In July, single-mom Allie needed cash to pay for her pre-schooler’s trip to Urgent Care after he fell at daycare. Diagnosis: broken arm. Cost: $350. Allie’s $9 per hour job in a dental office doesn’t go far. With no emergency savings, she turned to a payday lender and got $350.
In December, after “renewing” that initial loan 13 times, Allie was able to pay in full. Her final cost in fees and 460% interest: $1,152.
Had she had the choice to take that loan from Community HOPE Federal Credit Union, Allie would have repaid $381, at 18% interest.
That $771 that Allie gave to the Payday Lender could have paid her rent, or her daycare costs, or several months’ groceries. Instead, it left the city of Lincoln, contributing nothing to our local economy
Lincolnites like Allie deserve a choice. They deserve Community HOPE.
Established in June of 2017, Community HOPE Federal Credit Union will provide services like reasonably-priced short-term personal loans, payroll check cashing, checking and savings accounts, and other financial products to people who live, work, worship, learn or use poverty-alleviation services in a large area of Central Lincoln, generally referred to as Antelope Valley. See attached map.
Community HOPE (Helping Our People Excel) has been chartered under a recent federal law designed to help people who lack access to mainstream banks or credit unions. Community HOPE will work with agencies and others serving low-income residents to help them access services.