We are so fortunate for the opportunity to launch a loan program to relieve Life Skills participants of high interest rates and overwhelming debt. Loans are applicable to participants in our Life Skills Program, once they complete their eight-week financial literacy program where participants learn budgeting and money management, and after they are paired with a Peer Support who they meet with on a weekly basis.
“We have a handful of Life Skills participants who enter our program with predatory loans because they either don’t have the traditional collateral to get a loan or they have a bad credit score”, explained Jodi Cole Meyer, Executive Director of Love Your Neighbor. “Predatory loans typically charge a 300% annual percentage rate, which is an unsustainable amount.”
With the help of a local credit union, we structured a loan program that allows participants to get a loan in their name, AND make the payments. Life Skills participants work with the credit union, their peer support, program leader, and the Director of Relational Ministries to ensure the loan will be repaid within 12 months.
“We expect a 12 month repayment at around a 6% interest rate! This gives individuals the opportunity to pay reasonable payments and pay down debt, instead of just paying interest. This will help participants establish a good relationship with a bank and boost their credit score,” stated Cole Meyer.
Our ultimate goal is to relieve participants from high interest debt, improve family’s credit scores, and introduce them to a banking relationship with an institution that is eager to have them as clients.
With God’s help, the community was able to collaborate to make this loan program possible. “We invested money that we received from the community, funds that were provided from a donor who had a vision for a better future, and was connected with a credit union who shared the same vision,” stated Cole Meyer.
God has truly filled our hearts with joy and peace that the Life Skills participants now have the opportunity to not only get a loan, but pay a 6% interest rate. This community has put their trust in Him to provide opportunities for local families, helping them regain hope.
This opportunity was unimaginable without the help of God. He has blessed us with SO many amazing opportunities and it’s only the beginning of 2022! We are fortunate we can provide community members with helpful resources during their season of struggle.
“I know that the Lord secures justice for the poor and upholds the cause of the needy.” – Psalm 140:12