riverset’s Better Choice Program positions our credit union as a solution to the growing problem of payday lending.  The Better Choice Program offers our members the ability to obtain access to a shorter term loan, with an amount not to exceed 500.00 at a considerably lower interest rate (only 18% interest as compared to percentages oftentimes in the hundreds charged by local payday lenders).  Our program also features a mandatory savings component as well as financial counseling in an effort to assist in breaking the payday lending cycle and attempting to help change the member’s behavior.

We are not alone in this program and we are pleased with the positive response it has received.  A typical $500 payday loan can cost consumers $15 for every $100 borrowed for 2 weeks or approximately $450 over 90 days!  A $500 Better Choice loan costs our members approximately $42.50 for the same 90 days and at the end of the term, the member has $50 in a savings account which allows them to develop a savings habit.

riverset’s Better Choice Program at a glance:

• 90-Day Repayment Term
• Flexible Monthly, Bi-weekly, or Weekly Payments
• $25 Application Fee
• $300 Minimum Loan
• $500 Maximum Loan
• 18% Annual Percentage Rate (APR)
• A Built-In Savings Benefit
• Optional Financial Counseling

Even though we are providing our membership with this viable alternative to the often unscrupulous practice of payday lending, we strongly encourage our membership to find every alternative to this type of borrowing.  In this vein, we continue to provide FREE financial counseling through Balance Financial Fitness.