Numerous Floridians without usage of other types of credit depend on payday advances – little sums that really must be paid back over brief periods

Numerous Floridians without usage of other types of credit depend on payday advances – little sums that really must be paid back over brief periods

– to pay for necessities between paychecks. However with normal annual rates of interest on such loans frequently into the triple digits, that support will come at a hefty cost.

Payday financing alternative

Keith Bowers, local manager when it comes to Florida SBDC at Florida A&M University

The Florida SBDC at Florida A&M University in Tallahassee worked with Mainstreet Financial, a partnership of financial literacy organizations Mind Over Money, Wealth Watchers and RAISE Florida, to draft a plan to offer “payday alternative” loans of up to $500 to those relying on traditional payday loans over the summer. Their objective would be to get lending that is payday the money they require at a lowered rate of interest and to eventually wean them off pay day loans completely.

Like old-fashioned pay day loans, Mainstreet lending products will be very easy to get

– requiring bit more through the debtor than a open bank checking account and proof work. Nevertheless, payday alternate loans would vary from regular payday financing in a few means. Continue reading “Numerous Floridians without usage of other types of credit depend on payday advances – little sums that really must be paid back over brief periods”