Churches utilize governmental stress, small-dollar loans to fight predatory payday lending

Churches utilize governmental stress, small-dollar loans to fight predatory payday lending

Anyra Cano Valencia had been having supper with her spouse, Carlos, and their loved ones when an urgent knock arrived at their home.

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The Valencias, pastors at Iglesia Bautista Victoria en Cristo in Fort Worth, Texas, started the doorway up to a hopeless, overrun congregant.

The girl along with her family members had lent $300 from the “money shop” devoted to short-term, high-interest loans. Not able to repay quickly, that they had rolled on the stability as the loan provider included charges and interest. The lady additionally took away that loan regarding the name to your family automobile and borrowed from other lenders that are short-term. By the time she stumbled on the Valencias for assistance, your debt had ballooned to significantly more than $10,000. The automobile had been planned become repossessed, as well as the girl and her household had been at risk of losing their house.

The Valencias and their church had the ability to assist the family save the automobile and recuperate, however the event alerted the pastoral duo to a growing problem: lower-income Americans caught in a never-ending loan cycle. Continue reading “Churches utilize governmental stress, small-dollar loans to fight predatory payday lending”