SVDP Helped Me Restructure my 700% PayDay Loan
As a single mom with a family, I loved my job and it paid well. Yet, my finances were in disarray. I was behind on paying my utility bills, car loan and rent. Surely, a PayDay Loan was a quick and easy fix to my financial struggles!
My bills continued to pile up! I saw no end to my financial problems. I reached out to the Society of St. Vincent de Paul (SVdP) for help. On my first visit with volunteer advocates, I saw I had a chance to get back on my feet again !
Yet, my PayDay Loan, with an interest rate 700%, kept me trapped in a cycle of debt! Then, my volunteer advocates introduced me to SVdP Mini-Loan Program (MLP) as a way to help me take control of my finances. While reviewing my bank statements and budget with my volunteer advocates, I became more knowledgeable of unwise financial decisions I had made over time.
During additional meetings, I set up a budget with the help of MLP Coordinator and encouragement of my volunteer advocates. The key point of these meetings was to set up a budget I would stick to. I needed to be truthful to myself and to understand all my finances, both income and expenses. With confidence, I applied for a low interest bank loan available through the Mini-Loan program. Shortly thereafter, I was approved. YEAH!
Now the difficult part started. I had to stay on budget! My SVdP volunteer advocates helped me. Together, we reviewed my budget periodically, addressed other obligations, and established written goals. They gave me a reality check on how loans are obtained. And, most importantly, they kept my feet to the fire to ensure my budget goals were met.
I was comfortable and very proud I was managing my finances. By year end, all my bills were current. My only debt was the MLP loan which was being paid on schedule. I established a “credit builder account” with a credit union to increase my FICO score and help me with future goals. Within sixteen months, I paid off the MLP loan, raised my FICO score from 545 to 670, and had cash in the bank!
I have no doubt my volunteer advocates were sent by God!
St Vincent de Paul Mini Loan Program
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 a 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.
Read this story about how St Vincent de Paul helped Tricia with a PayDay Loan
https://www.svdpfrisco.org/blog/2020427/helping-our-neighbors-get-out-of-debt
If you have a payday or auto title loan:
Our mini loan conversion program may be able to help.
We offer low-interest re-financing, so you can escape manipulative and predatory lenders.
One-year program, with ongoing support
Financial coaching to help you plan and save for the future!
If you do not have a loan, but need help covering an emergency expense:
You may qualify for a low-interest emergency loan
Amount between $500 - $2500
For use on expenses like home and auto repair, a deposit on a new or safer apartment, and medical bills
Benefits of SVdP Mini Loan Program
Helps you get out and stay out of the harmful, never-ending cycle of debt
Frees you from pushy, intimidating lenders and collections agents
Builds your credit score
Ongoing, caring support for our participants
A new savings account once you complete the 1-year program