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| Dupaco is a Thrifty Refuge from Predatory Lenders |
| Posted: | November 4, 2009 |
| Details: | Dupaco is a thrifty refuge from predatory payday lenders, who often times lock people into an endless cycle of high-cost debt. Dupaco helps members in a short-term pinch, and coaches them to the goal of financial independence. That’s because we’re a not-for-profit cooperative, where people are worth more than money. Here are the facts:
Dupaco Low-Dollar Loan Statistics, July 1, 2008 to June 30, 2009
Loans Under $2,500
Number of Loans Made: 3,033 (58 per week)
Average Loan Balance: $1,159
Average Interest Rate: 11.78% APR
Loan Fees Charged: $0
Repayment Terms: Flexible
Loans Under $500
Number of Loans Made: 731
Average Loan Balance: $395
Average Interest Rate: 12.44% APR
Loan Fees Charged: $0
Repayment Terms: Flexible
Comparison of Dupaco Low-Dollar Loan to a Loan from a Typical Payday Lender
Dupaco:
Loan Amount: $100
Loan Fee: $0
Average Interest Rate: 12.44% APR
Repayment Term: 1 month
Actual cost of credit: $1.02
Payday Lender:
Loan Amount: $100
Loan Fee: $16.50
Average Interest Rate: 430.17% APR
Repayment Term: 2 weeks
Actual cost of credit: $16.50
Payday lenders may argue that the APR is misleading because loans are often paid back within two weeks. But, if the borrower is unable to repay the loan in full, the cost of the loan escalates. At this point the loan is “rolled over” into a new loan. If this continues, the original payday loan becomes expensive and starts a cycle of debt. By setting up loans with easier repayment terms, Dupaco can help individuals stop the borrowing cycle.
Dupaco Offers Free Money Makeovers
Dupaco takes seriously our mission to promote thrift and help families get ahead in life. Our team of professionals assists members and non-members through free one-on-one consultations intended to help individuals review their entire financial picture, and look for every possible way to restructure allocations so they can pay less and save more. Dupaco can help individuals identify ways to cut costs and free up money to systematically save for a brighter future.
Dupaco Educates Thousands with Free Credit History Lessons
Utilizing free public seminars, on-site presentations at businesses, and free one-on-one personal consultations, Dupaco has taught thousands of consumers how to drive up their credit score and pay less. As a result, many members who had past credit difficulties have been able to reduce interest rates, eliminate fees, and get back on the road to financial success. Dupaco will even lower loan rates for members as their score improves.
Individual Development Accounts (IDA)
Through the Credit Union Family Partnership Program, Dupaco will open the savings accounts and matching funds will come from the Iowa Credit Union Foundation.IDA’s are for participants who meet income guidelines and are residents of the state of Iowa. Funds are then used by the individual to purchase a specific asset, such as a home, starting or expanding a small business, paying for education or job training, or purchasing a vehicle to get to work. |
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