Daily Dupaco

Wednesday, May 21, 2014

Dupaco is a thrifty refuge from payday lenders

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.

In 2013, Dupaco made more than 25,000 loans. Of these, nearly 25% were small-dollar loans—loans of $2,500 or less. These do not include credit card advances or overdraft protection.

Dupaco Loans $2,500 and Under:

  • Number of Loans Made: 6,139
  • Average Loan Balance: $1,106
  • Average Interest Rate: 11.53% APR
  • Loan Fees Charged: $0
  • Repayment Terms: Flexible

Of those 6,139 loans, these were $500 and under:

  • Number of Loans Made: 1,727
  • Average Loan Balance: $384
  • Average Interest Rate: 10.81% 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.

Comments (1)
Loans for perfect people only
Brandon
 • 1631 days 1 hr 14 mins 22 secs ago
Just wanted to say that all of the advertising/claims about the "miracle" Dupaco money make overs, and the hype about the "helping hand" alternative loans ( instead of resorting to Payday Loans ), are STILL only available to members that have the "perfect" scores, and NOT for the members that continue to fight through all of the financial struggles that keep them below the criteria needed for a helping hand...It comes down to the same story...
 

Re: Loans for perfect people only
Dupaco Moderator
 • 1626 days 12 hrs 15 mins 27 secs ago

Brandon, we're sorry you feel that way. Please know that Money Makeovers come in all different shapes and sizes and don't always result in immediate interest rate or payment savings. Sometimes we focus on setting longer term goals, like building credit, improving a score, paying down a debt, or creating a budget- which will eventually lead to money savings.

 

Loans for perfect people only
Brandon
 • 1631 days 1 hr 14 mins 22 secs ago
Just wanted to say that all of the advertising/claims about the "miracle" Dupaco money make overs, and the hype about the "helping hand" alternative loans ( instead of resorting to Payday Loans ), are STILL only available to members that have the "perfect" scores, and NOT for the members that continue to fight through all of the financial struggles that keep them below the criteria needed for a helping hand...It comes down to the same story...
 

Re: Loans for perfect people only
Dupaco Moderator
 • 1626 days 12 hrs 15 mins 27 secs ago

Brandon, we're sorry you feel that way. Please know that Money Makeovers come in all different shapes and sizes and don't always result in immediate interest rate or payment savings. Sometimes we focus on setting longer term goals, like building credit, improving a score, paying down a debt, or creating a budget- which will eventually lead to money savings.

 

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