time job and with Society of St Vincent de Paul’s (SVDP) financial assistance and a monthly budget. Yet, she still struggled to meet monthly basic living expenses and to keep up with the PayDay Loan scheduled payments. She still tossed and turned through-out sleepless nights.
Assured that Tricia would be self-sustaining, SVDP paid the remaining balance. Tricia rejoiced and vowed never to visit a payday lender again! She can now put money in a bank savings account. And, she sleeps peacefully all night!
Do you work hard and struggle to make PayDay or Title Loan payments and pay bills each month?
Individuals who have taken out PayDay Loans or Title Loan can find a better alternative to escalating debt and high interest rates with St Vincent de Paul’s Mini Loan Program. Qualified individuals, who have a source of income, can pay 3.15% (APR) interest on a Mini Loan co-signed by SVDP and get help fine-tuning a budget and establish a savings plan. Call 469-619-4096 to learn more about the SVDP’s Mini Loan Program.
Keeping a roof over Ashley's Head
Ashley, a 26-year-old, college graduate with a degree in biology resides with her mother and her 3-year-old brother who has special needs and requires surgery. Ashley's mother is not able to work due to the severity of her son's health. She receives SNAP, child support, and has applied for SSI on behalf of her son who is on Medicaid. Ashley’s income is crucial to support of the household. She was laid off 5 months ago and while looking for a new job in her field, she worked as a caregiver to homebound elderly. The pay was substantially less, and the family was not able to make ends meet.
Volunteer Advocates, Joan and James met with the family and quickly discerned that their needs were great and time critical. The rent was late, and she only had $600 of the total amount due ($1,456). The court date was two days away and although SVDP approved assisting the family with rent. Our contribution alone was not enough to pay all the rent plus late fees. We put out a request and our sister conferences quickly responded to our urgent appeal. When we face tough situations like this, we reach out to our sister conferences. They know that we will return the help when they are in need so after appealing to them for help, the remainder of funds needed were quickly provided by our sister conference.
The rent payment was made, and the eviction proceedings were halted before the court date.
FYI.. When Volunteer Advocates met with Ashley to make the rent payment, she greeted them with a big smile and a hug. Ashley had secured a new job with good pay and with benefits! God is Good! All the Time!