Alternatives to Payday Loans Appear

(October 4th, 2007)

A credit union in Kansas city called Boeing Wichita Credit Union has recently launched a new program. Members of this credit union will be able to take out loans of up to 20% of their monthly income up to $500 dollars at an interest rate of 36 percent a year. This differs from payday loan companies who charge an annual interest rate of around 400 percent.

Furthermore Wichita Credit Union isn't the only company increasing new programs to combat the ugly payday loans industry. The Credit Union of America recently introduced a "second chance" loan program a few months ago. Members of the credit union who take on such a loan must take an online financial education class it developed with Consumer Credit Counseling.

Also, the government run Federal Deposit Insurance Corp. (FDIC), created guidelines for banks who wish to create small-dollar, low interest loan programs.

Things look up in the combat against the payday loans industry. Hopefully change spreads quickly so people all over the country can get help.

Jason Stokes