In Penn. You Can Save As You Borrow
Thank goodness, there are some of them out there in Pennsylvania who are not waiting for some kind of judicial intervention. They have decided to pull up their socks and do something about the payday menace. And that too with an organized front — finally, credit unions seem to be getting their act together. (Whatever took them so long to think up this plan? Especially when there already are similar programs operational in other states!!)
You know, I used to write about credit unions being good alternatives to payday loans. But they were so boring, so goody-goody that I couldn’t go beyond explaining a little about them. I mean, they weren’t doing anything to be in the news whereas the ‘wicked’ payday loans were in the limelight ALL THE TIME. Well, these guys, at least some of them seem to have woken up finally. (Better late than never, I say)
Thirteen credit unions recently signed up for the Pennsylvania Credit Union Association’s new ‘Better Choice’ program. This program aims to provide members statewide with an alternative to payday lending — one that provides the small amounts of cash they need. There’s more: they will teach financial skills and even provide a little savings. Whoopee! Better Choice may debut by late this year.
So how does it actually work? In this program, members can take out installment loans of up to $500 for a maximum of 90 days. You’ll have to pay a $25 application fee and 18 percent annual percentage rate interest. Ten percent of the loan amount will be deposited into a savings account in your name. This means if you take a $1000 loan, $100 will be saved.