Payday Loan Minnesota Alternative

Payday loans are notorious for their interest rates that often exceed 300%. Most lenders require that clients pay off on the following day or within a few days. Many borrowers frequently end upĀ  trapped and unable to break the cycle without help from outside. People are more likely to go for a payday loan when they suddenly need a sum of money due to a health issue, car trouble or accident, divorce, having to move to another place, loss of job, etc.

What is Exodus?

Today, crowds of people are struggling to get their loan burden off their shoulders. Many have gotten bogged down pretty much, as things grow tougher for them every day. A group of enthusiasts came up with a community-based alternative to the numerous predatory payday loan organizations. They are trying to help borrowers to break free by providing low-cost or interest-free loans. Exodus Lending is a non-profit lender from Minnesota. The organization was founded in 2015 by Holy Trinity Lutheran Church congregation members and by now it has helped about 200 people.

How It Started

It all began when members of the Holy Trinity Lutheran Church congregation spotted a new payday lending office opening next to the church in South Minneapolis. Alarmed by this fact and not wanting to have another money-pumping firm in the neighborhood, a group of congregation members, some of which were facing the payday loan trouble, started a community. Its members would donate a sum of money to form the budget.

How it Works

Today, Exodus is a kind of credit union, whose goal is to provide access to banking services for people, who are in debt and therefore cannot qualify for a bank loan. Still, the main purpose is helping people out of the loan trouble. To do so, the organization provides a no-cost loan for its members. In other words, a client can borrow $1,000 and have twelve months to pay the sum unchanged, i. e. an interest-free basis. Or, the organization can pay off the whole loan to the lender and give the client time to pay off just the principal sum over a set period. As a result, people finally get a little bit more of financial freedom and a sense of hope. Eventually, they get a good chance to pay off their current debts.

This is not the only people-oriented credit organization in Minnesota. There are at least five such communities, which provide low- or no-cost loans to people in need. Statistically, very few clients fail to pay off these loans. Therefore, less than 1% of these loans are bad, and credit unions can apply for federal grants, which can help credit unions compensate for the losses and keep them functional.

Exodus and similar non-profit people-oriented credit organizations employ highly qualified financial experts and counselors. They seek to build a one-to-on relationship with each client to understand his or her situation and advise the best payoff strategy.

 

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