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.