Move over payday loans, there is a new kid in town, and they are open for business! This payday loan alternative program has hit Woonsocket R I.
Trying to convince the state of Road Island to ban payday loans has failed. And a joint venture of the United Way and the Capital Good Fund has created an alternative to payday loans.
The Program
A group of advocates have gotten together and formed an alternative program to payday loans. The main reasons lawmakers and politicians used for not making reforms were there were no alternative programs to payday loans.
This group, backed by the United Way and the Capital Good Fund, has secured a $57,000 grant to help kick start this venture.
“Every time we would go into low-income neighborhoods, we would find several common businesses, like payday loan companies, pawnshops, furniture rental businesses, and the likes. These companies prey on the poor, so we thought we needed an alternative.” Said the president of the United Way, Anthony Maione
How it works
The plan is to make short term loans around $300 to $500 with an annual interest rate cap of 36%, which is much better than the average payday loan interest rate of around 260%
These loans would be written on a line of credit supplied by Navigant Credit Union. Amica Insurance of Lincoln will also guarantee them.
Summary
Will the people of Road Island support this venture and choose these loans over payday loans? Hopefully, they will, and more of these kinds of programs will surface around the country.
Until that happens, people are still getting trapped in the payday loan trap.
Remember, if you are trapped and have out-of-control payday loan debt, we at Eliminate Payday Loan Debt can help. Fill out our form by clicking here or call us toll-free at 1. 877.734.6700 for a free no-obligation quote.
We would love to help you get back on your feet!
