A SOLUTION TO PREDATORY LENDING
Helping People Trapped in a
Web of Payday Loan Debt & Fees
Like so many others, John and Julie were already struggling financially when they took out a payday loan for temporary financial relief, only to find themselves trapped in a long-term cycle of predatory debt. Their situation went from bad to worse as inflated loan fees quadrupled the amount of their original loan and put them in a more dire predicament than before the loan.
While our laws should protect people like John and Julie against unjust lending practices, sadly this is not the case. And so predatory loan companies have flourished in our city, while thousands of our fellow citizens are compelled to pay over 450% in fees and interest - with no foreseeable way out of their predicament.
Fortunately, John and Julie heard about Pay Grace Forward and went through our 12-week mentoring program with two of our volunteers. After completing the mentoring process, they qualified for a low-interest grace loan that enabled them to get out of debt crisis. Now, John and Julie have not only paid off their loan debt in full, but they also know how to manage their money so they don't fall victim to predatory loan companies ever again.
We invite you to explore this website to learn more about this growing problem in Maury County, the ways we can help you if you're in debt, and how concerned citizens like yourself can help us transform the lives of our fellow citizens, one person at a time.
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THE HARD TRUTH
You won't believe what these predatory loan businesses get away with.
CRAZY HIGH FEES
Payday and title loan companies can charge up to 457% APR interest through rewrite fees and other charges, meaning that a $500 payday loan can end up costing the borrower over $2,000.
HIDDEN IN THE FINE PRINT
These predatory loan companies hide their fees and burgeoning interest rates in the fine print. In most cases, they also have direct access to the borrower's bank accounts to electronically withdraw funds on a routine basis.
TARGET THE VULNERABLE
Maury County currently has
20+ payday loan and title
loan businesses. These lenders also tend to target borrowers with credit problems, people who recently lost their jobs and the mid-to-lower income demographic.
Fortunately, Pay Grace Forward offers a better and more caring way to help our fellow citizens in debt.
OUR THREE-STEP PROCESS
1.
OUTREACH TO THOSE WHO NEED HELP WITH DEBT
Pay Grace Forward is a Christian response to predatory lending by payday loan and title loan companies who prey on people in financial need. Our mission is to help victims of such debt get out of the exploitative trap of high-interest loan obligations, learn new strategies to take control of their money and financial responsibilities, and overcome their current financial situation.
2.
MENTORING
WITH HANDS-ON INVOLVEMENT
We strategically pair our "client friends" with two dedicated and compassionate mentors who meet together for 12 weeks to review the client's financial situation, prepare a working budget, and help develop an effective strategy to overcome their debt crisis, while also learning better money management skills. Frequently, this mentoring has a beneficial impact on other areas of the clients' lives, as well.
3.
LOW-INTEREST "GRACE" LOANS TO CONSOLIDATE DEBT
After our client friend has gone through the financial mentoring process and successfully demonstrated a commitment to the budgeting process, to reducing their debt burden and creating healthy financial habits, we provide a low-interest loan through one of our bank partners to replace the high-interest loan debt!